Attached files
file | filename |
---|---|
8-K/A - FORM 8-K/A - HARMONIC INC | f58196e8vkza.htm |
Exhibit 99.1
**CORRECTED**
Harmonic Announces Fourth Quarter 2010 Results
Strong Year-over-Year Growth in Revenue and Non-GAAP Earnings
SAN JOSE, Calif.February 3, 2011Harmonic Inc. (NASDAQ: HLIT), a global leader in video
infrastructure solutions, today announced its preliminary and unaudited results for the quarter and
year ended December 31, 2010. Results for the fourth quarter of 2010 included a full quarter of
contribution from Omneon Inc., acquired on September 15, 2010.
Net revenue for the fourth quarter of 2010 was $138.2 million, which excluded $0.8 million of
certain deferred revenue that would otherwise have been recognized by Omneon had the acquisition
not occurred, up from $86.7 million in the fourth quarter of 2009. Total bookings in the fourth
quarter of 2010 were approximately $134.8 million, up from approximately $107.6 million for the
fourth quarter of 2009. For the full year 2010, net revenue was $423.3 million, which excluded
$2.1 million of certain deferred revenue referenced above, up from $319.6 million in 2009.
Omneon contributed $30.9 million in net revenue during the fourth quarter of 2010, which excluded
certain deferred revenue referenced above. Excluding Omneons contribution, Harmonics stand-alone
net revenue was $107.3 million in the fourth quarter of 2010, up 8% from the previous quarter and
up 24% from the fourth quarter of 2009. For the full year 2010, Harmonics stand-alone net revenue
was $386.8 million, up 21% from 2009.
The growth in revenues reflected continued demand across different geographies and markets, as well
as year end spending by some of our customers. International sales represented 54% of Harmonics
net revenues for the fourth quarter of 2010.
The Company reported a GAAP net loss for the fourth quarter of 2010 of $13.7 million, or $0.12 per
share, compared to net income of $47 thousand, or $0.00 per diluted share, for the fourth quarter
of 2009. For the full year 2010, the Companys GAAP net loss was $4.3 million, or $0.04 per share, compared to a
GAAP net loss of $24.1 million, or $0.25 per share, in 2009.
Non-GAAP net income for the fourth quarter of 2010 was $12.5 million, or $0.11 per diluted share,
up from $6.3 million, or $0.07 per diluted share, for the same period of 2009. For the full year
2010, non-GAAP net income was $36.4 million, or $0.35 per diluted share, compared to $18.0 million,
or $0.19 per diluted share, for 2009. See Use of Non-GAAP Financial Measures and GAAP to Non-GAAP Income (Loss) Reconciliation below.
For the fourth quarter of 2010, Harmonic had GAAP gross margins of 44% and GAAP operating margins
of (2%), compared to 45% and 4%, respectively, for the same period of 2009. Non-GAAP gross margins
were 51% and non-GAAP operating margins were 13% for the fourth quarter of 2010, up from 48% and
11%, respectively, for the same period of 2009.
As of December 31, 2010, the Company had cash, cash equivalents and short-term investments of
$120.4 million, up from $110.1 million as of October 1, 2010.
Throughout 2010, Harmonic significantly expanded its leadership position in enabling the new video
economy, said Patrick Harshman, President and Chief Executive Officer. Our traditional business
grew by 21%, driven by the growing worldwide investment in video services, and by our strong
competitive position and expanding international sales organization. The September acquisition of
Omneon further expanded the breadth of our solutions, our global broadcast and media customer base
and our international presence.
Moving into 2011, we expect broadcasters, media companies and video service providers around the
globe to continue to invest in producing and delivering high-value video programming and services.
You
can expect us to continue to introduce innovative video technologies that enable this dynamic
video marketplace. Were excited about our expanding opportunities for growth in 2011 and beyond.
Business Outlook
Harmonic anticipates net revenue in a range of $129 million to $132 million for the first quarter
of 2011. GAAP gross margins and operating
expenses for the first quarter of 2011 are expected to be in the
range of 45% to 47% and $61 to $62
million, respectively. Non-GAAP gross margins and operating expenses for the first quarter of 2011,
which will exclude charges for stock-based compensation and the amortization of intangibles, are
anticipated to be in the range of 50% to 52% and $53 to $54 million, respectively.
Conference Call Information
Harmonic will host a conference call today to discuss its financial results at 2:00 p.m.
Pacific (5:00 p.m. Eastern). A listen-only broadcast of the conference call can be
accessed on the Companys website at www.harmonicinc.com or by calling +1.706.634.9047 (conference
identification code 50192422). The replay will be available after 6:00 P.M. Pacific at the same
website address or by calling +1.706.645.9291 (conference identification code 50192422).
