Harmonic’s net revenue for the first quarter of 2012 was $127.7 million (EUR96 million), compared to $132.8 million in the first quarter of 2011.
The revenue was adversely impacted by an unexpectedly slow order rate in the early part of the quarter and a decline in demand from European customers throughout the quarter.
Total bookings in the first quarter of 2012 were approximately $142.5 million, up 8% from approximately $131.6 million for the first quarter of 2011.
Gross margins for the first quarter of 2012 were impacted by a revenue mix with lower video processing sales and increased cable edgeQAM sales. The company’s new edgeQAM products initially carry lower gross margins, but are expected to enable future sales of higher margin software licenses as network traffic increases.
“We got off to an unusually slow start in the first quarter and our European business remained soft throughout the quarter, but our bookings growth in other geographies underscores the fundamental strength of our business,” said Patrick Harshman, president and CEO, in a statement.
“During the first quarter, we saw robust demand for our HectoQAM product and record professional services and support bookings. We’re also encouraged by the positive customer response to the introductions of our powerful new playout, distribution and multiscreen delivery solutions.
“While we have uncertain near-term visibility regarding our European business, we continue to expect sequential growth in the second quarter and believe that the global proliferation of video content and media outlets, along with increasing demand for higher quality video in every format delivered over bandwidth constrained networks, plays to our core strengths.”
Harmonic said it anticipates net revenue in a range of $130 million to $140 million for the second quarter of 2012.
