Delaware | 000-25826 | 77-0201147 |
(State or other jurisdiction of incorporation or organization) | Commission File Number | (I.R.S. Employer Identification Number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
¨ | Emerging growth company |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Press release of Harmonic Inc. dated July 31, 2017, entitled “Harmonic Announces Second Quarter 2017 Results.” |
Date: July 31, 2017 | HARMONIC INC. | |||||
By: | /s/ Sanjay Kalra | |||||
Sanjay Kalra | ||||||
Chief Financial Officer |
Exhibit No. | Description |
99.1 | Press release of Harmonic Inc. dated July 31, 2017, entitled “Harmonic Announces Second Quarter 2017 Results.” |
GAAP Financial Guidance | Q3 2017 | Q4 2017 | 2017 | ||||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||||||||||
Net Revenue | $ | 80.0 | $ | 90.0 | $ | 90.0 | $ | 100.0 | $ | 335.5 | $ | 355.5 | |||||||||||||
Video | $ | 72.0 | $ | 81.0 | $ | 80.0 | $ | 86.0 | $ | 299.9 | $ | 314.9 | |||||||||||||
Cable Edge | $ | 8.0 | $ | 9.0 | $ | 10.0 | $ | 14.0 | $ | 35.6 | $ | 40.6 | |||||||||||||
Gross Margin % | 48.0 | % | 49.0 | % | 50.0 | % | 51.0 | % | 47.0 | % | 48.0 | % | |||||||||||||
Video | 52.0 | % | 53.0 | % | 52.0 | % | 54.0 | % | 51.0 | % | 52.0 | % | |||||||||||||
Cable Edge | 19.0 | % | 20.0 | % | 26.0 | % | 28.0 | % | 13.0 | % | 14.0 | % | |||||||||||||
Operating Expenses | $ | 55.7 | $ | 57.7 | $ | 53.7 | $ | 55.7 | $ | 232.5 | $ | 236.5 | |||||||||||||
Operating Loss | $ | (19.3 | ) | $ | (11.3 | ) | $ | (10.8 | ) | $ | (2.3 | ) | $ | (79.3 | ) | $ | (62.3 | ) | |||||||
Tax benefit (expense) | $ | 1.7 | $ | 1.7 | $ | (0.7 | ) | $ | (0.7 | ) | $ | 0.6 | $ | 0.6 | |||||||||||
EPS | $ | (0.25 | ) | $ | (0.16 | ) | $ | (0.18 | ) | $ | (0.07 | ) | $ | (1.11 | ) | $ | (0.94 | ) | |||||||
Shares | 81.4 | 81.4 | 82.0 | 82.0 | 81.0 | 81.0 | |||||||||||||||||||
Cash and short-term investments | $ | 40.0 | $ | 50.0 | $ | 40.0 | $ | 50.0 | $ | 40.0 | $ | 50.0 |
Non-GAAP Financial Guidance | Q3 2017 | Q4 2017 | 2017 | ||||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||||||||||
Net Revenue | $ | 80.0 | $ | 90.0 | $ | 90.0 | $ | 100.0 | $ | 336.0 | $ | 356.0 | |||||||||||||
Video | $ | 72.0 | $ | 81.0 | $ | 80.0 | $ | 86.0 | $ | 300.0 | $ | 315.0 | |||||||||||||
Cable Edge | $ | 8.0 | $ | 9.0 | $ | 10.0 | $ | 14.0 | $ | 36.0 | $ | 41.0 | |||||||||||||
Gross Margin % | 51.0 | % | 52.0 | % | 52.0 | % | 53.5 | % | 51.0 | % | 51.5 | % | |||||||||||||
Video | 55.0 | % | 56.0 | % | 55.0 | % | 57.0 | % | 54.0 | % | 55.0 | % | |||||||||||||
Cable Edge | 20.0 | % | 21.0 | % | 27.0 | % | 29.0 | % | 24.0 | % | 25.0 | % | |||||||||||||
Operating Expenses | $ | 48.0 | $ | 50.0 | $ | 48.0 | $ | 50.0 | $ | 207.0 | $ | 211.0 | |||||||||||||
Operating Income (Loss) | $ | (9.0 | ) | $ | (1.0 | ) | $ | (3.0 | ) | $ | 5.5 | $ | (40.0 | ) | $ | (23.0 | ) | ||||||||
Tax rate | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | |||||||||||||
EPS | $ | (0.11 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.04 | $ | (0.50 | ) | $ | (0.33 | ) | ||||||||
Shares | 81.4 | 81.4 | 82.0 | 84.0 | 81.0 | 81.0 | |||||||||||||||||||
Cash and short-term investments | $ | 40.0 | $ | 50.0 | $ | 40.0 | $ | 50.0 | $ | 40.0 | $ | 50.0 |
Sanjay Kalra | Blair King |
Chief Financial Officer | Director, Investor Relations |
Harmonic Inc. | Harmonic Inc. |
+1.408.490.6031 | +1.408.490.6172 |
June 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 52,885 | $ | 55,635 | |||
