The crisis at broadband solutions and technologies developer
is worsening. On the occasion of revealing mounting losses, the company revealed plans to cut back staff and shut down product lines in an effort to stop the hemorrhage.
Harmonic reported a massive $44.9 million loss for the first quarter of 2001, representing a loss of 77 cents per share.
Its loss is miles away from analyst expectations of a 52 cents per share loss, and light years away from the 28 cents profit the company posted in the comparable quarter last year.
Q1 revenues slid to $40.3 million, against $62.9 million in the parallel.
Harmonic explains the massive gap between the forecasts and the results in its efforts to cut costs and increase efficiency. While announcing its losses, the company revealed intentions to cut back further on personnel. This time it will be letting go 130 workers, constituting 15% of its workforce.
These cutbacks are in addition to the ones it already implemented in the beginning of the quarter, and will be accompanied with a shutdown of several product lines.
"Our business continue to suffer the brunt of the buying budget cuts of our principal clients," said Anthony J. Ley, chairman, president and CEO of Harmonic. "In the near future we intend to cut down expenses without sacrificing our competitive stance and our abilities to develop excellent new products."