(State or other jurisdiction of incorporation) | Commission File Number | (IRS Employer Identification No.) |
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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit Number | Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Date: November 1, 2021 | HARMONIC INC. | |||||||||||||||||||
By: | /s/ Sanjay Kalra | |||||||||||||||||||
Sanjay Kalra | ||||||||||||||||||||
Chief Financial Officer |
GAAP | Non-GAAP | |||||||||||||||||||||||||||||||||||||
Key Financial Results | Q3 2021 | Q2 2021 | Q3 2020 | Q3 2021 | Q2 2021 | Q3 2020 | ||||||||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 126.3 | $ | 113.4 | $ | 94.9 | $ | 126.3 | $ | 113.4 | $ | 94.9 | ||||||||||||||||||||||||||
Net income (loss) | $ | 1.5 | $ | (2.0) | $ | (5.4) | $ | 9.5 | $ | 4.8 | $ | 2.6 | ||||||||||||||||||||||||||
Diluted EPS | $ | 0.01 | $ | (0.02) | $ | (0.06) | $ | 0.09 | $ | 0.05 | $ | 0.03 | ||||||||||||||||||||||||||
Other Financial Information | Q3 2021 | Q2 2021 | Q3 2020 | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA for the quarter | $ | 14.8 | $ | 9.5 | $ | 7.2 | ||||||||||||||||||||||||||||||||
Bookings for the quarter | $ | 114.3 | $ | 186.9 | $ | 100.7 | ||||||||||||||||||||||||||||||||
Backlog and deferred revenue as of quarter end | $ | 333.3 | $ | 347.2 | $ | 216.2 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents as of quarter end | $ | 128.4 | $ | 115.2 | $ | 70.8 |
Q4 2021 GAAP Financial Guidance (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Low | High | ||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except percentages) | Video | Cable Access | Adjustments (2) | Total GAAP | Video | Cable Access | Adjustments (2) | Total GAAP | |||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 82.0 | $ | 65.0 | $ | — | $ | 147.0 | $ | 87.0 | $ | 70.0 | $ | — | $ | 157.0 | |||||||||||||||||||||||||||||||
Gross margin % | 54.5 | % | 40.0 | % | (0.5) | % | 47.3 | % | 55.5 | % | 41.0 | % | (0.4) | % | 48.6 | % | |||||||||||||||||||||||||||||||
Operating income (loss) | $ | 7.2 | $ | 6.0 | $ | (5.9) | $ | 7.3 | $ | 10.3 | $ | 7.7 | $ | (5.9) | $ | 12.1 | |||||||||||||||||||||||||||||||
Tax expense (3) | $ | (1.1) | $ | (1.1) | |||||||||||||||||||||||||||||||||||||||||||
EPS (3) | $ | 0.03 | $ | 0.07 | |||||||||||||||||||||||||||||||||||||||||||
Shares (3) | 106.9 | 106.9 | |||||||||||||||||||||||||||||||||||||||||||||
Cash (3) | $ | 125.0 | $ | 135.0 |
2021 GAAP Financial Guidance (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Low | High | ||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except percentages) | Video | Cable Access | Adjustments (2) | Total GAAP | Video | Cable Access | Adjustments (2) | Total GAAP | |||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 285.0 | $ | 214.0 | $ | — | $ | 499.0 | $ | 290.0 | $ | 219.0 | $ | — | $ | 509.0 | |||||||||||||||||||||||||||||||
Gross margin % | 57.3 | % | 42.6 | % | (0.6) | % | 50.4 | % | 57.7 | % | 42.9 | % | (0.5) | % | 50.8 | % | |||||||||||||||||||||||||||||||
Operating income (loss) | $ | 20.4 | $ | 16.2 | $ | (25.7) | $ | 10.9 | $ | 23.5 | $ | 17.9 | $ | (25.7) | $ | 15.7 | |||||||||||||||||||||||||||||||
Tax expense (3) | $ | (4.2) | $ | (4.2) | |||||||||||||||||||||||||||||||||||||||||||
EPS (3) | $ | (0.04) | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||||||
Shares (3) | 101.5 | 105.1 | |||||||||||||||||||||||||||||||||||||||||||||
Cash (3) | $ | 125.0 | $ | 135.0 |
Q4 2021 Non-GAAP Financial Guidance (1) | |||||||||||||||||||||||||||||||||||