Short-term investments | — | 6,923 | |||||
Accounts receivable, net | 60,427 | 86,765 | |||||
Inventories | 35,130 | 41,193 | |||||
Prepaid expenses and other current assets | 24,318 | 26,319 | |||||
Total current assets | 172,760 | 216,835 | |||||
Property and equipment, net | 31,624 | 32,164 | |||||
Goodwill | 240,570 | 237,279 | |||||
Intangibles, net | 25,317 | 29,231 | |||||
Other long-term assets | 37,745 | 38,560 | |||||
Total assets | $ | 508,016 | $ | 554,069 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 7,130 | $ | 7,275 | |||
Accounts payable | 31,322 | 28,892 | |||||
Income taxes payable | 1,349 | 1,166 | |||||
Deferred revenue | 55,165 | 52,414 | |||||
Accrued and other current liabilities | 50,272 | 55,150 | |||||
Total current liabilities | 145,238 | 144,897 | |||||
Convertible notes, long-term | 105,935 | 103,259 | |||||
Other debts and capital lease obligations, long-term | 9,292 | 13,915 | |||||
Income taxes payable, long-term | 2,996 | 2,926 | |||||
Deferred tax liabilities, long-term | 258 | — | |||||
Other non-current liabilities | 16,716 | 18,431 | |||||
Total liabilities | 280,435 | 283,428 | |||||
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; 80,669 and 78,456 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 81 | 78 | |||||
Additional paid-in capital | 2,260,886 | 2,254,055 | |||||
Accumulated deficit | (2,030,384 | ) | (1,976,222 | ) | |||
Accumulated other comprehensive loss | (3,002 | ) | (7,270 | ) | |||
Total stockholders' equity | 227,581 | 270,641 | |||||
Total liabilities and stockholders' equity | $ | 508,016 | $ | 554,069 |
Three months ended | Six months ended | ||||||||||||||
June 30, 2017 | July 1, 2016 | June 30, 2017 | July 1, 2016 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 50,190 | $ | 77,413 | $ | 100,594 | $ | 135,057 | |||||||
Services | 32,125 | 32,158 | 64,664 | 56,346 | |||||||||||
Total net revenue | 82,315 | 109,571 | 165,258 | 191,403 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 32,005 | 44,049 | 58,107 | 71,238 | |||||||||||
Services | 16,495 | 14,482 | 32,928 | 28,471 | |||||||||||
Total cost of revenue | 48,500 | 58,531 | 91,035 | 99,709 | |||||||||||
Gross profit | 33,815 | 51,040 | 74,223 | 91,694 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 27,055 | 26,507 | 51,937 | 50,070 | |||||||||||
Selling, general and administrative | 32,625 | 36,516 | 67,256 | 69,386 | |||||||||||
Amortization of intangibles | 780 | 4,232 | 1,554 | 6,597 | |||||||||||
Restructuring and related charges | 777 | 1,903 | 2,056 | 4,515 | |||||||||||
Total operating expenses | 61,237 | 69,158 | 122,803 | 130,568 | |||||||||||
Loss from operations | (27,422 | ) | (18,118 | ) | (48,580 | ) | (38,874 | ) | |||||||
Interest expense, net | (2,680 | ) | (2,651 | ) | (5,270 | ) | (5,072 | ) | |||||||
Other Income (expense), net | (819 | ) | 332 | (1,330 | ) | 323 | |||||||||
Loss on impairment of long-term investment | — | — | — | (1,476 | ) | ||||||||||
Loss before income taxes | (30,921 | ) | (20,437 | ) | (55,180 | ) | (45,099 | ) | |||||||
Provision for income taxes | 579 | 242 | 347 | 760 | |||||||||||
Net loss | $ | (31,500 | ) | $ | (20,679 | ) | $ | (55,527 | ) | $ | (45,859 | ) | |||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.39 | ) | $ | (0.27 | ) | $ | (0.69 | ) | $ | (0.59 | ) | |||
Shares used in per share calculation: | |||||||||||||||
Basic and diluted | 80,590 | 77,342 | 80,203 | 77,168 |