About Harmonic Inc.
Harmonic Inc. offers a comprehensive, innovative and market-leading portfolio of video
infrastructure solutions, spanning content production to multi-screen video delivery. Harmonic
customers can efficiently create, prepare and deliver differentiated video services over broadcast,
cable, Internet, mobile, satellite and telecom networks, while simplifying end-to-end asset
management, reducing costs and streamlining workflows.
Harmonic (NASDAQ: HLIT) is headquartered in San Jose, California, with R&D, sales and system
integration centers worldwide. The companys customersincluding each of the top 20 Fortune 2000
media companieschoose Harmonic to enable their high quality video services delivered to consumers
in virtually every country. Visit www.harmonicinc.com for more information.
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 our final results for the fourth quarter ended December 31,
2010; our expectation that, with the addition of Omneon in September 2010, we will further expand
the breadth of our solutions, our customer base of global broadcast and media companies and our
international presence; our expectation that broadcasters, media companies and video service
providers will invest in high-value video programming and services; our expectation that we will
introduce innovative video tech-nologies that enable the dynamic video marketplace; our
expectations about expanded opportunities for growth; and our
expectations regarding net revenue, GAAP gross margins, GAAP operating expenses,
non-GAAP gross margins and non-GAAP operating expenses for the first quarter of 2011. Our
expectations and beliefs 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 the possibility, in no particular order, that: we will
not be able to integrate Omneon into our business as effectively or efficiently as expected; Omneon
does not provide Harmonic with the benefits that we expect from the acquisition; the trends toward
more high-definition, on-demand and anytime, anywhere video will not continue to develop at its
current pace, or at all; the possibility that our products will not generate sales that are
commensurate with our expectations; the mix of products and services sold in various geographies
and the effect it has on gross margins; delays or decreases in capital spending in the cable,
satellite and telco and broadcast and media industries; customer concentration and consolidation;
the impact of general economic conditions,
including recent turmoil in the global financial markets, particularly on international sales and
operations; market acceptance of new or existing Harmonic products; losses of one or more key
customers; risks
associated with Harmonics international operations; inventory management; the
effect of competition; difficulties associated with rapid technological changes in Harmonics
markets; the need to introduce new and enhanced products and the risk that our product development
is not timely or does not result in expected benefits or market acceptance; risks associated with
unpredictable sales cycles; our dependence on contract manufacturers; and the risks that our
international sales and support center will not provide the operational or tax benefits that we
anticipate or that its expenses exceed our plans. The forward-looking statements contained in this
press release are also subject to other risks and uncertainties, including those more fully
described in Harmonics filings with the Securities and Exchange Commission, including our annual
report filed on Form 10-K for the year ended December 31, 2009, our Form 10-Q for the quarter ended
October 1, 2010 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.
EDITORS NOTE Product and company names used herein are trademarks or registered trademarks of
their respective owners.
Harmonic Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 96,533 | $ | 152,477 | ||||
Short-term investments |
23,838 | 118,593 | ||||||
Accounts receivable, net |
101,652 | 64,838 | ||||||
Inventories |
58,065 | 35,066 | ||||||
Deferred income taxes |
39,849 | 26,503 | ||||||
Prepaid expenses and other current assets |
28,614 | 20,821 | ||||||
Total current assets |
348,551 | 418,298 | ||||||
Property and equipment, net |
39,825 | 25,941 | ||||||
Goodwill, intangibles and other assets |
332,010 | 112,065 | ||||||
Total assets |
$ | 720,386 | $ | 556,304 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 26,300 | $ | 22,065 | ||||