Low | High | ||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except percentages) | Video | Cable Access | Total | Video | Cable Access | Total | |||||||||||||||||||||||||||||
Net revenue | $ | 82.0 | $ | 65.0 | $ | 147.0 | $ | 87.0 | $ | 70.0 | $ | 157.0 | |||||||||||||||||||||||
Gross margin % | 54.5 | % | 40.0 | % | 47.8 | % | 55.5 | % | 41.0 | % | 49.0 | % | |||||||||||||||||||||||
Adjusted EBITDA | $ | 9.6 | $ | 7.4 | $ | 17.0 | $ | 12.7 | $ | 9.1 | $ | 21.8 | |||||||||||||||||||||||
Tax rate (2) | 10.0 | % | 10.0 | % | |||||||||||||||||||||||||||||||
EPS (2) | $ | 0.10 | $ | 0.14 | |||||||||||||||||||||||||||||||
Shares (2) | 106.9 | 106.9 | |||||||||||||||||||||||||||||||||
Cash (2) | $ | 125.0 | $ | 135.0 |
2021 Non-GAAP Financial Guidance (1) | |||||||||||||||||||||||||||||||||||
Low | High | ||||||||||||||||||||||||||||||||||
(Unaudited, in millions, except percentages) | Video | Cable Access | Total | Video | Cable Access | Total | |||||||||||||||||||||||||||||
Net revenue | $ | 285.0 | $ | 214.0 | $ | 499.0 | $ | 290.0 | $ | 219.0 | $ | 509.0 | |||||||||||||||||||||||
Gross margin % | 57.3 | % | 42.6 | % | 51.0 | % | 57.7 | % | 42.9 | % | 51.3 | % | |||||||||||||||||||||||
Adjusted EBITDA | $ | 28.9 | $ | 21.6 | $ | 50.5 | $ | 32.0 | $ | 23.3 | $ | 55.3 | |||||||||||||||||||||||
Tax rate (2) | 10.0 | % | 10.0 | % | |||||||||||||||||||||||||||||||
EPS (2) | $ | 0.28 | $ | 0.32 | |||||||||||||||||||||||||||||||
Shares (2) | 105.1 | 105.1 | |||||||||||||||||||||||||||||||||
Cash (2) | $ | 125.0 | $ | 135.0 |
Sanjay Kalra | David Hanover | ||||
Chief Financial Officer | Investor Relations | ||||
Harmonic Inc. | Harmonic Inc. | ||||
+1.408.490.6031 | +1.212.896.1220 |
October 1, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 128,434 | $ | 98,645 | |||||||
Accounts receivable, net | 75,442 | 66,227 | |||||||||
Inventories | 51,856 | 35,031 | |||||||||
Prepaid expenses and other current assets | 35,443 | 38,132 | |||||||||
Total current assets | 291,175 | 238,035 | |||||||||
Property and equipment, net | 43,848 | 43,141 | |||||||||
Operating lease right-of-use assets | 29,216 | 27,556 | |||||||||
Other non-current assets | 38,325 | 39,117 | |||||||||
Goodwill | 241,302 | 243,674 | |||||||||
Total assets | $ | 643,866 | $ | 591,523 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Convertible debt, current | $ | 36,592 | $ | — | |||||||
Other debts, current | 5,028 | 11,771 | |||||||||
Accounts payable | 32,352 | 23,543 | |||||||||
Deferred revenue | 58,106 | 54,294 | |||||||||
Operating lease liabilities, current | 6,698 | 7,354 | |||||||||
Other current liabilities | 64,963 | 50,333 | |||||||||
Total current liabilities | 203,739 | 147,295 | |||||||||
Convertible debt, non-current | 97,563 | 129,507 | |||||||||
Other debts, non-current | 13,538 | 10,086 | |||||||||
Operating lease liabilities, non-current | 28,049 | 26,071 | |||||||||
Other non-current liabilities | 26,181 | 20,262 | |||||||||
Total liabilities | $ | 369,070 | $ | 333,221 | |||||||
Convertible debt | 1,115 | — | |||||||||
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; 102,549 and 98,204 shares issued and outstanding at October 1, 2021 and December 31, 2020, respectively | 103 | 98 | |||||||||
Additional paid-in capital | 2,381,177 | 2,353,559 | |||||||||
Accumulated deficit | (2,107,814) | (2,101,211) | |||||||||
Accumulated other comprehensive income | 215 | 5,856 | |||||||||
Total stockholders’ equity | 273,681 | 258,302 | |||||||||
