Financial Data and Key Metrics Changes - Total revenue for the second quarter was $138 million, exceeding guidance, with a year-over-year increase in EPS from $0.08 to $0.09 [19][5] - Free cash flow was negative at $15.5 million, but cash balance increased to $123.9 million, up $78 million year-over-year [19][24] - Total company gross margin was 54.1%, up 100 basis points year-over-year, while broadband gross margin was 46.5%, down 110 basis points [24][25] Business Line Data and Key Metrics Changes - Broadband revenue was $86.9 million with adjusted EBITDA of $10.8 million, reflecting industry headwinds [20] - Video segment revenue was $51.1 million, up 11.6% year-over-year, with SaaS streaming revenue reaching a record $15.4 million [20][16] - The company added four new logos in broadband, including a significant Tier two North American operator [8][9] Market Data and Key Metrics Changes - Rest of world revenue grew significantly year-over-year, contributing to a more diversified revenue stream [20][9] - The company reported a strong backlog and deferred revenue of $504.5 million, indicating consistent customer demand [5][27] Company Strategy and Development Direction - The company is focused on accelerating the adoption of next-generation virtualized broadband networks and enhancing competitive positioning [7][14] - The recently passed OBBBA is expected to incentivize investments in broadband networks over the next several years [8] - The company aims to leverage its unified DOCSIS 4.0 technology and fiber solutions to drive future growth [12][14] Management's Comments on Operating Environment and Future Outlook - Management expects revenue growth to resume in 2026, supported by unified DOCSIS 4.0 adoption and customer ramp readiness [6][28] - The competitive environment is becoming more challenging, prompting customers to prioritize network upgrades [42] - Management remains cautious about the near-term outlook due to macroeconomic factors and potential tariff impacts [31][32] Other Important Information - The company repurchased $14 million of common shares in the quarter, totaling $50.1 million under the current program [5][21] - The company has a strong balance sheet with ample liquidity, including $123.9 million in cash and $82 million available under its credit facility [23][24] Q&A Session Summary Question: Strength from rest of world customers - Management indicated that the rest of world revenue is significantly stronger than 50% of total revenue, with Comcast representing 39% of total revenue [36] Question: Outlook for 2026 growth - Management sees positive indicators for 2026, with expectations of tailwinds from unified DOCSIS 4.0 and customer ramp readiness [39][41] Question: DOCSIS 4.0 readiness and product platform progress - Management reported good progress in DOCSIS 4.0 readiness, with early shipments planned for the fourth quarter [48][50] Question: Impact of Charter's CapEx cuts - Management noted that Charter's network evolution is still a priority, despite the CapEx cuts, indicating ongoing importance for service delivery [51] Question: Strong bookings and cautious guidance - Management confirmed strong bookings across multiple customers, including rest of world customers, but remains cautious about guidance due to uncertainties [58][60] Question: Tariff situation and potential impacts - Management stated that the tariff impact for Q3 is expected to be less than $1 million, with ongoing efforts to optimize the supply chain [68][70] Question: Q4 expectations and seasonality - Management anticipates some sequential growth from Q3 to Q4 but is not providing specific guidance due to uncertainties [76][78]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $138 million, exceeding guidance, with EPS rising from $0.08 to $0.09 year over year [19][32] - Free cash flow was negative at $15.5 million, but cash balance increased to $123.9 million, up $78 million from the same quarter last year [19][22] - Total company gross margin was 54.1%, up 100 basis points year over year, while broadband gross margin was 46.5%, down 110 basis points [23][24] Business Line Data and Key Metrics Changes - Broadband revenue was $86.9 million with adjusted EBITDA of $10.8 million, reflecting industry headwinds [20][32] - Video segment revenue was $51.1 million, up 11.6% year over year, with SaaS streaming revenue reaching a record $15.4 million [16][20] - The company repurchased $14 million of common shares in Q2, totaling $50.1 million under the current program [5][22] Market Data and Key Metrics Changes - Rest of world revenue grew