Record revenue with Broadband revenue up 92%
year over year
Video returned to profitability with greater
than 10% Adjusted EBITDA margin
SAN
JOSE, Calif., Oct. 28,
2024 /PRNewswire/ -- Harmonic Inc. (NASDAQ: HLIT)
today announced its unaudited results for the third quarter of
2024.
"Our third quarter results demonstrated strong execution as we
achieved record total company revenue and Adjusted EBITDA, with
both broadband and video revenue exceeding expectations," said
Nimrod Ben-Natan, president and
chief executive officer of Harmonic. "This strong quarterly
performance coupled with our market leading technology solutions
leaves us well-positioned for further future growth."
Q3 Financial and Business Highlights
Financial
- Revenue: $195.8 million, up 54%
compared to $127.2 million in the
prior year period
- Broadband segment revenue: $145.3
million, compared to $75.8
million in the prior year period
- Video segment revenue: $50.4
million, compared to $51.4
million in the prior year period
- Gross margin: GAAP 53.5% and non-GAAP 53.7%, both higher
compared to GAAP 48.5% and non-GAAP 49.5% in the prior year period
- Broadband segment non-GAAP gross margin: 48.3% compared to
44.5% in the prior year period
- Video segment non-GAAP gross margin: 69.0% compared to 56.9% in
the prior year period
- Operating income (loss): GAAP income $35.4 million and non-GAAP income $44.5 million, compared to GAAP loss $8.6 million and non-GAAP income $0.1 million in the prior year period
- Net income (loss): GAAP net income $21.7
million and non-GAAP net income of $29.9 million, compared to GAAP net loss
$6.5 million and non-GAAP net income
$0.0 million in the prior year
period
- Non-GAAP adjusted EBITDA: $43.4
million income compared to $3.5
million income in the prior year period
- Net income (loss) per share: GAAP net income per share of
$0.19 and non-GAAP net income per
share of $0.26, compared to GAAP net
loss per share of $0.06 and non-GAAP
net income per share of $0.00 in the
prior year period
- Backlog and deferred revenue of $584.7
million
- Cash: $58.2 million, compared to
$75.6 million in the prior year
period
Business
- Commercially deployed our cOSTM solution with 121
customers, serving 32.0 million cable modems
- Comcast and Harmonic demonstrated the industry's first Unified
DOCSIS 4.0 and fiber solution at SCTE TechExpo24, with Unified
DOCSIS 4.0 technology now available for all MSOs
- Increased Broadband customer diversification with 7 new
customer wins, including Bluepeak Fiber and Tribal Ready selecting
Harmonic's cOS broadband platform
- Further progress on Video sales pipeline of larger Appliance
and Tier 1 SaaS opportunities
Select Financial Information
|
|
GAAP
|
|
Non-GAAP
|
|
Key Financial
Results
|
|
Q3
2024
|
|
Q2
2024
|
|
Q3
2023
|
|
Q3
2024
|
|
Q2
2024
|
|
Q3
2023
|
|
|
(Unaudited, in
millions, except per share data)
|
|
Net revenue
|
|
$
195.8
|
|
$
138.7
|
|
$
127.2
|
|
*
|
|
*
|
|
*
|
|
Net income
(loss)
|
|
$
21.7
|
|
$
(12.5)
|
|
$
(6.5)
|
|
$
29.9
|
|
$
9.3
|
|
$
—
|
|
Net income (loss) per
share
|
|
$
0.19
|
|
$
(0.11)
|
|
$
(0.06)
|
|
$
0.26
|
|
$
0.08
|
|
$
0.00
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
Q3
2024
|
|
Q2
2024
|
|
Q3
2023
|
|
(Unaudited, in
millions)
|
|
Adjusted EBITDA for the
quarter (1)
|
$
43.4
|
|
$
16.1
|
|
$
3.5
|
|
Bookings for the
quarter
|
$
171.4
|
|
$
72.4
|
|
$
96.3
|
|
Backlog and deferred
revenue as of quarter end
|
$
584.7
|
|
$
613.1
|
|
$
627.2
|
|
Cash and cash
equivalents as of quarter end
|
$
58.2
|
|
$
45.9
|
|
$
75.6
|
|
|
(1) Adjusted EBITDA is
a Non-GAAP financial measure. Refer to "Preliminary Net Income
(loss) to Consolidated Segment Adjusted EBITDA Reconciliation"
below for a reconciliation to net income (loss), the most
comparable GAAP measure.
|
|
* Not
applicable
|
Explanations regarding our use of non-GAAP financial measures
and related definitions, and reconciliations of our GAAP and
Non-GAAP measures, are provided in the sections below entitled "Use
of Non-GAAP Financial Measures" and "GAAP to Non-GAAP
Reconciliations".
Financial Guidance
|
Q4 2024 GAAP
Financial Guidance
|
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
|
Broadband
|
|
Video
|
|
Total
GAAP
|
|
Broadband
|
|
Video
|
|
Total
GAAP
|
|
Net revenue
|
$
160
|
|
$
45
|
|
$
205
|
|
$
170
|
|
$
50
|
|
$
220
|
|
Gross margin
%
|
|
|
|
|
55.4 %
|
|
|
|
|
|
56.7 %
|
|
Gross profit
|
|
|
|
|
$
114
|
|
|
|
|
|
$
125
|
|
Tax
rate
|
|
|
|
|
26 %
|
|
|
|
|
|
26 %
|
|
Net income
|
|
|
|
|
$
30
|
|
|
|
|
|
$
36
|
|
Net income per
share
|
|
|
|
|
$
0.26
|
|
|
|
|
|
$
0.31
|
|
Shares (1)
|
|
|
|
|
117.8
|
|
|
|
|
|
117.8
|
|
|
(1) Diluted shares
assumes stock price at $13.34 (Q3 2024 average price).
|
|
2024 GAAP
Financial Guidance
|
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
|
Broadband
|
|
Video
|
|
Total
GAAP
|
|
Broadband
|
|
Video
|
|
Total
GAAP
|
|
Net revenue
(1)
|
$
477
|
|
$
184
|
|
$
662
|
|
$
487
|
|
$
189
|
|
$
677
|
|
Gross margin
%
|
|
|
|
|
53.6 %
|
|
|
|
|
|
54.0 %
|
|
Gross profit
|
|
|
|
|
$
354
|
|
|
|
|
|
$
366
|
|
Tax
rate
|
|
|
|
|
26 %
|
|
|
|
|
|
26 %
|
|
Net income
|
|
|
|
|
$
31
|
|
|
|
|
|
$
37
|
|
Net income per
share
|
|
|
|
|
$
0.27
|
|
|
|
|
|
$
0.32
|
|
Shares (2)
|
|
|
|
|
117.5
|
|
|
|
|
|
117.5
|
|
|
(1) Components may not
sum to total due to rounding.
|
|
(2) Diluted shares
assumes stock price at $13.34 (Q3 2024 average price).
|
|
Q4 2024 Non-GAAP
Financial Guidance (1)
|
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
|
Broadband
|
|
Video
|
|
Total
|
|
Broadband
|
|
Video
|
|
Total
|
|
Gross margin
%
|
53.0 %
|
|
64.0 %
|
|
55.4 %
|
|
54.0 %
|
|
66.0 %
|
|
56.7 %
|
|
Gross profit
|
$
85
|
|
$
29
|
|
$
114
|
|
$
92
|
|
$
33
|
|
$
125
|
|
Adjusted
EBITDA(2)
|
$
54
|
|
$
2
|
|
$
55
|
|
$
59
|
|
$
5
|
|
$
64
|
|
Tax
rate
|
|
|
|
|
21 %
|
|
|
|
|
|
21 %
|
|
Net income per
share
|
|
|
|
|
$
0.33
|
|
|
|
|
|
$
0.39
|
|
Shares (3)
|
|
|
|
|
117.8
|
|
|
|
|
|
117.8
|
|
|
(1) Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations
on Financial Guidance" below. Components may not sum to total due
to rounding.
|
|
(2) Refer to "Net
Income to Consolidated Adjusted EBITDA Reconciliation on Financial
Guidance" below for a reconciliation to net income, the most
comparable GAAP measure.
|
|
(3) Diluted shares
assumes stock price at $13.34 (Q3 2024 average price).
|
|
2024 Non-GAAP
Financial Guidance (1)
|
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
|
Broadband
|
|
Video
|
|
Total
|
|
Broadband
|
|
Video
|
|
Total
|
|
Gross margin
%
|
49.6 %
|
|
64.9 %
|
|
53.9 %
|
|
50.0 %
|
|
65.4 %
|
|
54.3 %
|
|
Gross profit
|
$
237
|
|
$
120
|
|
$
356
|
|
$
244
|
|
$
124
|
|
$
368
|
|
Adjusted
EBITDA(2)
|
$
118
|
|
$
1
|
|
$
119
|
|
$
123
|
|
$
4
|
|
$
127
|
|
Tax
rate
|
|
|
|
|
21 %
|
|
|
|
|
|
21 %
|
|
Net income per share
(3)
|
|
|
|
|
$
0.67
|
|
|
|
|
|
$
0.73
|
|
Shares (3)
|
|
|
|
|
117.5
|
|
|
|
|
|
117.5
|
|
|
(1) Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations
on Financial Guidance" below. Components may not sum to total
due to rounding.
|
|
(2) Refer to "Net
Income to Consolidated Segment Adjusted EBITDA Reconciliation on
Financial Guidance" below for a reconciliation to net income, the
most comparable GAAP measure.
|
|
(3) Diluted shares
assumes stock price at $13.34 (Q3 2024 average price).
|
Conference Call Information
Harmonic will host a conference call to discuss its financial
results at 2:00 p.m. PT (5:00 p.m. ET)
on Monday, October 28, 2024. The live webcast will be
available on the Harmonic Investor Relations website at
http://investor.harmonicinc.com. To participate via telephone,
please register in advance using this link,
https://register.vevent.com/register/BI24dc955b30d3439abf656ef581cfa35c.
A replay will be available after 5:00 p.m.
PT on the same website.
About Harmonic Inc.
Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized
broadband and video delivery solutions, enables media companies and
service providers to deliver ultra-high-quality video streaming and
broadcast services to consumers globally. The company
revolutionized broadband networking via the industry's first
virtualized broadband solution, enabling operators to more flexibly
deploy gigabit internet service to consumers' homes and mobile
devices. Whether simplifying OTT video delivery via innovative
cloud and software platforms, or powering the delivery of gigabit
internet services, Harmonic is changing the way media companies and
service providers monetize live and on-demand content on every
screen. More information is available at www.harmonicinc.com.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements related to our expectations regarding: net revenue,
gross margins, operating expenses, operating income (loss),
Adjusted EBITDA, tax expense and tax rate, and net income (loss)
per diluted share. Our expectations regarding these matters may not
materialize, and actual results in future periods are subject to
risks and uncertainties that could cause actual results to differ
materially from those projected. These risks include, in no
particular order, the following: customer concentration and
consolidation; loss of one or more key customers; delays or
decreases in capital spending in the cable, satellite, telco,
broadcast and media industries; the possibility that our products
will not generate sales that are commensurate with our expectations
or that our cost of revenue or operating expenses may exceed our
expectations; the market and technology trends underlying our
Broadband and Video businesses will not continue to develop in
their current direction or pace; the impact of general economic
conditions on our sales and operations; the mix of products and
services sold in various geographies and the effect it has on gross
margins; our ability to develop new and enhanced products in a
timely manner and market acceptance of our new or existing
products; risks associated with our international operations;
exchange rate fluctuations of the currencies in which we conduct
business; risks associated with our cOSTM and VOS
product solutions; dependence on various broadband and video
industry trends; inventory management; the lack of timely
availability or the impact of increases in the prices of parts or
raw materials necessary to produce our products; the effect of
competition, on both revenue and gross margins; difficulties
associated with rapid technological changes in our markets; risks
associated with unpredictable sales cycles; our dependence on
contract manufacturers and sole or limited source suppliers; and
the impact on our business of natural disasters. The
forward-looking statements contained in this press release are also
subject to other risks and uncertainties, including those more
fully described in Harmonic's filings with the Securities and
Exchange Commission, including our most recent Annual Report on
Form 10-K for the year ended December 31,
2023, our most recent Quarterly Report on Form 10-Q and our
Current Reports on Form 8-K. The forward-looking statements in this
press release are based on information available to the Company as
of the date hereof, and Harmonic disclaims any obligation to update
any forward-looking statements.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States ("GAAP" or referred to
herein as "reported"). However, management believes that certain
non-GAAP financial measures provide management and other users with
additional meaningful financial information that should be
considered when assessing our ongoing performance. Our management
regularly uses our supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business,
establish operating budgets, set internal measurement targets and
make operating decisions.
