Nimrod
Ben-Natan to Succeed Patrick Harshman as President &
CEO, Effective June 11, 2024
Concludes Video Business Strategic Review
Process
Updates First Quarter 2024 Revenue
Guidance
SAN
JOSE, Calif., April 8,
2024 /PRNewswire/ -- Harmonic (NASDAQ: HLIT) today
announced that Patrick Harshman will
retire as President and Chief Executive Officer, effective
June 11, 2024. Nimrod Ben-Natan, currently Senior Vice
President and General Manager of Harmonic's Broadband business, has
been appointed as Mr. Harshman's successor by Harmonic's Board of
Directors. Mr. Harshman will work with the Board and Mr. Ben-Natan
to ensure a smooth transition.
Mr. Ben-Natan joined Harmonic in 1996 as a software engineer to
design and develop its first-generation video transmission
platform. He has led Harmonic's Broadband business as Senior Vice
President and General Manager since 2012. Mr. Ben-Natan has been a
key driving force in the advancement of next-generation broadband
networks, and his visionary leadership has been instrumental in
pioneering the development and widespread deployment of the
Company's Emmy award-winning cOS™ virtualized
broadband technology.
"On behalf of the entire Board, I'd like to thank
Patrick for his leadership and service to Harmonic, guiding
the Company through multiple strategic transformations over the
years. It has been a real pleasure to work with him all these years
and we wish him success, good health and happiness in the next
chapter of his life. We are pleased that his expertise will be
available to support Nimrod and the Board in this transition," said
Patrick Gallagher, Chair of the
Harmonic Board of Directors.
Gallagher continued, "As part of a thoughtful succession
planning process, we conducted a comprehensive evaluation of both
internal and external candidates with the support of a leading
search firm. Nimrod was the standout – his leadership has been
pivotal in the rapid growth of the Company's groundbreaking and
market-leading virtualized broadband access solutions. He is
admired and respected by our employees and customers, and the Board
is confident that his strategic vision, experience and business
acumen will drive Harmonic's future success."
"Leading Harmonic has been the privilege of a lifetime and I am
proud of what we have accomplished," said Harshman. "Together, we
strategically re-positioned the Company as a worldwide leader in
next-generation broadband solutions and video streaming and
delivery solutions, successfully expanding our customer base,
international presence and product portfolio. Nimrod is ideally
suited to lead Harmonic and our talented global team into its next
chapter of innovation and growth."
"I am energized and excited to step into the CEO position,"
added Nimrod Ben-Natan. "I look
forward to collaborating with the Board and our Harmonic team to
build on the strong foundation we have established as we continue
to revolutionize broadband networks and cloud streaming."
Video Business Review Update
As previously announced
in October 2023, Harmonic's Board of
Directors initiated a formal strategic review process to evaluate
potential strategic alternatives for the Company's Video business
with the assistance of independent financial and legal advisors.
After carefully evaluating a range of alternatives, the Board
concluded its review and determined that current market conditions
do not support its value creation objectives for the Video
business.
The go-forward strategy for Harmonic's Video business will be
centered on driving profitable growth by focusing on scalable
market opportunities, streamlining operations and optimizing its
cost structure.
Consistent with its ongoing focus on value creation, the Board
is always open to further opportunities and alternatives should
they arise.
Updated Q1 2024 Revenue Guidance
Harmonic
management expects total Company first quarter 2024 revenue to be
in the range of $121 million to
$123 million. Harmonic expects
revenue between $78.5 million to
$79.5 million for the Broadband
segment and revenue between $42.5
million to $43.5 million for
the Video segment.
Investor Day Planned for June
2024
The Company expects to host an Investor Day in
mid-June 2024 to discuss its
long-term strategy and growth plans for the Broadband and Video
business units. Additional details including the specific date will
be provided during the Company's first quarter 2024 earnings
call.
About Harmonic
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 CEO succession,
revenue, Company growth and innovation, and profitable growth of
our Video business segment. 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: difficulties in
transitioning management from Mr. Harshman to Mr. Ben-Natan, 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 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 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, 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.
Harmonic, the Harmonic logo and other Harmonic marks are owned
by Harmonic Inc. or its affiliates. Any other trademarks referenced
herein are the property of their respective owners.
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SOURCE Harmonic Inc.