Harmonic Inc. Releases 10-Q Report

By Bobby Samwell • Saturday, August 03 08:01 • Permanent Link

Harmonic Inc. has recently released its 10-Q report, providing insights into its financial performance and operations. The company, headquartered in San Jose, California, operates through Broadband and Video segments. The Broadband segment sells broadband access solutions and related services, including cOS software-based broadband access solutions, while the Video segment sells video processing, production, and playout solutions and services to cable operators, satellite and telco Pay-TV service providers, and broadcast and media companies.

The report discusses the company's revenue categorization into "Appliance and integration" and "SaaS and service," with the former reflecting non-recurring revenue and the latter representing the recurring revenue stream. Harmonic operates in three geographic regions — the Americas, EMEA, and APAC — and its revenue has historically been dependent upon spending in the cable, satellite, telco, broadcast, and media industries.

In terms of financial results, the 10-Q report highlights a decrease in total net revenue by $17.2 million (11%) for the three months ended June 28, 2024, compared to the corresponding period in 2023. The "Appliance and integration" net revenue decreased by $16.9 million during the same period, primarily attributed to a decrease in both the Video and Broadband segments' revenue. Additionally, the "SaaS and service" net revenue decreased by $0.3 million (1%) during the same period.

The report also provides insights into the company's gross profit, research and development expenses, selling, general and administrative expenses, and lease-related impairment and other charges. Notably, the gross margin decreased by 60 basis points and 150 basis points in the three and six months ended June 28, 2024, respectively, primarily from margin contraction in the Broadband segment.

Furthermore, the report discusses the company's restructuring and related charges, highlighting the implementation of several restructuring plans in recent years to bring operational expenses to appropriate levels relative to net revenues.

Following these announcements, the company's shares moved -4.0%, and are now trading at a price of $13.92. Check out the company's full 10-Q submission here.

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