Record quarterly total revenue of $167.1 million, up 31% quarter over
quarter
Broadband revenue up 20% and Video SaaS
revenue up 26% year over year
SAN
JOSE, Calif., Jan. 29,
2024 /PRNewswire/ -- Harmonic Inc. (NASDAQ: HLIT)
today announced its unaudited results for the fourth quarter and
fiscal year ended December 31,
2023.
"Harmonic finished 2023 with another quarter of solid
performance, including record total company and Broadband revenue,
driven by strong demand for our market-leading technology
solutions," said Patrick Harshman,
president and chief executive officer of Harmonic. "Our robust
backlog at year-end reflects continued demand from our large
Broadband customers and growing Video SaaS commitments, positioning
us well for this year and beyond."
Q4 Financial and Business Highlights
Financial
- Revenue: $167.1 million,
compared to $164.3 million in the
prior year period
- Broadband segment revenue: $115.2
million, compared to $96.0
million in the prior year period
- Video segment revenue: $51.9
million, compared to $68.3
million in the prior year period
- Gross margin: GAAP 49.0% and non-GAAP 49.3%, compared to GAAP
52.1% and non-GAAP 52.7% in the prior year period
- Broadband segment non-GAAP gross margin: 42.4% compared to
47.6% in the prior year period
- Video segment non-GAAP gross margin: 64.6% compared to 59.9% in
the prior year period
- Operating income: GAAP income $9.6
million and non-GAAP income $18.9
million, compared to GAAP income $16.5 million and non-GAAP income $23.7 million in the prior year period
- Net income: GAAP net income $83.8
million and non-GAAP net income of $14.7 million, compared to GAAP net income
$6.1 million and non-GAAP net income
$19.9 million in the prior year
period
- Non-GAAP adjusted EBITDA: $21.7
million income compared to $26.6
million income in the prior year period
- Net income per share: GAAP net income per share of $0.72 and non-GAAP net income per share of
$0.13, compared to GAAP net income
per share of $0.05 and non-GAAP net
income per share of $0.17 in the
prior year period
- Cash: $84.3 million, compared to
$89.6 million in the prior year
period
Business
- Commercially deployed our cOS™ solution with 108 customers,
serving 26.3 million cable modems
- Initiated volume shipments to another Tier-1, enhancing
broadband customer diversification
- Pioneering the market with the first volume shipments of DOCSIS
4.0
- Recently demonstrated SaaS leadership in live sports streaming
with largest ever live streaming event in the U.S.
Video Business Review Update
In our Q3 2023 earnings press release we announced that we had
initiated a formal strategic review process for our Video business
to better position Harmonic for long-term shareholder value
creation. As noted in that press release, we received indications
of interest in our Video business from a number of parties. To
date, that interest has not yet translated into a definitive
agreement with any party. We are continuing the strategic review
process, and no specific timetable has been established for the
completion of the review. We do not intend to disclose further
details with respect to the review process unless and until our
board of directors approves a specific transaction or otherwise
concludes its review. Since the strategic review may cause some
disruption to the business, we are conservatively guiding our Video
business for 2024.
Select Financial Information
|
|
GAAP
|
|
Non-GAAP
|
Key Financial
Results
|
|
Q4
2023
|
|
Q3
2023
|
|
Q4
2022
|
|
Q4
2023
|
|
Q3
2023
|
|
Q4
2022
|
|
|
(Unaudited, in
millions, except per share data)
|
Net revenue
|
|
$
167.1
|
|
$
127.2
|
|
$
164.3
|
|
*
|
|
*
|
|
*
|
Net income
(loss)
|
|
$
83.8
|
|
$
(6.5)
|
|
$
6.1
|
|
$
14.7
|
|
$
—
|
|
$
19.9
|
Net income (loss) per
share
|
|
$
0.72
|
|
$
(0.06)
|
|
$
0.05
|
|
$
0.13
|
|
$
0.00
|
|
$
0.17
|
|
|
|
|
|
|
|
|
|
Other Financial
Information
|
Q4
2023
|
|
Q3
2023
|
|
Q4
2022
|
|
(Unaudited, in
millions)
|
Adjusted EBITDA for the
quarter (1)
|
$
21.7
|
|
$
3.5
|
|
$
26.6
|
Bookings for the
quarter
|
$
196.5
|
|
$
96.3
|
|
$
130.2
|
Backlog and deferred
revenue as of quarter end
|
$
653.2
|
|
$
627.2
|
|
$
457.1
|
Cash and cash
equivalents as of quarter end
|
$
84.3
|
|
$
75.6
|
|
$
89.6
|
|
(1) Adjusted EBITDA is
a Non-GAAP financial measure. Refer to "Preliminary 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
|
Q1 2024 GAAP
Financial Guidance (1)
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
Video
|
|
Broadband
|
|
Total
|
|
Video
|
|
Broadband
|
|
Total
|
Net revenue
|
$
40
|
|
$
70
|
|
$
110
|
|
$
50
|
|
$
80
|
|
$
130
|
Gross margin
%
|
|
|
|
|
50.2 %
|
|
|
|
|
|
51.6 %
|
Gross profit
|
|
|
|
|
$
55
|
|
|
|
|
|
$
68
|
Net loss
|
|
|
|
|
$
(13)
|
|
|
|
|
|
$
(5)
|
Tax
rate
|
|
|
|
|
19 %
|
|
|
|
|
|
19 %
|
Net loss per
share
|
|
|
|
|
$
(0.12)
|
|
|
|
|
|
$
(0.04)
|
Shares
(2)
|
|
|
|
|
111.7
|
|
|
|
|
|
111.7
|
|
|
(1)
|
Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to
Non-GAAP Reconciliations on Financial Guidance"
below.