Six months ended | |||||||
June 30, 2017 | July 1, 2016 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (55,527 | ) | $ | (45,859 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Amortization of intangibles | 4,144 | 8,322 | |||||
Depreciation | 7,139 | 7,737 | |||||
Stock-based compensation | 7,387 | 5,862 | |||||
Amortization of discount on convertible debt | 2,676 | 2,417 | |||||
Amortization of non-cash warrant | 416 | — | |||||
Restructuring, asset impairment and loss on retirement of fixed assets | 228 | 1,687 | |||||
Loss on impairment of long-term investment | — | 1,476 | |||||
Deferred income taxes | (38 | ) | 38 | ||||
Provision for excess and obsolete inventories | 5,094 | 5,203 | |||||
Allowance for doubtful accounts, returns and discounts | 3,274 | 697 | |||||
Other non-cash adjustments, net | 189 | 144 | |||||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||||
Accounts receivable | 23,479 | (16,000 | ) | ||||
Inventories | 2,912 | 3,158 | |||||
Prepaid expenses and other assets | 5,933 | (4,148 | ) | ||||
Accounts payable | 1,434 | 2,168 | |||||
Deferred revenue | 1,308 | 25,956 | |||||
Income taxes payable | 228 | (122 | ) | ||||
Accrued and other liabilities | (7,662 | ) | (7,029 | ) | |||
Net cash provided by (used in) operating activities | 2,614 | (8,293 | ) | ||||
Cash flows from investing activities: | |||||||
Acquisition of business, net of cash acquired | — | (72,989 | ) | ||||
Proceeds from maturities and sale of investments | 6,898 | 12,842 | |||||
Purchases of property and equipment | (5,943 | ) | (7,708 | ) | |||
Net cash provided by (used in) investing activities | 955 | (67,855 | ) | ||||
Cash flows from financing activities: | |||||||
Payment of convertible debt issuance costs | — | (582 | ) | ||||
Proceeds from other debts and capital leases | 164 | 5,972 | |||||
Repayment of other debts and capital leases | (6,650 | ) | (6,524 | ) | |||
Proceeds from common stock issued to employees | 2,117 | 3,737 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (2,726 | ) | (1,034 | ) | |||
Net cash (used in) provided by financing activities | (7,095 | ) | 1,569 | ||||
Effect of exchange rate changes on cash and cash equivalents | 776 | (95 | ) | ||||
Net decrease in cash and cash equivalents | (2,750 | ) | (74,674 | ) | |||
Cash and cash equivalents at beginning of period | 55,635 | 126,190 | |||||
Cash and cash equivalents at end of period | $ | 52,885 | $ | 51,516 |
Three months ended | ||||||||||||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | July 1, 2016 | ||||||||||||||||||||||||||||||
GAAP | Adjust-ments | Non-GAAP | GAAP | Adjust-ments(1) | Non-GAAP | GAAP | Adjust-ments(1) | Non-GAAP | ||||||||||||||||||||||||
Product | ||||||||||||||||||||||||||||||||
Video Products | $ | 44,824 | $ | — | $ | 44,824 | 54% | $ | 45,518 | $ | — | $ | 45,518 | 55% | $ | 61,662 | $ | 205 | $ | 61,867 | 56% | |||||||||||
Cable Edge | 5,366 | — | 5,366 | 7% | 4,886 | 191 | 5,077 | 6% | 15,751 | $ | — | 15,751 | 14% | |||||||||||||||||||
Services and Support | 32,125 | — | 32,125 | 39% | 32,539 | 336 | 32,875 | 39% | 32,158 | 575 | 32,733 | 30% | ||||||||||||||||||||
Total | $ | 82,315 | $ | — | $ | 82,315 | 100% | $ | 82,943 | $ | 527 | $ | 83,470 | 100% | $ | 109,571 | $ | 780 | $ | 110,351 | 100% | |||||||||||
Geography | ||||||||||||||||||||||||||||||||
Americas | $ | 40,611 | $ | — | $ | 40,611 | 50% | $ | 37,906 | $ | 416 | $ | 38,322 | 46% | $ | 57,680 | $ | 143 | $ | 57,823 | 52% | |||||||||||
