Harmonic on Monday reported its first quarter earnings and said that its video segment performance was “heavily impacted” by coronavirus-related delays.
During the company’s earnings call, CEO Patrick Harshman said several video appliance shipments and integration projects planned for March were delayed due to the virus.
“On the other hand, our recurring revenue in video SaaS and support services performed quite well,” said Harshman, according to a Seeking Alpha transcript.
Elsewhere, Harmonic’s cable access segment revenue totaled $24 million during the quarter, up 85.6% year over year despite modest disruption in March for rollouts of CableOS, the company’s virtual converged cable access platform. CableOS is commercially deployed with 27 cable operators, up 17% sequentially and CableOS is actively serving over 1.3 million cable modems, up 30% sequentially.
Harshman said that in March the company saw several ongoing CableOS deployments initially paused before being restarted and proceeding at a slower pace following the implementation of appropriate safety precautions. He said the mid- and long-term outlook remains positive evidenced by a strong project pipeline but that the company is expecting “modest impact.”
Harshman said there is still an addressable service footprint opportunity of over 45 million modems after CableOS’s 27 deployments, which includes a $175 million licensing deal from Comcast.
Harmonic’s consolidated first-quarter revenues totaled $78.4 million, down 2.1% year over year. The company recorded an operating loss of $18 million. Looking ahead to the second quarter, Harmonic is expecting net revenue to fall between $62 million and $77 million and operating loss to fall between $23 million and $13 million.
“The future impacts of the pandemic are difficult to forecast but we are well positioned for the long term, as the broadband cable access and video streaming services we enable remain vital and our core technology position remains strong. We continue to operate effectively with near-term focus on ensuring the wellbeing of our employees and support of our customers,” said Harshman in a statement.