Monday, January 28, 2013 11:35:06 AM
http://emerginggrowth.com/emerging_growth_stock_picks/emmy-winning-harmonic-inc-nasdaq-hlit-small-cap-in-a-large-cap-sector/01/28/2013
In today’s tech driven era the markets for digital video systems and fiber optic systems are enormously competitive and it seems that the ante is being upped on a daily basis. The markets utilizing these functions are certainly characterized by rapid technological change and declining median prices. The chief competitive factors in this sector are network management capabilities, distribution capabilities, product performance and reliability, as well as price and distribution capabilities. Small-cap companies find it difficult to compete in this segment of the market because principal competitors such as Cisco Systems Inc. (NASDAQ: CSCO), Motorola Solutions Inc. (NYSE: MSI) and Ericsson (NASDAQ: ERIC) are substantially larger and have much greater financial, marketing and technical resources than the smaller players. The larger competitors are also in a better position to withstand significant reduction in capital spending by consumers and are more capable of engaging in price based competition for product sales.
Having said that, there are small-cap companies who do compete in the industry and one of them is Emmy award winning company Harmonic Inc. (NASDAQ: HLIT). In October of 2012 the company announced that it was the recipient of the National Academy of Television Arts & Sciences’ 64th Annual Technology and Engineering Emmy for the company’s contribution toward the development and commercialization of a digital infrastructure for local cable ad insertion. The company garnered the Emmy for its sophisticated video encoding and splicing technologies which have helped to reduce the operational difficulty and expense needed to support local program and ad insertion. Cable operators can now deliver customized advertising for a wide range of video services in a much more cost effective manner thanks to Harmonic. The award is impressive validation for what the company does best and that is designing and selling video infrastructure products. The company announced this month that global satellite communications provider Eutelsat Communications has selected Harmonic to optimize bandwidth allocation for its direct-to-home (DTH) service in Africa. The company has successfully implemented DTH deployments in Africa and globally in the past, so this is not a new Endeavour for them.
But awards and contracts aside, is this a viable prospect for your portfolio? Looking at some of the numbers Harmonic boasts a market cap of $603 million and is trading at $5.21 per share. The company reported that its revenue for Q3 2012 was $136.7 million, down two percent versus the same quarter in 2011 and up three percent versus Q2 of 2012. The GAAP net loss for Q3 was $8.2million or $0.07 per share. This is in comparison to a GAAP net income $3.5m or $0.03 per share for the same quarter 2011. The company reported a GAAP net income of $17,000, or $0.00 per share in the second quarter of 2012. These numbers are on target with the company’s previously issued guidance of revenue in the range of $130 million to $140 million. They are also in line with the consensus expectations of analysts. The company reported that gross margins and operating margins for the Q3 were 44 percent and -1 percent, compared to 46 percent and 3 percent for the same period in 2011, and 43 percent and -2 percent respectively for Q2, 2012. Harmonic attributes the dip in gross margins to product mix, as well as a shift of revenue to emerging markets where ASPs are much lower. The company will release Q4 2012 numbers on January 29, 2013.
Recent MSI News
- Motorola Solutions Reports First-Quarter 2024 Financial Results • Business Wire • 05/02/2024 08:10:00 PM
- Motorola Solutions Summit Showcases How AI and Human-Centered Technologies Simplify and Strengthen Emergency Response • Business Wire • 04/29/2024 04:57:00 PM
- Motorola Solutions to Issue First-Quarter 2024 Earnings Results on May 2 • Business Wire • 04/18/2024 08:10:00 PM
- Motorola Solutions Presents Enterprise Security Innovation and Integration at ISC West • Business Wire • 04/08/2024 02:00:00 PM
- Austrian Ministry of the Interior chooses Motorola Solutions Body Cameras to Modernize Nationwide Front-line Policing • Business Wire • 03/20/2024 09:00:00 AM
- Motorola Solutions Named to Fast Company’s List of the World’s Most Innovative Companies for 2024 • Business Wire • 03/19/2024 01:10:00 PM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 03/11/2024 12:52:10 PM
- California Strengthens Emergency Preparedness with Motorola Solutions’ Rave Prepare for Enhanced Alerting • Business Wire • 03/07/2024 02:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:05:10 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/02/2024 01:05:08 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/01/2024 09:10:27 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/28/2024 10:50:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/28/2024 09:02:48 PM
- Greg Brown, Chairman and CEO, Motorola Solutions to Participate in the Raymond James & Associates' 45th Annual Institutional Investors Conference • Business Wire • 02/27/2024 09:10:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:20:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:20:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:19:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:19:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:18:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:17:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:17:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:16:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:16:12 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 09:15:24 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/21/2024 09:19:53 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM