hlit-20240927

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________

Form 10-Q

_____________________________________________________

(Mark One)


☒			Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended September 27, 2024


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File No. 000-25826

_____________________________________________________

HARMONIC INC.

(Exact name of registrant as specified in its charter)

_____________________________________________________


Delaware			77-0201147
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

2590 Orchard Parkway

San Jose, CA 95131

(408) 542-2500

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

____________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.001 par value

HLIT

NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated Filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s Common Stock, $0.001 par value, outstanding on October 28, 2024 was 116,528,212.

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TABLE OF CONTENTS


PART I

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)			3
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			20
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			28
ITEM 4. CONTROLS AND PROCEDURES			29

PART II

ITEM 1. LEGAL PROCEEDINGS			30
ITEM 1A. RISK FACTORS			31
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			52


ITEM 5. OTHER INFORMATION			52
ITEM 6. EXHIBITS			53

SIGNATURES			54

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PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

HARMONIC INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except par value)


	September 27, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	58,174	$	84,269
Restricted cash	327		—
Accounts receivable, net	173,730		141,531
Inventories	73,864		83,982
Prepaid expenses and other current assets	30,273		20,950
Total current assets	336,368		330,732
Property and equipment, net	28,396		36,683
Operating lease right-of-use assets	13,471		20,817
Goodwill	239,597		239,150
Deferred income taxes	107,380		104,707
Other non-current assets	34,649		36,117
Total assets	$	759,861	$	768,206
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Convertible debt	$	—	$	114,880
Current portion of long-term debt	1,944		—
Current portion of other borrowings	5,285		4,918
Accounts payable	42,480		38,562
Deferred revenue	50,891		46,217
Operating lease liabilities	5,971		6,793
Other current liabilities	55,091		61,024
Total current liabilities	161,662		272,394
Long-term debt	112,819		—
Other long-term borrowings	9,458		10,495
Operating lease liabilities, non-current	15,647		18,965
Other non-current liabilities	31,338		29,478
Total liabilities	330,924		331,332
Commitments and contingencies (Note 12)
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; 116,511 and 112,407 shares issued and outstanding at September 27, 2024 and December 31, 2023, respectively	117		112
Additional paid-in capital	2,424,322		2,405,043
Accumulated deficit	(1,991,615)		(1,962,575)
Accumulated other comprehensive loss	(3,887)		(5,706)
Total stockholders’ equity	428,937		436,874
Total liabilities and stockholders’ equity	$	759,861	$	768,206

The accompanying notes are an integral part of these condensed consolidated financial statements.

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HARMONIC INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)


	Three Months Ended				Nine Months Ended
	September 27, 2024		September 29, 2023		September 27, 2024		September 29, 2023
Revenue:
Appliance and integration	$	153,685	$	84,760	$	329,464	$	310,681
SaaS and service	42,071		42,443		127,092		130,134
Total net revenue	195,756		127,203		456,556		440,815
Cost of revenue:
Appliance and integration	77,683		48,992		171,635		166,177
SaaS and service	13,341		16,527		43,651		43,960
Total cost of revenue	91,024		65,519		215,286		210,137
Total gross profit	104,732		61,684		241,270		230,678
Operating expenses:
Research and development	30,073		30,316		89,562		96,030
Selling, general and administrative	35,851		39,245		114,537		121,300
Asset impairment and related charges	3,103		—		12,103		—
Restructuring and related charges	281		726		14,800		809
Total operating expenses	69,308		70,287		231,002		218,139
Income (loss) from operations	35,424		(8,603)		10,268		12,539
Interest expense, net	(2,686)		(619)		(4,833)		(2,125)

Other income (expense), net	(3,932)		343		(3,602)		(86)
Income (loss) before income taxes	28,806		(8,879)		1,833		10,328
Provision for (benefit from) income taxes	7,088		(2,384)		736		10,175
Net income (loss)	$	21,718	$	(6,495)	$	1,097	$	153

Net income (loss) per share:
Basic	$	0.19	$	(0.06)	$	0.01	$	—
Diluted	$	0.19	$	(0.06)	$	0.01	$	—
Weighted average shares outstanding:
Basic	116,403		112,031		114,594		111,431
Diluted	117,358		112,031		117,385		117,910

The accompanying notes are an integral part of these condensed consolidated financial statements.

SEC Form 10-Q filed by Harmonic Inc.