Harmonic Announces Second Quarter 2024 Results
Harmonic Inc. (NASDAQ: HLIT) reported Q2 2024 results with revenue of $138.7 million, up 14% quarter-over-quarter and at the high end of guidance. The company reaffirmed its full-year revenue guidance for both Broadband and Video segments. Key highlights include:
- Broadband segment revenue: $92.9 million
- Video segment revenue: $45.8 million
- GAAP gross margin: 52.9%, Non-GAAP: 53.1%
- GAAP net loss: $12.5 million, Non-GAAP net income: $9.3 million
- Non-GAAP adjusted EBITDA: $16.1 million
Harmonic's cOS™ solution is now deployed with 118 customers, serving 30.1 million cable modems. The company is diversifying its Broadband customer base and has begun production shipments of its new high-density Pier optical line terminal for PON applications.
Harmonic Inc. (NASDAQ: HLIT) ha riportato i risultati del secondo trimestre 2024 con un fatturato di 138,7 milioni di dollari, in aumento del 14% rispetto al trimestre precedente e al limite superiore delle previsioni. L'azienda ha confermato le previsioni di fatturato per l'intero anno per i segmenti Broadband e Video. I punti salienti includono:
- Fatturato del segmento Broadband: 92,9 milioni di dollari
- Fatturato del segmento Video: 45,8 milioni di dollari
- Margine lordo GAAP: 52,9%, Non-GAAP: 53,1%
- Perdita netta GAAP: 12,5 milioni di dollari, Reddito netto Non-GAAP: 9,3 milioni di dollari
- EBITDA rettificato Non-GAAP: 16,1 milioni di dollari
La soluzione cOS™ di Harmonic è ora utilizzata da 118 clienti, servendo 30,1 milioni di modem via cavo. L'azienda sta diversificando la sua base clienti nel settore Broadband e ha iniziato le spedizioni di produzione del suo nuovo terminale ottico a densità elevata Pier per applicazioni PON.
Harmonic Inc. (NASDAQ: HLIT) reportó resultados del segundo trimestre de 2024 con ingresos de 138.7 millones de dólares, un aumento del 14% en comparación con el trimestre anterior y en el extremo alto de las proyecciones. La compañía reafirmó sus proyecciones de ingresos para todo el año en los segmentos de Banda Ancha y Video. Los aspectos destacados incluyen:
- Ingresos del segmento de Banda Ancha: 92.9 millones de dólares
- Ingresos del segmento de Video: 45.8 millones de dólares
- Margen bruto GAAP: 52.9%, No-GAAP: 53.1%
- Pérdida neta GAAP: 12.5 millones de dólares, Ingreso neto No-GAAP: 9.3 millones de dólares
- EBITDA ajustado No-GAAP: 16.1 millones de dólares
La solución cOS™ de Harmonic ya está implementada con 118 clientes, sirviendo a 30.1 millones de módems por cable. La compañía está diversificando su base de clientes en Banda Ancha y ha comenzado el envío de producción de su nuevo terminal óptico de alta densidad Pier para aplicaciones PON.
하모닉 Inc. (NASDAQ: HLIT)는 2024년 2분기 결과를 보고하며 매출 1억 3,870만 달러를 기록했다고 발표했습니다. 이 수치는 전 분기 대비 14% 증가했으며, 가이던스의 상단에 해당합니다. 회사는 광대역 및 비디오 세그먼트 모두에 대해 연간 수익 가이던스를 재확인했습니다. 주요 하이라이트는 다음과 같습니다:
- 광대역 세그먼트 매출: 9,290만 달러
- 비디오 세그먼트 매출: 4,580만 달러
- GAAP 총마진: 52.9%, 비GAAP: 53.1%
- GAAP 순손실: 1,250만 달러, 비GAAP 순이익: 930만 달러
- 비GAAP 조정 EBITDA: 1,610만 달러
하모닉의 cOS™ 솔루션은 현재 118명의 고객사에 배포되어 있으며, 3,010만 대의 케이블 모뎀에 서비스를 제공하고 있습니다. 회사는 광대역 고객 기반을 다각화하고 있으며 PON 애플리케이션용으로 새로운 고밀도 Pier 광선 단말기의 생산 출하를 시작하였습니다.
Harmonic Inc. (NASDAQ: HLIT) a annoncé ses résultats du deuxième trimestre 2024 avec un chiffre d'affaires de 138,7 millions de dollars, en augmentation de 14 % par rapport au trimestre précédent et au niveau supérieur des prévisions. L'entreprise a réaffirmé ses prévisions de chiffre d'affaires pour l'ensemble de l'année pour les segments Haut Débit et Vidéo. Les points saillants incluent :
- Chiffre d'affaires du segment Haut Débit : 92,9 millions de dollars
- Chiffre d'affaires du segment Vidéo : 45,8 millions de dollars
- Marge brute GAAP : 52,9 %, Non-GAAP : 53,1 %
- Perte nette GAAP : 12,5 millions de dollars, Revenu net Non-GAAP : 9,3 millions de dollars
- EBITDA ajusté Non-GAAP : 16,1 millions de dollars
La solution cOS™ de Harmonic est maintenant déployée auprès de 118 clients, servant 30,1 millions de modems câbles. L'entreprise diversifie sa clientèle dans le secteur Haut Débit et a commencé les expéditions de production de son nouveau terminal optique haute densité Pier pour des applications PON.