These non-GAAP measures are not in accordance with, or an
alternative for, measures prepared in accordance with generally
accepted accounting principles and may be different from non-GAAP
measures used by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules
or principles. The Company believes that non-GAAP measures have
limitations in that they do not reflect all of the amounts
associated with Harmonic's results of operations as determined in
accordance with GAAP and that these measures should only be used to
evaluate Harmonic's results of operations in conjunction with the
corresponding GAAP measures.
The Company believes that the presentation of non-GAAP measures,
when shown in conjunction with the corresponding GAAP measures,
provides useful information to investors and management regarding
financial and business trends relating to its financial condition
and its historical and projected results of operations. Non-GAAP
financial measures should be viewed in addition to, and not as an
alternative to, the Company's reported results prepared in
accordance with GAAP.
The non-GAAP measures presented here are: Gross profit,
operating expenses, income (loss) from operations, non-operating
expenses and net income (loss), Adjusted EBITDA (including those
amounts as a percentage of revenue) and net income (loss)
per diluted share. The presentation of non-GAAP information is
not intended to be considered in isolation or as a substitute for
results prepared in accordance with GAAP, and is not necessarily
comparable to non-GAAP results published by other companies. A
reconciliation of the historical non-GAAP financial measures
discussed in this press release to the most directly comparable
historical GAAP financial measures is included with the financial
statements provided with this press release. The non-GAAP
adjustments described below have historically been excluded from
our GAAP financial measures.
Our non-GAAP financial measures reflect adjustments based on the
following items, as well as the related income tax effects:
Stock-based compensation - Although stock-based
compensation is a key incentive offered to our employees, we
continue to evaluate our business performance excluding stock-based
compensation expenses. We believe that management is limited in its
ability to project the impact stock-based compensation would have
on our operating results. In addition, for comparability purposes,
we believe it is useful to provide a non-GAAP financial measure
that excludes stock-based compensation in order to better
understand the long-term performance of our core business and to
facilitate the comparison of our results to the results of our peer
companies.
Restructuring and related charges - Harmonic
from time to time incurs restructuring
charges which primarily consist of employee severance, one-time
termination benefits related to the reduction of its workforce, and
other costs. These charges are associated with material
business shifts.
We exclude these items because we do not believe they are
reflective of our ongoing long-term
business and operating results.
Non-cash interest expense expenses related to convertible
notes and other debt - We record the amortization of
issuance costs as non-cash interest expense. We believe that
excluding these costs provides meaningful supplemental information
regarding operational performance and liquidity, along with
enhancing investors' ability to view the Company's results from
management's perspective. In addition, we believe excluding these
costs from the non-GAAP measures facilitates comparisons to our
historical operating results and comparisons to peer company
operating results.
Discrete tax items and tax effect of non-GAAP adjustments
- The income tax effect of non-GAAP adjustments relates to the
tax effect of the adjustments that we incorporate into non-GAAP
financial measures in order to provide a more meaningful measure of
non-GAAP net income.
Depreciation - Depreciation expense, along with interest,
tax and stock-based compensation expense, and restructuring
charges, is excluded from Adjusted EBITDA because we do not believe
depreciation and the other items relate to the ordinary course of
our business or are reflective of our underlying business
performance.
Non-recurring advisory fees - There were
non-recurring costs that we excluded from non-GAAP results relating
to professional accounting, tax and legal fees associated with
strategic corporate initiatives.
Asset impairment and related charges - We exclude asset
impairment and related charges due to the nature of such expenses
being unusual and arising outside the ordinary course of continuing
operations. These costs primarily consist of impairments of fixed
assets, right-of-use assets and related leasehold improvements, and
other unrecoverable facility costs due to the intended change in
use of certain leased space.
|
Harmonic
Inc.
Preliminary
Condensed Consolidated Balance Sheets
(Unaudited, in
thousands, except par value)
|
|
|
September 27,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
58,174
|
|
$
84,269
|
|
Restricted
cash
|
327
|
|
—
|
|
Accounts receivable,
net
|
173,730
|
|
141,531
|
|
Inventories
|
73,864
|
|
83,982
|
|
Prepaid expenses and
other current assets
|
30,273
|
|
20,950
|
|
Total current
assets
|
336,368
|
|
330,732
|
|
Property and equipment,
net
|
28,396
|
|
36,683
|
|
Operating lease
right-of-use assets
|
13,471
|
|
20,817
|
|
Goodwill
|
239,597
|
|
239,150
|
|
Deferred income
taxes
|
107,380
|
|
104,707
|
|
Other non-current
assets
|
34,649
|
|
36,117
|
|
Total assets
|
$
759,861
|
|
$
768,206
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Convertible
debt
|
$
—
|
|
$
114,880
|
|
Current portion of
long-term debt
|
1,944
|
|
—
|
|
Current portion of
other borrowings
|
5,285
|
|
4,918
|
|
Accounts
payable
|
42,480
|
|
38,562
|
|
Deferred
revenue
|
50,891
|
|
46,217
|
|
Operating lease
liabilities
|
5,971
|
|
6,793
|
|
Other current
liabilities
|
55,091
|
|
61,024
|
|
Total current
liabilities
|
161,662
|
|
272,394
|
|
Long-term
debt
|
112,819
|
|
—
|
|
Other long-term
borrowings
|
9,458
|
|
10,495
|
|
Operating lease
liabilities, non-current
|
15,647
|
|
18,965
|
|
Other non-current
liabilities
|
31,338
|
|
29,478
|
|
Total
liabilities
|
330,924
|
|
331,332
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.001 par value, 5,000 shares authorized; no shares issued or
outstanding
|
—
|
|
—
|
|
Common stock, $0.001
par value, 150,000 shares authorized; 116,511 and 112,407
shares
issued and outstanding at September 27, 2024 and December 31,
2023, respectively
|
117
|
|
112
|
|
Additional paid-in
capital
|
2,424,322
|
|
2,405,043
|
|
Accumulated
deficit
|
(1,991,615)
|
|
(1,962,575)
|
|
Accumulated other
comprehensive loss
|
(3,887)
|
|
(5,706)
|
|
Total stockholders'
equity
|
428,937
|
|
436,874
|
|
Total liabilities and
stockholders' equity
|
$
759,861
|
|
$
768,206
|
|
Harmonic
Inc.