|
(2)
|
The guidance assumes
estimated impact of redeeming the 2024 Convertible Notes and
repurchases during 2024 under the Company's stock repurchase
program. Diluted shares assumes stock price at $10.68 (Q4 2023
average price).
|
|
2024 GAAP
Financial Guidance (1)
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
Video
|
|
Broadband
|
|
Total
|
|
Video
|
|
Broadband
|
|
Total
|
Net revenue
|
$
195
|
|
$
460
|
|
$
655
|
|
$
210
|
|
$
500
|
|
$
710
|
Gross margin
%
|
|
|
|
|
50.2 %
|
|
|
|
|
|
52.2 %
|
Gross profit
|
|
|
|
|
$
329
|
|
|
|
|
|
$
371
|
Net income
|
|
|
|
|
$
31
|
|
|
|
|
|
$
57
|
Tax
rate
|
|
|
|
|
19 %
|
|
|
|
|
|
19 %
|
Net income per
share
|
|
|
|
|
$
0.27
|
|
|
|
|
|
$
0.50
|
Shares
(2)
|
|
|
|
|
114.6
|
|
|
|
|
|
114.6
|
|
|
(1)
|
Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to
Non-GAAP Reconciliations on Financial Guidance"
below.
|
(2)
|
The guidance assumes
estimated impact of redeeming the 2024 Convertible Notes and
repurchases during 2024 under the Company's stock repurchase
program. Diluted shares assumes stock price at $10.68 (Q4 2023
average price).
|
|
Q1 2024 Non-GAAP
Financial Guidance (1)
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
Video
|
|
Broadband
|
|
Total
|
|
Video
|
|
Broadband
|
|
Total
|
Gross margin
%
|
60.0 %
|
|
46.0 %
|
|
51.1 %
|
|
61.0 %
|
|
47.0 %
|
|
52.4 %
|
Gross profit
|
$
24
|
|
$
32
|
|
$
56
|
|
$
31
|
|
$
38
|
|
$
69
|
Adjusted
EBITDA(2)
|
$
(8)
|
|
$
4
|
|
$
(4)
|
|
$
(2)
|
|
$
8
|
|
$
6
|
Tax
rate
|
|
|
|
|
19 %
|
|
|
|
|
|
19 %
|
Net income (loss) per
share
|
|
|
|
|
$ (0.06)
|
|
|
|
|
|
$
0.02
|
Shares
(3)
|
|
|
|
|
111.7
|
|
|
|
|
|
115.2
|
|
|
(1)
|
Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to
Non-GAAP Reconciliations on Financial Guidance"
below.
|
(2)
|
Refer to "Adjusted
EBITDA Reconciliation on Financial Guidance" below for a
reconciliation to net income (loss), the most comparable GAAP
measure.
|
(3)
|
The guidance assumes
estimated impact of redeeming the 2024 Convertible Notes and
repurchases during 2024 under the Company's stock repurchase
program. Diluted shares assumes stock price at $10.68 (Q4 2023
average price).
|
|
2024 Non-GAAP
Financial Guidance (1)
|
(Unaudited, in
millions, except
percentages and per share data)
|
Low
|
|
High
|
Video
|
|
Broadband
|
|
Total
|
|
Video
|
|
Broadband
|
|
Total
|
Gross margin
%
|
60.0 %
|
|
46.5 %
|
|
50.5 %
|
|
62.0 %
|
|
48.5 %
|
|
52.5 %
|
Gross profit
|
$
117
|
|
$
214
|
|
$
331
|
|
$
130
|
|
$
243
|
|
$
373
|
Adjusted
EBITDA(2)
|
$
(7)
|
|
$
95
|
|
$
88
|
|
$
2
|
|
$
119
|
|
$
121
|
Tax
rate
|
|
|
|
|
19 %
|
|
|
|
|
|
19 %
|
Net income per
share
|
|
|
|
|
$
0.49
|
|
|
|
|
|
$
0.72
|
Shares
(3)
|
|
|
|
|
114.6
|
|
|
|
|
|
114.6
|
|
|
(1)
|
Refer to "Use of
Non-GAAP Financial Measures" and "GAAP to
Non-GAAP Reconciliations on Financial Guidance"
below.
|
(2)
|
Refer to "Adjusted
EBITDA Reconciliation on Financial Guidance" below for a
reconciliation to net income, the most comparable GAAP
measure.
|
(3)
|
The guidance assumes
estimated impact of redeeming the 2024 Convertible Notes and
repurchases during 2024 under the Company's stock repurchase
program. Diluted shares assumes stock price at $10.68 (Q4 2023
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, January 29, 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/BI52aab14160c44ed3aaa1715d3e4dea8e.
A replay will be available after 5:00 p.m. PT on the same web
site.
