What happened

Shares of Harmonic (HLIT 1.69%) have gotten pummeled today, down by 16% as of 12:30 p.m. EDT, after the company reported first-quarter earnings results. The telecommunications infrastructure specialist missed expectations, guided the second quarter below consensus estimates, and withdrew its full-year guidance.

So what

Revenue in the first quarter declined 2% to $78.4 million, missing the $85 million in sales that analysts were modeling for. That translated into an adjusted net loss per share of $0.10, worse than the $0.05 per share in adjusted net loss that Wall Street was expecting. The telecommunications infrastructure company finished the quarter with $71.7 million in cash.

Man streaming videos to his laptop

Harmonic serves the video-streaming industry. Image source: Getty Images.

"While Harmonic's financial results were impacted by Covid-19, we delivered on several key business initiatives," CEO Patrick Harshman said in a statement. "Cable Access segment revenue grew over 85% and recurring SaaS and Service revenue grew over 10% in the past year."

Now what

Guidance for Q2 also disappointed investors. Harmonic expects revenue in the second quarter of $62 million to $77 million, well below the $97.2 million consensus. Adjusted net loss per share should be $0.09 to $0.18, while analysts were looking for $0.02 per share in adjusted profits.

Additionally, the ongoing COVID-19 crisis continues to create unprecedented economic uncertainty, so Harmonic is withdrawing the 2020 guidance it had previously issued. The company says it will "reassess this position based on the clarity of macroeconomic recovery at the end of the second quarter."