Harmonic Inc. (NASDAQ: HLIT) berichtete über die Ergebnisse des 2. Quartals 2024 mit einem Umsatz von 138,7 Millionen Dollar, was einem Anstieg von 14 % im Vergleich zum Vorquartal entspricht und am oberen Ende der Prognosen liegt. Das Unternehmen bestätigte seine Umsatzprognose für das gesamte Jahr sowohl für die Breitband- als auch für die Videosegmente. Wichtige Highlights sind:
- Umsatz im Breitbandsegment: 92,9 Millionen Dollar
- Umsatz im Videosegment: 45,8 Millionen Dollar
- GAAP-Bruttomarge: 52,9 %, Non-GAAP: 53,1 %
- GAAP-Nettoverlust: 12,5 Millionen Dollar, Non-GAAP-Nettoeinkommen: 9,3 Millionen Dollar
- Non-GAAP bereinigtes EBITDA: 16,1 Millionen Dollar
Die cOS™-Lösung von Harmonic ist nun bei 118 Kunden im Einsatz und bedient 30,1 Millionen Kabelmodems. Das Unternehmen diversifiziert seine Kundenbasis im Breitbandbereich und hat mit den Produktionslieferungen seines neuen hochdichten Pier-Optiklinienendgeräts für PON-Anwendungen begonnen.
- Revenue of $138.7 million, up 14% quarter-over-quarter
- Reaffirmed full-year revenue guidance for Broadband and Video segments
- cOS™ solution deployed with 118 customers, serving 30.1 million cable modems
- Non-GAAP net income of $9.3 million
- Video segment non-GAAP gross margin improved to 64.4% from 61.7% in the prior year
- GAAP net loss of $12.5 million compared to net income of $1.6 million in the prior year
- Broadband segment revenue decreased to $92.9 million from $97.1 million in the prior year
- Video segment revenue declined to $45.8 million from $58.9 million in the prior year
- Cash position decreased to $45.9 million from $71.0 million in the prior year
- Bookings for the quarter decreased to $72.4 million from $194.7 million in Q2 2023
Insights
Harmonic's Q2 2024 results present a mixed picture. While revenue of
Key points to consider:
- Broadband segment revenue decreased
4.3% year-over-year, while Video segment revenue fell more sharply by22.2% . - Non-GAAP gross margins for the Video segment improved to
64.4% from61.7% last year, showing better profitability despite lower revenue. - The company's cash position has weakened, with
$45.9 million on hand compared to$71.0 million a year ago. - Bookings for the quarter were significantly lower at
$72.4 million compared to$194.7 million in Q2 2023, which could indicate challenges ahead.
The reaffirmation of full-year revenue guidance suggests management's confidence in a stronger second half. However, the declining bookings and cash position warrant close monitoring. The company's focus on diversifying its Broadband customer base and increasing its Video sales pipeline could be important for future growth.
Harmonic's technological progress in Q2 2024 shows promise, particularly in its broadband segment. The commercial deployment of their cOS™ solution with 118 customers, serving 30.1 million cable modems, demonstrates significant market penetration. This adoption rate suggests that Harmonic's technology is meeting industry needs and could be a strong driver for future growth.
The company's diversification efforts are noteworthy:
- The selection of Harmonic's cOS broadband platform by Telecentro, a leading Argentine telecom operator, indicates expanding global reach.
- First production shipments of the new high-density Pier optical line terminal (OLT) shelf for PON applications show Harmonic's commitment to staying at the forefront of broadband technology.
In the Video segment, the increasing sales pipeline for larger Appliance and Tier 1 SaaS opportunities could offset the current revenue decline if successfully converted. This shift towards higher-value opportunities might explain the improved gross margins in the Video segment despite lower revenue.
However, the tech landscape is rapidly evolving and Harmonic will need to continue innovating to maintain its competitive edge. The company's ability to execute on its 2024 and long-term growth plans will be crucial, especially in light of the challenging macroeconomic environment affecting tech spending.
Revenue of
Reaffirming Broadband and Video Full Year Revenue Guidance
"Our second quarter revenue was at the high end of our guidance range while profitability in both businesses exceeded our expectations," said Nimrod Ben-Natan, president and chief executive officer of Harmonic. "These results demonstrate strong execution in both our Broadband and Video businesses as we continue to implement our 2024 and long-term growth plans."
