展示99.1
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即時リリース
ハーモニックは2024年第3四半期の業績を発表しました
ブロードバンド売上高は前年比92％増の最高売上を記録しました
ビデオは、調整後のEBITDAマージンが10％以上に増加し、利益を上げました。
2024年10月28日、カリフォルニア州サンノゼ市 ・ハーモニック（NASDAQ: HLIT）は、2024年第3四半期の未監査の業績を発表しました。
「第3四半期の業績は、当社の売上高と調整後EBITDAの記録を達成し、ブロードバンドおよびビデオの売り上げが期待を上回るなか、強力な実行力を示しました」と述べたのは、Harmonicの社長兼最高経営責任者であるNimrod Ben-Natan氏でした。「この強力な四半期の業績は、市場をリードするテクノロジーソリューションと併せて、今後のさらなる成長に向けて我々を有利な立場に置いています。」
Q3 財務およびビジネスのハイライト
金融
•売上高は195.8百万ドルで、前年同期の12720万ドルに比べて54%増加しました。
・ブロードバンドセグメントの売上高は1億4530万ドルで、前年同期の7580万ドルと比較しています。
・映像セクションの売上高は5000万4000ドルであり、前年同期の5140万ドルと比べています。
•粗利率：GAAPは53.5％、非GAAPは53.7％で、前年度のGAAP 48.5％、非GAAP 49.5％よりも高い
・ブロードバンド 非照合粗利率: 前年期の44.5%に比べて48.3%
・動画セグメントの非GAAP粗利率は、前年同期の56.9%に比べて69.0%となりました。
•運営しています インコ私（損失）：前年同期のGAAPベースの損失は860万ドル、非GAAPベースの収益は10万ドルでしたが、GAAPベースの収益は860万ドル、非GAAPベースの収益は10万ドルでした
•当期純利益（純損失）：GAAP（米国会計基準）の当期純利益は2170万ドルで、非GAAPの当期純利益は2990万ドルで、前年同期のGAAPの純損失650万ドルおよび非GAAPの当期純利益0万ドルと比較しています。
•調整後の非GAAP EBITDA： 前年期の$350万の収益に対し、$4340万の収益
•当期純利益 当期純利益シェア: GAAPの当期純利益は0.19ドル、非GAAPの当期純利益は0.26ドルで、前年同期のGAAPの当期純損益が0.06ドル、非GAAPの当期純利益が0.00ドルに対して
•売掛金と未実現売上高は58470万ドルです
•現金：$58.2百万、前年同期の$7560万に対して
ビジネス
•121人のお客様にcOSを商業展開しており、3200万個のケーブルモデムに対応しています汉斯状(スルトラマブ単抗体注射液、汉斯状)は、グループによって独自に開発され、上市承認を得た初のバイオ医薬品であり、小細胞肺がんの一次治療における抗PD-1単抗体で、世界で初めて承認されました。この発表の日までに、汉斯状は中国で適応症を獲得し、マイクロサテライト高度不安定型の実体腫瘍、非小細胞肺がん(sqNSCLC)、広がり期の小細胞肺がん(ES-SCLC)、食道扁平上皮癌(ESCC)に対して、非扁平非小細胞肺がん(NSCLC)の承認登録申請(NDA)は受理されました。期間中、汉斯状は中国内陸で約33.4億元の売上高を実現しました。 121人のお客様にソリューションを提供し、3200万個のケーブルモデムをサポートしています
•コムキャストとハーモニックは、業種初の統合型DOCSIS 4.0およびファイバーソリューションをSCTE TechExpo24で展示し、統合型DOCSIS 4.0テクノロジーは現在、全セクターのMSO向けに利用可能です。
•ブルーピークファイバーやトライバルレディなど、HarmonicのcOSブロードバンドプラットフォームを選択するなど、7つの新規顧客獲得によるブロードバンド顧客の多様化が増加しました。
•大規模な家電製品とTier 1 saasの機会におけるビデオ販売パイプラインのさらなる進展
1
財務情報を選択してください
| 米国会計原則 | 非GAAP | |||||||||||||||||||||||||||||||||||||
| 主要財務結果 | Q3 2024 | Q2 2024 | Q3 2023 | Q3 2024 | Q2 2024 | Q3 2023 | ||||||||||||||||||||||||||||||||
| (未監査、百万単位、ただし株式あたりのデータを除く) | ||||||||||||||||||||||||||||||||||||||
| 純売上高 | $ | 195.8 | $ | 138.7 | $ | 127.2 | * | * | * | |||||||||||||||||||||||||||||
| 当期純利益 | $ | 21.7 | $ | (12.5) | $ | (6.5) | $ | 29.9 | $ | 9.3 | $ | — | ||||||||||||||||||||||||||
| 1株当たりの当期純利益 | $ | 0.19 | $ | (0.11) | $ | (0.06) | $ | 0.26 | $ | 0.08 | $ | 0.00 | ||||||||||||||||||||||||||
| その他の財務情報について | Q3 2024 | Q2 2024 | Q3 2023 | |||||||||||||||||||||||||||||||||||
| （非監査、百万単位） | ||||||||||||||||||||||||||||||||||||||
四半期の調整後EBITDA (1) | $ | 43.4 | $ | 16.1 | $ | 3.5 | ||||||||||||||||||||||||||||||||
| 四半期のブッキング | $ | 171.4 | $ | 72.4 | $ | 96.3 | ||||||||||||||||||||||||||||||||