Income taxes payable |
6,791 | 609 | ||||||
Deferred revenue |
46,279 | 32,855 | ||||||
Accrued liabilities |
51,283 | 37,584 | ||||||
Total current liabilities |
130,653 | 93,113 | ||||||
Income taxes payable, long-term |
48,883 | 43,948 | ||||||
Financing liability, long-term |
| 6,908 | ||||||
Deferred income taxes, long-term |
14,849 | | ||||||
Other non-current liabilities |
5,798 | 4,862 | ||||||
Total liabilities |
200,183 | 148,831 | ||||||
Stockholders equity: |
||||||||
Common stock |
2,397,783 | 2,280,041 | ||||||
Accumulated deficit |
(1,876,868 | ) | (1,872,533 | ) | ||||
Accumulated other comprehensive loss |
(712 | ) | (35 | ) | ||||
Total stockholders equity |
520,203 | 407,473 | ||||||
Total liabilities and stockholders equity |
$ | 720,386 | $ | 556,304 | ||||
Harmonic Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended December 31, | Year ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net revenue |
$ | 138,194 | $ | 86,657 | $ | 423,344 | $ | 319,566 | ||||||||
Cost of revenue |
76,813 | 47,308 | 227,943 | 185,206 | ||||||||||||
Gross profit |
61,381 | 39,349 | 195,401 | 134,360 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
24,252 | 15,610 | 77,197 | 61,435 | ||||||||||||
Selling, general and administrative |
37,232 | 19,707 | 108,150 | 81,138 | ||||||||||||
Amortization of intangibles |
2,885 | 533 | 4,912 | 3,822 | ||||||||||||
Total operating expenses |
64,369 | 35,850 | 190,259 | 146,395 | ||||||||||||
Income (loss) from operations |
(2,988 | ) | 3,499 | 5,142 | (12,035 | ) | ||||||||||
Interest and other income, net |
225 | 429 | 297 | 2,300 | ||||||||||||
Income (loss) before income taxes |
(2,763 | ) | 3,928 | 5,439 | (9,735 | ) | ||||||||||
Provision for income taxes |
10,975 | 3,881 | 9,774 | 14,404 | ||||||||||||
Net income (loss) |
$ | (13,738 | ) | $ | 47 | $ | (4,335 | ) | $ | (24,139 | ) | |||||
Net income (loss) per share: |
||||||||||||||||
Basic |
$ | (0.12 | ) | $ | 0.00 | $ | (0.04 | ) | $ | (0.25 | ) | |||||
Diluted |
$ | (0.12 | ) | $ | 0.00 | $ | (0.04 | ) | $ | (0.25 | ) | |||||
Weighted average shares: |
||||||||||||||||
Basic |
112,062 | 96,109 | 101,487 | 95,833 | ||||||||||||
Diluted |
112,062 | 96,597 | 101,487 | 95,833 |
Harmonic Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Year ended December 31, | ||||||||
2010 | 2009 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | (4,335 | ) | $ | (24,139 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided
by operating activities: |
||||||||
Amortization of intangibles |
17,425 | 11,904 | ||||||
Depreciation |
9,990 | 8,655 | ||||||
Stock-based compensation |
15,539 | 10,579 | ||||||
Net loss on disposal of fixed assets |
162 | 198 | ||||||
Deferred income taxes |
(248 | ) | 11,818 | |||||
Other non-cash adjustments, net |
1,529 | 2,594 | ||||||
Changes in assets and liabilities, net of effect of acquisitions: |
||||||||
Accounts receivable, net |
(19,744 | ) | 5,426 | |||||
Inventories |
(11,979 | ) | 7,726 | |||||
Prepaid expenses and other assets |
(5,445 | ) | (2,313 | ) | ||||
Accounts payable |
(3,080 | ) | 5,735 | |||||
Deferred revenue |
5,086 | 2,072 | ||||||
Income taxes payable |
11,017 | 1,389 | ||||||
Accrued excess facility costs |
(2,412 | ) | (6,044 | ) | ||||
Accrued and other liabilities |
4,332 | (24,512 | ) | |||||
Net cash provided by operating activities |
17,837 | 11,088 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of investments |
(51,457 | ) | (129,202 | ) | ||||
Proceeds from sales and maturities of investments |
144,230 | 157,881 | ||||||
Acquisition of property and equipment |
(35,624 | ) | (8,086 | ) | ||||
Acquisition of Scopus, net of cash received |
| (63,053 | ) | |||||
Acquisition of Omneon, net of cash received |
(153,254 | ) | | |||||
Other acquisitions |
(250 | ) | (452 | ) | ||||
Net cash used in investing activities |
(96,355 | ) | (42,912 | ) | ||||
Cash flows from financing activities: |
||||||||
Building improvement allowance from landlord |
18,833 | | ||||||
Proceeds from issuance of common stock, net |
3,859 | 4,243 | ||||||
Net cash provided by financing activities |
22,692 | 4,243 | ||||||
Effect of exchange rate changes on cash and cash equivalents |
(118 | ) | 167 | |||||
Net decrease in cash and cash equivalents |
(55,944 | ) | (27,414 | ) | ||||
Cash and cash equivalents at beginning of period |
152,477 | 179,891 | ||||||
Cash and cash equivalents at end of period |
$ | 96,533 | $ | 152,477 | ||||
Harmonic Inc.