significantly year over year, contributing to improved diversification [20][32] - The company ended Q2 with a backlog and deferred revenue of $504.5 million, indicating strong customer demand [5][26] - The company noted a strong order book with Q2 bookings at $158.4 million and a book-to-bill ratio of 1.1 [24][25] Company Strategy and Development Direction - The company is focused on accelerating the adoption of next-generation virtualized broadband networks and enhancing competitive positioning [6][10] - The recently passed OBBBA is expected to incentivize investments in broadband networks over the next several years [7][23] - The company aims to continue investing in inventory to support expected growth in broadband, particularly in the rest of world markets [21][22] Management Comments on Operating Environment and Future Outlook - Management expects revenue growth to resume in 2026, supported by Unified DOCSIS 4.0 adoption and customer ramp readiness [6][19] - The tariff situation remains fluid, but the actual impact in Q2 was less than anticipated, with less than $1 million affecting broadband [27][28] - Management remains cautious about Q3 guidance due to macroeconomic factors but anticipates some sequential growth from Q3 to Q4 [30][75] Other Important Information - The company is seeing strong momentum in both broadband and video segments, with ongoing innovation and customer expansion [12][14] - The company highlighted the importance of network evolution for customers to deliver enhanced services [40][49] Q&A Session Summary Question: Strength from rest of world customers - Management indicated that rest of world revenue is significantly stronger than 50% of total revenue, reflecting improved diversification [34][35] Question: Optimism for 2026 growth - Management noted that headwinds are turning into tailwinds, with positive indicators for 2026 growth, but refrained from providing specific forecasts [36][39] Question: DOCSIS 4.0 readiness - Management confirmed good progress in DOCSIS 4.0 readiness, with early shipments planned for the fourth quarter [44][46] Question: Impact of Charter's CapEx cuts - Management acknowledged Charter's CapEx cuts but emphasized the importance of network evolution for service delivery [48][49] Question: Strong bookings and cautious guidance - Management explained that strong bookings are a mix across various customers, including rest of world, but guidance remains cautious due to uncertainties [52][75] Question: Tariff impacts and manufacturing flexibility - Management stated that current tariff impacts are minimal, with ongoing evaluations of manufacturing options to mitigate future risks [66][68]

Q2 2025 Financial Performance - Total revenue reached $138 million, a slight decrease of 0.5% year-over-year[5,29] - Broadband revenue was $86.9 million, down 6.5% from the previous year[5,29] - Video revenue increased to $51.1 million, up 11.6% year-over-year[5,29] - SaaS revenue within the Video segment hit a record $15.4 million, a 10.1% increase from the prior year[26,29] - The company's cash balance stands at $124 million, a significant increase from $46 million in Q2 2024[10,29] - Share repurchases totaled $14 million in Q2 2025, bringing the year-to-date total to $50 million[10] Q3 2025 Financial Guidance - The company anticipates consolidated net revenue to be in the range of $120 million to $135 million[36] - Broadband revenue is projected to be between $75 million and $85 million, while Video revenue is expected to be $45 million to $50 million[36] - The company expects earnings per share (EPS) to be between $0.02 and $0.07[36] Strategic Outlook - The company anticipates a revenue growth rebound in 2026, driven by Unified 4.0, customer ramps, and recent wins[10,38] - The company has a strong liquidity position, with $124 million in cash and an $82 million undrawn credit facility[31]

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) Harmonic Inc. announced unaudited Q2 2025 results, exceeding guidance for both broadband and video revenue and profitability, with video maintaining growth and Unified DOCSIS 4.0 progress signaling 2026 tailwinds [Press Release Overview](index=1&type=section&id=Press%20Release%20Overview) Harmonic Inc. announced unaudited Q2 2025 results, exceeding guidance for both broadband and video revenue and profitability, with video maintaining growth and Unified DOCSIS 4.0 progress signaling 2026 tailwinds - Harmonic Inc. achieved strong Q2 2025 results, with **revenue and profitability exceeding guidance** for both broadband and video segments[1](index=1&type=chunk)[2](index=2&type=chunk) - Video