Total liabilities and stockholders’ equity | $ | 643,866 | $ | 591,523 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2021 | September 25, 2020 | October 1, 2021 | September 25, 2020 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Appliance and integration | $ | 91,853 | $ | 63,251 | $ | 250,427 | $ | 153,227 | |||||||||||||||
SaaS and service | 34,468 | 31,641 | 100,918 | 94,076 | |||||||||||||||||||
Total net revenue | 126,321 | 94,892 | 351,345 | 247,303 | |||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Appliance and integration | 47,326 | 32,082 | 130,310 | 81,153 | |||||||||||||||||||
SaaS and service | 12,841 | 13,886 | 39,231 | 42,715 | |||||||||||||||||||
Total cost of revenue | 60,167 | 45,968 | 169,541 | 123,868 | |||||||||||||||||||
Total gross profit | 66,154 | 48,924 | 181,804 | 123,435 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 26,552 | 20,206 | 74,863 | 61,827 | |||||||||||||||||||
Selling, general and administrative | 34,231 | 28,773 | 102,728 | 86,996 | |||||||||||||||||||
Amortization of intangibles | — | 752 | 507 | 2,264 | |||||||||||||||||||
Restructuring and related charges | — | 814 | 43 | 1,572 | |||||||||||||||||||
Total operating expenses | 60,783 | 50,545 | 178,141 | 152,659 | |||||||||||||||||||
Income (loss) from operations | 5,371 | (1,621) | 3,663 | (29,224) | |||||||||||||||||||
Interest expense, net | (2,686) | (2,807) | (7,919) | (8,772) | |||||||||||||||||||
Loss on convertible debt extinguishment | — | — | — | (834) | |||||||||||||||||||
Other income (expense), net | (213) | (167) | 659 | (813) | |||||||||||||||||||
Income (loss) before income taxes | 2,472 | (4,595) | (3,597) | (39,643) | |||||||||||||||||||
Provision for income taxes | 942 | 786 | 3,006 | 3,093 | |||||||||||||||||||
Net income (loss) | $ | 1,530 | $ | (5,381) | $ | (6,603) | $ | (42,736) | |||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Basic | $ | 0.01 | $ | (0.06) | $ | (0.07) | $ | (0.44) | |||||||||||||||
Diluted | $ | 0.01 | $ | (0.06) | $ | (0.07) | $ | (0.44) | |||||||||||||||
Shares used in per share calculations: | |||||||||||||||||||||||
Basic | 102,099 | 97,563 | 101,057 | 96,623 | |||||||||||||||||||
Diluted | 106,421 | 97,563 | 101,057 | 96,623 |
Nine Months Ended | |||||||||||
October 1, 2021 | September 25, 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (6,603) | $ | (42,736) | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation | 9,395 | 8,683 | |||||||||
Amortization of intangibles | 507 | 3,214 | |||||||||
Stock-based compensation | 18,863 | 13,737 | |||||||||
Amortization of convertible debt discount | 4,685 | 5,451 | |||||||||
Amortization of warrant | 1,302 | 1,307 | |||||||||
Foreign currency remeasurement | (3,435) | 2,537 | |||||||||
Loss on convertible debt extinguishment | — | 834 | |||||||||
Deferred income taxes | 1,268 | 1,527 | |||||||||
Provision for expected credit losses and returns | 3,049 | 1,966 | |||||||||
Provision for excess and obsolete inventories | 1,849 | 1,390 | |||||||||
Other adjustments | 215 | 177 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (12,470) | 5,436 | |||||||||
Inventories | (18,783) | (9,301) | |||||||||
Other assets | 2,614 | 23,685 | |||||||||
Accounts payable | 10,144 | (11,047) | |||||||||
Deferred revenues | 9,978 | 6,066 | |||||||||
Other liabilities | 11,078 | (15,345) | |||||||||
Net cash provided by (used in) operating activities | 33,656 | (2,419) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (10,570) | (26,176) | |||||||||
Net cash used in investing activities | (10,570) | (26,176) | |||||||||
Cash flows from financing activities: | |||||||||||