Revenue Information
(Unaudited)
Revenue Information
(Unaudited)
Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||||||||||
Product |
||||||||||||||||||||||||||||||||
Video Processing |
$ | 63,005 | 46 | % | $ | 48,813 | 56 | % | $ | 202,898 | 48 | % | $ | 162,654 | 51 | % | ||||||||||||||||
Production and
Playout |
27,699 | 20 | % | | 0 | % | 32,579 | 8 | % | | 0 | % | ||||||||||||||||||||
Edge and Access |
30,787 | 22 | % | 28,223 | 33 | % | 135,306 | 32 | % | 117,355 | 37 | % | ||||||||||||||||||||
Services and Support |
16,703 | 12 | % | 9,621 | 11 | % | 52,561 | 12 | % | 39,557 | 12 | % | ||||||||||||||||||||
Total |
$ | 138,194 | 100 | % | $ | 86,657 | 100 | % | $ | 423,344 | 100 | % | $ | 319,566 | 100 | % | ||||||||||||||||
Geography |
||||||||||||||||||||||||||||||||
United States |
$ | 63,194 | 46 | % | $ | 43,091 | 50 | % | $ | 209,583 | 50 | % | $ | 162,023 | 51 | % | ||||||||||||||||
International |
75,000 | 54 | % | 43,566 | 50 | % | 213,761 | 50 | % | 157,543 | 49 | % | ||||||||||||||||||||
Total |
$ | 138,194 | 100 | % | $ | 86,657 | 100 | % | $ | 423,344 | 100 | % | $ | 319,566 | 100 | % | ||||||||||||||||
Market |
||||||||||||||||||||||||||||||||
Cable |
$ | 65,806 | 48 | % | $ | 53,836 | 62 | % | $ | 238,000 | 56 | % | $ | 192,941 | 60 | % | ||||||||||||||||
Satellite and Telco |
28,363 | 20 | % | 23,741 | 27 | % | 105,949 | 25 | % | 91,603 | 29 | % | ||||||||||||||||||||
Broadcast and Media |
44,025 | 32 | % | 9,080 | 11 | % | 79,395 | 19 | % | 35,022 | 11 | % | ||||||||||||||||||||
Total |
$ | 138,194 | 100 | % | $ | 86,657 | 100 | % | $ | 423,344 | 100 | % | $ | 319,566 | 100 | % | ||||||||||||||||
NOTE: | We have revised our product categories to move software products into the Video Processing category. In addition, we have revised our market categories to combine the Telco revenue with the Satellite category. The data for prior periods has been revised to conform with this presentation. |
Use of Non-GAAP Financial Measures
In establishing operating budgets, managing its business performance, and setting internal
measurement targets, the Company excludes a number of items required by GAAP. Management believes
that these accounting charges and credits, most of which are non-cash or non-recurring in nature,
are not useful in managing its operations and business. Historically, the Company has also publicly
presented these supplemental non-GAAP measures in order to assist the investment community to see
the Company through the eyes of management, and thereby enhance understanding of its operating
performance. The non-GAAP measures presented here are gross margins, operating expense, net income
and net income per 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 contained
in this press release. Management has
excluded expenses incurred as a result of acquisitions made by the Company and restructuring
activities, such as severance, charges incurred for excess facilities, an anticipated litigation
settlement and losses on product discontinuances, as these are the result of infrequent events or
have arisen outside of the ordinary course of the Companys continuing operations. Additionally,
management has excluded non-cash charges for stock-based compensation expense, the fair value write
up of acquired inventories sold, and the amortization of intangibles related to acquisitions made
by the Company. Finally, management has excluded certain discrete tax adjustments, as these do not
reflect future expected tax provisions or effective rates, nor does the inclusion of this
information in calculating our net income provide a meaningful comparison of current versus prior period
net income.
Harmonic Inc.
