Harmonic Announces Third Quarter 2024 Results
Harmonic (NASDAQ: HLIT) reported record Q3 2024 results with revenue of $195.8 million, up 54% year-over-year. The Broadband segment revenue surged 92% to $145.3 million, while Video segment revenue was $50.4 million. GAAP net income reached $21.7 million ($0.19 per share), compared to a loss of $6.5 million in Q3 2023. Non-GAAP adjusted EBITDA increased significantly to $43.4 million. The company demonstrated strong execution with improved gross margins and commercially deployed its cOS solution with 121 customers, serving 32.0 million cable modems.
Harmonic (NASDAQ: HLIT) ha riportato risultati record per il terzo trimestre del 2024, con un fatturato di 195,8 milioni di dollari, in aumento del 54% rispetto all'anno precedente. Il fatturato del segmento Broadband è aumentato del 92%, raggiungendo 145,3 milioni di dollari, mentre il fatturato del segmento Video è stato di 50,4 milioni di dollari. L'utile netto GAAP ha raggiunto 21,7 milioni di dollari (0,19 dollari per azione), rispetto a una perdita di 6,5 milioni di dollari nel terzo trimestre del 2023. L'EBITDA rettificato Non-GAAP è aumentato in modo significativo a 43,4 milioni di dollari. L'azienda ha dimostrato una forte capacità di esecuzione con margini lordi migliorati e ha implementato commercialmente la sua soluzione cOS con 121 clienti, servendo 32,0 milioni di modem via cavo.
Harmonic (NASDAQ: HLIT) reportó resultados récord para el tercer trimestre de 2024, con ingresos de 195,8 millones de dólares, un aumento del 54% en comparación con el año anterior. Los ingresos del segmento de Banda Ancha aumentaron un 92% alcanzando 145,3 millones de dólares, mientras que los ingresos del segmento de Video fueron de 50,4 millones de dólares. El ingreso neto GAAP alcanzó 21,7 millones de dólares (0,19 dólares por acción), en comparación con una pérdida de 6,5 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado No-GAAP aumentó significativamente a 43,4 millones de dólares. La empresa demostró una fuerte ejecución con márgenes brutos mejorados y desplegó comercialmente su solución cOS con 121 clientes, sirviendo a 32,0 millones de módems por cable.
하모닉(Harmonic) (NASDAQ: HLIT)는 2024년 3분기 기록적인 실적을 보고하며 1억 9,580만 달러의 수익을 기록했으며, 이는 전년 대비 54% 증가한 수치입니다. 광대역(Broadband) 부문 수익은 1억 4,530만 달러로 92% 급증했고, 비디오(Video) 부문 수익은 5,040만 달러였습니다. GAAP 기준 순이익은 2,170만 달러($0.19 per share)로, 2023년 3분기의 650만 달러 손실과 비교되었습니다. 비GAAP 조정 EBITDA는 4,340만 달러로 크게 증가했습니다. 회사는 개선된 총마진으로 강한 실행력을 보였으며, cOS 솔루션을 121명의 고객에게 상용 배포하여 3,200만 개의 케이블 모뎀을 지원했습니다.
Harmonic (NASDAQ: HLIT) a annoncé des résultats records pour le troisième trimestre 2024, avec un chiffre d'affaires de 195,8 millions de dollars, en hausse de 54% par rapport à l'année précédente. Le chiffre d'affaires du segment Broadband a explosé de 92% pour atteindre 145,3 millions de dollars, tandis que le chiffre d'affaires du segment Vidéo était de 50,4 millions de dollars. Le bénéfice net GAAP a atteint 21,7 millions de dollars (0,19 dollar par action), comparé à une perte de 6,5 millions de dollars au troisième trimestre 2023. L'EBITDA ajusté non-GAAP a considérablement augmenté pour atteindre 43,4 millions de dollars. L'entreprise a démontré une exécution solide avec des marges brutes améliorées et a déployé commercialement sa solution cOS avec 121 clients, servant 32,0 millions de modems câblés.
Harmonic (NASDAQ: HLIT) meldete für das dritte Quartal 2024 Rekordzahlen mit einem Umsatz von 195,8 Millionen Dollar, was einem Anstieg von 54% im Vergleich zum Vorjahr entspricht. Der Umsatz des Breitbandsegments stieg um 92% auf 145,3 Millionen Dollar, während der Umsatz des Videosegments bei 50,4 Millionen Dollar lag. Der GAAP-Nettoertrag erreichte 21,7 Millionen Dollar (0,19 Dollar pro Aktie), verglichen mit einem Verlust von 6,5 Millionen Dollar im dritten Quartal 2023. Das bereinigte EBITDA (Non-GAAP) stieg signifikant auf 43,4 Millionen Dollar. Das Unternehmen zeigte eine starke Umsetzung mit verbesserten Bruttomargen und setzte seine cOS-Lösung kommerziell bei 121 Kunden ein, die insgesamt 32,0 Millionen Kabelmodems bedienen.