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 cable 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 cable 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, as well as our plans for our strategic review of
the Video business. 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: the market and technology trends
underlying our Video and Broadband businesses will not continue to
develop in their current direction or pace; 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 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;
delays or decreases in capital spending in the cable, satellite,
telco, broadcast and media industries; customer concentration and
consolidation; our ability to develop new and enhanced products in
a timely manner and market acceptance of our new or existing
products; losses of one or more key customers; risks associated
with our international operations; exchange rate fluctuations of
the currencies in which we conduct business; risks associated with
our cOS™ and VOS product solutions; dependence on various
video and broadband 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 effect 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,
2022, 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,
lease exit costs, 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 and other 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.
Gain and losses on equity investments - We exclude
the gain and losses from the sale of our equity investments in
calculating our non-GAAP financial measures. We exclude these items
because we do not believe they are reflective of our ongoing
long-term business and 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, including assessing corporate
structure and organization, as we seek to optimize value for our
business.
Harmonic
Inc.
|
Preliminary
Condensed Consolidated Balance Sheets
|
(Unaudited, in
thousands, except par value)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
84,269
|
|
$
89,586
|
Accounts
receivable, net
|
141,531
|
|
108,427
|
Inventories
|
83,982
|
|
120,949
|
Prepaid
expenses and other current assets
|
20,950
|
|
26,337
|
Total current
assets
|
330,732
|
|
345,299
|
Property and equipment,
net
|
36,683
|
|
39,814
|
Operating lease
right-of-use assets, net
|
20,817
|
|
25,469
|
Goodwill
|
239,150
|
|
237,739
|
Deferred income
taxes
|
104,707
|
|
11,776
|
Other non-current
assets
|
36,117
|
|
49,921
|
Total assets
|
$
768,206
|
|
$
710,018
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Convertible debt,
current
|
$
114,880
|
|
$
113,981
|
Other debts,
current
|
4,918
|
|
4,756
|
Accounts
payable
|
38,562
|
|
67,455
|
Deferred
revenue
|
46,217
|
|
62,383
|
Operating lease
liabilities, current
|
6,793
|
|
6,773
|
Other current
liabilities
|
61,024
|
|
66,724
|
Total current
liabilities
|
272,394
|
|
322,072
|
Other debts,
non-current
|
10,495
|
|
11,161
|
Operating lease
liabilities, non-current
|
18,965
|
|
24,110
|
Other non-current
liabilities
|
29,478
|
|
28,169
|
Total
liabilities
|
331,332
|
|
385,512
|
|
|
|
|
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; 112,407 and 109,871
shares issued and outstanding at December 31, 2023 and December 31,
2022, respectively
|
112
|
|
110
|
Additional paid-in
capital
|
2,405,043
|
|
2,380,651
|
Accumulated
deficit
|
(1,962,575)
|
|
(2,046,569)
|
Accumulated other
comprehensive loss
|
(5,706)
|
|
(9,686)
|
Total stockholders'
equity
|
436,874
|
|
324,506
|
Total liabilities and
stockholders' equity
|
$
768,206
|
|
$
710,018
|
Harmonic
Inc.
|
Preliminary
Condensed Consolidated Statements of Operations
|
(Unaudited, in
thousands, except per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Revenue:
|
|
|
|
|
|
|
|
Appliance and
integration
|
$
125,197
|
|
$
122,513
|
|
$
435,878
|
|
$
473,806
|
SaaS and
service
|
41,895
|
|
41,821
|
|
172,029
|
|
151,151
|
Total net
revenue
|
167,092
|
|
164,334
|
|
607,907
|
|
624,957
|
Cost of
revenue:
|
|
|
|
|
|
|
|
Appliance and
integration
|
70,596
|
|
65,372
|
|
236,773
|
|
259,027
|
SaaS and
service
|
14,629
|
|
13,265
|
|
58,589
|
|
50,046
|
Total cost of
revenue
|
85,225
|
|
78,637
|
|
295,362
|
|
309,073
|
Total gross
profit
|
81,867
|
|
85,697
|
|
312,545
|
|
315,884
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
30,252
|
|
31,088
|
|
126,282
|
|
120,307
|
Selling, general and
administrative
|
41,982
|
|
36,927
|
|
163,282
|
|
146,717
|
Restructuring and
related charges
|
—
|
|
1,205
|
|
809
|
|
3,341
|
Total operating
expenses
|
72,234
|
|
69,220
|
|
290,373
|
|
270,365
|
Income from
operations
|
9,633
|
|
16,477
|
|
22,172
|
|
45,519
|
Interest expense,
net
|
(571)
|
|
(929)
|
|
(2,696)
|
|
(5,040)
|
Other income (expense),
net
|
(249)
|
|
(212)
|
|
(335)
|
|
4,006
|
Income before income
taxes
|
8,813
|
|
15,336
|
|
19,141
|
|
44,485
|
Provision for (benefit
from) income taxes
|
(75,028)
|
|
9,205
|
|
(64,853)
|
|
16,303
|
Net income
|
$
83,841
|
|
$
6,131
|
|
$
83,994
|
|
$
28,182
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.75
|
|
$
0.06
|
|
$
0.75
|
|
$
0.27
|
Diluted
|
$
0.72
|
|
$
0.05
|
|
$
0.72
|
|
$
0.25
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
112,294
|
|
106,988
|
|
111,651
|
|
105,080
|
Diluted
|
115,691
|
|
117,301
|
|
117,359
|
|
112,378
|
Harmonic
Inc.
