Harmonic Inc. (HLIT), a company that provide video delivery software, products, system solutions, and services worldwide, has surged 5.04% during aftermarket trading session and consequently, was trading at $9.80 when last checked. The increase could be attributed to the announcement of the quarterly results by the company. On Monday, HLIT closed at $9.33 after steadily increasing 2.87% during regular trading hours.
Why HILT surging?
In the late hours of Monday, HLIT reported the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company had cash and cash equivalents of $128.43 million on 30th September. The company generated net revenue of $126.3 million during the quarter, a 33% year over year increase. The gross margin for GAAP was 52.4% during the period against 51.6% for the same period of 2020. For Non-GAAP, the gross margin for the period was 52.8% against 52.2% for the same period of 2020. The company earned a GAAP operating income of $5.4 million, while non-GAAP income was $11.8 million. The company generated a GAAP net income of $1.5 million and a non-GAAP net income of $9.5 million.
Patrick Harshman, president and chief executive officer of HLIT, while commenting on the results said that the company delivered another strong quarter and with the total revenue increasing 33%. The excellent results provide the company with a strong foundation for continued growth soon.
Expansion of FTTH PON capabilities
On 11th October, HLIT announced expanded fibre-to-the-home (FTTH) PON capabilities with a new 60G-capable remote switch that leverages its industry-leading CableOS® cloud-native solution to bridge the rural divide, improve broadband deployment flexibility and stimulate economic growth. The company’s new Jetty 60G-capable remote switch provides cable, telco and fibre operators with greater operational efficiencies to increase their network and to connect more communities to fibre broadband.
What’s ahead for HLIT?
During the last 12 months, HLIT has surged more than 55%, primarily due to the execution of strategies by the companies, the benefits of which it is reaping in current times. Analysts hope that the continuation of existing policies would bring further improvements in the business model of the company. So, potential investors should keep a close eye on the performance of HLIT stock in future.