Harmonic Inc. has recently released its 10-Q report, revealing key insights into the company's financial performance and operations. The company, headquartered in San Jose, California, operates through two segments: Broadband and Video. 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 various service providers and media companies.
In the latest report, Harmonic's total net revenue for the three months ended September 27, 2024, was $195.8 million, marking a 54% increase compared to the corresponding period in 2023. The Appliance and integration net revenue saw a significant increase of 81%, totaling $153.7 million, driven by a surge in Broadband segment revenue. On the other hand, the SaaS and service net revenue decreased by 1%, amounting to $42.1 million.
The company's gross margin improved by 500 basis points during the same period, reaching 53.5%, attributed to contributions from both the Broadband and Video segments. Research and development expenses remained relatively flat, while selling, general, and administrative expenses decreased by $3.4 million, primarily due to reduced spending resulting from headcount reductions related to restructuring activities in the Video business.
Harmonic also recorded an impairment charge of $1.8 million related to the total capitalized value of internally developed software with no future benefit. Additionally, the company reported lease-related asset impairment and other charges of $1.3 million for the three months ended September 27, 2024, and $10.3 million for the nine months ended September 27, 2024.
The 10-Q report provides a detailed look into Harmonic's financial condition and results of operations, shedding light on its revenue streams, expenses, and impairment charges, offering investors and stakeholders valuable insights into the company's performance. As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $10.96. For more information, read the company's full 10-Q submission here.