Preliminary
Condensed Consolidated Statements of Operations
(Unaudited, in
thousands, except per share data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Appliance and
integration
|
$
153,685
|
|
$
84,760
|
|
$
329,464
|
|
$
310,681
|
|
SaaS and
service
|
42,071
|
|
42,443
|
|
127,092
|
|
130,134
|
|
Total net
revenue
|
195,756
|
|
127,203
|
|
456,556
|
|
440,815
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Appliance and
integration
|
77,683
|
|
48,992
|
|
171,635
|
|
166,177
|
|
SaaS and
service
|
13,341
|
|
16,527
|
|
43,651
|
|
43,960
|
|
Total cost of
revenue
|
91,024
|
|
65,519
|
|
215,286
|
|
210,137
|
|
Total gross
profit
|
104,732
|
|
61,684
|
|
241,270
|
|
230,678
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
30,073
|
|
30,316
|
|
89,562
|
|
96,030
|
|
Selling, general and
administrative
|
35,851
|
|
39,245
|
|
114,537
|
|
121,300
|
|
Asset impairment and
related charges
|
3,103
|
|
—
|
|
12,103
|
|
—
|
|
Restructuring and
related charges
|
281
|
|
726
|
|
14,800
|
|
809
|
|
Total operating
expenses
|
69,308
|
|
70,287
|
|
231,002
|
|
218,139
|
|
Income (loss) from
operations
|
35,424
|
|
(8,603)
|
|
10,268
|
|
12,539
|
|
Interest expense,
net
|
(2,686)
|
|
(619)
|
|
(4,833)
|
|
(2,125)
|
|
Other income (expense),
net
|
(3,932)
|
|
343
|
|
(3,602)
|
|
(86)
|
|
Income (loss) before
income taxes
|
28,806
|
|
(8,879)
|
|
1,833
|
|
10,328
|
|
Provision for (benefit
from) income taxes
|
7,088
|
|
(2,384)
|
|
736
|
|
10,175
|
|
Net income
(loss)
|
$
21,718
|
|
$
(6,495)
|
|
$
1,097
|
|
$
153
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.19
|
|
$
(0.06)
|
|
$
0.01
|
|
$
—
|
|
Diluted
|
$
0.19
|
|
$
(0.06)
|
|
$
0.01
|
|
$
—
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
116,403
|
|
112,031
|
|
114,594
|
|
111,431
|
|
Diluted
|
117,358
|
|
112,031
|
|
117,385
|
|
117,910
|
|
Harmonic
Inc.
Preliminary
Condensed Consolidated Statements of Cash Flows
(Unaudited, in
thousands)
|
|
|
Nine Months
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
1,097
|
|
$
153
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
9,171
|
|
9,178
|
|
Asset impairment and
related charges
|
12,103
|
|
—
|
|
Stock-based
compensation
|
19,587
|
|
20,724
|
|
Foreign currency
remeasurement
|
6,513
|
|
(814)
|
|
Deferred income taxes,
net
|
(2,673)
|
|
2,026
|
|
Provision for excess
and obsolete inventories
|
3,135
|
|
6,514
|
|
Other
adjustments
|
435
|
|
1,689
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
(31,611)
|
|
(2,558)
|
|
Inventories
|
6,592
|
|
14,532
|
|
Other
assets
|
(3,489)
|
|
6,164
|
|
Accounts
payable
|
1,787
|
|
(20,606)
|
|
Deferred
revenues
|
2,062
|
|
(9,208)
|
|
Other
liabilities
|
(11,323)
|
|
(27,002)
|
|
Net cash provided by
operating activities
|
13,386
|
|
792
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of short-term
investments
|
—
|
|
(6,305)
|
|
Purchases of property
and equipment
|
(6,840)
|
|
(5,749)
|
|
Net cash used in
investing activities
|
(6,840)
|
|
(12,054)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from long-term
debt
|
115,000
|
|
—
|
|
Repayment of
convertible debt
|
(115,500)
|
|
—
|
|
Payments for debt
issuance costs
|
(332)
|
|
—
|
|
Repurchase of common
stock
|
(30,047)
|
|
—
|
|
Proceeds from other
borrowings
|
3,943
|
|
3,829
|
|
Repayment of other
borrowings
|
(4,797)
|
|
(4,721)
|
|
Proceeds from common
stock issued to employees
|
6,628
|
|
6,552
|
|
Taxes paid related to
net share settlement of equity awards
|
(6,877)
|
|
(8,643)
|
|
Net cash used in
financing activities
|
(31,982)
|
|
(2,983)
|
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash
|
(332)
|
|
281
|
|
Net decrease in cash
and cash equivalents and restricted cash
|
(25,768)
|
|
(13,964)
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
84,269
|
|
89,586
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
58,501
|
|
$
75,622
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
|
|
|
Cash and cash
equivalents
|
$
58,174
|
|
$
75,622
|
|
Restricted
cash
|
327
|
|
—
|
|
Total cash, cash
equivalents and restricted cash as shown in the condensed
consolidated statement of cash flows
|
$
58,501
|
|
$
75,622
|
|
Harmonic
Inc.
Preliminary
Condensed Consolidated Statements of Cash Flows
(Unaudited, in
thousands)
|
|
|
Nine Months
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Supplemental cash
flow disclosure:
|
|
|
|
|
Income tax payments,
net
|
$
12,894
|
|
$
6,376
|
|
Interest payments,
net
|
$
4,363
|
|
$
1,921
|
|
Supplemental
schedule of non-cash investing activities:
|
|
|
|
|
Capital expenditures
incurred but not yet paid
|
$
709
|
|
$
1,802
|
|
Supplemental
schedule of non-cash financing activities:
|
|
|
|
|
Shares of common stock
issued upon redemption of the 2024 Notes
|
4,578
|
|
—
|
|
Harmonic
Inc.