GAAP to Non-GAAP Net Income (Loss) Reconciliation
(Unaudited)
GAAP to Non-GAAP Net Income (Loss) Reconciliation
(Unaudited)
Three months ended December 31, 2010 | Three months ended December 31, 2009 | |||||||||||||||||||||||
Gross | Operating | Net Income | Gross | Operating | ||||||||||||||||||||
Margin | Expense | (Loss) | Margin | Expense | Net Income | |||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
GAAP |
$ | 61,381 | $ | 64,369 | $ | (13,738 | ) | $ | 39,349 | $ | 35,850 | $ | 47 | |||||||||||
Purchase accounting fair value adjustments related to inventory |
2,061 | | 2,061 | | | | ||||||||||||||||||
Cost of revenue related to stock-based compensation expense |
676 | | 676 | 431 | | 431 | ||||||||||||||||||
Cost of revenue related to severance costs |
63 | | 63 | 85 | | 85 | ||||||||||||||||||
Research and development expense related to stock-based compensation expense |
| (1,578 | ) | 1,578 | | (1,075 | ) | 1,075 | ||||||||||||||||
Research and development expense related to severance costs |
| (47 | ) | 47 | | | | |||||||||||||||||
Selling, general and administrative expense related to stock-based
compensation expense |
| (3,105 | ) | 3,105 | | (1,435 | ) | 1,435 | ||||||||||||||||
Selling, general and administrative expense related to excess facility costs |
| (2,973 | ) | 2,973 | | (71 | ) | 71 | ||||||||||||||||
Selling, general and administrative expense related to anticipated
litigation settlement |
| (863 | ) | 863 | | | | |||||||||||||||||
Selling, general and administrative expense related to severance costs |
(508 | ) | 508 | | | | ||||||||||||||||||
Selling, general and administrative expense related to restructuring costs |
| | | | (46 | ) | 46 | |||||||||||||||||
Acquisition costs related to Omneon |
| (175 | ) | 175 | | | | |||||||||||||||||
Amortization of intangibles |
5,636 | (2,885 | ) | 8,521 | 2,149 | (533 | ) | 2,682 | ||||||||||||||||
Discrete tax items and adjustments |
| | 5,633 | | | 467 | ||||||||||||||||||
Non-GAAP |
$ | 69,817 | $ | 52,235 | $ | 12,465 | $ | 42,014 | $ | 32,690 | $ | 6,339 | ||||||||||||
GAAP net income (loss) per share basic |
$ | (0.12 | ) | $ | 0.00 | |||||||||||||||||||
GAAP net income (loss) per share diluted |
$ | (0.12 | ) | $ | 0.00 | |||||||||||||||||||
Non-GAAP net income per share basic |
$ | 0.11 | $ | 0.07 | ||||||||||||||||||||
Non-GAAP net income per share diluted |
$ | 0.11 | $ | 0.07 | ||||||||||||||||||||
Shares used in per share calculation basic |
112,062 | 96,109 | ||||||||||||||||||||||
Shares used in per share calculation diluted, GAAP |
112,062 | 96,597 | ||||||||||||||||||||||
Shares used in per share calculation diluted, Non-GAAP |
113,670 | 96,597 | ||||||||||||||||||||||
Year ended December 31, 2010 | Year ended December 31, 2009 | |||||||||||||||||||||||
Gross | Operating | Net Income | Gross | Operating | Net Income | |||||||||||||||||||
Margin | Expense | (Loss) | Margin | Expense | (Loss) | |||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
GAAP |
$ | 195,401 | $ | 190,259 | $ | (4,335 | ) | $ | 134,360 | $ | 146,395 | $ | (24,139 | ) | ||||||||||
Purchase accounting fair value adjustments related to inventory |
2,473 | | 2,473 | 1,142 | | 1,142 | ||||||||||||||||||
Cost of revenue related to stock-based compensation expense |
2,197 | | 2,197 | 1,517 | | 1,517 | ||||||||||||||||||
Cost of revenue related to Scopus product discontinuance |
| | | 5,965 | | 5,965 | ||||||||||||||||||
Cost of revenue related to severance costs |
63 | | 63 | 907 | | 907 | ||||||||||||||||||
Research and development expense related to stock-based compensation expense |
| (5,013 | ) | 5,013 | | (3,846 | ) | 3,846 | ||||||||||||||||
Research and development expense related to restructuring costs |
| | | | (712 | ) | 712 | |||||||||||||||||
Research and development expense related to severance costs |
| (47 | ) | 47 | | | | |||||||||||||||||
Selling, general and administrative expense related to stock-based
compensation expense |
| (8,329 | ) | 8,329 | | (5,215 | ) | 5,215 | ||||||||||||||||
Selling, general and administrative expense related to excess facility costs |
| (2,748 | ) | 2,748 | | (494 | ) | 494 | ||||||||||||||||
Selling, general and administrative expense related to restructuring costs |
| | | | (2,337 | ) | 2,337 | |||||||||||||||||
Selling, general and administrative expense related to severance costs |
| (1,503 | ) | 1,503 | | | | |||||||||||||||||
Selling, general and administrative expense related to anticipated
litigation settlement |
| (863 | ) | 863 | | | | |||||||||||||||||
Acquisition costs related to Omneon |
| (5,867 | ) | 5,867 | | | | |||||||||||||||||
Acquisition costs related to Scopus |
| | | | (3,367 | ) | 3,367 | |||||||||||||||||
Amortization of intangibles |
12,513 | (4,912 | ) | 17,425 | 8,042 | (3,822 | ) | 11,864 | ||||||||||||||||
Discrete tax items and adjustments |
| | (5,816 | ) | | | 4,732 | |||||||||||||||||
Non-GAAP |
$ | 212,647 | $ | 160,977 | $ | 36,377 | $ | 151,933 | $ | 126,602 | $ | 17,959 | ||||||||||||
GAAP net income (loss) per share basic |
$ | (0.04 | ) | $ | (0.25 | ) | ||||||||||||||||||
GAAP net income (loss) per share diluted |
$ | (0.04 | ) | $ | (0.25 | ) | ||||||||||||||||||
Non-GAAP net income per share basic |
$ | 0.36 | $ | 0.19 | ||||||||||||||||||||
Non-GAAP net income per share diluted |
$ | 0.35 | $ | 0.19 | ||||||||||||||||||||
Shares used in per share calculation basic |
101,487 | 95,833 | ||||||||||||||||||||||
Shares used in per share calculation diluted, GAAP |
101,487 | 95,833 | ||||||||||||||||||||||
Shares used in per share calculation diluted, Non-GAAP |
102,512 | 96,354 | ||||||||||||||||||||||
12
Harmonic Inc.