- Record quarterly revenue of $195.8M, up 54% YoY
- Broadband segment revenue increased 92% YoY to $145.3M
- GAAP net income of $21.7M vs loss of $6.5M in prior year
- Non-GAAP adjusted EBITDA grew to $43.4M from $3.5M YoY
- Improved gross margins: GAAP 53.5% vs 48.5% YoY
- Strong backlog and deferred revenue of $584.7M
- Video segment revenue declined slightly to $50.4M from $51.4M YoY
- Cash position decreased to $58.2M from $75.6M YoY
Insights
A stellar quarter for Harmonic with significant growth metrics. Revenue surged 54% YoY to
The robust
The demonstration of Unified DOCSIS 4.0 and fiber solution with Comcast represents a significant technological advancement. This positions Harmonic at the forefront of cable infrastructure evolution, particularly important as MSOs (Multiple System Operators) seek to upgrade their networks. The expansion to 32.0 million served cable modems shows strong market adoption of their cOS solution.
Customer diversification through new wins like Bluepeak Fiber indicates successful market penetration beyond traditional clients. The video segment's return to profitability with
Record revenue with Broadband revenue up
Video returned to profitability with greater than
"Our third quarter results demonstrated strong execution as we achieved record total company revenue and Adjusted EBITDA, with both broadband and video revenue exceeding expectations," said Nimrod Ben-Natan, president and chief executive officer of Harmonic. "This strong quarterly performance coupled with our market leading technology solutions leaves us well-positioned for further future growth."
Q3 Financial and Business Highlights
Financial
- Revenue:
$195.8 million 54% compared to$127.2 million - Broadband segment revenue:
$145.3 million $75.8 million - Video segment revenue:
$50.4 million $51.4 million
- Broadband segment revenue:
- Gross margin: GAAP
53.5% and non-GAAP53.7% , both higher compared to GAAP48.5% and non-GAAP49.5% in the prior year period- Broadband segment non-GAAP gross margin:
48.3% compared to44.5% in the prior year period - Video segment non-GAAP gross margin:
69.0% compared to56.9% in the prior year period
- Broadband segment non-GAAP gross margin:
- Operating income (loss): GAAP income
$35.4 million $44.5 million $8.6 million $0.1 million - Net income (loss): GAAP net income
$21.7 million $29.9 million $6.5 million $0.0 million - Non-GAAP adjusted EBITDA:
$43.4 million $3.5 million - Net income (loss) per share: GAAP net income per share of
$0.19 $0.26 $0.06 $0.00 - Backlog and deferred revenue of
$584.7 million - Cash:
$58.2 million $75.6 million
Business
- Commercially deployed our cOSTM solution with 121 customers, serving 32.0 million cable modems
- Comcast and Harmonic demonstrated the industry's first Unified DOCSIS 4.0 and fiber solution at SCTE TechExpo24, with Unified DOCSIS 4.0 technology now available for all MSOs
- Increased Broadband customer diversification with 7 new customer wins, including Bluepeak Fiber and Tribal Ready selecting Harmonic's cOS broadband platform
- Further progress on Video sales pipeline of larger Appliance and Tier 1 SaaS opportunities
Select Financial Information
GAAP | Non-GAAP | |||||||||||
Key Financial Results | Q3 2024 | Q2 2024 | Q3 2023 | Q3 2024 | Q2 2024 | Q3 2023 | ||||||
(Unaudited, in millions, except per share data) | ||||||||||||
Net revenue | $ 195.8 | $ 138.7 | $ 127.2 | * | * | * | ||||||
Net income (loss) | $ 21.7 | $ (12.5) | $ (6.5) | $ 29.9 | $ 9.3 | $ — | ||||||
Net income (loss) per share | $ 0.19 | $ (0.11) | $ (0.06) | $ 0.26 | $ 0.08 | $ 0.00 | ||||||
Other Financial Information | Q3 2024 | Q2 2024 | Q3 2023 | |||||||||
(Unaudited, in millions) | ||||||||||||
Adjusted EBITDA for the quarter (1) | $ 43.4 | $ 16.1 | $ 3.5 | |||||||||
Bookings for the quarter | $ 171.4 | $ 72.4 | $ 96.3 | |||||||||
Backlog and deferred revenue as of quarter end | $ 584.7 | $ 613.1 | $ 627.2 | |||||||||
Cash and cash equivalents as of quarter end | $ 58.2 | $ 45.9 | $ 75.6 | |||||||||
(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to "Preliminary Net Income (loss) to Consolidated Segment Adjusted EBITDA Reconciliation" below for a reconciliation to net income (loss), the most comparable GAAP measure. |
* Not applicable |
Explanations regarding our use of non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations".