business maintained growth momentum, while broadband upgrade activities are expected to be modest in 2025, with positive Unified DOCSIS 4.0 progress anticipated to drive growth in 2026[2](index=2&type=chunk) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) The company achieved significant financial improvement in Q2 2025, with GAAP net income and EPS swinging to profit, Non-GAAP metrics showing growth, substantial cash increase, and share repurchases Q2 2025 Key Financial Data (GAAP vs. Non-GAAP) | Metric | Q2 2025 (GAAP) | Q2 2024 (GAAP) | Change (GAAP) | Q2 2025 (Non-GAAP) | Q2 2024 (Non-GAAP) | Change (Non-GAAP) | | :-------------------------------- | :------------- | :------------- | :------------ | :----------------- | :----------------- | :---------------- | | **Net Revenue (million $)** | $138.0 | $138.7 | -0.5% | * | * | * | | **Broadband Revenue (million $)** | $86.9 | $92.9 | -6.5% | * | * | * | | **Video Revenue (million $)** | $51.1 | $45.8 | +11.6% | * | * | * | | **Gross Margin (%)** | 53.5% | 52.9% | +0.6 pp | 54.1% | 53.1% | +1.0 pp | | **Operating Income (Loss) (million $)** | $3.9 | $(15.6) | Swing to Profit | $13.9 | $12.2 | +13.9% | | **Net Income (Loss) (million $)** | $2.9 | $(12.5) | Swing to Profit | $10.3 | $9.3 | +10.8% | | **Non-GAAP Adjusted EBITDA (million $)** | * | * | * | $17.0 | $16.1 | +5.6% | | **Net Income (Loss) Per Share ($)** | $0.03 | $(0.11) | Swing to Profit | $0.09 | $0.08 | +12.5% | | **Backlog and Deferred Revenue at Period End (million $)** | $504.5 | $613.1 | -17.7% | * | * | * | | **Cash and Cash Equivalents at Period End (million $)** | $123.9 | $45.9 | +170.0% | * | * | * | - The company repurchased approximately **1.6 million shares** of common stock for a total of **$14 million**[5](index=5&type=chunk) [Q2 2025 Business Highlights](index=1&type=section&id=Q2%202025%20Business%20Highlights) Harmonic advanced in both broadband and video, with widespread cOS solution deployment, new customer acquisition, product launches, a breakthrough DOCSIS 4.0 demo, and record video SaaS revenue - cOS solutions are commercially deployed with **136 customers**, serving **35.3 million cable modems**[5](index=5&type=chunk) - Four new broadband customers were added, including **two fiber customers**[5](index=5&type=chunk) - Launched the SeaStar™ optical node, designed to redefine broadband connectivity for low-density multi-dwelling units[5](index=5&type=chunk) - Successfully demonstrated DOCSIS 4.0 technology at CableLabs® interoperability events, achieving a record **14 Gbps downstream speed**[5](index=5&type=chunk) - Video SaaS revenue reached a record **$15.4 million** in Q2, primarily driven by continued growth in sports streaming[5](index=5&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About Harmonic Inc.](index=3&type=section&id=About%20Harmonic%20Inc.) Harmonic (NASDAQ: HLIT) is a global leader in virtualized broadband and video delivery solutions, enabling media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers worldwide - Harmonic is a **global leader** in virtualized broadband and video delivery solutions[11](index=11&type=chunk) - The company enables customers to deliver gigabit internet services and OTT video streaming, monetizing content through virtualized broadband solutions and innovative cloud and software platforms[11](index=11&type=chunk) [Legal Notice Regarding Forward-Looking Statements](index=3&type=section&id=Legal%20Notice%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements regarding future performance, where actual results may differ materially due to various risks including customer concentration, capital expenditure delays, and market changes - Forward-looking statements involve expectations for future **net revenue, gross margin, operating expenses, Adjusted EBITDA, tax rates, and net income per share**[12](index=12&type=chunk) - Actual results may differ materially due to various risks and uncertainties, including customer concentration, capital expenditure delays, lower-than-expected product sales, market and technology trend changes, tariffs, product development, international operations, exchange rate fluctuations, supply chain issues, and competition[12](index=12&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Harmonic will host a conference call on July 28, 2025, at 2:00 PM PT (5:00 PM ET) to discuss financial results, with live webcast and replay available on the investor relations website - The conference call will be held on **July 28, 2025, at 2:00 PM PT (5:00 PM ET)**[10](index=10&type=chunk) - Live