Core Viewpoint - Harmonic is set to release its fourth quarter and full year 2025 financial results on February 19, 2026, after market close, allowing time for accounting related to the pending sale of its Video business [1]. Group 1: Financial Results Announcement - The financial results will be discussed in a live webcast at 2:00 p.m. PT on the same day [1]. - Participants can register in advance for the telephone conference using a provided link [2]. - A confirmation email will be sent to telephone participants with details on how to join the audio version of the webcast [3]. Group 2: Webcast Participation - The live webcast will be accessible via Harmonic's Investor Relations website [3]. - Participants are advised to join at least 15 minutes early for both the conference call and the webcast [3]. - A replay of the event will be available on the website after 5:00 p.m. PT for those unable to attend live [4]. Group 3: Company Overview - Harmonic is a leader in virtualized broadband and video delivery solutions, enabling high-quality video streaming and broadcast services globally [5]. - The company has innovated broadband networking with the first virtualized broadband solution, facilitating gigabit internet service deployment [5]. - Harmonic's solutions support media companies and service providers in monetizing live and on-demand content across various platforms [5].

Core Insights - Harmonic Inc. (NASDAQ:HLIT) is recognized as one of the best rising tech stocks to buy now [1] - Analysts maintain a positive outlook on Harmonic, with 60% rating it as a "Buy" and a median price target of $12.00, indicating a potential upside of 21.50% [2] Business Developments - On December 8, 2025, Harmonic announced a binding offer from MediaKind to acquire its Video Business segment for approximately $145 million in cash, marking a strategic repositioning for the company [3] - The divestiture is subject to a consultation process with the French employee works council, regulatory approvals, and customary closing conditions, with an expected closure in the first half of 2026 [3] Strategic Focus - The divestiture aims to allow Harmonic to concentrate on its core virtualized broadband business, which management identifies as the long-term growth driver [4] - This transaction is expected to strengthen the company's balance sheet and provide financial flexibility for customer expansion, product investment, and shareholder value creation [4] Management Perspective - CEO Nimrod Ben-Natan believes the divestiture will enable the company to focus on broadband priorities while placing the Video Business within an organization dedicated to advancing video delivery technologies [5] - Following the announcement, Needham reiterated its "Buy" rating for Harmonic with a price target of $15.00 [5] Business Operations - Harmonic's Broadband segment delivers software-based access solutions to cable operators globally [6]

Core Insights - Harmonic has partnered with Czech Television to modernize its video streaming workflow using the XOS Advanced Media Processor, enhancing streaming quality and viewer engagement [1][2]. Group 1: Partnership and Technology Adoption - Czech TV has transitioned from outsourced media processing to in-house operations, utilizing Harmonic's XOS media processor for improved control and quality [2]. - The XOS media processor features AI-powered content-aware encoding, enabling superior video streaming across various devices [2]. - This technological shift has led to streamlined operations, increased efficiency, reduced costs, and enhanced audience engagement for Czech TV [2]. Group 2: Features and Benefits - The XOS media processor supports mobile, web app, and HbbTV delivery, allowing Czech TV to create multiple video profiles, add subtitles, and insert logos for pop-up channels [2]. - It includes advanced audio mixing capabilities, providing descriptive audio for impaired audiences, thus promoting inclusivity in streaming experiences [2]. Group 3: Company Background and Market Position - Harmonic is recognized as a leader in virtualized broadband and video delivery solutions, enabling media companies to deliver high-quality streaming services globally [5]. - The company has revolutionized broadband networking with the first virtualized broadband solution, allowing flexible deployment of gigabit internet services [5]. - Harmonic's innovative cloud and software platforms simplify OTT video delivery and enhance monetization of live and on-demand content [5].