| 四半期末のバックログおよび未収入 | $ | 584.7 | $ | 613.1 | $ | 627.2 | ||||||||||||||||||||||||||||||||
| 四半期末の現金及び現金同等物 | $ | 58.2 | $ | 45.9 | $ | 75.6 | ||||||||||||||||||||||||||||||||
(1) 調整後EBITDAは非GAAP財務指標です。「当期純利益（損失）のコンソリデーションセグメント調整EBITDA調整表」をご参照いただき、最も類似するGAAP指標である当期純利益（損失）との調整をご確認ください。
* 適用されません
非GAAP財務指標の使用に関する説明と関連定義、およびGAAPと非GAAPの対照表は、以下の各セクション、「非GAAP財務指標の使用」と「GAAPから非GAAPへの調整」で提供されています。
財務ガイダンス
| 2024年第4四半期の米国一般会計原則に基づく財務見通し | |||||||||||||||||||||||||||||||||||
| (未監査、百万単位、パーセンテージおよび1株当たりデータを除く) | 低い | 高い | |||||||||||||||||||||||||||||||||
| ブロードバンド | ビデオ | 合計米国一般会計原則 | ブロードバンド | ビデオ | 総合GAAP | ||||||||||||||||||||||||||||||
| 純売上高 | $ | 160 | $ | 45 | $ | 205 | $ | 170 | $ | 50 | $ | 220 | |||||||||||||||||||||||
| 粗利率 % | 55.4 | % | 56.7 | % | |||||||||||||||||||||||||||||||
| 粗利益 | $ | 114 | $ | 125 | |||||||||||||||||||||||||||||||
| 税率 | 26 | % | 26 | % | |||||||||||||||||||||||||||||||
| 当期純利益 | $ | 30 | $ | 36 | |||||||||||||||||||||||||||||||
| 1株当たり当期純利益 | $ | 0.26 | $ | 0.31 | |||||||||||||||||||||||||||||||
株式(1) | 117.8 | 117.8 | |||||||||||||||||||||||||||||||||
(1) 希薄化後の株式は、株価が13.34ドル（2024年第3四半期の平均価格）を想定しています。
| 2024年のGAAP財務ガイダンス | |||||||||||||||||||||||||||||||||||
| （未監査、百万ドル単位、パーセンテージおよび1株当たりのデータを除く） | 低い | 高い | |||||||||||||||||||||||||||||||||
| ブロードバンド | ビデオ | 合計GAAP | ブロードバンド | ビデオ | 合計GAAP | ||||||||||||||||||||||||||||||
売上高総額 (1) | $ | 477 | $ | 184 | $ | 662 | $ | 487 | $ | 189 | $ | 677 | |||||||||||||||||||||||
| 粗利率 % | 53.6 | % | 54.0 | % | |||||||||||||||||||||||||||||||
| 粗利益 | $ | 354 | $ | 366 | |||||||||||||||||||||||||||||||
| 税率 | 26 | % | 26 | % | |||||||||||||||||||||||||||||||
| 当期純利益 | $ | 31 | $ | 37 | |||||||||||||||||||||||||||||||
| 1株当たり当期純利益 | $ | 0.27 | $ | 0.32 | |||||||||||||||||||||||||||||||
株式(2) | 117.5 | 117.5 | |||||||||||||||||||||||||||||||||
(1) 部品の合計が丸め誤差のため、合計に合わない場合があります。
(2) 希薄化後の株は、株価が13.34ドル（2024年第3四半期の平均価格）であることを前提としています。
2
2024年第4四半期 非米国一般会計原則に基づく財務ガイダンス (1) | |||||||||||||||||||||||||||||||||||
| (未監査の百万ドル単位、パーセンテージと1株当たりデータを除く) | 低い | 高い | |||||||||||||||||||||||||||||||||
| ブロードバンド | ビデオ | 総額 | ブロードバンド | ビデオ | 総額 | ||||||||||||||||||||||||||||||
| 粗利率 % | 53.0 | % | 64.0 | % | 55.4 | % | 54.0 | % | 66.0 | % | 56.7 | % | |||||||||||||||||||||||
| 粗利益 | $ | 85 | $ | 29 | $ | 114 | $ | 92 | $ | 33 | $ | 125 | |||||||||||||||||||||||
調整後のEBITDA(2) | $ | 54 | $ | 2 | $ | 55 | $ | 59 | $ | 5 | $ | 64 | |||||||||||||||||||||||
| 税率 | 21 | % | 21 | % | |||||||||||||||||||||||||||||||
| 1株当たり当期純利益 | $ | 0.33 | $ | 0.39 | |||||||||||||||||||||||||||||||
株式(3) | 117.8 | 117.8 | |||||||||||||||||||||||||||||||||