Financial Guidance
Q4 2024 GAAP Financial Guidance | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total GAAP | Broadband | Video | Total GAAP | ||||||
Net revenue | $ 160 | $ 45 | $ 205 | $ 170 | $ 50 | $ 220 | |||||
Gross margin % | 55.4 % | 56.7 % | |||||||||
Gross profit | $ 114 | $ 125 | |||||||||
Tax rate | 26 % | 26 % | |||||||||
Net income | $ 30 | $ 36 | |||||||||
Net income per share | $ 0.26 | $ 0.31 | |||||||||
Shares (1) | 117.8 | 117.8 | |||||||||
(1) Diluted shares assumes stock price at |
2024 GAAP Financial Guidance | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total GAAP | Broadband | Video | Total GAAP | ||||||
Net revenue (1) | $ 477 | $ 184 | $ 662 | $ 487 | $ 189 | $ 677 | |||||
Gross margin % | 53.6 % | 54.0 % | |||||||||
Gross profit | $ 354 | $ 366 | |||||||||
Tax rate | 26 % | 26 % | |||||||||
Net income | $ 31 | $ 37 | |||||||||
Net income per share | $ 0.27 | $ 0.32 | |||||||||
Shares (2) | 117.5 | 117.5 | |||||||||
(1) Components may not sum to total due to rounding. |
(2) Diluted shares assumes stock price at |
Q4 2024 Non-GAAP Financial Guidance (1) | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total | Broadband | Video | Total | ||||||
Gross margin % | 53.0 % | 64.0 % | 55.4 % | 54.0 % | 66.0 % | 56.7 % | |||||
Gross profit | $ 85 | $ 29 | $ 114 | $ 92 | $ 33 | $ 125 | |||||
Adjusted EBITDA(2) | $ 54 | $ 2 | $ 55 | $ 59 | $ 5 | $ 64 | |||||
Tax rate | 21 % | 21 % | |||||||||
Net income per share | $ 0.33 | $ 0.39 | |||||||||
Shares (3) | 117.8 | 117.8 | |||||||||
(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. Components may not sum to total due to rounding. |
(2) Refer to "Net Income to Consolidated Adjusted EBITDA Reconciliation on Financial Guidance" below for a reconciliation to net income, the most comparable GAAP measure. |
(3) Diluted shares assumes stock price at |
2024 Non-GAAP Financial Guidance (1) | |||||||||||
(Unaudited, in millions, except | Low | High | |||||||||
Broadband | Video | Total | Broadband | Video | Total | ||||||
Gross margin % | 49.6 % | 64.9 % | 53.9 % | 50.0 % | 65.4 % | 54.3 % | |||||
Gross profit | $ 237 | $ 120 | $ 356 | $ 244 | $ 124 | $ 368 | |||||
Adjusted EBITDA(2) | $ 118 | $ 1 | $ 119 | $ 123 | $ 4 | $ 127 | |||||
Tax rate | 21 % | 21 % | |||||||||
Net income per share (3) | $ 0.67 | $ 0.73 | |||||||||
Shares (3) | 117.5 | 117.5 | |||||||||
(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" below. Components may not sum to total due to rounding. |
(2) Refer to "Net Income to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance" below for a reconciliation to net income, the most comparable GAAP measure. |
(3) Diluted shares assumes stock price at |
Conference Call Information
Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, October 28, 2024. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register.vevent.com/register/BI24dc955b30d3439abf656ef581cfa35c. A replay will be available after 5:00 p.m. PT on the same website.
About Harmonic Inc.
Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry's first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers' homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, in no particular order, the following: customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable, satellite, telco, broadcast and media industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband and Video businesses will not continue to develop in their current direction or pace; the impact of general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOSTM and VOS product solutions; dependence on various broadband and video industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the impact on our business of natural disasters. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2023, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with accounting principles generally accepted in
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic's results of operations in conjunction with the corresponding GAAP measures.
The Company believes that the presentation of non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company's reported results prepared in accordance with GAAP.
The non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to non-GAAP results published by other companies. A reconciliation of the historical non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.
Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:
Stock-based compensation - Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies.
Restructuring and related charges - Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.
Non-cash interest expense expenses related to convertible notes and other debt - We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors' ability to view the Company's results from management's perspective. In addition, we believe excluding these costs from the non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.
Discrete tax items and tax effect of non-GAAP adjustments - The income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures in order to provide a more meaningful measure of non-GAAP net income.
Depreciation - Depreciation expense, along with interest, tax and stock-based compensation expense, and restructuring charges, is excluded from Adjusted EBITDA because we do not believe depreciation and the other items relate to the ordinary course of our business or are reflective of our underlying business performance.
Non-recurring advisory fees - There were non-recurring costs that we excluded from non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives.
Asset impairment and related charges - We exclude asset impairment and related charges due to the nature of such expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of impairments of fixed assets, right-of-use assets and related leasehold improvements, and other unrecoverable facility costs due to the intended change in use of certain leased space.
