Revenue during the quarter grew 21.73 percent to $101.41 million from $83.30 million in the previous year period. Gross margin for the quarter contracted 485 basis points over the previous year period to 50.65 percent. Operating margin for the quarter stood at negative 11.77 percent as compared to a negative 7.51 percent for the previous year period.

Operating loss for the quarter was $11.93 million, compared with an operating loss of $6.26 million in the previous year period.

However, the adjusted operating profit for the quarter stood at $0.44 million compared to operating loss of $0.39 million in prior year period.

"Our third quarter results reflect our ongoing business transformations, as Cable Edge segment revenue declined in advance of the pending release of our new CableOS products," said Patrick Harshman, president and chief executive officer of Harmonic. "Although our outlook for fourth quarter Cable Edge spending is therefore cautious, our recently executed warrant agreement with Comcast and our first CableOS revenue shipments bolster our confidence in our CableOS growth strategy. Turning to our Video segment, our transformational VOS™ offering drove a stronger-than-forecasted mix of software- and services-related orders, impacting third quarter revenue recognition while maintaining near-record backlog and deferred revenue. We are encouraged by the competitive momentum of our transformational initiatives, and remain focused on revenue growth, improving profitability and enhancing shareholder value."

For the fourth-quarter, Harmonic projects revenue to be in the range of $105.80 million to $110.80 million. For the fourth-quarter, Harmonic projects adjusted revenue to be in the range of $106 million to $111 million. The company projects operating loss to be in the range of $13.50 million to $11.50 million for the fourth-quarter. The company projects adjusted operating income to be in the range of $6 million to $8 million for the fourth-quarter. The company forecasts diluted loss per share to be in the range of $0.20 to $0.18 for the fourth-quarter. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.05 to $0.07 for the fourth-quarter.

The company has spent $68.40 million cash to meet investing activities during the nine month period as against cash outgo of $5.75 million in the last year period.

The company has spent $0.23 million cash to carry out financing activities during the nine month period as against cash outgo of $14.04 million in the last year period.

Cash and cash equivalents stood at $44.74 million as on Sep. 30, 2016, down 27.33 percent or $16.83 million from $61.57 million on Oct. 02, 2015.

Working capital drops significantly
Harmonic has witnessed a decline in the working capital over the last year. It stood at $82.63 million as at Sep. 30, 2016, down 39.84 percent or $54.72 million from $137.36 million on Oct. 02, 2015. Current ratio was at 1.58 as on Sep. 30, 2016, down from 2.54 on Oct. 02, 2015.

Cash conversion cycle (CCC) has decreased to 63 days for the quarter from 119 days for the last year period. Days sales outstanding went up to 79 days for the quarter compared with 77 days for the same period last year.

Days inventory outstanding has decreased to 33 days for the quarter compared with 89 days for the previous year period. At the same time, days payable outstanding went up to 48 days for the quarter from 47 for the same period last year.