(1) 「非GAAP財務指標の使用」および「財務ガイダンスにおけるGAAPから非GAAPへの調整」を参照してください。合計が丸め誤差により合計と一致していない場合があります。
「当期純利益に対する連結調整後EBITDA財務ガイダンスへの調整」を参照して、最も比較可能なGAAP基準に対する当期純利益への調整について以下をご覧ください。
(3) 希薄化後の株式は、株価が13.34ドル（2024年第3四半期の平均価格）を想定しています。
2024年 非GAAP財務見通し (1) | |||||||||||||||||||||||||||||||||||
| （未監査、百万ドル単位、パーセンテージおよび1株当たりのデータを除く） | 低い | 高い | |||||||||||||||||||||||||||||||||
| ブロードバンド | ビデオ | 総額 | ブロードバンド | ビデオ | 総額 | ||||||||||||||||||||||||||||||
| 粗利率 % | 49.6 | % | 64.9 | % | 53.9 | % | 50.0 | % | 65.4 | % | 54.3 | % | |||||||||||||||||||||||
| 粗利益 | $ | 237 | $ | 120 | $ | 356 | $ | 244 | $ | 124 | $ | 368 | |||||||||||||||||||||||
調整後のEBITDA(2) | $ | 118 | $ | 1 | $ | 119 | $ | 123 | $ | 4 | $ | 127 | |||||||||||||||||||||||
| 税率 | 21 | % | 21 | % | |||||||||||||||||||||||||||||||
普通株主に配当可能な1株当たり当期純利益 (3) | $ | 0.67 | $ | 0.73 | |||||||||||||||||||||||||||||||
株式(3) | 117.5 | 117.5 | |||||||||||||||||||||||||||||||||
(1) 下記の「非GAAP財務指標の使用」および「財務業績に関するGAAPから非GAAPへの調整」を参照してください。部品は端数処理のため、合計と一致しない場合があります。
(2)「当期純利益を連結セグメント調整後EBITDAへの調整」については、最も比較可能なGAAP基準に対する当期純利益の調整をご参照ください。
(3) 希薄化後の株式は、株価が13.34ドル（2024年第3四半期の平均価格）を想定しています。
3
コールの情報
ハーモニックは2024年10月28日月曜日に午後2時（東部時間午後5時）に財務の結果についての会議を開催します。ライブウェブキャストはhttp://investor.harmonicinc.comでハーモニックの投資家向け関係ウェブサイトでご覧いただけます。電話での参加を希望する場合は、事前にこのリンクを使用して登録してください：https://register.vevent.com/register/BI24dc955b30d3439abf656ef581cfa35c。再放送は同ウェブサイトで午後5時（太平洋時間）以降にご利用いただけます。
ハーモニックについて
ハーモニック（NASDAQ: HLIT）は、仮想化されたブロードバンドおよびビデオ配信ソリューションの世界的リーダーであり、メディア企業やサービスプロバイダーにグローバルに超高品質のビデオストリーミングと放送サービスを提供することを可能にしています。同社は業界初の仮想化ブロードバンドソリューションを通じてブロードバンドネットワーキングを革新し、オペレーターが自宅やモバイルデバイスにギガビットインターネットサービスを柔軟に展開することを可能にしました。革新的なクラウドやソフトウェアプラットフォームを通じてOTTビデオ配信を簡素化したり、ギガビットインターネットサービスの提供を支援したりすることで、ハーモニックはメディア企業やサービスプロバイダーがあらゆる画面でライブやオンデマンドのコンテンツを収益化する方法を変革しています。詳細はwww.harmonicinc.comでご確認いただけます。
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, in no particular order, the following: customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable, satellite, telco, broadcast and media industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband and Video businesses will not continue to develop in their current direction or pace; the impact of general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOSTM and VOS product solutions; dependence on various broadband and video industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the impact on our business of natural disasters. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2023, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic's results of operations in conjunction with the corresponding GAAP measures.