Preliminary GAAP
Revenue Information
(Unaudited, in
thousands, except percentages)
|
|
|
Three Months
Ended
|
|
September 27,
2024
|
|
June 28,
2024
|
|
September 29,
2023
|
|
Geography
|
|
|
|
|
|
|
|
|
|
Americas
|
$
167,720
|
86 %
|
|
$
109,597
|
79 %
|
|
$
91,221
|
72 %
|
|
EMEA
|
20,269
|
10 %
|
|
22,680
|
16 %
|
|
28,465
|
22 %
|
|
APAC
|
7,767
|
4 %
|
|
6,463
|
5 %
|
|
7,517
|
6 %
|
|
Total
|
$
195,756
|
100 %
|
|
$
138,740
|
100 %
|
|
$
127,203
|
100 %
|
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
|
Service
Provider
|
$
159,993
|
82 %
|
|
$
104,429
|
75 %
|
|
$
87,747
|
69 %
|
|
Broadcast and
Media
|
35,763
|
18 %
|
|
34,311
|
25 %
|
|
39,456
|
31 %
|
|
Total
|
$
195,756
|
100 %
|
|
$
138,740
|
100 %
|
|
$
127,203
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Geography
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
370,348
|
81 %
|
|
$
318,294
|
72 %
|
|
EMEA
|
|
|
|
66,509
|
15 %
|
|
97,648
|
22 %
|
|
APAC
|
|
|
|
19,699
|
4 %
|
|
24,873
|
6 %
|
|
Total
|
|
|
|
$
456,556
|
100 %
|
|
$
440,815
|
100 %
|
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
|
Service
Provider
|
|
|
|
$
351,115
|
77 %
|
|
$
314,439
|
71 %
|
|
Broadcast and
Media
|
|
|
|
105,441
|
23 %
|
|
126,376
|
29 %
|
|
Total
|
|
|
|
$
456,556
|
100 %
|
|
$
440,815
|
100 %
|
|
Harmonic
Inc.
Preliminary
Segment Information
(Unaudited, in
thousands, except percentages)
|
|
|
Three Months Ended
September 27, 2024
|
|
Broadband
|
|
|
Video
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
|
Net
revenue
|
$ 145,338
|
|
|
$
50,418
|
|
|
$ 195,756
|
|
|
$
—
|
|
$ 195,756
|
|
Gross
profit
|
70,256
|
(1)
|
|
34,770
|
(1)
|
|
105,026
|
(1)
|
|
(294)
|
|
104,732
|
|
Gross margin
%
|
48.3 %
|
(1)
|
|
69.0 %
|
(1)
|
|
53.7 %
|
(1)
|
|
|
|
53.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 28, 2024
|
|
Broadband
|
|
|
Video
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
|
Net
revenue
|
$
92,937
|
|
|
$
45,803
|
|
|
$ 138,740
|
|
|
$
—
|
|
$ 138,740
|
|
Gross
profit
|
44,236
|
(1)
|
|
29,494
|
(1)
|
|
73,730
|
(1)
|
|
(273)
|
|
73,457
|
|
Gross margin
%
|
47.6 %
|
(1)
|
|
64.4 %
|
(1)
|
|
53.1 %
|
(1)
|
|
|
|
52.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 29, 2023
|
|
Broadband
|
|
|
Video
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
|
Net
revenue
|
$
75,806
|
|
|
$
51,397
|
|
|
$ 127,203
|
|
|
$
—
|
|
$ 127,203
|
|
Gross
profit
|
33,763
|
(1)
|
|
29,241
|
(1)
|
|
63,004
|
(1)
|
|
(1,320)
|
|
61,684
|
|
Gross margin
%
|
44.5 %
|
(1)
|
|
56.9 %
|
(1)
|
|
49.5 %
|
(1)
|
|
|
|
48.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 27, 2024
|
|
Broadband
|
|
|
Video
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
|
Net
revenue
|
$ 317,172
|
|
|
$ 139,384
|
|
|
$ 456,556
|
|
|
$
—
|
|
$ 456,556
|
|
Gross
profit
|
151,986
|
(1)
|
|
90,833
|
(1)
|
|
242,819
|
(1)
|
|
(1,549)
|
|
241,270
|
|
Gross margin
%
|
47.9 %
|
(1)
|
|
65.2 %
|
(1)
|
|
53.2 %
|
(1)
|
|
|
|
52.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 29, 2023
|
|
Broadband
|
|
|
Video
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
|
Net
revenue
|
$ 273,253
|
|
|
$ 167,562
|
|
|
$ 440,815
|
|
|
$
—
|
|
$ 440,815
|
|
Gross
profit
|
133,129
|
(1)
|
|
100,158
|
(1)
|
|
233,287
|
(1)
|
|
(2,609)
|
|
230,678
|
|
Gross margin
%
|
48.7 %
|
(1)
|
|
59.8 %
|
(1)
|
|
52.9 %
|
(1)
|
|
|
|
52.3 %
|
|
|
(1) Segment gross
margin and segment gross profit are Non-GAAP financial measures.
Refer to "Use of Non-GAAP Financial Measures" above and "GAAP to
Non-GAAP Reconciliations" below.
|
|
Harmonic
Inc.
GAAP to Non-GAAP
Reconciliations (Unaudited)
(in thousands,
except percentages and per share data)
|
|
|
Three Months Ended
September 27, 2024
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income from
Operations
|
|
Total Non-
operating
Expense, net
|
|
Net
Income
|
|
GAAP
|
$ 195,756
|
|
$
104,732
|
|
$ 69,308
|
|
$ 35,424
|
|
$
(6,618)
|
|
$ 21,718
|
|
Stock-based
compensation
|
—
|
|
294
|
|
(5,416)
|
|
5,710
|
|
—
|
|
5,710
|
|
Restructuring and
related charges
|
—
|
|
—
|
|
(281)
|
|
281
|
|
—
|
|
281
|
|
Asset impairment and
related charges (1)
|
—
|
|
—
|
|
(3,103)
|
|
3,103
|
|
—
|
|
3,103
|
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(871)
|
|
Total
adjustments
|
—
|
|
294
|
|
(8,800)
|
|
9,094
|
|
—
|
|
8,223
|
|
Non-GAAP
|
$ 195,756
|
|
$
105,026
|
|
$ 60,508
|
|
$ 44,518
|
|
$
(6,618)
|
|
$ 29,941
|
|
As a % of revenue
(GAAP)
|
|
|
53.5 %
|
|
35.4 %
|
|
18.1 %
|
|
(3.4) %
|
|
11.1 %
|
|
As a % of revenue
(Non-GAAP)
|
|
|
53.7 %
|
|
30.9 %
|
|
22.7 %
|
|
(3.4) %
|
|
15.3 %
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.19
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.26
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
117,358
|
|
|
(1) Includes write-off
of $1.8 million for internally developed capitalized software,
and impairment charges of $0.8 million for right-of-use
assets, $0.1 million for leasehold improvements and
$0.4 million related to the fair value of other unrecoverable
facility costs.
