Harmonic Slashes Q2 Outlook

Harmonic Inc. slashed its outlook for second-quarter results, as an acceleration in its over-the-top software-as-a-service (OTT SaaS) business weighed on results. The video delivery infrastructure company said it now expects an adjusted per-share loss in the range of 21 cents to 19 cents, compared with a previous outlook provided in May of a per-share loss of 4 cents to breakeven. Revenue is now expected to be $80.0 million to $82.0 million, down from previous guidance of $94.5 million to $102.5 million. The FactSet consensus was for a per-share loss of 2 cents and revenue of $98.3 million. "Market demand for video infrastructure delivered through software subscription and cloud services is accelerating," said Chief Executive Patrick Harshman. "While this improvement in OTT SaaS activity reduced revenue and profitability for the quarter, we believe it will establish a trajectory for more predictable future financial performance in our Video segment." The stock, which was still inactive in premarket trade, has shed 6.4% over the past three months, while the S&P 500 has gained 5.1%.