4
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.
CONTACTS:
| Walter Jankovic | David Hanover | ||||
| Chief Financial Officer | Investor Relations | ||||
| Harmonic Inc. | Harmonic Inc. | ||||
| +1.408.490.6152 | +1.212.896.1220 | ||||
5
Harmonic Inc.
Preliminary Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)
| September 27, 2024 | December 31, 2023 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 58,174 | $ | 84,269 | |||||||
| Restricted cash | 327 | — | |||||||||
| Accounts receivable, net | 173,730 | 141,531 | |||||||||
| Inventories | 73,864 | 83,982 | |||||||||
| Prepaid expenses and other current assets | 30,273 | 20,950 | |||||||||
| Total current assets | 336,368 | 330,732 | |||||||||
| Property and equipment, net | 28,396 | 36,683 | |||||||||
| Operating lease right-of-use assets | 13,471 | 20,817 | |||||||||
| Goodwill | 239,597 | 239,150 | |||||||||
| Deferred income taxes | 107,380 | 104,707 | |||||||||
| Other non-current assets | 34,649 | 36,117 | |||||||||
| Total assets | $ | 759,861 | $ | 768,206 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Convertible debt | $ | — | $ | 114,880 | |||||||
| Current portion of long-term debt | 1,944 | — | |||||||||
| Current portion of other borrowings | 5,285 | 4,918 | |||||||||
| Accounts payable | 42,480 | 38,562 | |||||||||
| Deferred revenue | 50,891 | 46,217 | |||||||||
| Operating lease liabilities | 5,971 | 6,793 | |||||||||
| Other current liabilities | 55,091 | 61,024 | |||||||||
| Total current liabilities | 161,662 | 272,394 | |||||||||
| Long-term debt | 112,819 | — | |||||||||
| Other long-term borrowings | 9,458 | 10,495 | |||||||||
| Operating lease liabilities, non-current | 15,647 | 18,965 | |||||||||
| Other non-current liabilities | 31,338 | 29,478 | |||||||||
| Total liabilities | 330,924 | 331,332 | |||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | — | — | |||||||||
Common stock, $0.001 par value, 150,000 shares authorized; 116,511 and 112,407 shares issued and outstanding at September 27, 2024 and December 31, 2023, respectively | 117 | 112 | |||||||||
| Additional paid-in capital | 2,424,322 | 2,405,043 | |||||||||
| Accumulated deficit | (1,991,615) | (1,962,575) | |||||||||
| Accumulated other comprehensive loss | (3,887) | (5,706) | |||||||||
| Total stockholders’ equity | 428,937 | 436,874 | |||||||||
| Total liabilities and stockholders’ equity | $ | 759,861 | $ | 768,206 | |||||||
6
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 | |||||||||||||||||||
7
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 | |||||||
8
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 | — | |||||||||
9
Harmonic Inc.