|
Preliminary
Condensed Consolidated Statements of Cash Flows
|
(Unaudited, in
thousands)
|
|
|
Year
Ended
|
|
December 31,
2023
|
|
December 31,
2022
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
83,994
|
|
$
28,182
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
|
12,255
|
|
12,260
|
Stock-based
compensation
|
27,329
|
|
25,212
|
Amortization of
convertible debt discount
|
899
|
|
1,171
|
Amortization of
warrant
|
870
|
|
1,734
|
Foreign currency
remeasurement
|
1,453
|
|
(2,685)
|
Deferred income taxes,
net
|
(92,856)
|
|
4,894
|
Provision for expected
credit losses and returns
|
2,778
|
|
1,954
|
Provision for excess
and obsolete inventories
|
7,396
|
|
5,988
|
Gain on sale of
investment in equity securities
|
—
|
|
(4,370)
|
Other
adjustments
|
151
|
|
513
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(35,473)
|
|
(23,136)
|
Inventories
|
35,403
|
|
(54,431)
|
Other
assets
|
25,483
|
|
(8,402)
|
Accounts
payable
|
(29,358)
|
|
5,837
|
Deferred
revenues
|
(20,823)
|
|
2,610
|
Other
liabilities
|
(12,442)
|
|
8,145
|
Net cash provided by
operating activities
|
7,059
|
|
5,476
|
Cash flows from
investing activities:
|
|
|
|
Purchases of
investments
|
(6,305)
|
|
—
|
Proceeds from
maturities of investments
|
6,305
|
|
—
|
Proceeds from sale of
investment
|
—
|
|
7,962
|
Purchases of property
and equipment
|
(8,475)
|
|
(9,250)
|
Net cash used in
investing activities
|
(8,475)
|
|
(1,288)
|
Cash flows from
financing activities:
|
|
|
|
Payment of convertible
debt
|
—
|
|
(37,707)
|
Payments for debt
issuance costs
|
(1,025)
|
|
—
|
Repurchase of common
stock
|
3,835
|
|
3,499
|
Proceeds from other
debts
|
(4,865)
|
|
(4,583)
|
Repayment of other
debts
|
—
|
|
(5,133)
|
Proceeds from common
stock issued to employees
|
6,558
|
|
7,092
|
Taxes paid related to
net share settlement of equity awards
|
(9,493)
|
|
(6,301)
|
Net cash used in
financing activities
|
(4,990)
|
|
(43,133)
|
Effect of exchange rate
changes on cash and cash equivalents
|
1,089
|
|
(4,900)
|
Net decrease in cash
and cash equivalents
|
(5,317)
|
|
(43,845)
|
Cash and cash
equivalents at beginning of period
|
89,586
|
|
133,431
|
Cash and cash
equivalents at end of period
|
$
84,269
|
|
$
89,586
|
Harmonic
Inc.
|
Preliminary GAAP
Revenue Information
|
(Unaudited, in
thousands, except percentages)
|
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September 29,
2023
|
|
December 31,
2022
|
Geography
|
|
|
|
|
|
|
|
|
Americas
|
$
129,406
|
77 %
|
|
$
91,221
|
72 %
|
|
$
125,638
|
76 %
|
EMEA
|
30,041
|
18 %
|
|
28,465
|
22 %
|
|
29,250
|
18 %
|
APAC
|
7,645
|
5 %
|
|
7,517
|
6 %
|
|
9,446
|
6 %
|
Total
|
$
167,092
|
100 %
|
|
$
127,203
|
100 %
|
|
$
164,334
|
100 %
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
Service
Provider
|
$
128,566
|
77 %
|
|
$
87,747
|
69 %
|
|
$
110,092
|
67 %
|
Broadcast and
Media
|
38,526
|
23 %
|
|
39,456
|
31 %
|
|
54,242
|
33 %
|
Total
|
$
167,092
|
100 %
|
|
$
127,203
|
100 %
|
|
$
164,334
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Geography
|
|
|
|
|
|
|
|
|
Americas
|
|
|
|
$
447,700
|
74 %
|
|
$
452,869
|
73 %
|
EMEA
|
|
|
|
127,689
|
21 %
|
|
133,095
|
21 %
|
APAC
|
|
|
|
32,518
|
5 %
|
|
38,993
|
6 %
|
Total
|
|
|
|
$
607,907
|
100 %
|
|
$
624,957
|
100 %
|
|
|
|
|
|
|
|
|
|
Market
|
|
|
|
|
|
|
|
|
Service
Provider
|
|
|
|
$
443,005
|
73 %
|
|
$
408,138
|
65 %
|
Broadcast and
Media
|
|
|
|
164,902
|
27 %
|
|
216,819
|
35 %
|
Total
|
|
|
|
$
607,907
|
100 %
|
|
$
624,957
|
100 %
|
Harmonic
Inc.
