Harmonic drifts lower following 3Q restatement

Harmonic shares fell $1.19, or 8 percent, to $13.06 Tuesday after it restated its third-quarter financial results, resulting in loss of $5.5 million, or 10 cents a share, in the quarter.

The communications-equipment maker said one of its broadband access customers returned $4.1 million in products.

Company officials said the customer decided to significantly reduce the scope and delay the timing of certain network construction projects. To maintain their relationship, Harmonic agreed to the return.

Harmonic (Nasdaq: HLIT) shares finished off 50 cents to $14.50 ahead of the announcement.

Because the agreement was reached after the announcement of third-quarter results, but before Harmonic filed its Form 10-Q for the third quarter with the Securities and Exchange Commission, the company said it has recorded a provision for the return in its financial statements for the quarter ended Sept. 29.

It now says it posted a loss of $5.5 million, or 10 cents a share, on sales of $68.2 million.

It previously said it lost $4.6 million, or 8 cents a share, on sales of $72.3 million, excluding various charges.

The third-quarter earnings were already a disappointment to investors as analysts were originally expecting a profit of 12 cents a share in the quarter.

Harmonic shares raced up to a 52-week high of $157.50 in March before collapsing to a low of $9.50 in October.

Six of the eight analysts following the stock maintain a "buy" or "strong buy" rating.

First Call Corp. consensus expects it to lose 10 cents a share in its fourth quarter.