|
|
Three Months Ended
June 28, 2024
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income
(Loss) from
Operations
|
|
Total Non-
operating
Expense, net
|
|
Net Income
(Loss)
|
|
GAAP
|
$ 138,740
|
|
$ 73,457
|
|
$ 89,087
|
|
$
(15,630)
|
|
$
(805)
|
|
$
(12,532)
|
|
Stock-based
compensation
|
—
|
|
273
|
|
(6,681)
|
|
6,954
|
|
—
|
|
6,954
|
|
Restructuring and
related charges
|
—
|
|
—
|
|
(11,482)
|
|
11,482
|
|
—
|
|
11,482
|
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(406)
|
|
406
|
|
—
|
|
406
|
|
Asset impairment and
related charges (1)
|
—
|
|
—
|
|
(9,000)
|
|
9,000
|
|
—
|
|
9,000
|
|
Non-cash interest
expense related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
338
|
|
338
|
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(6,369)
|
|
Total
adjustments
|
—
|
|
273
|
|
(27,569)
|
|
27,842
|
|
338
|
|
21,811
|
|
Non-GAAP
|
$ 138,740
|
|
$ 73,730
|
|
$ 61,518
|
|
$ 12,212
|
|
$
(467)
|
|
$
9,279
|
|
As a % of revenue
(GAAP)
|
|
|
52.9 %
|
|
64.2 %
|
|
(11.3) %
|
|
(0.6) %
|
|
(9.0) %
|
|
As a % of revenue
(Non-GAAP)
|
|
|
53.1 %
|
|
44.3 %
|
|
8.8 %
|
|
(0.3) %
|
|
6.7 %
|
|
Diluted net income
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
(0.11)
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.08
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
115,030
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
116,690
|
|
|
(1) Includes impairment
charges of $2.9 million for right-of-use assets,
$4.2 million for leasehold improvements, and $1.9 million
related to the fair value of other unrecoverable facility
costs.
|
|
Three Months Ended
September 29, 2023
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income
(Loss) from
Operations
|
|
Total Non-
operating
Expense, net
|
|
Net Income
(Loss)
|
|
GAAP
|
$ 127,203
|
|
$ 61,684
|
|
$ 70,287
|
|
$ (8,603)
|
|
$
(276)
|
|
$ (6,495)
|
|
Stock-based
compensation
|
—
|
|
606
|
|
(6,635)
|
|
7,241
|
|
—
|
|
7,241
|
|
Restructuring and
related charges
|
—
|
|
714
|
|
(362)
|
|
1,076
|
|
—
|
|
1,076
|
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(364)
|
|
364
|
|
—
|
|
364
|
|
Non-cash interest
expense related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
226
|
|
226
|
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,390)
|
|
Total
adjustments
|
—
|
|
1,320
|
|
(7,361)
|
|
8,681
|
|
226
|
|
6,517
|
|
Non-GAAP
|
$ 127,203
|
|
$ 63,004
|
|
$ 62,926
|
|
$
78
|
|
$
(50)
|
|
$
22
|
|
As a % of revenue
(GAAP)
|
|
|
48.5 %
|
|
55.3 %
|
|
(6.8) %
|
|
(0.2) %
|
|
(5.1) %
|
|
As a % of revenue
(Non-GAAP)
|
|
|
49.5 %
|
|
49.5 %
|
|
0.1 %
|
|
— %
|
|
— %
|
|
Diluted net income
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
(0.06)
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.00
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
112,031
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
116,710
|
|
Nine Months Ended
September 27, 2024
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income from
Operations
|
|
Total Non-
operating
Expense, net
|
|
Net
Income
|
|
GAAP
|
$ 456,556
|
|
$
241,270
|
|
$
231,002
|
|
$ 10,268
|
|
$
(8,435)
|
|
$
1,097
|
|
Stock-based
compensation
|
—
|
|
1,089
|
|
(18,498)
|
|
19,587
|
|
—
|
|
19,587
|
|
Restructuring and
related charges
|
—
|
|
460
|
|
(14,800)
|
|
15,260
|
|
11
|
|
15,271
|
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(755)
|
|
755
|
|
—
|
|
755
|
|
Asset impairment and
related charges (1)
|
—
|
|
—
|
|
(12,103)
|
|
12,103
|
|
—
|
|
12,103
|
|
Non-cash interest
expense related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
567
|
|
567
|
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(9,778)
|
|
Total
adjustments
|
—
|
|
1,549
|
|
(46,156)
|
|
47,705
|
|
578
|
|
38,505
|
|
Non-GAAP
|
$ 456,556
|
|
$
242,819
|
|
$
184,846
|
|
$ 57,973
|
|
$
(7,857)
|
|
$ 39,602
|
|
As a % of revenue
(GAAP)
|
|
|
52.8 %
|
|
50.6 %
|
|
2.2 %
|
|
(1.8) %
|
|
0.2 %
|
|
As a % of revenue
(Non-GAAP)
|
|
|
53.2 %
|
|
40.5 %
|
|
12.7 %
|
|
(1.7) %
|
|
8.7 %
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.01
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.34
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
117,385
|
|
|
(1) Includes write-off
of $1.8 million for internally developed capitalized software,
and impairment charges of $3.7 million for right-of-use
assets, $4.3 million for leasehold improvements, and
$2.3 million related to the fair value of other unrecoverable
facility costs.
|
|
Nine Months Ended
September 29, 2023
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income from
Operations
|
|
Total Non-
operating
Expense, net
|
|
Net
Income
|
|
GAAP
|
$ 440,815
|
|
$
230,678
|
|
$
218,139
|
|
$ 12,539
|
|
$
(2,211)
|
|
$
153
|
|
Stock-based
compensation
|
—
|
|
1,895
|
|
(18,829)
|
|
20,724
|
|
—
|
|
20,724
|
|
Restructuring and
related charges
|
—
|
|
714
|
|
(445)
|
|
1,159
|
|
—
|
|
1,159
|
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(2,499)
|
|
2,499
|
|
—
|
|
2,499
|
|
Non-cash interest
expense related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
672
|
|
672
|
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,099
|
|
Total
adjustments
|
—
|
|
2,609
|
|
(21,773)
|
|
24,382
|
|
672
|
|
28,153
|
|
Non-GAAP
|
$ 440,815
|
|
$
233,287
|
|
$
196,366
|
|
$ 36,921
|
|
$
(1,539)
|
|
$ 28,306
|
|
As a % of revenue
(GAAP)
|
|
|
52.3 %
|
|
49.5 %
|
|
2.8 %
|
|
(0.5) %
|
|
— %
|
|
As a % of revenue
(Non-GAAP)
|
|
|
52.9 %
|
|
44.5 %
|
|
8.4 %
|
|
(0.3) %
|
|
6.4 %
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
—
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.24
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
117,910
|
|
Harmonic
Inc.