Payment of convertible debt | — | (25) | |||||||||
Payment of convertible debt issuance costs | — | (672) | |||||||||
Proceeds from other debts | 3,861 | 9,398 | |||||||||
Repayment of other debts | (6,070) | (6,342) | |||||||||
Proceeds from common stock issued to employees | 11,401 | 5,227 | |||||||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,619) | (1,384) | |||||||||
Net cash provided by financing activities | 7,573 | 6,202 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (870) | 152 | |||||||||
Net increase (decrease) in cash and cash equivalents | 29,789 | (22,241) | |||||||||
Cash and cash equivalents at beginning of period | 98,645 | 93,058 | |||||||||
Cash and cash equivalents at end of period | $ | 128,434 | $ | 70,817 |
Three Months Ended | ||||||||||||||||||||||||||
October 1, 2021 | July 2, 2021 | September 25, 2020 | ||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||
Americas | $ | 86,215 | 68 | % | $ | 71,525 | 63 | % | $ | 54,521 | 58 | % | ||||||||||||||
EMEA | 30,283 | 24 | % | 28,441 | 25 | % | 29,771 | 31 | % | |||||||||||||||||
APAC | 9,823 | 8 | % | 13,482 | 12 | % | 10,600 | 11 | % | |||||||||||||||||
Total | $ | 126,321 | 100 | % | $ | 113,448 | 100 | % | $ | 94,892 | 100 | % | ||||||||||||||
Market | ||||||||||||||||||||||||||
Service Provider | $ | 70,157 | 56 | % | $ | 68,929 | 61 | % | $ | 59,083 | 62 | % | ||||||||||||||
Broadcast and Media | 56,164 | 44 | % | 44,519 | 39 | % | 35,809 | 38 | % | |||||||||||||||||
Total | $ | 126,321 | 100 | % | $ | 113,448 | 100 | % | $ | 94,892 | 100 | % |
Nine Months Ended | |||||||||||||||||
October 1, 2021 | September 25, 2020 | ||||||||||||||||
Geography | |||||||||||||||||
Americas | $ | 232,802 | 66 | % | $ | 134,478 | 55 | % | |||||||||
EMEA | 86,331 | 25 | % | 82,301 | 33 | % | |||||||||||
APAC | 32,212 | 9 | % | 30,524 | 12 | % | |||||||||||
Total | $ | 351,345 | 100 | % | $ | 247,303 | 100 | % | |||||||||
Market | |||||||||||||||||
Service Provider | $ | 192,746 | 55 | % | $ | 145,011 | 59 | % | |||||||||
Broadcast and Media | 158,599 | 45 | % | 102,292 | 41 | % | |||||||||||
Total | $ | 351,345 | 100 | % | $ | 247,303 | 100 | % |
Three Months Ended October 1, 2021 | |||||||||||||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||||||||||||
Net revenue | $ | 68,729 | $ | 57,592 | $ | 126,321 | $ | — | $ | 126,321 | |||||||||||||||||||
Gross profit | 42,534 | 24,165 | 66,699 | (545) | 66,154 | ||||||||||||||||||||||||
Gross margin % | 61.9 | % | 42.0 | % | 52.8 | % | 52.4 | % | |||||||||||||||||||||
Operating income (loss) | 7,904 | 3,903 | 11,807 | (6,436) | 5,371 | ||||||||||||||||||||||||
Operating margin % | 11.5 | % | 6.8 | % | 9.3 | % | 4.3 | % | |||||||||||||||||||||
Three Months Ended July 2, 2021 | |||||||||||||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||||||||||||
Net revenue | $ | 63,355 | $ | 50,093 | $ | 113,448 | $ | — | $ | 113,448 | |||||||||||||||||||
Gross profit | 37,571 | 23,538 | 61,109 | (604) | 60,505 | ||||||||||||||||||||||||
Gross margin % | 59.3 | % | 47.0 | % | 53.9 | % | 53.3 | % | |||||||||||||||||||||
Operating income (loss) | 1,559 | 4,992 | 6,551 | (4,415) | 2,136 | ||||||||||||||||||||||||
Operating margin % | 2.5 | % | 10.0 | % | 5.8 | % | 1.9 | % | |||||||||||||||||||||
Three Months Ended September 25, 2020 | |||||||||||||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||||||||||||
Net revenue | $ | 54,641 | $ | 40,251 | $ | 94,892 | $ | — | $ | 94,892 | |||||||||||||||||||
Gross profit | 29,825 | 19,682 | 49,507 | (583) | 48,924 | ||||||||||||||||||||||||