Harmonic Inc. Preliminary Condensed Consolidated Balance Sheets (Unaudited, in thousands, except par value) | |||
September 27, | December 31, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 58,174 | $ 84,269 | |
Restricted cash | 327 | — | |
Accounts receivable, net | 173,730 | 141,531 | |
Inventories | 73,864 | 83,982 | |
Prepaid expenses and other current assets | 30,273 | 20,950 | |
Total current assets | 336,368 | 330,732 | |
Property and equipment, net | 28,396 | 36,683 | |
Operating lease right-of-use assets | 13,471 | 20,817 | |
Goodwill | 239,597 | 239,150 | |
Deferred income taxes | 107,380 | 104,707 | |
Other non-current assets | 34,649 | 36,117 | |
Total assets | $ 759,861 | $ 768,206 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Convertible debt | $ — | $ 114,880 | |
Current portion of long-term debt | 1,944 | — | |
Current portion of other borrowings | 5,285 | 4,918 | |
Accounts payable | 42,480 | 38,562 | |
Deferred revenue | 50,891 | 46,217 | |
Operating lease liabilities | 5,971 | 6,793 | |
Other current liabilities | 55,091 | 61,024 | |
Total current liabilities | 161,662 | 272,394 | |
Long-term debt | 112,819 | — | |
Other long-term borrowings | 9,458 | 10,495 | |
Operating lease liabilities, non-current | 15,647 | 18,965 | |
Other non-current liabilities | 31,338 | 29,478 | |
Total liabilities | 330,924 | 331,332 | |
Stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 117 | 112 | |
Additional paid-in capital | 2,424,322 | 2,405,043 | |
Accumulated deficit | (1,991,615) | (1,962,575) | |
Accumulated other comprehensive loss | (3,887) | (5,706) | |
Total stockholders' equity | 428,937 | 436,874 | |
Total liabilities and stockholders' equity | $ 759,861 | $ 768,206 | |
Harmonic Inc. Preliminary Condensed Consolidated Statements of Operations (Unaudited, in thousands, except per share data) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 27, 2024 | September 29, 2023 | September 27, 2024 | September 29, 2023 | ||||
Revenue: | |||||||
Appliance and integration | $ 153,685 | $ 84,760 | $ 329,464 | $ 310,681 | |||
SaaS and service | 42,071 | 42,443 | 127,092 | 130,134 | |||
Total net revenue | 195,756 | 127,203 | 456,556 | 440,815 | |||
Cost of revenue: | |||||||
Appliance and integration | 77,683 | 48,992 | 171,635 | 166,177 | |||
SaaS and service | 13,341 | 16,527 | 43,651 | 43,960 | |||
Total cost of revenue | 91,024 | 65,519 | 215,286 | 210,137 | |||
Total gross profit | 104,732 | 61,684 | 241,270 | 230,678 | |||
Operating expenses: | |||||||
Research and development | 30,073 | 30,316 | 89,562 | 96,030 | |||
Selling, general and administrative | 35,851 | 39,245 | 114,537 | 121,300 | |||
Asset impairment and related charges | 3,103 | — | 12,103 | — | |||
Restructuring and related charges | 281 | 726 | 14,800 | 809 | |||
Total operating expenses | 69,308 | 70,287 | 231,002 | 218,139 | |||
Income (loss) from operations | 35,424 | (8,603) | 10,268 | 12,539 | |||
Interest expense, net | (2,686) | (619) | (4,833) | (2,125) | |||
Other income (expense), net | (3,932) | 343 | (3,602) | (86) | |||
Income (loss) before income taxes | 28,806 | (8,879) | 1,833 | 10,328 | |||
Provision for (benefit from) income taxes | 7,088 | (2,384) | 736 | 10,175 | |||
Net income (loss) | $ 21,718 | $ (6,495) | $ 1,097 | $ 153 | |||
Net income (loss) per share: | |||||||
Basic | $ 0.19 | $ (0.06) | $ 0.01 | $ — | |||
Diluted | $ 0.19 | $ (0.06) | $ 0.01 | $ — | |||
Weighted average shares outstanding: | |||||||
Basic | 116,403 | 112,031 | 114,594 | 111,431 | |||
Diluted | 117,358 | 112,031 | 117,385 | 117,910 | |||
Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) | |||
Nine Months Ended | |||
September 27, 2024 | September 29, 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 1,097 | $ 153 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 9,171 | 9,178 | |
Asset impairment and related charges | 12,103 | — | |
Stock-based compensation | 19,587 | 20,724 | |
Foreign currency remeasurement | 6,513 | (814) | |
Deferred income taxes, net | (2,673) | 2,026 | |
Provision for excess and obsolete inventories | 3,135 | 6,514 | |
Other adjustments | 435 | 1,689 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (31,611) | (2,558) | |
Inventories | 6,592 | 14,532 | |
Other assets | (3,489) | 6,164 | |
Accounts payable | 1,787 | (20,606) | |
Deferred revenues | 2,062 | (9,208) | |
Other liabilities | (11,323) | (27,002) | |
Net cash provided by operating activities | 13,386 | 792 | |
Cash flows from investing activities: | |||
Purchases of short-term investments | — | (6,305) | |
Purchases of property and equipment | (6,840) | (5,749) | |