|
Preliminary Segment
Information
|
(Unaudited, in
thousands, except percentages)
|
|
|
Three Months Ended
December 31, 2023
|
|
Video
|
|
|
Broadband
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
Net
revenue
|
$
51,863
|
|
|
$ 115,229
|
|
|
$ 167,092
|
|
|
$
—
|
|
$ 167,092
|
Gross
profit
|
33,491
|
(1)
|
|
48,803
|
(1)
|
|
82,294
|
(1)
|
|
(427)
|
|
81,867
|
Gross margin
%
|
64.6 %
|
(1)
|
|
42.4 %
|
(1)
|
|
49.3 %
|
(1)
|
|
|
|
49.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 29, 2023
|
|
Video
|
|
|
Broadband
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
Net
revenue
|
$
51,397
|
|
|
$
75,806
|
|
|
$ 127,203
|
|
|
$
—
|
|
$ 127,203
|
Gross
profit
|
29,241
|
(1)
|
|
33,763
|
(1)
|
|
63,004
|
(1)
|
|
(1,320)
|
|
61,684
|
Gross margin
%
|
56.9 %
|
(1)
|
|
44.5 %
|
(1)
|
|
49.5 %
|
(1)
|
|
|
|
48.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
Video
|
|
|
Broadband
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
Net
revenue
|
$
68,308
|
|
|
$
96,026
|
|
|
$ 164,334
|
|
|
$
—
|
|
$ 164,334
|
Gross
profit
|
40,939
|
(1)
|
|
45,741
|
(1)
|
|
86,680
|
(1)
|
|
(983)
|
|
85,697
|
Gross margin
%
|
59.9 %
|
(1)
|
|
47.6 %
|
(1)
|
|
52.7 %
|
(1)
|
|
|
|
52.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023
|
|
Video
|
|
|
Broadband
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
Net
revenue
|
$ 219,425
|
|
|
$ 388,482
|
|
|
$ 607,907
|
|
|
$
—
|
|
$ 607,907
|
Gross
profit
|
133,649
|
(1)
|
|
181,932
|
(1)
|
|
315,581
|
(1)
|
|
(3,036)
|
|
312,545
|
Gross margin
%
|
60.9 %
|
(1)
|
|
46.8 %
|
(1)
|
|
51.9 %
|
(1)
|
|
|
|
51.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2022
|
|
Video
|
|
|
Broadband
|
|
|
Total Segment
Measures
|
|
|
Adjustments
(1)
|
|
Consolidated
GAAP
Measures
|
Net
revenue
|
$ 274,189
|
|
|
$ 350,768
|
|
|
$ 624,957
|
|
|
$
—
|
|
$ 624,957
|
Gross
profit
|
165,618
|
(1)
|
|
153,031
|
(1)
|
|
318,649
|
(1)
|
|
(2,765)
|
|
315,884
|
Gross margin
%
|
60.4 %
|
(1)
|
|
43.6 %
|
(1)
|
|
51.0 %
|
(1)
|
|
|
|
50.5 %
|
|
|
(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".
|
Harmonic
Inc.
|
GAAP to
Non-GAAP Reconciliations (Unaudited)
|
(in thousands,
except percentages and per share data)
|
|
|
Three Months Ended
December 31, 2023
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income from
Operations
|
|
Total
Non-operating
Expense, net
|
|
Net
Income
|
GAAP
|
$ 167,092
|
|
$ 81,867
|
|
$ 72,234
|
|
$
9,633
|
|
$
(820)
|
|
$ 83,841
|
Stock-based
compensation
|
—
|
|
454
|
|
(6,151)
|
|
6,605
|
|
—
|
|
6,605
|
Restructuring and
related charges
|
—
|
|
(27)
|
|
—
|
|
(27)
|
|
—
|
|
(27)
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(2,702)
|
|
2,702
|
|
—
|
|
2,702
|
Non-cash interest and
other expenses related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
233
|
|
233
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(78,693)
|
Total
adjustments
|
—
|
|
427
|
|
(8,853)
|
|
9,280
|
|
233
|
|
(69,180)
|
Non-GAAP
|
$ 167,092
|
|
$ 82,294
|
|
$ 63,381
|
|
$ 18,913
|
|
$
(587)
|
|
$ 14,661
|
As a % of revenue
(GAAP)
|
|
|
49.0 %
|
|
43.2 %
|
|
5.8 %
|
|
(0.5) %
|
|
50.2 %
|
As a % of revenue
(Non-GAAP)
|
|
|
49.3 %
|
|
37.9 %
|
|
11.3 %
|
|
(0.4) %
|
|
8.8 %
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.72
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.13
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
115,691
|
|
|
|
|
|
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 and
other expenses 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