Gross margin % | 54.6 | % | 48.9 | % | 52.2 | % | 51.6 | % | |||||||||||||||||||||
Operating loss | (1,699) | 5,876 | 4,177 | (5,798) | (1,621) | ||||||||||||||||||||||||
Operating margin % | (3.1) | % | 14.6 | % | 4.4 | % | (1.7) | % |
Nine Months Ended October 1, 2021 | |||||||||||||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||||||||||||
Net revenue | $ | 202,415 | $ | 148,930 | $ | 351,345 | $ | — | $ | 351,345 | |||||||||||||||||||
Gross profit | 118,879 | 65,111 | 183,990 | (2,186) | 181,804 | ||||||||||||||||||||||||
Gross margin % | 58.7 | % | 43.7 | % | 52.4 | % | 51.7 | % | |||||||||||||||||||||
Operating income (loss) | 13,235 | 10,191 | 23,426 | (19,763) | 3,663 | ||||||||||||||||||||||||
Operating margin % | 6.5 | % | 6.8 | % | 6.7 | % | 1.0 | % | |||||||||||||||||||||
Nine Months Ended September 25, 2020 | |||||||||||||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||||||||||||
Net revenue | $ | 156,466 | $ | 90,837 | $ | 247,303 | $ | — | $ | 247,303 | |||||||||||||||||||
Gross profit | 83,756 | 42,224 | 125,980 | (2,545) | 123,435 | ||||||||||||||||||||||||
Gross margin % | 53.5 | % | 46.5 | % | 50.9 | % | 49.9 | % | |||||||||||||||||||||
Operating income (loss) | (12,203) | 1,733 | (10,470) | (18,754) | (29,224) | ||||||||||||||||||||||||
Operating margin % | (7.8) | % | 1.9 | % | (4.2) | % | (11.8) | % |
Three Months Ended October 1, 2021 | |||||||||||||||||||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income | ||||||||||||||||||||||||||||||
GAAP | $ | 126,321 | $ | 66,154 | $ | 60,783 | $ | 5,371 | $ | (2,899) | $ | 1,530 | |||||||||||||||||||||||
Stock-based compensation | — | 545 | (5,891) | 6,436 | — | 6,436 | |||||||||||||||||||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 1,592 | 1,592 | |||||||||||||||||||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (108) | |||||||||||||||||||||||||||||
Total adjustments | — | 545 | (5,891) | 6,436 | 1,592 | 7,920 | |||||||||||||||||||||||||||||
Non-GAAP | $ | 126,321 | $ | 66,699 | $ | 54,892 | $ | 11,807 | $ | (1,307) | $ | 9,450 | |||||||||||||||||||||||
As a % of revenue (GAAP) | 52.4 | % | 48.1 | % | 4.3 | % | (2.3) | % | 1.2 | % | |||||||||||||||||||||||||
As a % of revenue (Non-GAAP) | 52.8 | % | 43.5 | % | 9.3 | % | (1.0) | % | 7.5 | % | |||||||||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||||||||||||||
GAAP | $ | 0.01 | |||||||||||||||||||||||||||||||||
Non-GAAP | $ | 0.09 | |||||||||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
GAAP and Non-GAAP | 106,421 | ||||||||||||||||||||||||||||||||||
Three Months Ended July 2, 2021 | |||||||||||||||||||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income (Loss) | ||||||||||||||||||||||||||||||
GAAP | $ | 113,448 | $ | 60,505 | $ | 58,369 | $ | 2,136 | $ | (2,777) | $ | (2,009) | |||||||||||||||||||||||
Stock-based compensation | — | 222 | (3,811) | 4,033 | — | 4,033 | |||||||||||||||||||||||||||||
Restructuring and related charges | — | 382 | — | 382 | — | 382 | |||||||||||||||||||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 1,560 | 1,560 | |||||||||||||||||||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 836 | |||||||||||||||||||||||||||||
Total adjustments | — | 604 | (3,811) | 4,415 | 1,560 | 6,811 | |||||||||||||||||||||||||||||
Non-GAAP | $ | 113,448 | $ | 61,109 | $ | 54,558 | $ | 6,551 | $ | (1,217) | $ | 4,802 | |||||||||||||||||||||||
As a % of revenue (GAAP) | 53.3 | % | 51.5 | % | 1.9 | % | (2.4) | % | (1.8) | % | |||||||||||||||||||||||||
As a % of revenue (Non-GAAP) | 53.9 | % | 48.1 | % | 5.8 | % | (1.1) | % | 4.2 | % | |||||||||||||||||||||||||