Net cash used in investing activities | (6,840) | (12,054) | |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 115,000 | — | |
Repayment of convertible debt | (115,500) | — | |
Payments for debt issuance costs | (332) | — | |
Repurchase of common stock | (30,047) | — | |
Proceeds from other borrowings | 3,943 | 3,829 | |
Repayment of other borrowings | (4,797) | (4,721) | |
Proceeds from common stock issued to employees | 6,628 | 6,552 | |
Taxes paid related to net share settlement of equity awards | (6,877) | (8,643) | |
Net cash used in financing activities | (31,982) | (2,983) | |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (332) | 281 | |
Net decrease in cash and cash equivalents and restricted cash | (25,768) | (13,964) | |
Cash and cash equivalents and restricted cash at beginning of period | 84,269 | 89,586 | |
Cash and cash equivalents and restricted cash at end of period | $ 58,501 | $ 75,622 | |
Cash and cash equivalents and restricted cash at end of period | |||
Cash and cash equivalents | $ 58,174 | $ 75,622 | |
Restricted cash | 327 | — | |
Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows | $ 58,501 | $ 75,622 | |
Harmonic Inc. Preliminary Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) | |||
Nine Months Ended | |||
September 27, 2024 | September 29, 2023 | ||
Supplemental cash flow disclosure: | |||
Income tax payments, net | $ 12,894 | $ 6,376 | |
Interest payments, net | $ 4,363 | $ 1,921 | |
Supplemental schedule of non-cash investing activities: | |||
Capital expenditures incurred but not yet paid | $ 709 | $ 1,802 | |
Supplemental schedule of non-cash financing activities: | |||
Shares of common stock issued upon redemption of the 2024 Notes | 4,578 | — | |
Harmonic Inc. Preliminary GAAP Revenue Information (Unaudited, in thousands, except percentages) | ||||||||
Three Months Ended | ||||||||
September 27, 2024 | June 28, 2024 | September 29, 2023 | ||||||
Geography | ||||||||
$ 167,720 | 86 % | $ 109,597 | 79 % | $ 91,221 | 72 % | |||
EMEA | 20,269 | 10 % | 22,680 | 16 % | 28,465 | 22 % | ||
APAC | 7,767 | 4 % | 6,463 | 5 % | 7,517 | 6 % | ||
Total | $ 195,756 | 100 % | $ 138,740 | 100 % | $ 127,203 | 100 % | ||
Market | ||||||||
Service Provider | $ 159,993 | 82 % | $ 104,429 | 75 % | $ 87,747 | 69 % | ||
Broadcast and Media | 35,763 | 18 % | 34,311 | 25 % | 39,456 | 31 % | ||
Total | $ 195,756 | 100 % | $ 138,740 | 100 % | $ 127,203 | 100 % | ||
Nine Months Ended | ||||||||
September 27, 2024 | September 29, 2023 | |||||||
Geography | ||||||||
$ 370,348 | 81 % | $ 318,294 | 72 % | |||||
EMEA | 66,509 | 15 % | 97,648 | 22 % | ||||
APAC | 19,699 | 4 % | 24,873 | 6 % | ||||
Total | $ 456,556 | 100 % | $ 440,815 | 100 % | ||||
Market | ||||||||
Service Provider | $ 351,115 | 77 % | $ 314,439 | 71 % | ||||
Broadcast and Media | 105,441 | 23 % | 126,376 | 29 % | ||||
Total | $ 456,556 | 100 % | $ 440,815 | 100 % | ||||
Harmonic Inc. Preliminary Segment Information (Unaudited, in thousands, except percentages) | ||||||||||||
Three Months Ended September 27, 2024 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 145,338 | $ 50,418 | $ 195,756 | $ — | $ 195,756 | |||||||
Gross profit | 70,256 | (1) | 34,770 | (1) | 105,026 | (1) | (294) | 104,732 | ||||
Gross margin % | 48.3 % | (1) | 69.0 % | (1) | 53.7 % | (1) | 53.5 % | |||||
Three Months Ended June 28, 2024 | ||||||||||||
Broadband | Video | Total Segment | 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 September 29, 2023 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 75,806 | $ 51,397 | $ 127,203 | $ — | $ 127,203 | |||||||
Gross profit | 33,763 | (1) | 29,241 | (1) | 63,004 | (1) | (1,320) | 61,684 | ||||
Gross margin % | 44.5 % | (1) | 56.9 % | (1) | 49.5 % | (1) | 48.5 % | |||||
Nine Months Ended September 27, 2024 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 317,172 | $ 139,384 | $ 456,556 | $ — | $ 456,556 | |||||||
Gross profit | 151,986 | (1) | 90,833 | (1) | 242,819 | (1) | (1,549) | 241,270 | ||||
Gross margin % | 47.9 % | (1) | 65.2 % | (1) | 53.2 % | (1) | 52.8 % | |||||
Nine Months Ended September 29, 2023 | ||||||||||||
Broadband | Video | Total Segment | Adjustments (1) | Consolidated | ||||||||
Net revenue | $ 273,253 | $ 167,562 | $ 440,815 | $ — | $ 440,815 | |||||||
Gross profit | 133,129 | (1) | 100,158 | (1) | 233,287 | (1) | (2,609) | 230,678 | ||||
Gross margin % | 48.7 % | (1) | 59.8 % | (1) | 52.9 % | (1) | 52.3 % | |||||
(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to "Use of Non-GAAP Financial Measures" above and "GAAP to Non-GAAP Reconciliations" below. |