Preliminary GAAP Revenue Information
(Unaudited, in thousands, except percentages)
| Three Months Ended | ||||||||||||||||||||||||||
| September 27, 2024 | June 28, 2024 | September 29, 2023 | ||||||||||||||||||||||||
| Geography | ||||||||||||||||||||||||||
| Americas | $ | 167,720 | 86 | % | $ | 109,597 | 79 | % | $ | 91,221 | 72 | % | ||||||||||||||
| EMEA | 20,269 | 10 | % | 22,680 | 16 | % | 28,465 | 22 | % | |||||||||||||||||
| APAC | 7,767 | 4 | % | 6,463 | 5 | % | 7,517 | 6 | % | |||||||||||||||||
| Total | $ | 195,756 | 100 | % | $ | 138,740 | 100 | % | $ | 127,203 | 100 | % | ||||||||||||||
| Market | ||||||||||||||||||||||||||
| Service Provider | $ | 159,993 | 82 | % | $ | 104,429 | 75 | % | $ | 87,747 | 69 | % | ||||||||||||||
| Broadcast and Media | 35,763 | 18 | % | 34,311 | 25 | % | 39,456 | 31 | % | |||||||||||||||||
| Total | $ | 195,756 | 100 | % | $ | 138,740 | 100 | % | $ | 127,203 | 100 | % | ||||||||||||||
| Nine Months Ended | ||||||||||||||||||||||||||
| September 27, 2024 | September 29, 2023 | |||||||||||||||||||||||||
| Geography | ||||||||||||||||||||||||||
| Americas | $ | 370,348 | 81 | % | $ | 318,294 | 72 | % | ||||||||||||||||||
| EMEA | 66,509 | 15 | % | 97,648 | 22 | % | ||||||||||||||||||||
| APAC | 19,699 | 4 | % | 24,873 | 6 | % | ||||||||||||||||||||
| Total | $ | 456,556 | 100 | % | $ | 440,815 | 100 | % | ||||||||||||||||||
| Market | ||||||||||||||||||||||||||
| Service Provider | $ | 351,115 | 77 | % | $ | 314,439 | 71 | % | ||||||||||||||||||
| Broadcast and Media | 105,441 | 23 | % | 126,376 | 29 | % | ||||||||||||||||||||
| Total | $ | 456,556 | 100 | % | $ | 440,815 | 100 | % | ||||||||||||||||||
10
Harmonic Inc.
Preliminary Segment Information
(Unaudited, in thousands, except percentages)
| Three Months Ended September 27, 2024 | ||||||||||||||||||||||||||||||||||||||
| Broadband | Video | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | ||||||||||||||||||||||||||||||||||
| Net revenue | $ | 145,338 | $ | 50,418 | $ | 195,756 | $ | — | $ | 195,756 | ||||||||||||||||||||||||||||
| Gross profit | 70,256 | (1) | 34,770 | (1) | 105,026 | (1) | (294) | 104,732 | ||||||||||||||||||||||||||||||
| Gross margin % | 48.3 | % | (1) | 69.0 | % | (1) | 53.7 | % | (1) | 53.5 | % | |||||||||||||||||||||||||||
| Three Months Ended June 28, 2024 | ||||||||||||||||||||||||||||||||||||||
| Broadband | Video | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | ||||||||||||||||||||||||||||||||||
| Net revenue | $ | 92,937 | $ | 45,803 | $ | 138,740 | $ | — | $ | 138,740 | ||||||||||||||||||||||||||||
| Gross profit | 44,236 | (1) | 29,494 | (1) | 73,730 | (1) | (273) | 73,457 | ||||||||||||||||||||||||||||||
| Gross margin % | 47.6 | % | (1) | 64.4 | % | (1) | 53.1 | % | (1) | 52.9 | % | |||||||||||||||||||||||||||
| Three Months Ended September 29, 2023 | ||||||||||||||||||||||||||||||||||||||
| Broadband | Video | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | ||||||||||||||||||||||||||||||||||
| Net revenue | $ | 75,806 | $ | 51,397 | $ | 127,203 | $ | — | $ | 127,203 | ||||||||||||||||||||||||||||
| Gross profit | 33,763 | (1) | 29,241 | (1) | 63,004 | (1) | (1,320) | 61,684 | ||||||||||||||||||||||||||||||
| Gross margin % | 44.5 | % | (1) | 56.9 | % | (1) | 49.5 | % | (1) | 48.5 | % | |||||||||||||||||||||||||||
| Nine Months Ended September 27, 2024 | ||||||||||||||||||||||||||||||||||||||
| Broadband | Video | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | ||||||||||||||||||||||||||||||||||
| Net revenue | $ | 317,172 | $ | 139,384 | $ | 456,556 | $ | — | $ | 456,556 | ||||||||||||||||||||||||||||
| Gross profit | 151,986 | (1) | 90,833 | (1) | 242,819 | (1) | (1,549) | 241,270 | ||||||||||||||||||||||||||||||
| Gross margin % | 47.9 | % | (1) | 65.2 | % | (1) | 53.2 | % | (1) | 52.8 | % | |||||||||||||||||||||||||||
| Nine Months Ended September 29, 2023 | ||||||||||||||||||||||||||||||||||||||
| Broadband | Video | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | ||||||||||||||||||||||||||||||||||
| Net revenue | $ | 273,253 | $ | 167,562 | $ | 440,815 | $ | — | $ | 440,815 | ||||||||||||||||||||||||||||
| Gross profit | 133,129 | (1) | 100,158 | (1) | 233,287 | (1) | (2,609) | 230,678 | ||||||||||||||||||||||||||||||
| Gross margin % | 48.7 | % | (1) | 59.8 | % | (1) | 52.9 | % | (1) | 52.3 | % | |||||||||||||||||||||||||||
(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” above and “GAAP to Non-GAAP Reconciliations" below.