EMEA | 24,953 | — | 24,953 | 30% | 25,439 | 111 | 25,550 | 31% | 33,456 | 467 | 33,923 | 31% | ||||||||||||||||||||
APAC | 16,751 | — | 16,751 | 20% | 19,598 | — | 19,598 | 23% | 18,435 | 170 | 18,605 | 17% | ||||||||||||||||||||
Total | $ | 82,315 | $ | — | $ | 82,315 | 100% | $ | 82,943 | $ | 527 | $ | 83,470 | 100% | $ | 109,571 | $ | 780 | $ | 110,351 | 100% | |||||||||||
Market | ||||||||||||||||||||||||||||||||
Service Provider | $ | 46,420 | $ | — | $ | 46,420 | 56% | $ | 48,028 | $ | 416 | $ | 48,444 | 58% | $ | 65,733 | $ | 329 | $ | 66,062 | 60% | |||||||||||
Broadcast and Media | 35,895 | — | 35,895 | 44% | 34,915 | 111 | 35,026 | 42% | 43,838 | 451 | 44,289 | 40% | ||||||||||||||||||||
Total | $ | 82,315 | $ | — | $ | 82,315 | 100% | $ | 82,943 | $ | 527 | $ | 83,470 | 100% | $ | 109,571 | $ | 780 | $ | 110,351 | 100% |
Six months ended | |||||||||||||||||||||
June 30, 2017 | July 1, 2016 | ||||||||||||||||||||
GAAP | Adjust-ments(1) | Non-GAAP | GAAP | Adjust-ments(1) | Non-GAAP | ||||||||||||||||
Product | |||||||||||||||||||||
Video Products | $ | 90,342 | $ | — | $ | 90,342 | 55% | $ | 105,874 | $ | 560 | $ | 106,434 | 55% | |||||||
Cable Edge | 10,252 | 191 | 10,443 | 6% | 29,183 | — | 29,183 | 15% | |||||||||||||
Services and Support | 64,664 | 336 | 65,000 | 39% | 56,346 | 843 | 57,189 | 30% | |||||||||||||
Total | $ | 165,258 | $ | 527 | $ | 165,785 | 100% | $ | 191,403 | $ | 1,403 | $ | 192,806 | 100% | |||||||
Geography | |||||||||||||||||||||
Americas | $ | 78,517 | $ | 416 | $ | 78,933 | 48% | $ | 106,657 | $ | 224 | $ | 106,881 | 55% | |||||||
EMEA | 50,392 | 111 | 50,503 | 30% | 53,311 | 868 | 54,179 | 28% | |||||||||||||
APAC | 36,349 | — | 36,349 | 22% | 31,435 | 311 | 31,746 | 17% | |||||||||||||
Total | $ | 165,258 | $ | 527 | $ | 165,785 | 100% | $ | 191,403 | $ | 1,403 | $ | 192,806 | 100% | |||||||
Market | |||||||||||||||||||||
Service Provider | $ | 94,448 | $ | 416 | $ | 94,864 | 57% | $ | 117,003 | $ | 478 | $ | 117,481 | 61% | |||||||
Broadcast and Media | 70,810 | 111 | 70,921 | 43% | 74,400 | 925 | 75,325 | 39% | |||||||||||||
Total | $ | 165,258 | $ | 527 | $ | 165,785 | 100% | $ | 191,403 | $ | 1,403 | $ | 192,806 | 100% |
Three months ended June 30, 2017 | |||||||||||||||||||
Video | Cable Edge | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 73,379 | $ | 8,936 | $ | 82,315 | $ | — | $ | 82,315 | |||||||||
Gross profit | 37,720 | 1,699 | 39,419 | (5,604 | ) | 33,815 | |||||||||||||
Gross margin% | 51.4 | % | 19.0 | % | 47.9 | % | 41.1 | % | |||||||||||
Operating loss | (8,947 | ) | (7,411 | ) | (16,358 | ) | (11,064 | ) | (27,422 | ) | |||||||||
Operating margin% | (12.2 | )% | (82.9 | )% | (19.9 | )% | (33.3 | )% | |||||||||||
Three months ended March 31, 2017 | |||||||||||||||||||
Video | Cable Edge | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 74,453 | $ | 9,017 | $ | 83,470 | $ | (527 | ) | $ | 82,943 | ||||||||
Gross profit | 40,884 | 2,626 | 43,510 | (3,102 | ) | 40,408 | |||||||||||||
Gross margin% | 54.9 | % | 29.1 | % | 52.1 | % | 48.7 | % | |||||||||||
Operating loss | (5,725 | ) | (5,664 | ) | (11,389 | ) | (9,769 | ) | (21,158 | ) | |||||||||
Operating margin% | (7.7 | )% | (62.8 | )% | (13.6 | )% | (25.5 | )% | |||||||||||
Three months ended July 1, 2016 | |||||||||||||||||||
Video | Cable Edge | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 91,368 | $ | 18,983 | $ | 110,351 | $ | (780 | ) | $ | 109,571 | ||||||||
