Wednesday, July 24, 2013

Why Harmonic Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Harmonic (NASDAQ: HLIT  ) have jumped today by as much as 16% after the company reported earnings.

So what: Revenue in the second quarter totaled $117.1 million, and bookings were $126.3 million. Non-GAAP net income was $5.6 million, or $0.05 per share. That bottom-line result is a welcome improvement compared to the adjusted net loss of $0.02 per share a year ago.

Now what: Non-GAAP gross margin also improved to 54%, and the company closed the quarter with $161.7 million in cash after repurchasing stock. CEO Patrick Harshman said the quarter marked the return to a trajectory it had previously expected. Harmonic is increasing penetration in the broadcast and media market. Revenue next quarter is expected to be in the range of $115 million to $125 million.

Interested in more info on Harmonic? Add it to your watchlist by clicking here.

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