Q2 Financial and Business Highlights
Financial
- Revenue:
$138.7 million $156.0 million - Broadband segment revenue:
$92.9 million $97.1 million - Video segment revenue:
$45.8 million $58.9 million
- Broadband segment revenue:
- Gross margin: GAAP
52.9% and non-GAAP53.1% , compared to GAAP54.5% and non-GAAP54.7% in the prior year period- Broadband segment non-GAAP gross margin:
47.6% compared to50.5% in the prior year period - Video segment non-GAAP gross margin:
64.4% compared to61.7% in the prior year period
- Broadband segment non-GAAP gross margin:
- Operating income (loss): GAAP loss
$15.6 million $12.2 million $10.0 million $18.2 million - Net income (loss): GAAP net loss
$12.5 million $9.3 million $1.6 million $14.0 million - Non-GAAP adjusted EBITDA:
$16.1 million $21.1 million - Net income (loss) per share: GAAP net loss per share of
$0.11 $0.08 $0.01 $0.12 - Backlog and deferred revenue of
$613.1 million - Cash:
$45.9 million $71.0 million
Business
- Commercially deployed our cOS™ solution with 118 customers, serving 30.1 million cable modems
- Continuing to diversify our Broadband customer base with the recent announcement that Telecentro, a leading telecommunications operator in
Argentina , has selected Harmonic's industry-leading cOS broadband platform - First production shipments of our new high-density Pier optical line terminal (OLT) shelf for PON applications
- Increasing Video sales pipeline of larger Appliance and Tier 1 SaaS opportunities
Select Financial Information
GAAP | Non-GAAP | |||||||||||
Key Financial Results | Q2 2024 | Q1 2024 | Q2 2023 | Q2 2024 | Q1 2024 | Q2 2023 | ||||||
(Unaudited, in millions, except per share data) | ||||||||||||
Net revenue | $ 138.7 | $ 122.1 | $ 156.0 | * | * | * | ||||||
Net income (loss) | $ (12.5) | $ (8.1) | $ 1.6 | $ 9.3 | $ 0.4 | $ 14.0 | ||||||
Net income (loss) per share | $ (0.11) | $ (0.07) | $ 0.01 | $ 0.08 | $ 0.00 | $ 0.12 | ||||||
Other Financial Information | Q2 2024 | Q1 2024 | Q2 2023 | |||||||||
(Unaudited, in millions) | ||||||||||||
Adjusted EBITDA for the quarter (1) | $ 16.1 | $ 4.1 | $ 21.1 | |||||||||
Bookings for the quarter | $ 72.4 | $ 146.1 | $ 194.7 | |||||||||
Backlog and deferred revenue as of quarter end | $ 613.1 | $ 677.8 | $ 663.8 | |||||||||
Cash and cash equivalents as of quarter end | $ 45.9 | $ 84.3 | $ 71.0 | |||||||||
(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 |
Q3 2024 GAAP Financial Guidance | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total GAAP | Broadband | Video | Total GAAP | ||||||
Net revenue | $ 130 | $ 45 | $ 175 | $ 140 | $ 50 | $ 190 | |||||
Gross margin % | 51.9 % | 52.9 % | |||||||||
Gross profit | $ 91 | $ 101 | |||||||||
Tax rate | 24 % | 24 % | |||||||||
Net income | $ 16 | $ 22 | |||||||||
Net income per share | $ 0.14 | $ 0.19 | |||||||||
Shares (1) | 117.0 | 117.0 | |||||||||
(1) Diluted shares assumes stock price at |
2024 GAAP Financial Guidance | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total GAAP | Broadband | Video | Total GAAP | ||||||
Net revenue | $ 460 | $ 185 | $ 645 | $ 500 | $ 195 | $ 695 | |||||
Gross margin % | 51.4 % | 53.1 % | |||||||||
Gross profit | $ 332 | $ 369 | |||||||||
Tax rate | 24 % | 24 % | |||||||||
Net income | $ 23 | $ 45 | |||||||||
Net income per share | $ 0.19 | $ 0.38 | |||||||||
Shares (1) | 117.3 | 117.3 | |||||||||
(1) Diluted shares assumes stock price at |
Q3 2024 Non-GAAP Financial Guidance (1) | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total | Broadband | Video | Total | ||||||
Gross margin % | 48.0 % | 63.0 % | 51.9 % | 49.0 % | 64.0 % | 52.9 % | |||||
Gross profit | $ 63 | $ 28 | $ 91 | $ 69 | $ 32 | $ 101 | |||||
Adjusted EBITDA(2) | $ 34 | $ — | $ 34 | $ 39 | $ 3 | $ 42 | |||||
Tax rate | 21 % | 21 % | |||||||||
Net income per share | $ 0.19 | $ 0.24 | |||||||||
Shares (3) | 117.0 | 117.0 | |||||||||
(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. |
(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 |
2024 Non-GAAP Financial Guidance (1) | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total | Broadband | Video | Total | ||||||
Gross margin % | 47.0 % | 63.0 % | 51.6 % | 49.0 % | 64.0 % | 53.2 % | |||||
Gross profit | $ 216 | $ 117 | $ 333 | $ 245 | $ 125 | $ 370 | |||||
Adjusted EBITDA(2) | $ 102 | $ — | $ 102 | $ 126 | $ 5 | $ 131 | |||||
Tax rate | 21 % | 21 % | |||||||||
Net income per share (3) | $ 0.56 | $ 0.75 | |||||||||
Shares (3) | 117.3 | 117.3 | |||||||||
(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. |
(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 |
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, July 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/BI0a4873336ead4b6c81df331d35635fb3. 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 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: 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 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
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.