Gross profit | 51,233 | 7,276 | 58,509 | (7,469 | ) | 51,040 | |||||||||||||
Gross margin% | 56.1 | % | 38.3 | % | 53.0 | % | 46.6 | % | |||||||||||
Operating income (loss) | 1,298 | (498 | ) | 800 | (18,918 | ) | (18,118 | ) | |||||||||||
Operating margin% | 1.4 | % | (2.6 | )% | 0.7 | % | (16.5 | )% | |||||||||||
Six months ended June 30, 2017 | |||||||||||||||||||
Video | Cable Edge | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 147,832 | $ | 17,953 | $ | 165,785 | $ | (527 | ) | $ | 165,258 | ||||||||
Gross profit | 78,604 | 4,325 | 82,929 | (8,706 | ) | 74,223 | |||||||||||||
Gross margin% | 53.2 | % | 24.1 | % | 50.0 | % | 44.9 | % | |||||||||||
Operating loss | (14,672 | ) | (13,075 | ) | (27,747 | ) | (20,833 | ) | (48,580 | ) | |||||||||
Operating margin% | (9.9 | )% | (72.8 | )% | (16.7 | )% | (29.4 | )% | |||||||||||
Six months ended July 1, 2016 (2) | |||||||||||||||||||
Video | Cable Edge | Total Segment Measures | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 156,999 | $ | 35,807 | $ | 192,806 | $ | (1,403 | ) | $ | 191,403 | ||||||||
Gross profit | 86,125 | 14,524 | 100,649 | (8,955 | ) | 91,694 | |||||||||||||
Gross margin% | 54.9 | % | 40.6 | % | 52.2 | % | 47.9 | % | |||||||||||
Operating loss | (5,238 | ) | (2,350 | ) | (7,588 | ) | (31,286 | ) | (38,874 | ) | |||||||||
Operating margin% | (3.3 | )% | (6.6 | )% | (3.9 | )% | (20.3 | )% |
Three months ended | ||||||||||||||||||
June 30, 2017 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 82,315 | $ | 33,815 | $ | 61,237 | $ | (27,422 | ) | $ | (3,499 | ) | $ | (31,500 | ) | |||
Cable Edge inventory charge | — | 3,331 | — | 3,331 | — | 3,331 | ||||||||||||
Stock-based compensation in cost of revenue | — | 700 | — | 700 | — | 700 | ||||||||||||
Stock-based compensation in research and development | — | — | (1,337 | ) | 1,337 | — | 1,337 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (2,099 | ) | 2,099 | — | 2,099 | |||||||||||
Amortization of intangibles | — | 1,295 | (780 | ) | 2,075 | — | 2,075 | |||||||||||
Restructuring and related charges | — | 278 | (777 | ) | 1,055 | — | 1,055 | |||||||||||
TVN acquisition-and integration-related costs | — | — | (467 | ) | 467 | — | 467 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,360 | 1,360 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 3,354 | ||||||||||||
Total adjustments | — | 5,604 | (5,460 | ) | 11,064 | 1,360 | 15,778 | |||||||||||
Non-GAAP | $ | 82,315 | $ | 39,419 | $ | 55,777 | $ | (16,358 | ) | $ | (2,139 | ) | $ | (15,722 | ) | |||
As a % of revenue (GAAP) | 41.1 | % | 74.4 | % | (33.3 | )% | (4.3 | )% | (38.3 | )% | ||||||||
As a % of revenue (Non-GAAP) | 47.9 | % | 67.8 | % | (19.9 | )% | (2.6 | )% | (19.1 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.39 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.20 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 80,590 | |||||||||||||||||
Three months ended | ||||||||||||||||||
March 31, 2017 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 82,943 | $ | 40,408 | $ | 61,566 | $ | (21,158 | ) | $ | (3,101 | ) | $ | (24,027 | ) | |||
Cable Edge inventory charge | — | (15 | ) | — | (15 | ) | — | (15 | ) | |||||||||
Acquisition accounting impact related to TVN deferred revenue | 111 | 111 | — | 111 | — | 111 | ||||||||||||
Accounting impact related to warrant amortization | 416 | 416 | — | 416 | — | 416 | ||||||||||||