Harmonic Inc. GAAP to Non-GAAP Reconciliations (Unaudited) (in thousands, except percentages and per share data) | |||||||||||
Three Months Ended September 27, 2024 | |||||||||||
Revenue | Gross Profit | Total | Income from | Total Non- | Net Income | ||||||
GAAP | $ 195,756 | $ 104,732 | $ 69,308 | $ 35,424 | $ (6,618) | $ 21,718 | |||||
Stock-based compensation | — | 294 | (5,416) | 5,710 | — | 5,710 | |||||
Restructuring and related charges | — | — | (281) | 281 | — | 281 | |||||
Asset impairment and related charges (1) | — | — | (3,103) | 3,103 | — | 3,103 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (871) | |||||
Total adjustments | — | 294 | (8,800) | 9,094 | — | 8,223 | |||||
Non-GAAP | $ 195,756 | $ 105,026 | $ 60,508 | $ 44,518 | $ (6,618) | $ 29,941 | |||||
As a % of revenue (GAAP) | 53.5 % | 35.4 % | 18.1 % | (3.4) % | 11.1 % | ||||||
As a % of revenue (Non-GAAP) | 53.7 % | 30.9 % | 22.7 % | (3.4) % | 15.3 % | ||||||
Diluted net income per share: | |||||||||||
GAAP | $ 0.19 | ||||||||||
Non-GAAP | $ 0.26 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP and Non-GAAP | 117,358 | ||||||||||
(1) Includes write-off of |
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 | |||||
Asset impairment and related charges (1) | — | — | (9,000) | 9,000 | — | 9,000 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 338 | 338 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (6,369) | |||||
Total adjustments | — | 273 | (27,569) | 27,842 | 338 | 21,811 | |||||
Non-GAAP | $ 138,740 | $ 73,730 | $ 61,518 | $ 12,212 | $ (467) | $ 9,279 | |||||
As a % of revenue (GAAP) | 52.9 % | 64.2 % | (11.3) % | (0.6) % | (9.0) % | ||||||
As a % of revenue (Non-GAAP) | 53.1 % | 44.3 % | 8.8 % | (0.3) % | 6.7 % | ||||||
Diluted net income (loss) per share: | |||||||||||
GAAP | $ (0.11) | ||||||||||
Non-GAAP | $ 0.08 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP | 115,030 | ||||||||||
Non-GAAP | 116,690 | ||||||||||
(1) Includes impairment charges of |
Three Months Ended September 29, 2023 | |||||||||||
Revenue | Gross Profit | Total | Income | Total Non- | Net Income | ||||||
GAAP | $ 127,203 | $ 61,684 | $ 70,287 | $ (8,603) | $ (276) | $ (6,495) | |||||
Stock-based compensation | — | 606 | (6,635) | 7,241 | — | 7,241 | |||||
Restructuring and related charges | — | 714 | (362) | 1,076 | — | 1,076 | |||||
Non-recurring advisory fees | — | — | (364) | 364 | — | 364 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 226 | 226 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (2,390) | |||||
Total adjustments | — | 1,320 | (7,361) | 8,681 | 226 | 6,517 | |||||
Non-GAAP | $ 127,203 | $ 63,004 | $ 62,926 | $ 78 | $ (50) | $ 22 | |||||
As a % of revenue (GAAP) | 48.5 % | 55.3 % | (6.8) % | (0.2) % | (5.1) % | ||||||
As a % of revenue (Non-GAAP) | 49.5 % | 49.5 % | 0.1 % | — % | — % | ||||||
Diluted net income (loss) per share: | |||||||||||
GAAP | $ (0.06) | ||||||||||
Non-GAAP | $ 0.00 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP | 112,031 | ||||||||||
Non-GAAP | 116,710 | ||||||||||
Nine Months Ended September 27, 2024 | |||||||||||
Revenue | Gross Profit | Total | Income from | Total Non- | Net Income | ||||||
GAAP | $ 456,556 | $ 241,270 | $ 231,002 | $ 10,268 | $ (8,435) | $ 1,097 | |||||
Stock-based compensation | — | 1,089 | (18,498) | 19,587 | — | 19,587 | |||||
Restructuring and related charges | — | 460 | (14,800) | 15,260 | 11 | 15,271 | |||||
Non-recurring advisory fees | — | — | (755) | 755 | — | 755 | |||||
Asset impairment and related charges (1) | — | — | (12,103) | 12,103 | — | 12,103 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 567 | 567 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (9,778) | |||||
Total adjustments | — | 1,549 | (46,156) | 47,705 | 578 | 38,505 | |||||
Non-GAAP | $ 456,556 | $ 242,819 | $ 184,846 | $ 57,973 | $ (7,857) | $ 39,602 | |||||
As a % of revenue (GAAP) | 52.8 % | 50.6 % | 2.2 % | (1.8) % | 0.2 % | ||||||
As a % of revenue (Non-GAAP) | 53.2 % | 40.5 % | 12.7 % | (1.7) % | 8.7 % | ||||||
Diluted net income per share: | |||||||||||
GAAP | $ 0.01 | ||||||||||
Non-GAAP | $ 0.34 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP and Non-GAAP | 117,385 | ||||||||||
(1) Includes write-off of |
Nine Months Ended September 29, 2023 | |||||||||||
Revenue | Gross Profit | Total | Income from | Total Non- | Net Income | ||||||
GAAP | $ 440,815 | $ 230,678 | $ 218,139 | $ 12,539 | $ (2,211) | $ 153 | |||||
Stock-based compensation | — | 1,895 | (18,829) | 20,724 | — | 20,724 | |||||
Restructuring and related charges | — | 714 | (445) | 1,159 | — | 1,159 | |||||
