During a conference call after Harmonic Inc. (NASDAQ: HLIT) reported its beating 2Q2016 results, the CEO Patrick Harshman went into detail about what he thinks the future looks like.
First, Harshman sought to bring out the message that the success in the latest quarter did not just come on pure luck. He said that solid internal execution by his management team was fueling the gains and that makes him confident that Harmonic will continue to post improving financial performance.
Internal guidance call for double-digit operating profit in 4Q2016, which CEO Harshman noted that is now within reach given how the company fared in the latest quarter.
Harmonic Inc. (NASDAQ: HLIT)’s chief also took the opportunity at the call to discuss so much about the company’s video business. He said that demand for their video infrastructure continued to be strong during 2Q, adding that he expected uptick in demand because of the intense competition in the video provider space.
It also turns out that integration with Thomson Video Network (TVN) is already generating positive response from customers. TVN is helping Harmonic to enhance the quality and global presence of its video solutions. So far, TVN has not exceeded expectations, but it is in-line with the estimates the company drew before it made the acquisition.
Harmonic Inc. (NASDAQ: HLIT)’s Harshman further cited that they were seeing success in their transition to being a software-centric business.
What transpired in 2Q?
Harmonic generated revenue of $108.8 million in 2Q2016, up from $103.1 million in the comparable quarter last year. The revenue figure in the latest quarter surpassed the consensus estimate that called for topline reading of $104.5 million. Breakeven EPS reported in the latest quarter was better than the consensus estimate that called for EPS loss of $0.04.
3Q2016 outlook – Harmonic Inc. (NASDAQ: HLIT)
Harmonic Inc. (NASDAQ: HLIT) is looking for revenue reading in the band of $104.5 to $109.5 million in 3Q2016. It expects EPS loss in the range of $0.14 to $0.16 in the quarter. For the full-year 2016, revenue is expected in the range of $408 to $418 million and GAAP EPS loss in the band of $0.64 to $0.69.