Proforma Revenue Information
(Unaudited)
Proforma Revenue Information
(Unaudited)
2009Q1 | 2009Q2 | 2009Q3 | 2009Q4 | 2009 | 2010Q1 | 2010Q2 | 2010Q3 | 2010Q4 | 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRODUCT |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harmonic |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Video Processing |
$ | 35,664 | 53 | % | $ | 38,297 | 47 | % | $ | 39,880 | 48 | % | $ | 48,813 | 56 | % | $ | 162,654 | 51 | % | $ | 38,890 | 46 | % | $ | 49,998 | 52 | % | $ | 51,005 | 51 | % | $ | 63,005 | 59 | % | $ | 202,898 | 52 | % | ||||||||||||||||||||||||||||||||||||||||
Production and Playout |
| 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Edge and Access |
24,243 | 36 | % | 32,216 | 40 | % | 32,673 | 39 | % | 28,223 | 33 | % | 117,355 | 37 | % | 35,544 | 42 | % | 34,263 | 36 | % | 34,712 | 35 | % | 30,787 | 29 | % | 135,306 | 35 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Services and Support |
7,848 | 11 | % | 10,780 | 13 | % | 11,308 | 13 | % | 9,621 | 11 | % | 39,557 | 12 | % | 10,388 | 12 | % | 11,283 | 12 | % | 13,453 | 14 | % | 13,485 | 12 | % | 48,609 | 13 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 67,755 | 100 | % | $ | 81,293 | 100 | % | $ | 83,861 | 100 | % | $ | 86,657 | 100 | % | $ | 319,566 | 100 | % | $ | 84,822 | 100 | % | $ | 95,544 | 100 | % | $ | 99,170 | 100 | % | $ | 107,277 | 100 | % | $ | 386,813 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Omneon |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Video Processing |
$ | | 0 | % | $ | | 0 | % | $ | | 0 | % | $ | | 0 | % | $ | | 0 | % | $ | | 0 | % | $ | | 0 | % | $ | | 0 | % | $ | | 0 | % | $ | | 0 | % | ||||||||||||||||||||||||||||||||||||||||
Production and Playout |
25,356 | 89 | % | 21,773 | 86 | % | 20,102 | 86 | % | 24,165 | 86 | % | 91,396 | 87 | % | 24,828 | 88 | % | 26,589 | 83 | % | 26,024 | 86 | % | 27,699 | 87 | % | 105,140 | 86 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Edge and Access |
| 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | | 0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Services and Support |
2,982 | 11 | % | 3,518 | 14 | % | 3,266 | 14 | % | 3,834 | 14 | % | 13,600 | 13 | % | 3,389 | 12 | % | 5,340 | 17 | % | 4,307 | 14 | % | 4,029 | 13 | % | 17,065 | 14 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 28,338 | 100 | % | $ | 25,291 | 100 | % | $ | 23,368 | 100 | % | $ | 27,999 | 100 | % | $ | 104,996 | 100 | % | $ | 28,217 | 100 | % | $ | 31,929 | 100 | % | $ | 30,331 | 100 | % | $ | 31,728 | 100 | % | $ | 122,205 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Video Processing |
$ | 35,664 | 37 | % | $ | 38,297 | 36 | % | $ | 39,880 | 37 | % | $ | 48,813 | 43 | % | $ | 162,654 | 38 | % | $ | 38,890 | 34 | % | $ | 49,998 | 39 | % | $ | 51,005 | 39 | % | $ | 63,005 | 45 | % | $ | 202,898 | 40 | % | ||||||||||||||||||||||||||||||||||||||||
Production and Playout |
25,356 | 26 | % | 21,773 | 20 | % | 20,102 | 19 | % | 24,165 | 21 | % | 91,396 | 22 | % | 24,828 | 22 | % | 26,589 | 21 | % | 26,024 | 20 | % | 27,699 | 20 | % | 105,140 | 21 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Edge and Access |
24,243 | 25 | % | 32,216 | 30 | % | 32,673 | 30 | % | 28,223 | 24 | % | 117,355 | 28 | % | 35,544 | 32 | % | 34,263 | 27 | % | 34,712 | 27 | % | 30,787 | 22 | % | 135,306 | 26 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Services and Support |
