Harmonic tumbles on revised outlook
Wall Street is frowning on Harmonic Inc.'s stock, following a revised third-quarter outlook that will come in below previous expectations.
The company expects to post Q3 sales of between $37 million and $39 million, citing a significant slowdown in orders from its domestic cable customers. Its Broadband Access Networks division, which manufacturers fiber optic products for broadband cable networks, is forecasting sales in the range of $13 million to $13.5 million, down from the previous quarter's $23.6 million. Its Convergent Systems division, which manufactures digital headend systems, will post revenue of between $24 million and $25.5 million, down from $32.7 million in the second quarter.
Harmonic expects to record a pro forma loss for the third quarter of between 17 cents a share and 22 cents a share. Analysts on average were expecting a loss of 8 cents a share, according to Thomson First Call.
As of 12:18 p.m. EDT, Harmonic shares were shedding nearly 29 percent of their value, trading at $1.25. The company's shares have traded as low as $1.10 and as high as $15.13 in the last 52 weeks.