Lease-related asset impairment and other charges - There were lease-related asset impairment and other charges that we excluded from non-GAAP results relating to the reduction of our leased office space, as we continue to adapt to the changing dynamics of work and seek to optimize value for our business. These charges primarily consist of right-of-use asset impairment and related leasehold improvement impairment, and the fair value of 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) | |||
June 28, 2024 | December 31, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 45,850 | $ 84,269 | |
Restricted cash | 2,827 | — | |
Accounts receivable, net | 119,999 | 141,531 | |
Inventories | 84,133 | 83,982 | |
Prepaid expenses and other current assets | 31,742 | 20,950 | |
Total current assets | 284,551 | 330,732 | |
Property and equipment, net | 29,603 | 36,683 | |
Operating lease right-of-use assets | 15,244 | 20,817 | |
Goodwill | 237,884 | 239,150 | |
Deferred income taxes | 112,906 | 104,707 | |
Other non-current assets | 33,508 | 36,117 | |
Total assets | $ 713,696 | $ 768,206 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Convertible debt | $ — | $ 114,880 | |
Current portion of long-term debt | 944 | — | |
Current portion of other borrowings | 8,348 | 4,918 | |
Accounts payable | 30,017 | 38,562 | |
Deferred revenue | 53,142 | 46,217 | |
Operating lease liabilities | 6,166 | 6,793 | |
Other current liabilities | 53,284 | 61,024 | |
Total current liabilities | 151,901 | 272,394 | |
Long-term debt | 113,805 | — | |
Other long-term borrowings | 5,245 | 10,495 | |
Operating lease liabilities, non-current | 16,594 | 18,965 | |
Other non-current liabilities | 33,343 | 29,478 | |
Total liabilities | 320,888 | 331,332 | |
Stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 116 | 112 | |
Additional paid-in capital | 2,416,152 | 2,405,043 | |
Accumulated deficit | (2,013,333) | (1,962,575) | |
Accumulated other comprehensive loss | (10,127) | (5,706) | |
Total stockholders' equity | 392,808 | 436,874 | |
Total liabilities and stockholders' equity | $ 713,696 | $ 768,206 | |
Harmonic Inc. | |||||||
Preliminary Condensed Consolidated Statements of Operations | |||||||
(Unaudited, in thousands, except per share data) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||
Revenue: | |||||||
Appliance and integration | $ 94,184 | $ 111,127 | $ 175,779 | $ 225,921 | |||
SaaS and service | 44,556 | 44,836 | 85,021 | 87,691 | |||
Total net revenue | 138,740 | 155,963 | 260,800 | 313,612 | |||
Cost of revenue: | |||||||
Appliance and integration | 50,878 | 57,437 | 93,952 | 117,185 | |||
SaaS and service | 14,405 | 13,586 | 30,310 | 27,433 | |||
Total cost of revenue | 65,283 | 71,023 | 124,262 | 144,618 | |||
Total gross profit | 73,457 | 84,940 | 136,538 | 168,994 | |||
Operating expenses: | |||||||
Research and development | 28,784 | 32,205 | 59,489 | 65,714 | |||
Selling, general and administrative | 39,821 | 42,773 | 78,686 | 82,055 | |||
Lease-related asset impairment and other charges | 9,000 | — | 9,000 | — | |||
Restructuring and related charges | 11,482 | — | 14,519 | 83 | |||
Total operating expenses | 89,087 | 74,978 | 161,694 | 147,852 | |||
Income (loss) from operations | (15,630) | 9,962 | (25,156) | 21,142 | |||
Interest expense, net | (1,424) | (800) | (2,147) | (1,506) | |||
Other income (expense), net | 619 | (136) | 330 | (429) | |||
Income (loss) before income taxes | (16,435) | 9,026 | (26,973) | 19,207 | |||
Provision for (benefit from) income taxes | (3,903) | 7,471 | (6,352) | 12,559 | |||
Net income (loss) | $ (12,532) | $ 1,555 | $ (20,621) | $ 6,648 | |||
Net income (loss) per share: | |||||||
Basic | $ (0.11) | $ 0.01 | $ (0.18) | $ 0.06 | |||
Diluted | $ (0.11) | $ 0.01 | $ (0.18) | $ 0.06 | |||
Weighted average shares outstanding: | |||||||
Basic | 115,030 | 111,462 | 113,705 | 111,130 | |||
Diluted | 115,030 | 119,255 | 113,705 | 118,508 | |||
Harmonic Inc. | |||
Preliminary Condensed Consolidated Statements of Cash Flows | |||
(Unaudited, in thousands) | |||
Six Months Ended | |||
June 28, 2024 | June 30, 2023 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ (20,621) | $ 6,648 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 6,311 | 6,089 | |