Stock-based compensation in cost of revenue | — | 445 | — | 445 | — | 445 | ||||||||||||
Stock-based compensation in research and development | — | — | (977 | ) | 977 | — | 977 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (1,829 | ) | 1,829 | — | 1,829 | |||||||||||
Amortization of intangibles | — | 1,295 | (774 | ) | 2,069 | — | 2,069 | |||||||||||
Restructuring and related charges | — | 508 | (1,279 | ) | 1,787 | — | 1,787 | |||||||||||
TVN acquisition-and integration-related costs | — | 342 | (1,808 | ) | 2,150 | — | 2,150 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,316 | 1,316 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,744 | ||||||||||||
Total adjustments | 527 | 3,102 | (6,667 | ) | 9,769 | 1,316 | 12,829 | |||||||||||
Non-GAAP | $ | 83,470 | $ | 43,510 | $ | 54,899 | $ | (11,389 | ) | $ | (1,785 | ) | $ | (11,198 | ) | |||
As a % of revenue (GAAP) | 48.7 | % | 74.2 | % | (25.5 | )% | (3.7 | )% | (29.0 | )% | ||||||||
As a % of revenue (Non-GAAP) | 52.1 | % | 65.8 | % | (13.6 | )% | (2.1 | )% | (13.4 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.30 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.14 | ) | |||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP and Non-GAAP | 79,810 |
Three months ended | ||||||||||||||||||
July 1, 2016 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 109,571 | $ | 51,040 | $ | 69,158 | $ | (18,118 | ) | $ | (2,319 | ) | $ | (20,679 | ) | |||
Cable Edge inventory charge | — | 4,519 | — | 4,519 | — | 4,519 | ||||||||||||
Acquisition accounting impacts related to TVN deferred revenue | 780 | 780 | — | 780 | — | 780 | ||||||||||||
Stock-based compensation in cost of revenue | — | 424 | — | 424 | — | 424 | ||||||||||||
Stock-based compensation in research and development | — | — | (841 | ) | 841 | — | 841 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (1,503 | ) | 1,503 | — | 1,503 | |||||||||||
Amortization of intangibles | — | 1,307 | (4,232 | ) | 5,539 | — | 5,539 | |||||||||||
Restructuring and related charges | — | 6 | (1,903 | ) | 1,909 | — | 1,909 | |||||||||||
TVN acquisition-and integration-related costs | — | 433 | (2,970 | ) | 3,403 | — | 3,403 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,233 | 1,233 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 285 | ||||||||||||
Total adjustments | 780 | 7,469 | (11,449 | ) | 18,918 | 1,233 | 20,436 | |||||||||||
Non-GAAP | $ | 110,351 | $ | 58,509 | $ | 57,709 | $ | 800 | $ | (1,086 | ) | $ | (243 | ) | ||||
As a % of revenue (GAAP) | 46.6 | % | 63.1 | % | (16.5 | )% | (2.1 | )% | (18.9 | )% | ||||||||
As a % of revenue (Non-GAAP) | 53.0 | % | 52.3 | % | 0.7 | % | (1.0 | )% | (0.2 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.27 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | 0.00 | ||||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 77,342 | |||||||||||||||||
Six months ended | ||||||||||||||||||
June 30, 2017 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense | Net Loss | |||||||||||||
GAAP | $ | 165,258 | $ | 74,223 | $ | 122,803 | $ | (48,580 | ) | $ | (6,600 | ) | $ | (55,527 | ) | |||
Cable Edge inventory charge | — | 3,316 | — | 3,316 | — | 3,316 | ||||||||||||
Acquisition accounting impacts related to TVN deferred revenue | 111 | 111 | — | 111 | — | 111 | ||||||||||||
Accounting impact related to warrant amortization | 416 | 416 | — | 416 | — | 416 | ||||||||||||
