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What: Shares of Harmonic
So what: During the second quarter the company said that revenue rose 3.8% to $132.6 million and net income was $17,000, or break-even per share. On an adjusted basis the company reported earnings per share of $0.06, which was a penny below expectations.
Now what: The reported quarterly earnings didn't surprise on the upside but third-quarter guidance was in line with estimates and the company's cash flow is improving. Operational cash flow was $28.2 million in the quarter, up from $9.1 million a year ago, and shows the company's ability to turn revenue into cash. The company also has $177.8 million of cash, a respectable amount considering the company's $469 million market cap.
Earnings may have been slightly lower than analysts expected, but today I think investors are looking past that to next quarter and the company's increased bookings and cash levels. Investors knew that Europe would be a drag on this quarter, so some reassurance of confidence in future quarters made them feel warm and squishy today.
Interested in more info on Harmonic? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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