Lease related asset impairment and other charges | 9,000 | — | |
Stock-based compensation | 13,877 | 13,483 | |
Foreign currency remeasurement | 2,469 | 991 | |
Deferred income taxes, net | (8,897) | 1,321 | |
Provision for excess and obsolete inventories | 2,152 | 3,383 | |
Other adjustments | 354 | 1,292 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 20,765 | (10,392) | |
Inventories | (3,929) | 6,894 | |
Other assets | (6,761) | 2,060 | |
Accounts payable | (8,680) | (30,527) | |
Deferred revenues | 6,179 | 1,223 | |
Other liabilities | (7,553) | (12,717) | |
Net cash provided by (used in) operating activities | 4,666 | (10,252) | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (3,856) | (3,833) | |
Net cash used in investing activities | (3,856) | (3,833) | |
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 | — | 3,829 | |
Repayment of other borrowings | (1,334) | (4,721) | |
Proceeds from common stock issued to employees | 3,542 | 3,084 | |
Taxes paid related to net share settlement of equity awards | (6,252) | (7,643) | |
Net cash used in financing activities | (34,923) | (5,451) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,391) | 981 | |
Net decrease in cash and cash equivalents and restricted cash | (35,504) | (18,555) | |
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 | $ 48,765 | $ 71,031 | |
Cash and cash equivalents and restricted cash at end of period | |||
Cash and cash equivalents | $ 45,850 | $ 71,031 | |
Restricted cash included in prepaid expenses and other current assets | 2,827 | — | |
Restricted cash included in other non-current assets | 88 | — | |
Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows | $ 48,765 | $ 71,031 | |
Harmonic Inc. | |||
Preliminary Condensed Consolidated Statements of Cash Flows | |||
(Unaudited, in thousands) | |||
Six Months Ended | |||
June 28, 2024 | June 30, 2023 | ||
Supplemental cash flow disclosure: | |||
Net cash paid for income taxes | $ 11,407 | $ 5,008 | |
Cash paid for interest | $ 1,895 | $ 1,015 | |
Supplemental schedule of non-cash investing activities: | |||
Capital expenditures incurred but not yet paid | $ 282 | $ 1,189 | |
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 | ||||||||
June 28, 2024 | March 29, 2024 | June 30, 2023 | ||||||
Geography | ||||||||
$ 109,597 | 79 % | $ 93,031 | 76 % | $ 111,407 | 72 % | |||
EMEA | 22,680 | 16 % | 23,560 | 19 % | 36,242 | 23 % | ||
APAC | 6,463 | 5 % | 5,469 | 5 % | 8,314 | 5 % | ||
Total | $ 138,740 | 100 % | $ 122,060 | 100 % | $ 155,963 | 100 % | ||
Market | ||||||||
Service Provider | $ 104,429 | 75 % | $ 86,693 | 71 % | $ 108,703 | 70 % | ||
Broadcast and Media | 34,311 | 25 % | 35,367 | 29 % | 47,260 | 30 % | ||
Total | $ 138,740 | 100 % | $ 122,060 | 100 % | $ 155,963 | 100 % | ||
Six Months Ended | ||||||||
June 28, 2024 | June 30, 2023 | |||||||
Geography | ||||||||
$ 202,628 | 78 % | $ 227,073 | 72 % | |||||
EMEA | 46,240 | 18 % | 69,183 | 22 % | ||||
APAC | 11,932 | 4 % | 17,356 | 6 % | ||||
Total | $ 260,800 | 100 % | $ 313,612 | 100 % | ||||
Market | ||||||||
Service Provider | $ 191,122 | 73 % | $ 226,692 | 72 % | ||||
Broadcast and Media | 69,678 | 27 % | 86,920 | 28 % | ||||
Total | $ 260,800 | 100 % | $ 313,612 | 100 % | ||||
Harmonic Inc. | ||||||||||||
Preliminary Segment Information | ||||||||||||
(Unaudited, in thousands, except percentages) | ||||||||||||
Three Months Ended June 28, 2024 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
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 March 29, 2024 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 78,897 | $ 43,163 | $ 122,060 | $ — | $ 122,060 | |||||||
Gross profit | 37,494 | (1) | 26,569 | (1) | 64,063 | (1) | (982) | 63,081 | ||||
Gross margin % | 47.5 % | (1) | 61.6 % | (1) | 52.5 % | (1) | 51.7 % | |||||
Three Months Ended June 30, 2023 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 97,096 | $ 58,867 | $ 155,963 | $ — | $ 155,963 | |||||||
Gross profit | 49,076 | (1) | 36,303 | (1) | 85,379 | (1) | (439) | 84,940 | ||||
Gross margin % | 50.5 % | (1) | 61.7 % | (1) | 54.7 % | (1) | 54.5 % | |||||
