Harmonic's Higher Expenses Result In 4Q Loss

SAN JOSE, Calif. (AP) - Video services provider Harmonic Inc. reported a fourth-quarter loss Thursday as a jump in expenses overshadowed improved revenue. But its adjusted profit topped analysts' expectations and its shares rose in extended trading.

The San Jose-based company said it lost $13.7 million, or 12 cents per share, compared with net income of $47,000, or breakeven per share, a year ago.

Revenue grew 52 percent to $138.2 million from $86.7 million. However, operating expenses climbed 79 percent to $64.4 million from $35.9 million.

The provision for income taxes was $11 million, compared with $3.9 million a year ago.

Excluding one-time costs, the company reported net income of $12.5 million, or 11 cents per share, compared with $6.3 million, or 7 cents per share a year ago.

Analysts surveyed by FactSet expected 9 cents per share.

Harmonic's shares rose 46 cents, or 5.4 percent, to $9.06 in after-hours trading following the earnings report. They had previously traded between $5.25 and $8.87 in the past 52 weeks.

For the full year, the company's net loss was $4.3 million, or 4 cents per share, compared with a net loss of $24.1 million, 25 cents per share, in 2009.

Excluding items, the full-year earnings were $36.4 million, or 35 cents per share, compared with $18 million, or 19 cents per share, for 2009.

The company said it expects first-quarter net revenue of $129 million to $132 million. Analysts are expecting $128.4 million.