Harmonic posted a significant drop in revenues for the third quarter, including a bite out of its cable edge business, amid ongoing challenges posed by the consolidation of key service provider customers and “currency-driven” deployment delays.
Harmonic posted Q3 sales of $83 million, down from $108.1 million in the year-ago quarter, and a GAAP net loss of $4.8 million (5 cents per share), versus year-ago net income of $1.1 million (1 cent per share). Analysts were expecting sales of $82.6 million. Harmonic also forecast Q4 sales of $78 million to $88 million, below analyst expectations of $92.3 million. Harmonic reduced its Q3 guidance last month.
“The confluence of these factors resulted in nearly two dozen material orders being delayed out of the third quarter,” company CEO Patrick Harshman said on Tuesday’s earnings call. “One of our largest anticipated third-quarter project was postponed as a direct consequence of customer M&A, and we saw several emerging markets deals delayed as a result of currency considerations.”