Six Months Ended June 28, 2024 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 171,834 | $ 88,966 | $ 260,800 | $ — | $ 260,800 | |||||||
Gross profit | 81,730 | (1) | 56,063 | (1) | 137,793 | (1) | (1,255) | 136,538 | ||||
Gross margin % | 47.6 % | (1) | 63.0 % | (1) | 52.8 % | (1) | 52.4 % | |||||
Six Months Ended June 30, 2023 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 197,447 | $ 116,165 | $ 313,612 | $ — | $ 313,612 | |||||||
Gross profit | 99,366 | (1) | 70,917 | (1) | 170,283 | (1) | (1,289) | 168,994 | ||||
Gross margin % | 50.3 % | (1) | 61.0 % | (1) | 54.3 % | (1) | 53.9 % | |||||
(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 June 28, 2024 | |||||||||||
Revenue | Gross Profit | Total | Income | Total Non- | Net Income | ||||||
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 | |||||
Lease-related asset impairment and other charges | — | — | (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 | ||||||||||
Three Months Ended March 29, 2024 | |||||||||||
Revenue | Gross Profit | Total | Income | Total Non- | Net Income | ||||||
GAAP | $ 122,060 | $ 63,081 | $ 72,607 | $ (9,526) | $ (1,012) | $ (8,089) | |||||
Stock-based compensation | — | 522 | (6,401) | 6,923 | — | 6,923 | |||||
Restructuring and related charges | — | 460 | (3,037) | 3,497 | 11 | 3,508 | |||||
Non-recurring advisory fees | — | — | (349) | 349 | — | 349 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 229 | 229 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (2,538) | |||||
Total adjustments | — | 982 | (9,787) | 10,769 | 240 | 8,471 | |||||
Non-GAAP | $ 122,060 | $ 64,063 | $ 62,820 | $ 1,243 | $ (772) | $ 382 | |||||
As a % of revenue (GAAP) | 51.7 % | 59.5 % | (7.8) % | (0.8) % | (6.6) % | ||||||
As a % of revenue (Non-GAAP) | 52.5 % | 51.5 % | 1.0 % | (0.6) % | 0.3 % | ||||||
Diluted net income (loss) per share: | |||||||||||
GAAP | $ (0.07) | ||||||||||
Non-GAAP | $ 0.00 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP | 112,350 | ||||||||||
Non-GAAP | 118,107 | ||||||||||
Three Months Ended June 30, 2023 | |||||||||||
Revenue | Gross Profit | Total | Income from | Total Non- | Net Income | ||||||
GAAP | $ 155,963 | $ 84,940 | $ 74,978 | $ 9,962 | $ (936) | $ 1,555 | |||||
Stock-based compensation | — | 439 | (5,620) | 6,059 | — | 6,059 | |||||
Non-recurring advisory fees | — | — | (2,135) | 2,135 | — | 2,135 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 223 | 223 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 3,982 | |||||
Total adjustments | — | 439 | (7,755) | 8,194 | 223 | 12,399 | |||||
Non-GAAP | $ 155,963 | $ 85,379 | $ 67,223 | $ 18,156 | $ (713) | $ 13,954 | |||||
As a % of revenue (GAAP) | 54.5 % | 48.1 % | 6.4 % | (0.6) % | 1.0 % | ||||||
As a % of revenue (Non-GAAP) | 54.7 % | 43.1 % | 11.6 % | (0.5) % | 8.9 % | ||||||
Diluted net income per share: | |||||||||||
GAAP | $ 0.01 | ||||||||||
Non-GAAP | $ 0.12 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP and Non-GAAP | 119,255 | ||||||||||
Six Months Ended June 28, 2024 | |||||||||||
Revenue | Gross Profit | Total | Income | Total Non- | Net Income | ||||||
GAAP | $ 260,800 | $ 136,538 | $ 161,694 | $ (25,156) | $ (1,817) | $ (20,621) | |||||
Stock-based compensation | — | 795 | (13,082) | 13,877 | — | 13,877 | |||||
Restructuring and related charges | — | 460 | (14,519) | 14,979 | 11 | 14,990 | |||||
Non-recurring advisory fees | — | — | (755) | 755 | — | 755 | |||||
Lease-related asset impairment and other charges | — | — | (9,000) | 9,000 | — | 9,000 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 567 | 567 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (8,907) | |||||
Total adjustments | — | 1,255 | (37,356) | 38,611 | 578 | 30,282 | |||||
Non-GAAP | $ 260,800 | $ 137,793 | $ 124,338 | $ 13,455 | $ (1,239) | $ 9,661 | |||||
As a % of revenue (GAAP) | 52.4 % | 62.0 % | (9.6) % | (0.7) % | (7.9) % | ||||||
As a % of revenue (Non-GAAP) | 52.8 % | 47.7 % | 5.2 % | (0.5) % | 3.7 % | ||||||
Diluted net income (loss) per share: | |||||||||||
GAAP | $ (0.18) | ||||||||||
Non-GAAP | $ 0.08 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP | 113,705 | ||||||||||
Non-GAAP | 117,419 | ||||||||||
Six Months Ended June 30, 2023 | |||||||||||