11
Harmonic Inc.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)
| Three Months Ended September 27, 2024 | |||||||||||||||||||||||||||||||||||
| Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income | ||||||||||||||||||||||||||||||
| GAAP | $ | 195,756 | $ | 104,732 | $ | 69,308 | $ | 35,424 | $ | (6,618) | $ | 21,718 | |||||||||||||||||||||||
| Stock-based compensation | — | 294 | (5,416) | 5,710 | — | 5,710 | |||||||||||||||||||||||||||||
| Restructuring and related charges | — | — | (281) | 281 | — | 281 | |||||||||||||||||||||||||||||
Asset impairment and related charges (1) | — | — | (3,103) | 3,103 | — | 3,103 | |||||||||||||||||||||||||||||
| Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (871) | |||||||||||||||||||||||||||||
| Total adjustments | — | 294 | (8,800) | 9,094 | — | 8,223 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 195,756 | $ | 105,026 | $ | 60,508 | $ | 44,518 | $ | (6,618) | $ | 29,941 | |||||||||||||||||||||||
| As a % of revenue (GAAP) | 53.5 | % | 35.4 | % | 18.1 | % | (3.4) | % | 11.1 | % | |||||||||||||||||||||||||
| As a % of revenue (Non-GAAP) | 53.7 | % | 30.9 | % | 22.7 | % | (3.4) | % | 15.3 | % | |||||||||||||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||||||||||||||
| GAAP | $ | 0.19 | |||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 0.26 | |||||||||||||||||||||||||||||||||
| Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
| GAAP and Non-GAAP | 117,358 | ||||||||||||||||||||||||||||||||||
(1) Includes write-off of $1.8 million for internally developed capitalized software, and impairment charges of $0.8 million for right-of-use assets, $0.1 million for leasehold improvements and $0.4 million related to the fair value of other unrecoverable facility costs.
| Three Months Ended June 28, 2024 | |||||||||||||||||||||||||||||||||||
| Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | ||||||||||||||||||||||||||||||
| GAAP | $ | 138,740 | $ | 73,457 | $ | 89,087 | $ | (15,630) | $ | (805) | $ | (12,532) | |||||||||||||||||||||||
| Stock-based compensation | — | 273 | (6,681) | 6,954 | — | 6,954 | |||||||||||||||||||||||||||||
| Restructuring and related charges | — | — | (11,482) | 11,482 | — | 11,482 | |||||||||||||||||||||||||||||
| Non-recurring advisory fees | — | — | (406) | 406 | — | 406 | |||||||||||||||||||||||||||||
Asset impairment and related charges (1) | — | — | (9,000) | 9,000 | — | 9,000 | |||||||||||||||||||||||||||||
| Non-cash interest expense related to convertible notes | — | — | — | — | 338 | 338 | |||||||||||||||||||||||||||||
| Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (6,369) | |||||||||||||||||||||||||||||
| Total adjustments | — | 273 | (27,569) | 27,842 | 338 | 21,811 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 138,740 | $ | 73,730 | $ | 61,518 | $ | 12,212 | $ | (467) | $ | 9,279 | |||||||||||||||||||||||
| As a % of revenue (GAAP) | 52.9 | % | 64.2 | % | (11.3) | % | (0.6) | % | (9.0) | % | |||||||||||||||||||||||||
| As a % of revenue (Non-GAAP) | 53.1 | % | 44.3 | % | 8.8 | % | (0.3) | % | 6.7 | % | |||||||||||||||||||||||||
| Diluted net income (loss) per share: | |||||||||||||||||||||||||||||||||||
| GAAP | $ | (0.11) | |||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 0.08 | |||||||||||||||||||||||||||||||||
| Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
| GAAP | 115,030 | ||||||||||||||||||||||||||||||||||
| Non-GAAP | 116,690 | ||||||||||||||||||||||||||||||||||
(1) Includes impairment charges of $2.9 million for right-of-use assets, $4.2 million for leasehold improvements, and $1.9 million related to the fair value of other unrecoverable facility costs.