Diluted net income (loss) per share: | |||||||||||||||||||||||||||||||||||
GAAP | $ | (0.02) | |||||||||||||||||||||||||||||||||
Non-GAAP | $ | 0.05 | |||||||||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
GAAP | 101,218 | ||||||||||||||||||||||||||||||||||
Non-GAAP | 103,825 |
Three Months Ended September 25, 2020 | |||||||||||||||||||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating expense, net | Net Income (Loss) | ||||||||||||||||||||||||||||||
GAAP | $ | 94,892 | $ | 48,924 | $ | 50,545 | $ | (1,621) | $ | (2,974) | $ | (5,381) | |||||||||||||||||||||||
Stock-based compensation | — | 281 | (3,649) | 3,930 | — | 3,930 | |||||||||||||||||||||||||||||
Amortization of intangibles | — | — | (752) | 752 | — | 752 | |||||||||||||||||||||||||||||
Restructuring and related charges | — | 302 | (814) | 1,116 | — | 1,116 | |||||||||||||||||||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 1,666 | 1,666 | |||||||||||||||||||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 499 | |||||||||||||||||||||||||||||
Total adjustments | — | 583 | (5,215) | 5,798 | 1,666 | 7,963 | |||||||||||||||||||||||||||||
Non-GAAP | $ | 94,892 | $ | 49,507 | $ | 45,330 | $ | 4,177 | $ | (1,308) | $ | 2,582 | |||||||||||||||||||||||
As a % of revenue (GAAP) | 51.6 | % | 53.3 | % | (1.7) | % | (3.1) | % | (5.7) | % | |||||||||||||||||||||||||
As a % of revenue (Non-GAAP) | 52.2 | % | 47.8 | % | 4.4 | % | (1.4) | % | 2.7 | % | |||||||||||||||||||||||||
Diluted net income (loss) per share: | |||||||||||||||||||||||||||||||||||
GAAP | $ | (0.06) | |||||||||||||||||||||||||||||||||
Non-GAAP | $ | 0.03 | |||||||||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
GAAP | 97,563 | ||||||||||||||||||||||||||||||||||
Non-GAAP | 98,361 |
Nine Months Ended October 1, 2021 | |||||||||||||||||||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income (Loss) | ||||||||||||||||||||||||||||||
GAAP | $ | 351,345 | $ | 181,804 | $ | 178,141 | $ | 3,663 | $ | (7,260) | $ | (6,603) | |||||||||||||||||||||||
Stock-based compensation | — | 1,840 | (17,027) | 18,867 | — | 18,867 | |||||||||||||||||||||||||||||
Amortization of intangibles | — | (507) | 507 | — | 507 | ||||||||||||||||||||||||||||||
Restructuring and related charges | — | 346 | (43) | 389 | — | 389 | |||||||||||||||||||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 4,684 | 4,684 | |||||||||||||||||||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 922 | |||||||||||||||||||||||||||||
Total adjustments | — | 2,186 | (17,577) | 19,763 | 4,684 | 25,369 | |||||||||||||||||||||||||||||
Non-GAAP | $ | 351,345 | $ | 183,990 | $ | 160,564 | $ | 23,426 | $ | (2,576) | $ | 18,766 | |||||||||||||||||||||||
As a % of revenue (GAAP) | 51.7 | % | 50.7 | % | 1.0 | % | (2.1) | % | (1.9) | % | |||||||||||||||||||||||||
As a % of revenue (Non-GAAP) | 52.4 | % | 45.7 | % | 6.7 | % | (0.7) | % | 5.3 | % | |||||||||||||||||||||||||
Diluted net income (loss) per share: | |||||||||||||||||||||||||||||||||||
GAAP | $ | (0.07) | |||||||||||||||||||||||||||||||||
Non-GAAP | $ | 0.18 | |||||||||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
GAAP | 101,057 | ||||||||||||||||||||||||||||||||||
Non-GAAP | 104,474 |
Nine Months Ended September 25, 2020 | |||||||||||||||||||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating expense, net | Net Loss | ||||||||||||||||||||||||||||||
GAAP | $ | 247,303 | $ | 123,435 | $ | 152,659 | $ | (29,224) | $ | (10,419) | $ | (42,736) | |||||||||||||||||||||||