Group 1 - The company initiated a strategic review of its Video business in November 2023, which included exploring potential sale options [2] - The initial process to sell the Video business did not yield suitable buyers, leading the company to restructure the business instead [2] - Over the past 18 months, the Video business has shown strong and consistent performance, particularly in both video SaaS and appliance segments [2] Group 2 - Recently, MediaKind approached the company regarding a potential deal [3]

Harmonic (NasdaqGS:HLIT) FY Conference Summary Company Overview - **Company**: Harmonic - **Industry**: Video Infrastructure and Broadband Solutions Key Points Video Business Sale - Harmonic initiated a strategic review of its video business in November 2023, considering a sale but did not find a suitable buyer until recently when MediaKind made a compelling offer [6][7] - The sale is expected to enhance Harmonic's focus on its broadband business, allowing for capital infusion and operational flexibility [8][36] Broadband Business Focus - Harmonic aims to leverage its leadership in virtualized CMTS and fiber broadband solutions, positioning itself as a pure-play broadband provider [8] - The company anticipates growth in its broadband segment, particularly with the rollout of DOCSIS 4.0 technology, which is expected to gain traction in 2026 [16][17] Customer Dynamics - Harmonic has a significant customer concentration with Comcast and Charter, but is expanding its customer base with over 140 customers now on its platform [19][34] - The company is seeing increased demand from non-top two customers, indicating a broader market opportunity [19][35] Technology and Product Development - The company is focused on enhancing its cOS platform and introducing new products like Seastar for low-density MDUs, which is gaining traction in the telco market [26] - Harmonic's solutions are designed to be flexible, allowing for integration with various operators and technologies [25] Financial Outlook - The company targets a margin structure above 50% as it shifts towards a more favorable mix of software licenses versus hardware sales [40] - Harmonic has a $200 million share repurchase program, with $66 million executed by the end of Q3 2025, indicating strong liquidity and capital allocation priorities [46] Market Opportunities - The BEAD program is expected to provide funding for rural network development, with Harmonic positioned to benefit from this initiative in the future [28][29] - The company is exploring both organic and inorganic growth opportunities, particularly in fiber solutions, to reduce customer concentration risks [45] Competitive Landscape - Harmonic faces competition from fiber providers and fixed wireless access providers, necessitating continuous upgrades to maintain competitiveness [33] - The company is well-positioned to capitalize on the growing demand for broadband infrastructure as operators invest in network upgrades [33] Additional Insights - The complexities involved in the divestiture of the video business include IT infrastructure and compliance processes, which may delay the transaction closure until the first half of 2026 [14] - Harmonic's strategic focus on broadband is expected to yield long-term growth, supported by technological advancements and expanding customer relationships [8][20]

Core Viewpoint - MediaKind has agreed to acquire the Video Business of Harmonic (HLIT) for approximately $145 million, aiming to create an independent SaaS streaming infrastructure provider by merging two established video technology organizations [1] Group 1: Transaction Details - The acquisition is expected to close in the first half of 2026, pending customary regulatory approvals and closing conditions [1] - The transaction follows a consultation process with a French employee works council, leading to the immediate execution of a purchase agreement [1] Group 2: Business Impact - The combined entity will serve a blue-chip customer base and generate over $100 million in annual recurring revenue and more than $150 million in annual appliance revenue [1] - The merger is anticipated to enhance financial and operational stability, providing customers with greater confidence in the reliability of their video-infrastructure partner as the market evolves [1]

Core Viewpoint - The conference call is focused on Harmonic's performance and future expectations, with key executives present to discuss the company's outlook and financial results [2][3]. Group 1: Company Overview - Harmonic's investor conference call features key executives including the President and CEO, Nimrod Ben-Natan, and the Chief Financial Officer, Walter Jankovic [2]. - The call is being recorded, indicating a formal approach to investor communication [1]. Group 2: Forward-Looking Statements - The conference includes forward-looking statements regarding the company's operating performance and anticipated events, which are based on management's beliefs and assumptions [3]. - Management emphasizes that these forward-looking statements should not be overly relied upon, as they are subject to change and reflect conditions only as of the date made [3][4]. - The company does not commit to updating these statements unless legally required, highlighting the inherent risks and uncertainties involved [4].