Revenue | Gross Profit | Total | Income from | Total Non- | Net Income | ||||||
GAAP | $ 313,612 | $ 168,994 | $ 147,852 | $ 21,142 | $ (1,935) | $ 6,648 | |||||
Stock-based compensation | — | 1,289 | (12,194) | 13,483 | — | 13,483 | |||||
Restructuring and related charges | — | — | (83) | 83 | — | 83 | |||||
Non-recurring advisory fees | — | — | (2,135) | 2,135 | — | 2,135 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 446 | 446 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 5,488 | |||||
Total adjustments | — | 1,289 | (14,412) | 15,701 | 446 | 21,635 | |||||
Non-GAAP | $ 313,612 | $ 170,283 | $ 133,440 | $ 36,843 | $ (1,489) | $ 28,283 | |||||
As a % of revenue (GAAP) | 53.9 % | 47.1 % | 6.7 % | (0.6) % | 2.1 % | ||||||
As a % of revenue (Non-GAAP) | 54.3 % | 42.5 % | 11.7 % | (0.5) % | 9.0 % | ||||||
Diluted net income per share: | |||||||||||
GAAP | $ 0.06 | ||||||||||
Non-GAAP | $ 0.24 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP and Non-GAAP | 118,508 | ||||||||||
Harmonic Inc. | |||
Calculation of Adjusted EBITDA by Segment (Unaudited) | |||
(In thousands, except percentages) | |||
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 March 29, 2024 | |||
Broadband | Video | ||
Income (loss) from operations (1) | $ 8,594 | $ (7,351) | |
Depreciation | 1,986 | 1,099 | |
Other non-operating expenses, net | (179) | (99) | |
Adjusted EBITDA(2) | $ 10,401 | $ (6,351) | |
Revenue | $ 78,897 | $ 43,163 | |
Adjusted EBITDA margin % (2) | 13.2 % | (14.7) % | |
Three Months Ended June 30, 2023 | |||
Broadband | Video | ||
Income from operations (1) | $ 18,066 | $ 90 | |
Depreciation | 1,671 | 1,388 | |
Other non-operating expenses, net | (84) | (52) | |
Adjusted EBITDA(2) | $ 19,653 | $ 1,426 | |
Revenue | $ 97,096 | $ 58,867 | |
Adjusted EBITDA margin % (2) | 20.2 % | 2.4 % | |
Six Months Ended June 28, 2024 | |||
Broadband | Video | ||
Income (loss) from operations (1) | $ 22,375 | $ (8,920) | |
Depreciation | 4,119 | 2,192 | |
Other non-operating income, net | 227 | 114 | |
Adjusted EBITDA(2) | $ 26,721 | $ (6,614) | |
Revenue | $ 171,834 | $ 88,966 | |
Adjusted EBITDA margin % (2) | 15.6 % | (7.4) % | |
Six Months Ended June 30, 2023 | |||
Broadband | Video | ||
Income (loss) from operations (1) | $ 38,179 | $ (1,336) | |
Depreciation | 3,315 | 2,774 | |
Other non-operating expenses, net | (255) | (174) | |
Adjusted EBITDA(2) | $ 41,239 | $ 1,264 | |
Revenue | $ 197,447 | $ 116,165 | |
Adjusted EBITDA margin % (2) | 20.9 % | 1.1 % | |
(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 | |||||
June 28, 2024 | March 29, 2024 | June 30, 2023 | |||
Net income (loss) (GAAP) | $ (12,532) | $ (8,089) | $ 1,555 | ||
Provision for (benefit from) income taxes | (3,903) | (2,449) | 7,471 | ||
Interest expense, net | 1,424 | 723 | 800 | ||
Depreciation | 3,226 | 3,085 | 3,059 | ||
EBITDA | (11,785) | (6,730) | 12,885 | ||
Adjustments | |||||
Stock-based compensation | 6,954 | 6,923 | 6,059 | ||
Restructuring and related charges | 11,482 | 3,508 | — | ||
Non-recurring advisory fees | 406 | 349 | 2,135 | ||
Lease-related asset impairment and other charges | 9,000 | — | — | ||
Total consolidated segment adjusted EBITDA (Non-GAAP) | $ 16,057 | $ 4,050 | $ 21,079 | ||
Revenue | $ 138,740 | $ 122,060 | $ 155,963 | ||
Net income (loss) margin (GAAP) | (9.0) % | (6.6) % | 1.0 % | ||
Consolidated segment Adjusted EBITDA margin (Non-GAAP) | 11.6 % | 3.3 % | 13.5 % | ||
Six Months Ended | |||
June 28, 2024 | June 30, 2023 | ||
Net income (loss) (GAAP) | $ (20,621) | $ 6,648 | |
Provision for (benefit from) income taxes | (6,352) | 12,559 | |
Interest expense, net | 2,147 | 1,506 | |
Depreciation | 6,311 | 6,089 | |
EBITDA | (18,515) | 26,802 | |
Adjustments | |||
Stock-based compensation | 13,877 | 13,483 | |
Restructuring and related charges | 14,990 | 83 | |
Non-recurring advisory fees | 755 | 2,135 | |
Lease-related asset impairment and other charges | 9,000 | — | |
Total consolidated segment adjusted EBITDA (Non-GAAP) | $ 20,107 | $ 42,503 | |
Revenue | $ 260,800 | $ 313,612 | |
Net income (loss) margin (GAAP) | (7.9) % | 2.1 % | |
Consolidated segment Adjusted EBITDA margin (Non-GAAP) | 7.7 % | 13.6 % | |
Harmonic Inc. | |||||||||||||||||||
GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited) | |||||||||||||||||||
(In millions, except percentages and per share data) | |||||||||||||||||||
Q3 2024 Financial Guidance (1) | |||||||||||||||||||
Revenue | Gross Profit | Total Operating | Income from | Net Income | |||||||||||||||
GAAP | $ 175 | to | $ 190 | $ 91 | to | $ 101 | $ 67 | to | $ 69 | $ 24 | to | $ 32 | $ 16 | to | $ 22 | ||||
Stock-based compensation expense | — | — | (5) | 5 | 5 | ||||||||||||||
Restructuring and related charges | — | — | (1) | 1 | 1 | ||||||||||||||
Lease-related impairment and other charges | — | — | (1) | 1 | 1 | ||||||||||||||
Tax effect of non-GAAP adjustments | — | — | — | — | (1) | to | — | ||||||||||||
Total adjustments | — | — | (7) | 7 | 6 | to | 7 | ||||||||||||
Non-GAAP | $ 175 | to | $ 190 | $ 91 | to | $ 101 | $ 60 | to | $ 62 | $ 31 | to | $ 39 | $ 22 | to | $ 29 | ||||
As a % of revenue (GAAP) | 51.9 % | to | 52.9 % | 38.3 % | to | 36.3 % | 13.7 % | to | 16.8 % | 9.3 % | to | 11.6 % | |||||||
As a % of revenue (Non-GAAP) | 51.9 % | to | 52.9 % | 34.3 % | to | 32.6 % | 17.7 % | to | 20.3 % | 12.8 % | to | 15.3 % | |||||||
Diluted net income per share: | |||||||||||||||||||
GAAP | $ 0.14 | to | $ 0.19 | ||||||||||||||||
Non-GAAP | $ 0.19 | to | $ 0.24 | ||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||
GAAP and Non-GAAP | 117.0 | ||||||||||||||||||
(1) Components may not sum to total due to rounding. |
2024 Financial Guidance (1) | ||||||||||||||||||
Revenue | Gross Profit | Total Operating | Income from | Net Income | ||||||||||||||
GAAP | $ 645 | to | $ 695 | $ 332 | to | $ 369 | $ 296 | to | $ 304 | $ 36 | to | $ 65 | $ 23 | to | $ 45 | |||
Stock-based compensation expense | — | 1 | (25) | 26 | 26 | |||||||||||||
Restructuring and related charges | — | — | (15) | 15 | 15 | |||||||||||||
Non-recurring advisory fees | — | — | (1) | 1 | 1 | |||||||||||||
Lease-related impairment and other charges | — | — | (11) | (11) | 11 | |||||||||||||
Non-cash interest expense related to convertible | — | — | — | — | 1 | |||||||||||||
Tax effect of non-GAAP adjustments | — | — | — | — | (12) | to | (11) | |||||||||||
Total adjustments | — | 1 | (52) | 31 | 42 | to | 43 | |||||||||||
Non-GAAP | $ 645 | to | $ 695 | $ 333 | to | $ 370 | $ 244 | to | $ 252 | $ 89 | to | $ 118 | $ 65 | to | $ 88 | |||
As a % of revenue (GAAP) | 51.4 % | to | 53.1 % | 45.9 % | to | 43.7 % | 5.6 % | to | 9.4 % | 3.6 % | to | 6.5 % | ||||||
As a % of revenue (Non-GAAP) | 51.6 % | to | 53.2 % | 37.8 % | to | 36.3 % | 13.7 % | to | 16.9 % | 10.1 % | to | 12.7 % | ||||||
Diluted net income per share: | ||||||||||||||||||
GAAP | $ 0.19 | to | $ 0.38 | |||||||||||||||
Non-GAAP | $ 0.56 | to | $ 0.75 | |||||||||||||||
Shares used in per share calculation: | ||||||||||||||||||
GAAP and Non-GAAP | 117.3 | |||||||||||||||||
(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) | |||||||
Q3 2024 Financial Guidance | |||||||
Broadband | Video | ||||||
Income (loss) from operations (2) | $ 32 | to | $ 37 | $ (1) | to | $ 2 | |
Depreciation | 2 | 2 | 1 | 1 | |||
Segment adjusted EBITDA(3) | $ 34 | to | $ 39 | $ — | to | $ 3 | |
2024 Financial Guidance | |||||||
Broadband | Video | ||||||
Income (loss) from operations (2) | $ 93 | to | $ 117 | $ (4) | to | $ 1 | |
Depreciation | 9 | 9 | 4 | 4 | |||
Segment adjusted EBITDA(3) | $ 102 | to | $ 126 | $ — | to | $ 5 | |
(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) | |||||||
Q3 2024 Financial Guidance | 2024 Financial Guidance | ||||||
Net income (GAAP) | $ 16 | to | $ 22 | $ 23 | to | $ 45 | |
Provision for income taxes | 5 | 7 | 7 | 14 | |||
Interest expense, net | 2 | 2 | 6 | 6 | |||
Depreciation | 3 | 3 | 13 | 13 | |||
EBITDA | 26 | to | 34 | 49 | to | 78 | |
Adjustments | |||||||
Stock-based compensation | 6 | 6 | 26 | 26 | |||
Restructuring and related charges | 1 | 1 | 15 | 15 | |||
Lease-related impairment and other charges | 1 | 1 | 11 | 11 | |||
Non-recurring advisory fees | — | — | 1 | 1 | |||
Total consolidated segment adjusted EBITDA (Non-GAAP) (2) | $ 34 | to | $ 42 | $ 102 | to | $ 131 | |
(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.
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