Harmonic (NASDAQ: HLIT) reported Q1 EPS of ($0.10), $0.05 worse than the analyst estimate of ($0.05). Revenue for the quarter came in at $78.4 million versus the consensus estimate of $85.02 million.

Q1 Financial and Business Highlights

Financial

• Revenue: $78.4 million, down 2.1% year over year.
• SaaS and service revenue: $30.7 million, up 10.5% year over year.
• Gross margin: GAAP 46.8% and non-GAAP 48.9%, compared to GAAP 52.2% and non-GAAP 54.5% in the year ago period.
• Cable Access segment revenue: $24.0 million, up 85.6% year over year.
• Video segment gross margin: 51.3%, compared to 57.5% in the year ago period.
• Operating loss: GAAP loss $18.0 million and non-GAAP loss $9.5 million, compared to GAAP loss $8.4 million and non-GAAP loss $3.8 million in the year ago period.
• EPS: GAAP net loss per share 23 cents and non-GAAP net loss per share 10 cents, compared to GAAP net loss per share 13 cents and non-GAAP net loss per share 5 cents in the year ago period.
• Cash: $71.7 million, up $1.8 million year over year.

Business

• CableOS solution commercially deployed with 27 customers, up over 17% quarter over quarter.
• CableOS deployments scaled to over 1.3 million served cable modems, up 30% quarter over quarter and 94% year over year.
• Video SaaS customer base increased from 48 to 57 customers, up 19% quarter over quarter and 128% year over year.
• Over 7,300 cloud channels deployed globally, up 56% quarter over quarter and 155% year over year.

"While Harmonic's financial results were impacted by Covid-19, we delivered on several key business initiatives," said Patrick Harshman, president and chief executive officer of Harmonic. "Cable Access segment revenue grew over 85% and recurring SaaS and Service revenue grew over 10% in the past year. The future impacts of the pandemic are difficult to forecast but we are well positioned for the long term, as the broadband cable access and video streaming services we enable remain vital and our core technology position remains strong. We continue to operate effectively with near-term focus on ensuring the wellbeing of our employees and support of our customers."

GUIDANCE:

Harmonic sees Q2 2020 EPS of ($0.18)-($0.09), versus the consensus of $0.02. Harmonic sees Q2 2020 revenue of $62-77 million, versus the consensus of $97.24 million.

For earnings history and earnings-related data on Harmonic (HLIT) click here.