Summary of Harmonic Conference Call Company Overview - **Company**: Harmonic - **Industry**: Broadband and Video Infrastructure Key Points Asset Sale - Harmonic is selling its video business to MediaKind, which includes both hardware appliance and streaming services as a single unit [2][5][6] - The decision to sell was influenced by a strategic review initiated in November 2023, concluding in April 2024, which found a compelling offer from MediaCom [3][4] - The sale is expected to enhance Harmonic's focus on broadband management and growth opportunities [2][3] Financial Implications - The transaction is an all-cash deal, and the proceeds will be used to invest in broadband, particularly in fiber business and a $200 million share repurchase program [8][9] Market Position and Growth - Harmonic is a leading broadband provider with over 90% market share in cable and 65% in distributed devices [9][10] - The company is experiencing a transition in the market, particularly with the rollout of DOCSIS 4.0 technology, which is expected to turn from a headwind in 2025 to a tailwind in 2026 [10][15] - Harmonic has been expanding its customer base, including tier two operators in the U.S. and Europe, and expects significant growth in 2026 [34][36] Competitive Landscape - The competitive environment is characterized by a need for continuous innovation and customer satisfaction, with Harmonic focusing on maintaining its market position through technological advancements [17][18] - Harmonic does not participate in the amplifier market due to established competition and lower margins, opting instead to focus on fiber and operational tools [19][20] Customer Engagement - Comcast remains Harmonic's largest customer, with ongoing projects related to DOCSIS 4.0 deployments [23][24] - Charter Communications is a newer customer, and while their project timeline is different, Harmonic is adapting to their specific architecture needs [29][30] Future Outlook - The company anticipates continued momentum in revenue growth from non-top two customers as they adopt unified DOCSIS 4.0 solutions [36][37] - Harmonic's fiber business is gaining market share and expanding beyond cable into telcos, which is not fully appreciated by investors [40] Misunderstood Aspects - The ongoing nature of network upgrades and the buildup of recurring revenue streams are often overlooked by investors [38][39] - The potential of Harmonic's fiber business and its integration into existing architectures is also a significant growth area that requires more attention [40] Additional Insights - The company is poised to take advantage of government programs like BEAD for broadband expansion, although it may not be a significant growth factor in 2026 [21][22] - Harmonic's operating model is designed for high operating leverage, which is expected to yield attractive growth in the broadband segment [11]

Core Viewpoint - MediaKind has announced an agreement to acquire the Video Business of Harmonic Inc. for approximately $145 million, with the transaction expected to close in the first half of 2026, pending regulatory approvals [1] Group 1: Acquisition Details - The acquisition price is set at around $145 million [1] - The transaction will follow a consultation process with a French employee works council before executing a purchase agreement [1] - The expected closing of the transaction is in the first half of 2026, subject to customary regulatory approvals and closing conditions [1]

Harmonic Investor Conference Call Summary Company Overview - **Company**: Harmonic (NasdaqGS:HLIT) - **Industry**: Video streaming technology Key Points M&A Announcement - Harmonic announced a binding offer from MediaKind to sell its video business segment for approximately **$145 million in cash** [4] - The transaction is expected to close in the **first half of 2026**, pending customary closing conditions and regulatory approvals [4] Strategic Implications - The sale is viewed as a **strategic and transformative transaction** that will enhance Harmonic's ability to expand its broadband business [4] - The transaction will allow Harmonic to leverage its expanding installed base and unlock additional growth opportunities [5] - The capital from the sale will be used to increase investment in Harmonic's rapidly growing **fiber business**, which is gaining traction among cable operators and telcos [5] Financial Impact - The pending sale is expected to provide a **healthy capital infusion**, part of which will support a **$200 million share repurchase program** [5] - The simplification of operations by no longer managing two distinct operational models is anticipated to improve operational effectiveness and agility [5] Future Outlook - Harmonic expressed confidence in MediaKind's ability to innovate and support customers post-sale, highlighting MediaKind's proven track record in the industry [6] - The company reaffirmed its guidance for **Q4 2025**, indicating stability in its financial outlook despite the pending sale [6] Upcoming Events - Harmonic will participate in a **Raymond James TMT and Consumer Conference** and a **Fireside Chat at the Barclays' 23rd Annual Global Technology Conference** [9] - These events will be webcast and available for viewing on Harmonic's Investor Relations website [9] Additional Notes - The call included a reminder that forward-looking statements are based on management's beliefs and assumptions, and actual results may differ due to various risks and uncertainties [2][3] - No questions were raised during the Q&A session, indicating a possible lack of immediate investor concerns or clarity on the transaction [8]