12
| Three Months Ended September 29, 2023 | |||||||||||||||||||||||||||||||||||
| Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | ||||||||||||||||||||||||||||||
| GAAP | $ | 127,203 | $ | 61,684 | $ | 70,287 | $ | (8,603) | $ | (276) | $ | (6,495) | |||||||||||||||||||||||
| Stock-based compensation | — | 606 | (6,635) | 7,241 | — | 7,241 | |||||||||||||||||||||||||||||
| Restructuring and related charges | — | 714 | (362) | 1,076 | — | 1,076 | |||||||||||||||||||||||||||||
| Non-recurring advisory fees | — | — | (364) | 364 | — | 364 | |||||||||||||||||||||||||||||
| Non-cash interest expense related to convertible notes | — | — | — | — | 226 | 226 | |||||||||||||||||||||||||||||
| Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (2,390) | |||||||||||||||||||||||||||||
| Total adjustments | — | 1,320 | (7,361) | 8,681 | 226 | 6,517 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 127,203 | $ | 63,004 | $ | 62,926 | $ | 78 | $ | (50) | $ | 22 | |||||||||||||||||||||||
| As a % of revenue (GAAP) | 48.5 | % | 55.3 | % | (6.8) | % | (0.2) | % | (5.1) | % | |||||||||||||||||||||||||
| As a % of revenue (Non-GAAP) | 49.5 | % | 49.5 | % | 0.1 | % | — | % | — | % | |||||||||||||||||||||||||
| Diluted net income (loss) per share: | |||||||||||||||||||||||||||||||||||
| GAAP | $ | (0.06) | |||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 0.00 | |||||||||||||||||||||||||||||||||
| Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
| GAAP | 112,031 | ||||||||||||||||||||||||||||||||||
| Non-GAAP | 116,710 | ||||||||||||||||||||||||||||||||||
| Nine Months Ended September 27, 2024 | |||||||||||||||||||||||||||||||||||
| Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income | ||||||||||||||||||||||||||||||
| GAAP | $ | 456,556 | $ | 241,270 | $ | 231,002 | $ | 10,268 | $ | (8,435) | $ | 1,097 | |||||||||||||||||||||||
| Stock-based compensation | — | 1,089 | (18,498) | 19,587 | — | 19,587 | |||||||||||||||||||||||||||||
| Restructuring and related charges | — | 460 | (14,800) | 15,260 | 11 | 15,271 | |||||||||||||||||||||||||||||
| Non-recurring advisory fees | — | — | (755) | 755 | — | 755 | |||||||||||||||||||||||||||||
Asset impairment and related charges (1) | — | — | (12,103) | 12,103 | — | 12,103 | |||||||||||||||||||||||||||||
| Non-cash interest expense related to convertible notes | — | — | — | — | 567 | 567 | |||||||||||||||||||||||||||||
| Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (9,778) | |||||||||||||||||||||||||||||
| Total adjustments | — | 1,549 | (46,156) | 47,705 | 578 | 38,505 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 456,556 | $ | 242,819 | $ | 184,846 | $ | 57,973 | $ | (7,857) | $ | 39,602 | |||||||||||||||||||||||
| As a % of revenue (GAAP) | 52.8 | % | 50.6 | % | 2.2 | % | (1.8) | % | 0.2 | % | |||||||||||||||||||||||||
| As a % of revenue (Non-GAAP) | 53.2 | % | 40.5 | % | 12.7 | % | (1.7) | % | 8.7 | % | |||||||||||||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||||||||||||||
| GAAP | $ | 0.01 | |||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 0.34 | |||||||||||||||||||||||||||||||||
| Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
| GAAP and Non-GAAP | 117,385 | ||||||||||||||||||||||||||||||||||
(1) Includes write-off of $1.8 million for internally developed capitalized software, and impairment charges of $3.7 million for right-of-use assets, $4.3 million for leasehold improvements, and $2.3 million related to the fair value of other unrecoverable facility costs.