Non-recurring advisory fees | — | — | (2,499) | 2,499 | — | 2,499 | |||||
Non-cash interest expense related to convertible notes | — | — | — | — | 672 | 672 | |||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 3,099 | |||||
Total adjustments | — | 2,609 | (21,773) | 24,382 | 672 | 28,153 | |||||
Non-GAAP | $ 440,815 | $ 233,287 | $ 196,366 | $ 36,921 | $ (1,539) | $ 28,306 | |||||
As a % of revenue (GAAP) | 52.3 % | 49.5 % | 2.8 % | (0.5) % | — % | ||||||
As a % of revenue (Non-GAAP) | 52.9 % | 44.5 % | 8.4 % | (0.3) % | 6.4 % | ||||||
Diluted net income per share: | |||||||||||
GAAP | $ — | ||||||||||
Non-GAAP | $ 0.24 | ||||||||||
Shares used in per share calculation: | |||||||||||
GAAP and Non-GAAP | 117,910 | ||||||||||
Harmonic Inc. Calculation of Adjusted EBITDA by Segment (Unaudited) (In thousands, except percentages) | |||
Three Months Ended September 27, 2024 | |||
Broadband | Video | ||
Income from operations (1) | $ 38,192 | $ 6,326 | |
Depreciation | 2,001 | 859 | |
Other non-operating expense, net | (2,733) | (1,199) | |
Adjusted EBITDA(2) | $ 37,460 | $ 5,986 | |
Revenue | $ 145,338 | $ 50,418 | |
Adjusted EBITDA margin % (2) | 25.8 % | 11.9 % | |
Three Months Ended June 28, 2024 | |||
Broadband | Video | ||
Income (loss) from operations (1) | $ 13,781 | $ (1,569) | |
Depreciation | 2,133 | 1,093 | |
Other non-operating income, net | 406 | 213 | |
Adjusted EBITDA(2) | $ 16,320 | $ (263) | |
Revenue | $ 92,937 | $ 45,803 | |
Adjusted EBITDA margin % (2) | 17.6 % | (0.6) % | |
Three Months Ended September 29, 2023 | |||
Broadband | Video | ||
Income (loss) from operations (1) | $ 6,128 | $ (6,050) | |
Depreciation | 1,746 | 1,343 | |
Other non-operating income, net | 211 | 132 | |
Adjusted EBITDA(2) | $ 8,085 | $ (4,575) | |
Revenue | $ 75,806 | $ 51,397 | |
Adjusted EBITDA margin % (2) | 10.7 % | (8.9) % | |
Nine Months Ended September 27, 2024 | |||
Broadband | Video | ||
Income (loss) from operations (1) | $ 60,567 | $ (2,594) | |
Depreciation | 6,120 | 3,051 | |
Other non-operating expense, net | (2,506) | (1,085) | |
Adjusted EBITDA(2) | $ 64,181 | $ (628) | |
Revenue | $ 317,172 | $ 139,384 | |
Adjusted EBITDA margin % (2) | 20.2 % | (0.5) % | |
Nine Months Ended September 29, 2023 | |||
Broadband | Video | ||
Income (loss) from operations (1) | $ 44,307 | $ (7,386) | |
Depreciation | 5,061 | 4,117 | |
Other non-operating expense, net | (44) | (42) | |
Adjusted EBITDA(2) | $ 49,324 | $ (3,311) | |
Revenue | $ 273,253 | $ 167,562 | |
Adjusted EBITDA margin % (2) | 18.1 % | (2.0) % | |
(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations" above. |
(2) Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. Refer below for the "Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation". |
Harmonic Inc. Preliminary Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Unaudited) (In thousands, except percentages) | |||||
Three Months Ended | |||||
September 27, 2024 | June 28, 2024 | September 29, 2023 | |||
Net income (loss) (GAAP) | $ 21,718 | $ (12,532) | $ (6,495) | ||
Provision for (benefit from) income taxes | 7,088 | (3,903) | (2,384) | ||
Interest expense, net | 2,686 | 1,424 | 619 | ||
Depreciation | 2,860 | 3,226 | 3,089 | ||
EBITDA | 34,352 | (11,785) | (5,171) | ||
Adjustments | |||||
Stock-based compensation | 5,710 | 6,954 | 7,241 | ||
Restructuring and related charges | 281 | 11,482 | 1,076 | ||
Non-recurring advisory fees | — | 406 | 364 | ||
Asset impairment and related charges | 3,103 | 9,000 | — | ||
Total consolidated segment adjusted EBITDA (Non-GAAP) | $ 43,446 | $ 16,057 | $ 3,510 | ||
Revenue | $ 195,756 | $ 138,740 | $ 127,203 | ||
Net income (loss) margin (GAAP) | 11.1 % | (9.0) % | (5.1) % | ||
Consolidated segment Adjusted EBITDA margin (Non-GAAP) | 22.2 % | 11.6 % | 2.8 % | ||
Nine Months Ended | |||
September 27, 2024 | September 29, 2023 | ||
Net income (GAAP) | $ 1,097 | $ 153 | |
Provision for income taxes | 736 | 10,175 | |
Interest expense, net | 4,833 | 2,125 | |
Depreciation | 9,171 | 9,178 | |
EBITDA | 15,837 | 21,631 | |
Adjustments | |||
Stock-based compensation | 19,587 | 20,724 | |
Restructuring and related charges | 15,271 | 1,159 | |
Non-recurring advisory fees | 755 | 2,499 | |
Asset impairment and related charges | 12,103 | — | |
Total consolidated segment adjusted EBITDA (Non-GAAP) | $ 63,553 | $ 46,013 | |
Revenue | $ 456,556 | $ 440,815 | |
Net income margin (GAAP) | 0.2 % | — % | |
Consolidated segment Adjusted EBITDA margin (Non-GAAP) | 13.9 % | 10.4 % | |
Harmonic Inc. GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited) (In millions, except percentages and per share data) | |||||||||||||||||||