10,830 | 12 | % | 14,298 | 14 | % | 14,574 | 14 | % | 13,455 | 12 | % | 53,157 | 12 | % | 13,777 | 12 | % | 16,623 | 13 | % | 17,760 | 14 | % | 17,514 | 13 | % | 65,674 | 13 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 96,093 | 100 | % | $ | 106,584 | 100 | % | $ | 107,229 | 100 | % | $ | 114,656 | 100 | % | $ | 424,562 | 100 | % | $ | 113,039 | 100 | % | $ | 127,473 | 100 | % | $ | 129,501 | 100 | % | $ | 139,005 | 100 | % | $ | 509,018 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
GEOGRAPHY |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harmonic |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States |
$ | 32,118 | 47 | % | $ | 46,532 | 57 | % | $ | 40,282 | 48 | % | $ | 43,091 | 50 | % | $ | 162,023 | 51 | % | $ | 42,592 | 50 | % | $ | 49,259 | 52 | % | $ | 51,895 | 52 | % | $ | 54,065 | 50 | % | $ | 197,811 | 51 | % | ||||||||||||||||||||||||||||||||||||||||
International |
35,637 | 53 | % | 34,761 | 43 | % | 43,579 | 52 | % | 43,566 | 50 | % | 157,543 | 49 | % | 42,230 | 50 | % | 46,285 | 48 | % | 47,275 | 48 | % | 53,212 | 50 | % | 189,002 | 49 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 67,755 | 100 | % | $ | 81,293 | 100 | % | $ | 83,861 | 100 | % | $ | 86,657 | 100 | % | $ | 319,566 | 100 | % | $ | 84,822 | 100 | % | $ | 95,544 | 100 | % | $ | 99,170 | 100 | % | $ | 107,277 | 100 | % | $ | 386,813 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Omneon |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States |
$ | 11,590 | 41 | % | $ | 7,012 | 28 | % | $ | 7,438 | 32 | % | $ | 8,974 | 32 | % | $ | 35,014 | 33 | % | $ | 7,040 | 25 | % | $ | 16,197 | 51 | % | $ | 10,520 | 35 | % | $ | 10,165 | 32 | % | $ | 43,922 | 36 | % | ||||||||||||||||||||||||||||||||||||||||
International |
16,748 | 59 | % | 18,279 | 72 | % | 15,930 | 68 | % | 19,025 | 68 | % | 69,982 | 67 | % | 21,177 | 75 | % | 15,732 | 49 | % | 19,811 | 65 | % | 21,563 | 68 | % | 78,283 | 64 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 28,338 | 100 | % | $ | 25,291 | 100 | % | $ | 23,368 | 100 | % | $ | 27,999 | 100 | % | $ | 104,996 | 100 | % | $ | 28,217 | 100 | % | $ | 31,929 | 100 | % | $ | 30,331 | 100 | % | $ | 31,728 | 100 | % | $ | 122,205 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States |
$ | 43,708 | 45 | % | $ | 53,544 | 50 | % | $ | 47,720 | 45 | % | $ | 52,065 | 45 | % | $ | 197,037 | 46 | % | $ | 49,632 | 44 | % | $ | 65,456 | 51 | % | $ | 62,415 | 48 | % | $ | 64,230 | 46 | % | $ | 241,733 | 47 | % | ||||||||||||||||||||||||||||||||||||||||
International |
52,385 | 55 | % | 53,040 | 50 | % | 59,509 | 55 | % | 62,591 | 55 | % | 227,525 | 54 | % | 63,407 | 56 | % | 62,017 | 49 | % | 67,086 | 52 | % | 74,775 | 54 | % | 267,285 | 53 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 96,093 | 100 | % | $ | 106,584 | 100 | % | $ | 107,229 | 100 | % | $ | 114,656 | 100 | % | $ | 424,562 | 100 | % | $ | 113,039 | 100 | % | $ | 127,473 | 100 | % | $ | 129,501 | 100 | % | $ | 139,005 | 100 | % | $ | 509,018 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
MARKET |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Harmonic |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cable |
$ | 38,214 | 56 | % | $ | 53,645 | 66 | % | $ | 47,246 | 56 | % | $ | 53,836 | 62 | % | $ | 192,941 | 60 | % | $ | 56,017 | 66 | % | $ | 53,106 | 56 | % | $ | 62,993 | 64 | % | $ | 65,019 | 61 | % | $ | 237,135 | 61 | % | ||||||||||||||||||||||||||||||||||||||||
