Q4 UHD-Related Sales at Harmonic Rose 58% Sequentially; Stock Down on Outlook Concerns

Harmonic continues to see growing demand for its Ultra HD “solutions,” said CEO Patrick Harshman Monday on a Q4 call. Harmonic’s UHD-related sales rose 58 percent sequentially, “which continues the strong sequential UHD growth trend we saw throughout the year,” he said. “Frankly, it's been a long time coming, and we're pleased to be finally taking advantage of a growing worldwide investment cycle and deploying and monetizing high-quality ultra-high-definition programming.” The cable gearmaker expects total Q1 revenue to fall sequentially, to as low as $80 million from Q4's $113.7 million. Its outlook missed expectations, Raymond James' Simon Leopold wrote investors. "Harmonic’s business pivot has progressed, but the process will take time." The weaker guidance and other financial bad news from Casa "could fuel concerns regarding a pause in cable TV operator spending," the analyst said. Harmonic closed down 8 percent Tuesday at $4.97.