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income from
Operations
|
|
Total
Non-operating
Expense, net
|
|
Net
Income
|
GAAP
|
$ 164,334
|
|
$ 85,697
|
|
$
69,220
|
|
$ 16,477
|
|
$
(1,141)
|
|
$
6,131
|
Stock-based
compensation
|
—
|
|
541
|
|
(5,050)
|
|
5,591
|
|
—
|
|
5,591
|
Restructuring and
related charges
|
—
|
|
442
|
|
(1,205)
|
|
1,647
|
|
17
|
|
1,664
|
Non-cash interest and
other expenses related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
274
|
|
274
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,233
|
Total
adjustments
|
—
|
|
983
|
|
(6,255)
|
|
7,238
|
|
291
|
|
13,762
|
Non-GAAP
|
$ 164,334
|
|
$ 86,680
|
|
$
62,965
|
|
$ 23,715
|
|
$
(850)
|
|
$ 19,893
|
As a % of revenue
(GAAP)
|
|
|
52.1 %
|
|
42.1 %
|
|
10.0 %
|
|
(0.7) %
|
|
3.7 %
|
As a % of revenue
(Non-GAAP)
|
|
|
52.7 %
|
|
38.3 %
|
|
14.4 %
|
|
(0.5) %
|
|
12.1 %
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.05
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.17
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
117,301
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income from
Operations
|
|
Total
Non-operating
Expense, net
|
|
Net
Income
|
GAAP
|
$ 607,907
|
|
$
312,545
|
|
$
290,373
|
|
$ 22,172
|
|
$
(3,031)
|
|
$ 83,994
|
Stock-based
compensation
|
—
|
|
2,349
|
|
(24,980)
|
|
27,329
|
|
—
|
|
27,329
|
Restructuring and
related charges
|
—
|
|
687
|
|
(445)
|
|
1,132
|
|
—
|
|
1,132
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(5,201)
|
|
5,201
|
|
—
|
|
5,201
|
Non-cash interest and
other expenses related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
905
|
|
905
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(75,595)
|
Total
adjustments
|
—
|
|
3,036
|
|
(30,626)
|
|
33,662
|
|
905
|
|
(41,028)
|
Non-GAAP
|
$ 607,907
|
|
$
315,581
|
|
$
259,747
|
|
$ 55,834
|
|
$
(2,126)
|
|
$ 42,966
|
As a % of revenue
(GAAP)
|
|
|
51.4 %
|
|
47.8 %
|
|
3.6 %
|
|
(0.5) %
|
|
13.8 %
|
As a % of revenue
(Non-GAAP)
|
|
|
51.9 %
|
|
42.7 %
|
|
9.2 %
|
|
(0.3) %
|
|
7.1 %
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.72
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.37
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
117,359
|
|
|
|
|
|
Twelve Months Ended
December 31, 2022
|
|
Revenue
|
|
Gross
Profit
|
|
Total
Operating
Expense
|
|
Income from
Operations
|
|
Total
Non-operating
Expense, net
|
|
Net
Income
|
GAAP
|
$ 624,957
|
|
$
315,884
|
|
$
270,365
|
|
$ 45,519
|
|
$
(1,034)
|
|
$ 28,182
|
Stock-based
compensation
|
—
|
|
2,232
|
|
(22,980)
|
|
25,212
|
|
—
|
|
25,212
|
Restructuring and
related charges
|
—
|
|
533
|
|
(3,341)
|
|
3,874
|
|
17
|
|
3,891
|
Gain on sale of equity
investment
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,349)
|
|
(4,349)
|
Non-cash interest and
other expenses related to convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
1,173
|
|
1,173
|
Discrete tax items and
tax effect of non-GAAP adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,149
|
Total
adjustments
|
—
|
|
2,765
|
|
(26,321)
|
|
29,086
|
|
(3,159)
|
|
33,076
|
Non-GAAP
|
$ 624,957
|
|
$
318,649
|
|
$
244,044
|
|
$ 74,605
|
|
$
(4,193)
|
|
$ 61,258
|
As a % of revenue
(GAAP)
|
|
|
50.5 %
|
|
43.3 %
|
|
7.3 %
|
|
(0.2) %
|
|
4.5 %
|
As a % of revenue
(Non-GAAP)
|
|
|
51.0 %
|
|
39.0 %
|
|
11.9 %
|
|
(0.7) %
|
|
9.8 %
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.25
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
$
0.55
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
112,378
|
Harmonic
Inc.