13
| Nine Months Ended September 29, 2023 | |||||||||||||||||||||||||||||||||||
| Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income | ||||||||||||||||||||||||||||||
| GAAP | $ | 440,815 | $ | 230,678 | $ | 218,139 | $ | 12,539 | $ | (2,211) | $ | 153 | |||||||||||||||||||||||
| Stock-based compensation | — | 1,895 | (18,829) | 20,724 | — | 20,724 | |||||||||||||||||||||||||||||
| Restructuring and related charges | — | 714 | (445) | 1,159 | — | 1,159 | |||||||||||||||||||||||||||||
| Non-recurring advisory fees | — | — | (2,499) | 2,499 | — | 2,499 | |||||||||||||||||||||||||||||
| Non-cash interest expense related to convertible notes | — | — | — | — | 672 | 672 | |||||||||||||||||||||||||||||
| Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 3,099 | |||||||||||||||||||||||||||||
| Total adjustments | — | 2,609 | (21,773) | 24,382 | 672 | 28,153 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 440,815 | $ | 233,287 | $ | 196,366 | $ | 36,921 | $ | (1,539) | $ | 28,306 | |||||||||||||||||||||||
| As a % of revenue (GAAP) | 52.3 | % | 49.5 | % | 2.8 | % | (0.5) | % | — | % | |||||||||||||||||||||||||
| As a % of revenue (Non-GAAP) | 52.9 | % | 44.5 | % | 8.4 | % | (0.3) | % | 6.4 | % | |||||||||||||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||||||||||||||
| GAAP | $ | — | |||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 0.24 | |||||||||||||||||||||||||||||||||
| Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
| GAAP and Non-GAAP | 117,910 | ||||||||||||||||||||||||||||||||||
14
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".
15
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 | % | |||||||
16
Harmonic Inc.
GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)
(In millions, except percentages and per share data)
Q4 2024 Financial Guidance (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | Gross Profit | Total Operating Expense | Income from Operations | Net Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | $ | 205 | to | $ | 220 | $ | 114 | to | $ | 125 | $ | 70 | to | $ | 73 | $ | 44 | to | $ | 52 | $ | 30 | to | $ | 36 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | (9) | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax effect of non-GAAP adjustments | — | — | — | — | — | to | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | — | — | (9) | 9 | 9 | to | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 205 | to | $ | 220 | $ | 114 | to | $ | 125 | $ | 61 | to | $ | 64 | $ | 53 | to | $ | 61 | $ | 39 | to | $ | 46 | ||||||||||||||||||||||||||||||||||
| As a % of revenue (GAAP) | 55.4% | to | 56.7% | 34.1% | to | 33.2% | 21.5% | to | 23.6% | 14.6% | to | 16.4% | |||||||||||||||||||||||||||||||||||||||||||||||
| As a % of revenue (Non-GAAP) | 55.4% | to | 56.7% | 29.8% | to | 29.1% | 25.7% | to | 27.6% | 19.0% | to | 20.9% | |||||||||||||||||||||||||||||||||||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | $ | 0.26 | to | $ | 0.31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 0.33 | to | $ | 0.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP and Non-GAAP | 117.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Components may not sum to total due to rounding.
2024 Financial Guidance (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | Gross Profit | Total Operating Expense | Income from Operations | Net Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | $ | 662 | to | $ | 677 | $ | 354 | to | $ | 366 | $ | 301 | to | $ | 304 | $ | 54 | to | $ | 62 | $ | 31 | to | $ | 37 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | 2 | (27) | 29 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and related charges | — | — | (15) | 15 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-recurring advisory fees | — | — | (1) | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset impairment and related charges | — | — | (12) | 12 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash interest expense related to convertible notes | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax effect of non-GAAP adjustments | — | — | — | — | (10) | to | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | — | 2 | (55) | 57 | 48 | to | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 662 | to | $ | 677 | $ | 356 | to | $ | 368 | $ | 246 | to | $ | 249 | $ | 111 | to | $ | 119 | $ | 79 | to | $ | 86 | ||||||||||||||||||||||||||||||||||
| As a % of revenue (GAAP) | 53.6% | to | 54.0% | 45.5% | to | 44.9% | 8.2% | to | 9.2% | 4.7% | to | 5.5% | |||||||||||||||||||||||||||||||||||||||||||||||
| As a % of revenue (Non-GAAP) | 53.9% | to | 54.3% | 37.2% | to | 36.8% | 16.7% | to | 17.6% | 11.9% | to | 12.7% | |||||||||||||||||||||||||||||||||||||||||||||||
| Diluted net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | $ | 0.27 | to | $ | 0.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 0.67 | to | $ | 0.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP and Non-GAAP | 117.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Components may not sum to total due to rounding.
17
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.
18