(HLIT) - Get Report

was hammered after hours Thursday on a first-quarter earnings shortfall and guidance that trailed estimates.

The company earned $1.7 million, or 2 cents a share, in the quarter, compared with a loss of $2.6 million, or 4 cents a share, last year. Before various items, earnings were $3.4 million, or 5 cents a share, in the most recent quarter. That was short of the consensus estimate of 9 cents a share.

The company said its product mix included a larger-than-expected amount of complementary third-party products for digital systems sold to cable customers, which carry lower margins that other Harmonic products.

Sales in the first quarter of 2005 were $72.9 million, up 32% from $55.1 million a year ago. Analysts had been expecting $72.6 million.

For the second quarter, the company expects to post earnings before items of 5 cents to 7 cents a share on sales of $73 million to $77 million. Analysts were forecasting earnings of 10 cents a share on sales of $76.2 million, according to Thomson First Call.

In the after-hours session, shares plunged $2.25, or 23%, to $7.66.