|
Calculation of
Adjusted EBITDA by Segment (Unaudited)
|
(In
thousands)
|
|
|
Three Months Ended
December 31, 2023
|
|
Video
|
|
Broadband
|
Income (loss) from
operations (1)
|
$
(1,355)
|
|
$
20,268
|
Depreciation
|
1,283
|
|
1,794
|
Other non-operating
expenses, net
|
(89)
|
|
(160)
|
Adjusted
EBITDA(2)
|
$
(161)
|
|
$
21,902
|
Revenue
|
$
51,863
|
|
$
115,229
|
Adjusted EBITDA
margin % (2)
|
(0.3) %
|
|
19.0 %
|
|
|
|
|
|
Three Months Ended
September 29, 2023
|
|
Video
|
|
Broadband
|
Income (loss) from
operations (1)
|
$
(6,050)
|
|
$
6,128
|
Depreciation
|
1,343
|
|
1,746
|
Other non-operating
expenses, net
|
132
|
|
211
|
Adjusted
EBITDA(2)
|
$
(4,575)
|
|
$
8,085
|
Revenue
|
$
51,397
|
|
$
75,806
|
Adjusted EBITDA
margin % (2)
|
(8.9) %
|
|
10.7 %
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
Video
|
|
Broadband
|
Income from operations
(1)
|
$
5,005
|
|
$
18,710
|
Depreciation
|
1,431
|
|
1,604
|
Other non-operating
expenses, net
|
(86)
|
|
(109)
|
Adjusted
EBITDA(2)
|
$
6,350
|
|
$
20,205
|
Revenue
|
$
68,308
|
|
$
96,026
|
Adjusted EBITDA
margin % (2)
|
9.3 %
|
|
21.0 %
|
|
Twelve Months Ended
December 31, 2023
|
|
Video
|
|
Broadband
|
Income (loss) from
operations (1)
|
$
(8,741)
|
|
$
64,575
|
Depreciation
|
5,400
|
|
6,855
|
Other non-operating
expenses, net
|
(131)
|
|
(204)
|
Adjusted
EBITDA(2)
|
$
(3,472)
|
|
$
71,226
|
Revenue
|
$
219,425
|
|
$
388,482
|
Adjusted EBITDA
margin % (2)
|
(1.6) %
|
|
18.3 %
|
|
|
|
|
|
Twelve Months Ended
December 31, 2022
|
|
Video
|
|
Broadband
|
Income from operations
(1)
|
$
22,322
|
|
$
52,283
|
Depreciation
|
6,044
|
|
6,216
|
Other non-operating
expenses, net
|
(148)
|
|
(178)
|
Adjusted
EBITDA(2)
|
$
28,218
|
|
$
58,321
|
Revenue
|
$
274,189
|
|
$
350,768
|
Adjusted EBITDA
margin % (2)
|
10.3 %
|
|
16.6 %
|
|
|
(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 reconciliation of consolidated adjusted EBITDA to net
income (loss), the most directly comparable GAAP
measure.
|
Harmonic
Inc.
|
Preliminary Net
Income (Loss) to Consolidated Segment Adjusted EBITDA
Reconciliation (Unaudited)
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September 29,
2023
|
|
December 31,
2022
|
Net income (loss)
(GAAP)
|
$
83,841
|
|
$
(6,495)
|
|
$
6,131
|
Provision for (benefit
from) income taxes
|
(75,028)
|
|
(2,384)
|
|
9,205
|
Interest expense,
net
|
571
|
|
619
|
|
929
|
Depreciation
|
3,077
|
|
3,089
|
|
3,035
|
EBITDA
|
12,461
|
|
(5,171)
|
|
19,300
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
Stock-based
compensation
|
6,605
|
|
7,241
|
|
5,591
|
Restructuring and
related charges
|
(27)
|
|
1,076
|
|
1,664
|
Non-recurring advisory
fees
|
2,702
|
|
364
|
|
—
|
Total consolidated
segment adjusted EBITDA (Non-GAAP)
|
$
21,741
|
|
$
3,510
|
|
$
26,555
|
Revenue
|
$
167,092
|
|
$
127,203
|
|
$
164,334
|
Net income (loss)
margin (GAAP)
|
50.2 %
|
|
(5.1) %
|
|
3.7 %
|
Consolidated segment
adjusted EBITDA margin (Non-GAAP)
|
13.0 %
|
|
2.8 %
|
|
16.2 %
|
|
Twelve Months
Ended
|
|
December 31,
2023
|
|
December 31,
2022
|
Net income
(GAAP)
|
$
83,994
|
|
$
28,182
|
Provision for (benefit
from) income taxes
|
(64,853)
|
|
16,303
|
Interest expense,
net
|
2,696
|
|
5,040
|
Depreciation
|
12,255
|
|
12,260
|
EBITDA
|
34,092
|
|
61,785
|
|
|
|
|
Adjustments
|
|
|
|
Stock-based
compensation
|
27,329
|
|
25,212
|
Restructuring and
related charges
|
1,132
|
|
3,891
|
Non-recurring advisory
fees
|
5,201
|
|
—
|
Gain on sale of equity
investment
|
—
|
|
(4,349)
|
Total consolidated
segment adjusted EBITDA (Non-GAAP)
|
$
67,754
|
|
$
86,539
|
Revenue
|
$
607,907
|
|
$
624,957
|
Net income margin
(GAAP)
|
13.8 %
|
|
4.5 %
|
Consolidated segment
adjusted EBITDA margin (Non-GAAP)
|
11.1 %
|
|
13.8 %
|
Harmonic
Inc.
