Harmonic Inc. has recently released its 10-K report, providing a detailed look at the company's financial performance and operations. Harmonic is a global provider of broadband solutions and high-performance video delivery software, products, and services. The company operates through two segments – Broadband and Video. The Broadband segment focuses on selling broadband access solutions and related services, including cOS software-based broadband access solutions, while the Video segment sells video processing, production, and playout solutions to cable operators, satellite and telco Pay-TV service providers, and broadcast and media companies.
In the 10-K report, Harmonic discusses its revenue breakdown, with "Appliance and integration" accounting for 75% of total net revenue and "SaaS and service" contributing 25%. The company operates in three geographic regions – the Americas, EMEA, and APAC. Harmonic's revenue for the year ended December 31, 2024, amounted to $678.7 million, marking a 12% increase from the previous year.
The company's gross profit for 2024 totaled $365.9 million, representing a gross margin of 53.9%, an improvement of 2.5% compared to 2023. Research and development expenses decreased by 4%, amounting to $120.9 million, while selling, general, and administrative expenses also saw a 6% reduction, totaling $153.1 million. Harmonic reported a decrease in asset impairment and related charges compared to the previous year.
In terms of revenue breakdown by category and geographical region, the Americas accounted for 82% of total net revenue, with a significant increase of $109.6 million in 2024 compared to 2023. EMEA and APAC experienced decreases in net revenue, with EMEA declining by $35.1 million and APAC by $3.6 million in 2024 compared to 2023.
The 10-K report also highlights critical accounting estimates, including the valuation of inventories and accounting for income taxes. Harmonic's valuation of inventories involves management's assumptions about factors such as current levels of orders, forecasted demand, market conditions, and expected product lifecycles. The company recorded a gross amount of inventory reserves charged to the cost of revenues, totaling $11.0 million in 2024. In terms of income taxes, Harmonic estimates income taxes for each jurisdiction in which it operates, with a full valuation allowance maintained against the California and Swiss net deferred tax assets.
As a result of these announcements, the company's shares have moved 2.8% on the market, and are now trading at a price of $10.06. If you want to know more, read the company's complete 10-K report here.