Stock-based compensation in cost of revenue | — | 1,145 | — | 1,145 | — | 1,145 | ||||||||||||
Stock-based compensation in research and development | — | — | (2,314 | ) | 2,314 | — | 2,314 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (3,928 | ) | 3,928 | — | 3,928 | |||||||||||
Amortization of intangibles | — | 2,590 | (1,554 | ) | 4,144 | — | 4,144 | |||||||||||
Restructuring and related charges | — | 786 | (2,056 | ) | 2,842 | — | 2,842 | |||||||||||
TVN acquisition-and integration-related costs | — | 342 | (2,275 | ) | 2,617 | — | 2,617 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 2,676 | 2,676 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 5,098 | ||||||||||||
Total adjustments | 527 | 8,706 | (12,127 | ) | 20,833 | 2,676 | 28,607 | |||||||||||
Non-GAAP | $ | 165,785 | $ | 82,929 | $ | 110,676 | $ | (27,747 | ) | $ | (3,924 | ) | $ | (26,920 | ) | |||
As a % of revenue (GAAP) | 44.9 | % | 74.3 | % | (29.4 | )% | (4.0 | )% | (33.6 | )% | ||||||||
As a % of revenue (Non-GAAP) | 50.0 | % | 66.8 | % | (16.7 | )% | (2.4 | )% | (16.2 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.69 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.34 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 80,203 |
Six months ended | ||||||||||||||||||
July 1, 2016 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense | Net Loss | |||||||||||||
GAAP | $ | 191,403 | $ | 91,694 | $ | 130,568 | $ | (38,874 | ) | $ | (6,225 | ) | $ | (45,859 | ) | |||
Cable Edge inventory charge | — | 4,519 | 4,519 | — | 4,519 | |||||||||||||
Acquisition accounting impacts related to TVN deferred revenue | 1,403 | 1,403 | — | 1,403 | — | 1,403 | ||||||||||||
Acquisition accounting impacts related to TVN fair value of inventory | — | 189 | — | 189 | — | 189 | ||||||||||||
Stock-based compensation in cost of revenue | — | 651 | — | 651 | — | 651 | ||||||||||||
Stock-based compensation in research and development | — | — | (1,810 | ) | 1,810 | — | 1,810 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (3,401 | ) | 3,401 | — | 3,401 | |||||||||||
Amortization of intangibles | — | 1,725 | (6,597 | ) | 8,322 | — | 8,322 | |||||||||||
Restructuring and related charges | — | (23 | ) | (4,515 | ) | 4,492 | — | 4,492 | ||||||||||
TVN acquisition-and integration-related costs | — | 491 | (6,008 | ) | 6,499 | — | 6,499 | |||||||||||
Loss on impairment of long-term investment | — | — | — | — | 1,476 | 1,476 | ||||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 2,420 | 2,420 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 2,248 | ||||||||||||
Total adjustments | 1,403 | 8,955 | (22,331 | ) | 31,286 | 3,896 | 37,430 | |||||||||||
Non-GAAP | $ | 192,806 | $ | 100,649 | $ | 108,237 | $ | (7,588 | ) | $ | (2,329 | ) | $ | (8,429 | ) | |||
As a % of revenue (GAAP) | 47.9 | % | 68.2 | % | (20.3 | )% | (3.3 | )% | (24.0 | )% | ||||||||
As a % of revenue (Non-GAAP) | 52.2 | % | 56.1 | % | (3.9 | )% | (1.2 | )% | (4.4 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.59 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.11 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 77,168 |
Q3 2017 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |
GAAP | $80.0 to $90.0 | $38.4 to $44.4 | $55.7 to $57.7 | $(19.3) to $(11.3) | $(3.1) | $(20.2) to $(13.3) |
Stock-based compensation expense | — | 0.8 | (4.3) | 5.1 | — | 5.1 |
Amortization of intangibles | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
