San Jose, Calif.-based Harmonic cited slow order activity in the early part of the quarter and a decline in demand from its European customers. The company said it now sees revenue of $125 million to $128 million and non-GAAP gross margin of 46-48%. Its previous projection was for revenue of $132 million to $142 million in the period and gross margin ranging from 50-52%.
Harmonic sees non-GAAP earnings at 2 to 3 cents a share for the three-month period ending in March. The current average estimate of analysts polled by Thomson Reuters is for a profit of 9 cents a share in the quarter on revenue of $136.6 million.
The stock was last quoted at $4.70, down 5.2%, on volume of more than 75,000, according to Nasdaq.com. Based on Monday's regular-session close at $4.96, the shares were up a little less than 2% in 2012."The combination of lower digital video processing sales in Europe and increased cable edge sales impacted our gross margins in the first quarter," said Patrick Harshman, the company's president and CEO, in a statement. "Looking ahead, our bookings growth and expanding footprint lead us to expect sequential growth in the second quarter and, more generally, point to the fundamental strength of our business." Harmonic said total bookings rose 8% in the first quarter to $142.5 million, and that it still expects non-GAAP operating expenses in the range of $56 million to $57 million, in line with its prior guidance. The company plans to release its full quarterly results on April 24.