Calculation of
Adjusted EBITDA by Segment (Unaudited)
(In thousands,
except percentages)
|
|
|
Three Months Ended
September 27, 2024
|
|
Broadband
|
|
Video
|
|
Income from operations
(1)
|
$
38,192
|
|
$
6,326
|
|
Depreciation
|
2,001
|
|
859
|
|
Other non-operating
expense, net
|
(2,733)
|
|
(1,199)
|
|
Adjusted
EBITDA(2)
|
$
37,460
|
|
$
5,986
|
|
Revenue
|
$
145,338
|
|
$
50,418
|
|
Adjusted EBITDA
margin % (2)
|
25.8 %
|
|
11.9 %
|
|
|
|
|
|
Three Months Ended
June 28, 2024
|
|
Broadband
|
|
Video
|
|
Income (loss) from
operations (1)
|
$
13,781
|
|
$
(1,569)
|
|
Depreciation
|
2,133
|
|
1,093
|
|
Other non-operating
income, net
|
406
|
|
213
|
|
Adjusted
EBITDA(2)
|
$
16,320
|
|
$
(263)
|
|
Revenue
|
$
92,937
|
|
$
45,803
|
|
Adjusted EBITDA
margin % (2)
|
17.6 %
|
|
(0.6) %
|
|
|
|
|
|
Three Months Ended
September 29, 2023
|
|
Broadband
|
|
Video
|
|
Income (loss) from
operations (1)
|
$
6,128
|
|
$
(6,050)
|
|
Depreciation
|
1,746
|
|
1,343
|
|
Other non-operating
income, net
|
211
|
|
132
|
|
Adjusted
EBITDA(2)
|
$
8,085
|
|
$
(4,575)
|
|
Revenue
|
$
75,806
|
|
$
51,397
|
|
Adjusted EBITDA
margin % (2)
|
10.7 %
|
|
(8.9) %
|
|
|
|
|
|
Nine Months Ended
September 27, 2024
|
|
Broadband
|
|
Video
|
|
Income (loss) from
operations (1)
|
$
60,567
|
|
$
(2,594)
|
|
Depreciation
|
6,120
|
|
3,051
|
|
Other non-operating
expense, net
|
(2,506)
|
|
(1,085)
|
|
Adjusted
EBITDA(2)
|
$
64,181
|
|
$
(628)
|
|
Revenue
|
$
317,172
|
|
$
139,384
|
|
Adjusted EBITDA
margin % (2)
|
20.2 %
|
|
(0.5) %
|
|
|
|
|
|
Nine Months Ended
September 29, 2023
|
|
Broadband
|
|
Video
|
|
Income (loss) from
operations (1)
|
$
44,307
|
|
$
(7,386)
|
|
Depreciation
|
5,061
|
|
4,117
|
|
Other non-operating
expense, net
|
(44)
|
|
(42)
|
|
Adjusted
EBITDA(2)
|
$
49,324
|
|
$
(3,311)
|
|
Revenue
|
$
273,253
|
|
$
167,562
|
|
Adjusted EBITDA
margin % (2)
|
18.1 %
|
|
(2.0) %
|
|
|
(1) Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to Non-GAAP
Reconciliations" above.
|
|
(2) Adjusted EBITDA and
Adjusted EBITDA margin are Non-GAAP financial measures. Refer below
for the "Net Income (Loss) to Consolidated Segment Adjusted EBITDA
Reconciliation".
|
|
Harmonic
Inc.
Preliminary Net
Income (Loss) to Consolidated Segment Adjusted EBITDA
Reconciliation (Unaudited)
(In thousands,
except percentages)
|
|
|
Three Months
Ended
|
|
September 27,
2024
|
|
June 28,
2024
|
|
September 29,
2023
|
|
Net income (loss)
(GAAP)
|
$
21,718
|
|
$
(12,532)
|
|
$
(6,495)
|
|
Provision for (benefit
from) income taxes
|
7,088
|
|
(3,903)
|
|
(2,384)
|
|
Interest expense,
net
|
2,686
|
|
1,424
|
|
619
|
|
Depreciation
|
2,860
|
|
3,226
|
|
3,089
|
|
EBITDA
|
34,352
|
|
(11,785)
|
|
(5,171)
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Stock-based
compensation
|
5,710
|
|
6,954
|
|
7,241
|
|
Restructuring and
related charges
|
281
|
|
11,482
|
|
1,076
|
|
Non-recurring advisory
fees
|
—
|
|
406
|
|
364
|
|
Asset impairment and
related charges
|
3,103
|
|
9,000
|
|
—
|
|
Total consolidated
segment adjusted EBITDA (Non-GAAP)
|
$
43,446
|
|
$
16,057
|
|
$
3,510
|
|
Revenue
|
$
195,756
|
|
$
138,740
|
|
$
127,203
|
|
Net income (loss)
margin (GAAP)
|
11.1 %
|
|
(9.0) %
|
|
(5.1) %
|
|
Consolidated segment
Adjusted EBITDA margin (Non-GAAP)
|
22.2 %
|
|
11.6 %
|
|
2.8 %
|
|
Nine Months
Ended
|
|
September 27,
2024
|
|
September 29,
2023
|
|
Net income
(GAAP)
|
$
1,097
|
|
$
153
|
|
Provision for income
taxes
|
736
|
|
10,175
|
|
Interest expense,
net
|
4,833
|
|
2,125
|
|
Depreciation
|
9,171
|
|
9,178
|
|
EBITDA
|
15,837
|
|
21,631
|
|
|
|
|
|
Adjustments
|
|
|
|
|
Stock-based
compensation
|
19,587
|
|
20,724
|
|
Restructuring and
related charges
|
15,271
|
|
1,159
|
|
Non-recurring advisory
fees
|
755
|
|
2,499
|
|
Asset impairment and
related charges
|
12,103
|
|
—
|
|
Total consolidated
segment adjusted EBITDA (Non-GAAP)
|
$
63,553
|
|
$
46,013
|
|
Revenue
|
$
456,556
|
|
$
440,815
|
|
Net income margin
(GAAP)
|
0.2 %
|
|
— %
|
|
Consolidated segment
Adjusted EBITDA margin (Non-GAAP)
|
13.9 %
|
|
10.4 %
|
|
Harmonic
Inc.