Restructuring and related charges and TVN integration costs | — | 0.5 | (2.6) | 3.1 | — | 3.1 |
Non-cash interest expense related to convertible notes | — | — | — | — | 1.4 | 1.4 |
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (0.5) |
Total adjustments | — | 2.6 | (7.7) | 10.3 | 1.4 | 11.2 |
Non-GAAP | $80.0 to $90.0 | $41.0 to $47.0 | $48.0 to $50.0 | $(9.0) to $(1.0) | $(1.7) | $(9.0) to $(2.1) |
As a % of revenue (GAAP) | 48% to 49% | 64% to 70% | (24)% to (13)% | (3)% to (4)% | (25)% to (15)% | |
As a % of revenue (Non-GAAP) | 51% to 52% | 56% to 60% | (11)% to (1)% | 2% | (11)% to (2)% | |
Diluted net loss per share: | ||||||
Diluted net loss per share-GAAP | $(0.25) to $(0.16) | |||||
Diluted net loss per share-Non-GAAP | $(0.11) to $(0.03) | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 81.4 |
Q4 2017 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $90.0 to $100.0 | $44.9 to $51.4 | $53.7 to $55.7 | $(10.8) to $(2.3) | $(3.1) | $(14.6) to $(6.1) |
Stock-based compensation expense | — | 0.8 | (4.5) | 5.3 | — | 5.3 |
Amortization of intangibles | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
Restructuring and related charges and TVN integration costs | — | — | (0.4) | 0.4 | — | 0.4 |
Non-cash interest expense related to convertible notes | — | — | — | — | 1.4 | 1.4 |
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | $1.4 to $0.1 |
Total adjustments | — | 2.1 | (5.7) | 7.8 | 1.4 | $10.6 to $9.1 |
Non-GAAP | $90.0 to $100.0 | $47.0 to $53.5 | $48.0 to $50.0 | $(3.0) to $5.5 | $(1.7) | $(4.0) to $3.0 |
As a % of revenue (GAAP) | 50% to 51% | 60% | (12)% to (2)% | (3)% | (16)% to (6)% | |
As a % of revenue (Non-GAAP) | 52.0% to 53.5% | 50% to 53% | (3)% to 5.5% | 2% | (4)% to 3% | |
Diluted net income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.18) to $(0.07) | |||||
Diluted net income (loss) per share-Non-GAAP | $(0.05) to $0.04 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 82.0 | |||||
Shares used to compute diluted net income per share: | ||||||
GAAP | 84.0 |
2017 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |
GAAP | $335.5 to $355.5 | $157.2 to $170.2 | $232.5 to $236.5 | $(79.3) to $(62.3) | $(12.8) | $(90.1) to $(76.3) |
Acquisition accounting impact related to TVN deferred revenue | 0.1 | 0.1 | — | 0.1 | — | 0.1 |
Accounting impact related to warrant amortization | 0.4 | 0.4 | — | 0.4 | — | 0.4 |
Cable Edge inventory charge | — | 3.3 | — | 3.3 | — | 3.3 |
Stock-based compensation expense | — | 2.7 | (15.1) | 17.8 | — | 17.8 |
Amortization of intangibles | — | 5.2 | (3.1) | 8.3 | — | 8.3 |
Restructuring and related charges and TVN integration costs | — | 2.1 | (7.3) | 9.4 | — | 9.4 |
Non-cash interest expense related to convertible notes | — | — | — | — | 5.5 | 5.5 |
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 5.3 |
Total adjustments | 0.5 | 13.8 | (25.5) | 39.3 | 5.5 | 50.1 |
Non-GAAP | $336.0 to $356.0 | $171.0 to $184.0 | $207.0 to $211.0 | $(40.0) to $(23.0) | $(7.3) | $(40.0) to $(26.2) |
As a % of revenue (GAAP) | 47% to 48% | 66% to 67% | (24)% to (18)% | (4%) | (27)% to (21)% | |
As a % of revenue (Non-GAAP) | 51.0% to 51.5% | 59% to 62% | (12)% to (6)% | (2%) | (12)% to (7)% | |
Diluted loss per share: | ||||||
Diluted net loss per share-GAAP | $(1.11) to $(0.94) | |||||
Diluted net loss per share-Non-GAAP | $(0.50) to $(0.33) | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 81.0 |
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