|
GAAP to
Non-GAAP Reconciliations on Financial Guidance
(Unaudited)
|
(In millions, except
percentages and per share data)
|
|
|
Q1 2024 Financial
Guidance (1)
|
|
Revenue
|
|
Gross
Profit
|
|
Total Operating
Expense
|
|
Income (Loss)
from Operations
|
|
Net Income
(Loss)
|
GAAP
|
$
110
|
to
|
$
130
|
|
$ 55
|
to
|
$ 68
|
|
$ 70
|
to
|
$ 72
|
|
$
(15)
|
to
|
$ (5)
|
|
$
(13)
|
to
|
$ (5)
|
Stock-based
compensation expense
|
—
|
|
1
|
|
(6)
|
|
7
|
|
7
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(1)
|
|
1
|
|
1
|
Tax effect of non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
to
|
(1)
|
Total
adjustments
|
—
|
|
1
|
|
(7)
|
|
8
|
|
7
|
to
|
7
|
Non-GAAP
|
$
110
|
to
|
$
130
|
|
$ 56
|
to
|
$ 69
|
|
$ 63
|
to
|
$ 65
|
|
$ (7)
|
to
|
$ 3
|
|
$ (6)
|
to
|
$ 2
|
As a % of revenue
(GAAP)
|
|
|
|
|
50.2 %
|
to
|
51.6 %
|
|
63.6 %
|
to
|
55.4 %
|
|
(13.6) %
|
to
|
(3.8) %
|
|
(11.8) %
|
to
|
(3.8) %
|
As a % of revenue
(Non-GAAP)
|
|
|
|
|
51.1 %
|
to
|
52.4 %
|
|
57.3 %
|
to
|
50.0 %
|
|
(6.2) %
|
to
|
2.4 %
|
|
(5.6) %
|
to
|
1.4 %
|
Diluted net income
(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (0.12)
|
to
|
$ (0.04)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ (0.06)
|
to
|
$ 0.02
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111.7
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111.7
|
to
|
115.2
|
|
|
(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
|
$
655
|
to
|
$
710
|
|
$
329
|
to
|
$
371
|
|
$
283
|
to
|
$
292
|
|
$ 46
|
to
|
$ 79
|
|
$ 31
|
to
|
$ 57
|
Stock-based
compensation expense
|
—
|
|
2
|
|
(26)
|
|
28
|
|
28
|
Non-recurring advisory
fees
|
—
|
|
—
|
|
(2)
|
|
2
|
|
2
|
Non-cash interest and
other expenses related to
convertible notes
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
Tax effect of non-GAAP
adjustments
|
—
|
|
—
|
|
—
|
|
—
|
|
(6)
|
to
|
(6)
|
Total
adjustments
|
—
|
|
2
|
|
(28)
|
|
30
|
|
25
|
to
|
25
|
Non-GAAP
|
$
655
|
to
|
$
710
|
|
$
331
|
to
|
$
373
|
|
$
255
|
to
|
$
264
|
|
$ 76
|
to
|
$
109
|
|
$ 56
|
to
|
$ 82
|
As a % of revenue
(GAAP)
|
|
|
|
|
50.2 %
|
to
|
52.2 %
|
|
43.2 %
|
to
|
41.1 %
|
|
7.0 %
|
to
|
11.1 %
|
|
4.7 %
|
to
|
8.0 %
|
As a % of revenue
(Non-GAAP)
|
|
|
|
|
50.5 %
|
to
|
52.5 %
|
|
38.9 %
|
to
|
37.2 %
|
|
11.6 %
|
to
|
15.3 %
|
|
8.5 %
|
to
|
11.5 %
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.27
|
to
|
$ 0.50
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 0.49
|
to
|
$ 0.72
|
Shares used in per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP and
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114.6
|
|
|
(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)
|
|
|
|
Q1 2024 Financial
Guidance
|
|
|
Video
|
|
Broadband
|
Income (loss) from
operations (2)
|
|
$
(9)
|
to
|
$
(4)
|
|
$
2
|
to
|
$
7
|
Depreciation
|
|
1
|
|
1
|
|
2
|
|
2
|
Other non-operating
expenses
|
|
—
|
|
1
|
|
—
|
|
(1)
|
Segment adjusted
EBITDA(3)
|
|
$
(8)
|
to
|
$
(2)
|
|
$
4
|
to
|
$
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Financial
Guidance
|
|
|
Video
|
|
Broadband
|
Income (loss) from
operations (2)
|
|
$
(12)
|
to
|
$
(3)
|
|
$
88
|
to
|
$
112
|
Depreciation
|
|
6
|
|
6
|
|
8
|
|
8
|
Other non-operating
expenses
|
|
(1)
|
|
(1)
|
|
(1)
|
|
(1)
|
Segment adjusted
EBITDA(3)
|
|
$
(7)
|
to
|
$
2
|
|
$
95
|
to
|
$
119
|
|
|
(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
(loss) to Consolidated Segment Adjusted EBITDA reconciliation on
Financial Guidance".
|
Harmonic
Inc.
|
Net Income (Loss) to
Consolidated Segment Adjusted EBITDA Reconciliation on Financial
Guidance (Unaudited) (1)
|
(In
millions)
|
|
|
|
Q1 2024 Financial
Guidance
|
|
2024 Financial
Guidance
|
Net income (loss)
(GAAP)
|
|
$
(13)
|
to
|
$
(5)
|
|
31
|
to
|
$
57
|
Provision for (benefit
from) income taxes
|
|
(3)
|
|
(1)
|
|
7
|
|
14
|
Interest expense,
net
|
|
1
|
|
1
|
|
7
|
|
7
|
Depreciation
|
|
3
|
|
3
|
|
13
|
|
13
|
EBITDA
|
|
$
(12)
|
to
|
$
(2)
|
|
$
58
|
to
|
$
91
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
7
|
|
7
|
|
28
|
|
28
|
Non-recurring advisory
fees
|
|
1
|
|
1
|
|
2
|
|
2
|
Total consolidated
segment adjusted EBITDA (Non-GAAP) (2)
|
|
$
(4)
|
to
|
$
6
|
|
$
88
|
to
|
$
121
|
|
|
(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.