GAAP to Non-GAAP
Reconciliations on Financial Guidance (Unaudited)
(In millions,
except percentages and per share data)
|
|
|
Q4 2024 Financial
Guidance (1)
|
|
Revenue
|
|
Gross
Profit
|
|
Total Operating
Expense
|
|
Income from
Operations
|
|
Net
Income
|
|
GAAP
|
$
205
|
to
|
$
220
|
|
$
114
|
to
|
$
125
|
|
$ 70
|
to
|
$ 73
|
|
$ 44
|
to
|
$ 52
|
|
$ 30
|
to
|
$ 36
|
|
Stock-based
compensation expense
|
—
|
|
—
|
|
(9)
|
|
9
|
|
9
|
|
Tax effect of non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
to
|
1
|
|
Total
adjustments
|
—
|
|
—
|
|
(9)
|
|
9
|
|
9
|
to
|
10
|
|
Non-GAAP
|
$
205
|
to
|
$
220
|
|
$
114
|
to
|
$
125
|
|
$ 61
|
to
|
$ 64
|
|
$ 53
|
to
|
$ 61
|
|
$ 39
|
to
|
$ 46
|
|
As a % of revenue
(GAAP)
|
|
|
|
|
55.4 %
|
to
|
56.7 %
|
|
34.1 %
|
to
|
33.2 %
|
|
21.5 %
|
to
|
23.6 %
|
|
14.6 %
|
to
|
16.4 %
|
|
As a % of revenue
(Non-GAAP)
|
|
|
|
|
55.4 %
|
to
|
56.7 %
|
|
29.8 %
|
to
|
29.1 %
|
|
25.7 %
|
to
|
27.6 %
|
|
19.0 %
|
to
|
20.9 %
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.26
|
to
|
$ 0.31
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.33
|
to
|
$ 0.39
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117.8
|
|
(1) Components may not
sum to total due to rounding.
|
|
2024 Financial
Guidance (1)
|
|
Revenue
|
|
Gross
Profit
|
|
Total Operating
Expense
|
|
Income from
Operations
|
|
Net
Income
|
|
GAAP
|
$
662
|
to
|
$
677
|
|
$
354
|
to
|
$
366
|
|
$
301
|
to
|
$
304
|
|
$ 54
|
to
|
$ 62
|
|
$ 31
|
to
|
$ 37
|
|
Stock-based
compensation expense
|
—
|
|
2
|
|
(27)
|
|
29
|
|
29
|
|
Restructuring and
related charges
|
—
|
|
—
|
|
(15)
|
|
15
|
|
15
|
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(1)
|
|
1
|
|
1
|
|
Asset impairment and
related charges
|
—
|
|
—
|
|
(12)
|
|
12
|
|
12
|
|
Non-cash interest
expense related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
Tax effect of non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
(10)
|
to
|
(9)
|
|
Total
adjustments
|
—
|
|
2
|
|
(55)
|
|
57
|
|
48
|
to
|
49
|
|
Non-GAAP
|
$
662
|
to
|
$
677
|
|
$
356
|
to
|
$
368
|
|
$
246
|
to
|
$
249
|
|
$
111
|
to
|
$
119
|
|
$ 79
|
to
|
$ 86
|
|
As a % of revenue
(GAAP)
|
|
|
|
|
53.6 %
|
to
|
54.0 %
|
|
45.5 %
|
to
|
44.9 %
|
|
8.2 %
|
to
|
9.2 %
|
|
4.7 %
|
to
|
5.5 %
|
|
As a % of revenue
(Non-GAAP)
|
|
|
|
|
53.9 %
|
to
|
54.3 %
|
|
37.2 %
|
to
|
36.8 %
|
|
16.7 %
|
to
|
17.6 %
|
|
11.9 %
|
to
|
12.7 %
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.27
|
to
|
$ 0.32
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.67
|
to
|
$ 0.73
|
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117.5
|
|
|
(1) Components may not
sum to total due to rounding.
|
|
Harmonic
Inc.
Calculation of
Adjusted EBITDA by Segment on Financial Guidance (Unaudited)
(1)
(In
millions)
|
|
|
Q4 2024 Financial
Guidance
|
|
Broadband
|
|
Video
|
|
Income from operations
(2)
|
$
52
|
to
|
$
57
|
|
$
1
|
to
|
$
4
|
|
Depreciation
|
2
|
|
2
|
|
1
|
|
1
|
|
Segment adjusted
EBITDA(3)
|
$
54
|
to
|
$
59
|
|
$
2
|
to
|
$
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Financial
Guidance
|
|
Broadband
|
|
Video
|
|
Income (loss) from
operations (2)
|
$
112
|
to
|
$
117
|
|
$
(2)
|
to
|
$
1
|
|
Depreciation
|
9
|
|
9
|
|
4
|
|
4
|
|
Other non-operating
expense, net
|
(3)
|
|
(3)
|
|
(1)
|
|
(1)
|
|
Segment adjusted
EBITDA(3)
|
$
118
|
to
|
$
123
|
|
$
1
|
to
|
$
4
|
|
|
(1) Components may not
sum to total due to rounding.
|
|
(2) Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations
on Financial Guidance" above.
|
|
(3) Segment Adjusted
EBITDA is a Non-GAAP financial measure. Refer below for the "Net
income to Consolidated Segment Adjusted EBITDA reconciliation on
Financial Guidance".
|
|
Harmonic
Inc.
Net Income to
Consolidated Segment Adjusted EBITDA Reconciliation on Financial
Guidance (Unaudited) (1)
(In
millions)
|
|
|
Q4 2024 Financial
Guidance
|
|
2024 Financial
Guidance
|
|
Net income
(GAAP)
|
$
30
|
to
|
$
36
|
|
$
31
|
to
|
$
37
|
|
Provision for income
taxes
|
11
|
|
14
|
|
11
|
|
13
|
|
Interest expense,
net
|
2
|
|
2
|
|
7
|
|
7
|
|
Depreciation
|
3
|
|
3
|
|
13
|
|
13
|
|
EBITDA
|
46
|
to
|
55
|
|
62
|
to
|
70
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
9
|
|
9
|
|
29
|
|
29
|
|
Restructuring and
related charges
|
—
|
|
—
|
|
15
|
|
15
|
|
Asset impairment and
related charges
|
—
|
|
—
|
|
12
|
|
12
|
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
1
|
|
1
|
|
Total consolidated
segment adjusted EBITDA (Non-GAAP) (2)
|
$
55
|
to
|
$
64
|
|
$
119
|
to
|
$
127
|
|
|
(1) Components may not
sum to total due to rounding.
|
|
(2) Consolidated
Segment adjusted EBITDA is a Non-GAAP financial measure. Refer to
"Use of Non-GAAP Financial Measures" above.
|
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SOURCE Harmonic Inc.