Stock-based compensation | — | 1,364 | (12,373) | 13,737 | — | 13,737 | |||||||||||||||||||||||||||||
Amortization of intangibles | — | 950 | (2,264) | 3,214 | — | 3,214 | |||||||||||||||||||||||||||||
Restructuring and related charges | — | 231 | (1,572) | 1,803 | — | 1,803 | |||||||||||||||||||||||||||||
Loss on convertible debt extinguishment | — | — | — | — | 834 | 834 | |||||||||||||||||||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 5,451 | 5,451 | |||||||||||||||||||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 4,553 | |||||||||||||||||||||||||||||
Total adjustments | — | 2,545 | (16,209) | 18,754 | 6,285 | 29,592 | |||||||||||||||||||||||||||||
Non-GAAP | $ | 247,303 | $ | 125,980 | $ | 136,450 | $ | (10,470) | $ | (4,134) | $ | (13,144) | |||||||||||||||||||||||
As a % of revenue (GAAP) | 49.9 | % | 61.7 | % | (11.8) | % | (4.2) | % | (17.3) | % | |||||||||||||||||||||||||
As a % of revenue (Non-GAAP) | 50.9 | % | 55.2 | % | (4.2) | % | (1.7) | % | (5.3) | % | |||||||||||||||||||||||||
Diluted net loss per share: | |||||||||||||||||||||||||||||||||||
GAAP | $ | (0.44) | |||||||||||||||||||||||||||||||||
Non-GAAP | $ | (0.14) | |||||||||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
GAAP and Non-GAAP | 96,623 | ||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||
October 1, 2021 | July 2, 2021 | September 25, 2020 | |||||||||||||||
Net income (loss) - GAAP | $ | 1,530 | $ | (2,009) | $ | (5,381) | |||||||||||
Provision for income taxes | 942 | 1,368 | 786 | ||||||||||||||
Interest expense, net | 2,686 | 2,630 | 2,807 | ||||||||||||||
Depreciation | 3,231 | 3,107 | 3,148 | ||||||||||||||
Amortization of intangibles | — | — | 752 | ||||||||||||||
EBITDA | 8,389 | 5,096 | 2,112 | ||||||||||||||
Adjustments | |||||||||||||||||
Stock-based compensation | 6,436 | 4,033 | 3,930 | ||||||||||||||
Restructuring and related charges | — | 382 | 1,116 | ||||||||||||||
Adjusted EBITDA | $ | 14,825 | $ | 9,511 | $ | 7,158 |
Nine Months Ended | |||||||||||
October 1, 2021 | September 25, 2020 | ||||||||||
Net loss - GAAP | $ | (6,603) | $ | (42,736) | |||||||
Provision for income taxes | 3,006 | 3,093 | |||||||||
Interest expense, net | 7,919 | 8,772 | |||||||||
Depreciation | 9,395 | 8,683 | |||||||||
Amortization of intangibles | 507 | 3,214 | |||||||||
EBITDA | 14,224 | (18,974) | |||||||||
Adjustments | |||||||||||
Stock-based compensation | 18,867 | 13,737 | |||||||||
Loss on convertible debt extinguishment | — | 834 | |||||||||
Restructuring and related charges | 389 | 1,803 | |||||||||
Adjusted EBITDA | $ | 33,480 | $ | (2,600) |
Q4 2021 Financial Guidance (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Profit | Income from Operations | Net Income | ||||||||||||||||||||||||||||||||||||||||||||
GAAP | $147.0 | to | $157.0 | $69.5 | to | $76.3 | $7.3 | to | $12.1 | $3.0 | to | $7.8 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 0.3 | 5.1 | 5.1 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and related charges | — | 0.4 | 0.8 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | 1.6 | |||||||||||||||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments | — | — | — | $(0.1) | to | $(0.5) | |||||||||||||||||||||||||||||||||||||||||
Total adjustments | — | 0.7 | 5.9 | $7.4 | to | $7.0 | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $147.0 | to | $157.0 | $70.2 | to | $77.0 | $13.2 | to | $18.0 | $10.4 | to | $14.8 | |||||||||||||||||||||||||||||||||||
As a % of revenue (GAAP) | 47.3% | to | 48.6% | 5.0% | to | 7.7% | 2.0% | to | 5.0% | ||||||||||||||||||||||||||||||||||||||