Q4 2024 Financial Guidance (1) | |||||||||||||||||||
Revenue | Gross Profit | Total Operating | Income from | Net Income | |||||||||||||||
GAAP | $ 205 | to | $ 220 | $ 114 | to | $ 125 | $ 70 | to | $ 73 | $ 44 | to | $ 52 | $ 30 | to | $ 36 | ||||
Stock-based compensation expense | — | — | (9) | 9 | 9 | ||||||||||||||
Tax effect of non-GAAP adjustments | — | — | — | — | — | to | 1 | ||||||||||||
Total adjustments | — | — | (9) | 9 | 9 | to | 10 | ||||||||||||
Non-GAAP | $ 205 | to | $ 220 | $ 114 | to | $ 125 | $ 61 | to | $ 64 | $ 53 | to | $ 61 | $ 39 | to | $ 46 | ||||
As a % of revenue (GAAP) | 55.4 % | to | 56.7 % | 34.1 % | to | 33.2 % | 21.5 % | to | 23.6 % | 14.6 % | to | 16.4 % | |||||||
As a % of revenue (Non-GAAP) | 55.4 % | to | 56.7 % | 29.8 % | to | 29.1 % | 25.7 % | to | 27.6 % | 19.0 % | to | 20.9 % | |||||||
Diluted net income per share: | |||||||||||||||||||
GAAP | $ 0.26 | to | $ 0.31 | ||||||||||||||||
Non-GAAP | $ 0.33 | to | $ 0.39 | ||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||
GAAP and Non-GAAP | 117.8 | ||||||||||||||||||
(1) Components may not sum to total due to rounding. |
2024 Financial Guidance (1) | |||||||||||||||||||
Revenue | Gross Profit | Total Operating | Income from | Net Income | |||||||||||||||
GAAP | $ 662 | to | $ 677 | $ 354 | to | $ 366 | $ 301 | to | $ 304 | $ 54 | to | $ 62 | $ 31 | to | $ 37 | ||||
Stock-based compensation expense | — | 2 | (27) | 29 | 29 | ||||||||||||||
Restructuring and related charges | — | — | (15) | 15 | 15 | ||||||||||||||
Non-recurring advisory fees | — | — | (1) | 1 | 1 | ||||||||||||||
Asset impairment and related charges | — | — | (12) | 12 | 12 | ||||||||||||||
Non-cash interest expense related to convertible notes | — | — | — | — | 1 | ||||||||||||||
Tax effect of non-GAAP adjustments | — | — | — | — | (10) | to | (9) | ||||||||||||
Total adjustments | — | 2 | (55) | 57 | 48 | to | 49 | ||||||||||||
Non-GAAP | $ 662 | to | $ 677 | $ 356 | to | $ 368 | $ 246 | to | $ 249 | $ 111 | to | $ 119 | $ 79 | to | $ 86 | ||||
As a % of revenue (GAAP) | 53.6 % | to | 54.0 % | 45.5 % | to | 44.9 % | 8.2 % | to | 9.2 % | 4.7 % | to | 5.5 % | |||||||
As a % of revenue (Non-GAAP) | 53.9 % | to | 54.3 % | 37.2 % | to | 36.8 % | 16.7 % | to | 17.6 % | 11.9 % | to | 12.7 % | |||||||
Diluted net income per share: | |||||||||||||||||||
GAAP | $ 0.27 | to | $ 0.32 | ||||||||||||||||
Non-GAAP | $ 0.67 | to | $ 0.73 | ||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||
GAAP and Non-GAAP | 117.5 | ||||||||||||||||||
(1) Components may not sum to total due to rounding. |
Harmonic Inc. Calculation of Adjusted EBITDA by Segment on Financial Guidance (Unaudited) (1) (In millions) | |||||||
Q4 2024 Financial Guidance | |||||||
Broadband | Video | ||||||
Income from operations (2) | $ 52 | to | $ 57 | $ 1 | to | $ 4 | |
Depreciation | 2 | 2 | 1 | 1 | |||
Segment adjusted EBITDA(3) | $ 54 | to | $ 59 | $ 2 | to | $ 5 | |
2024 Financial Guidance | |||||||
Broadband | Video | ||||||
Income (loss) from operations (2) | $ 112 | to | $ 117 | $ (2) | to | $ 1 | |
Depreciation | 9 | 9 | 4 | 4 | |||
Other non-operating expense, net | (3) | (3) | (1) | (1) | |||
Segment adjusted EBITDA(3) | $ 118 | to | $ 123 | $ 1 | to | $ 4 | |
(1) Components may not sum to total due to rounding. |
(2) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" above. |
(3) Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer below for the "Net income to Consolidated Segment Adjusted EBITDA reconciliation on Financial Guidance". |
Harmonic Inc. Net Income to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance (Unaudited) (1) (In millions) | |||||||
Q4 2024 Financial Guidance | 2024 Financial Guidance | ||||||
Net income (GAAP) | $ 30 | to | $ 36 | $ 31 | to | $ 37 | |
Provision for income taxes | 11 | 14 | 11 | 13 | |||
Interest expense, net | 2 | 2 | 7 | 7 | |||
Depreciation | 3 | 3 | 13 | 13 | |||
EBITDA | 46 | to | 55 | 62 | to | 70 | |
Adjustments | |||||||
Stock-based compensation | 9 | 9 | 29 | 29 | |||
Restructuring and related charges | — | — | 15 | 15 | |||
Asset impairment and related charges | — | — | 12 | 12 | |||
Non-recurring advisory fees | — | — | 1 | 1 | |||
Total consolidated segment adjusted EBITDA (Non-GAAP) (2) | $ 55 | to | $ 64 | $ 119 | to | $ 127 | |
(1) Components may not sum to total due to rounding. |
(2) Consolidated Segment adjusted EBITDA is a Non-GAAP financial measure. Refer to "Use of Non-GAAP Financial Measures" above. |
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SOURCE Harmonic Inc.
FAQ
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