Satellite and Telco |
23,048 | 34 | % | 18,897 | 23 | % | 25,917 | 31 | % | 23,741 | 27 | % | 91,603 | 29 | % | 19,798 | 23 | % | 32,403 | 34 | % | 24,745 | 25 | % | 27,212 | 25 | % | 104,158 | 27 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Broadcast and Media |
6,493 | 10 | % | 8,751 | 11 | % | 10,698 | 13 | % | 9,080 | 11 | % | 35,022 | 11 | % | 9,007 | 11 | % | 10,035 | 10 | % | 11,432 | 11 | % | 15,046 | 14 | % | 45,520 | 12 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 67,755 | 100 | % | $ | 81,293 | 100 | % | $ | 83,861 | 100 | % | $ | 86,657 | 100 | % | $ | 319,566 | 100 | % | $ | 84,822 | 100 | % | $ | 95,544 | 100 | % | $ | 99,170 | 100 | % | $ | 107,277 | 100 | % | $ | 386,813 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Omneon |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cable |
$ | 407 | 1 | % | $ | 364 | 1 | % | $ | 336 | 1 | % | $ | 403 | 1 | % | $ | 1,510 | 1 | % | $ | 424 | 1 | % | $ | 449 | 1 | % | $ | 426 | 1 | % | $ | 798 | 2 | % | $ | 2,097 | 2 | % | ||||||||||||||||||||||||||||||||||||||||
Satellite and Telco |
3,918 | 14 | % | 3,508 | 14 | % | 3,233 | 14 | % | 3,879 | 14 | % | 14,538 | 14 | % | 5,232 | 19 | % | 3,815 | 12 | % | 3,467 | 11 | % | 1,243 | 4 | % | 13,757 | 11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Broadcast and Media |
24,013 | 85 | % | 21,419 | 85 | % | 19,799 | 85 | % | 23,717 | 85 | % | 88,948 | 85 | % | 22,561 | 80 | % | 27,665 | 87 | % | 26,438 | 88 | % | 29,687 | 94 | % | 106,351 | 87 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 28,338 | 100 | % | $ | 25,291 | 100 | % | $ | 23,368 | 100 | % | $ | 27,999 | 100 | % | $ | 104,996 | 100 | % | $ | 28,217 | 100 | % | $ | 31,929 | 100 | % | $ | 30,331 | 100 | % | $ | 31,728 | 100 | % | $ | 122,205 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
Consolidated |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cable |
$ | 38,621 | 40 | % | $ | 54,009 | 51 | % | $ | 47,582 | 44 | % | $ | 54,239 | 47 | % | $ | 194,451 | 46 | % | $ | 56,441 | 50 | % | $ | 53,555 | 42 | % | $ | 63,419 | 49 | % | $ | 65,817 | 47 | % | $ | 239,232 | 47 | % | ||||||||||||||||||||||||||||||||||||||||
Satellite and Telco |
26,966 | 28 | % | 22,405 | 21 | % | 29,150 | 27 | % | 27,620 | 24 | % | 106,141 | 25 | % | 25,030 | 22 | % | 36,218 | 28 | % | 28,212 | 22 | % | 28,455 | 21 | % | 117,915 | 23 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Broadcast and Media |
30,506 | 32 | % | 30,170 | 28 | % | 30,497 | 29 | % | 32,797 | 29 | % | 123,970 | 29 | % | 31,568 | 28 | % | 37,700 | 30 | % | 37,870 | 29 | % | 44,733 | 32 | % | 151,871 | 30 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 96,093 | 100 | % | $ | 106,584 | 100 | % | $ | 107,229 | 100 | % | $ | 114,656 | 100 | % | $ | 424,562 | 100 | % | $ | 113,039 | 100 | % | $ | 127,473 | 100 | % | $ | 129,501 | 100 | % | $ | 139,005 | 100 | % | $ | 509,018 | 100 | % | ||||||||||||||||||||||||||||||||||||||||
NOTE: | Data includes a full quarter proforma revenue for Omneon for the periods shown, including certain deferred revenue excluded in reported results. We have revised our market categories to combine the Telco revenue with the Satellite category. The data for prior periods has been revised to conform with this presentation. |