As a % of revenue (Non-GAAP) | 47.8% | to | 49.0% | 9.0% | to | 11.5% | 7.1% | to | 9.4% | ||||||||||||||||||||||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $0.03 | to | $0.07 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $0.10 | to | $0.14 | ||||||||||||||||||||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP and Non-GAAP | 106.9 | ||||||||||||||||||||||||||||||||||||||||||||||
2021 Financial Guidance (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Gross Profit | Income from Operations | Net Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||
GAAP | $498.0 | to | $508.0 | $251.2 | to | $258.0 | $10.9 | to | $15.7 | $(3.7) | to | $1.1 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 2.2 | 24.0 | 24.0 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | — | — | 0.5 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring and related charges | — | 0.7 | 1.2 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | 6.3 | |||||||||||||||||||||||||||||||||||||||||||
Tax effect of non-GAAP adjustments | — | — | — | $0.9 | to | $0.5 | |||||||||||||||||||||||||||||||||||||||||
Total adjustments | — | 2.9 | 25.7 | $32.9 | to | $32.5 | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $498.0 | to | $508.0 | $254.1 | to | $260.9 | $36.6 | to | $41.4 | $29.2 | to | $33.6 | |||||||||||||||||||||||||||||||||||
As a % of revenue (GAAP) | 50.4% | to | 50.8% | 2.2% | to | 3.1% | (0.7)% | to | 0.2% | ||||||||||||||||||||||||||||||||||||||
As a % of revenue (Non-GAAP) | 51.0% | to | 51.4% | 7.3% | to | 8.1% | 5.9% | to | 6.6% | ||||||||||||||||||||||||||||||||||||||
Diluted net income (loss) per share: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | $(0.04) | to | $0.01 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | $0.28 | to | $0.32 | ||||||||||||||||||||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||||||||||||||
GAAP | 101.5 | to | 105.1 | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP | 105.1 |
Q4 2021 Financial Guidance | 2021 Financial Guidance | |||||||||||||||||||||||||
Net income (loss) - GAAP | $3.0 | to | $7.8 | $(3.7) | to | $1.1 | ||||||||||||||||||||
Provision for income taxes | 1.1 | 4.2 | ||||||||||||||||||||||||
Interest expense, net | 2.6 | 10.5 | ||||||||||||||||||||||||
Depreciation | 4.4 | 13.8 | ||||||||||||||||||||||||
Amortization of intangibles | — | 0.5 | ||||||||||||||||||||||||
EBITDA | $11.1 | to | $15.9 | $25.3 | to | $30.1 | ||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||
Stock-based compensation | 5.1 | 24.0 | ||||||||||||||||||||||||
Restructuring and related charges | 0.8 | 1.2 | ||||||||||||||||||||||||
Adjusted EBITDA | $17.0 | to | $21.8 | $50.5 | to | $55.3 |
F)?X0$C[M$.C&?S_!^G2\(>WYQ\KK]W5_T/ M]%7]Y_=? ?WG_P '_/[M.9E$2?\ S!^@S&?Z9I'T%^[Y>?A]WP#[ONU"=_*? MGGQB2?,WJC-J2,A"0:6"#1!!H@@T00:((-$$&B"#1!!H@@T00:((-$$&B"#1 (!!H@@T01_]D! end
Cover |
Nov. 01, 2021 |
---|---|
Cover [Abstract] | |
Amendment Flag | false |
Entity Central Index Key | 0000851310 |
Document Type | 8-K |
Document Period End Date | Nov. 01, 2021 |
Entity Registrant Name | HARMONIC INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 000-25826 |
Entity Tax Identification Number | 77-0201147 |
Entity Address, Address Line One | 2590 Orchard Parkway |
Entity Address, City or Town | San Jose |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 95131 |
City Area Code | 408 |
Local Phone Number | 542-2500 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | HLIT |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
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