webcast and replay will be available on Harmonic's investor relations website, with phone participation requiring prior registration[10](index=10&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) [Select Financial Results (Q2 2025, Q1 2025, Q2 2024)](index=2&type=section&id=Select%20Financial%20Results%20(Q2%202025%2C%20Q1%202025%2C%20Q2%202024)) This section presents Harmonic's key GAAP and Non-GAAP financial data for Q2 2025, Q1 2025, and Q2 2024, including net revenue, net income (loss), EPS, Adjusted EBITDA, bookings, backlog, and cash Select Financial Results | Metric | Q2 2025 (GAAP) (million $) | Q1 2025 (GAAP) (million $) | Q2 2024 (GAAP) (million $) | Q2 2025 (Non-GAAP) (million $) | Q1 2025 (Non-GAAP) (million $) | Q2 2024 (Non-GAAP) (million $) | | :-------------------------------- | :------------- | :------------- | :------------- | :----------------- | :----------------- | :----------------- | | **Net Revenue** | $138.0 | $133.1 | $138.7 | * | * | * | | **Net Income (Loss)** | $2.9 | $5.9 | $(12.5) | $10.3 | $13.4 | $9.3 | | **Net Income (Loss) Per Share ($)** | $0.03 | $0.05 | $(0.11) | $0.09 | $0.11 | $0.08 | | **Adjusted EBITDA** | * | * | * | $17.0 | $21.1 | $16.1 | | **Bookings** | $158.4 | $113.7 | $72.4 | * | * | * | | **Backlog and Deferred Revenue at Period End** | $504.5 | $485.1 | $613.1 | * | * | * | | **Cash and Cash Equivalents at Period End** | $123.9 | $148.7 | $45.9 | * | * | * | [Preliminary GAAP Revenue Information](index=9&type=section&id=Preliminary%20GAAP%20Revenue%20Information) Harmonic's GAAP revenue is segmented by geography and market, with Americas as the primary source and service providers as the largest market, showing growth in broadcast and media Revenue by Geographic Region (Three Months) | Geographic Region | Q2 2025 (thousands of dollars) | Percentage (%) | Q1 2025 (thousands of dollars) | Percentage (%) | Q2 2024 (thousands of dollars) | Percentage (%) | | :---------------- | :------------------- | :------------- | :------------------- | :------------- | :------------------- | :------------- | | Americas | $108,205 | 79 % | $101,681 | 76 % | $109,597 | 79 % | | EMEA | $19,888 | 14 % | $23,172 | 18 % | $22,680 | 16 % | | Asia Pacific | $9,934 | 7 % | $8,282 | 6 % | $6,463 | 5 % | | **Total** | **$138,027** | **100 %** | **$133,135** | **100 %** | **$138,740** | **100 %** | Revenue by Market (Three Months) | Market | Q2 2025 (thousands of dollars) | Percentage (%) | Q1 2025 (thousands of dollars) | Percentage (%) | Q2 2024 (thousands of dollars) | Percentage (%) | | :------- | :------------------- | :------------- | :------------------- | :------------- | :------------------- | :------------- | | Service Provider | $94,851 | 69 % | $94,202 | 71 % | $104,429 | 75 % | | Broadcast and Media | $43,176 | 31 % | $38,933 | 29 % | $34,311 | 25 % | | **Total** | **$138,027** | **100 %** | **$133,135** | **100 %** | **$138,740** | **100 %** | Revenue by Geographic Region (Six Months) | Geographic Region | YTD Q2 2025 (thousands of dollars) | Percentage (%) | YTD Q2 2024 (thousands of dollars) | Percentage (%) | | :---------------- | :----------------------- | :------------- | :----------------------- | :------------- | | Americas | $209,886 | 77 % | $202,628 | 78 % | | EMEA | $43,060 | 16 % | $46,240 | 18 % | | Asia Pacific | $18,216 | 7 % | $11,932 | 4 % | | **Total** | **$271,162** | **100 %** | **$260,800** | **100 %** | Revenue by Market (Six Months) | Market | YTD Q2 2025 (thousands of dollars) | Percentage (%) | YTD Q2 2024 (thousands of dollars) | Percentage (%) | | :------- | :----------------------- | :------------- | :----------------------- | :------------- | | Service Provider | $189,053 | 70 % | $191,122 | 73 % | | Broadcast and Media | $82,109 | 30 % | $69,678 | 27 % | | **Total** | **$271,162** | **100 %** | **$260,800** | **100 %** | [Preliminary Segment Information](index=10&type=section&id=Preliminary%20Segment%20Information) Harmonic's business is divided into broadband and video segments, with video showing significantly higher gross margins and year-over-year revenue growth in Q2 2025 Segment Revenue and Gross Margin (Three Months) | Metric | Q2 2025 Broadband (thousands of dollars) | Q2 2025 Video (thousands of dollars) | Q1 2025 Broadband (thousands of dollars) | Q1 2025 Video (thousands of dollars) | Q2 2024 Broadband (thousands of dollars) | Q2 2024 Video (thousands of dollars) | | :----------- | :----------------------------- | :--------------------------- | :----------------------------- | :--------------------------- | :----------------------------- | :--------------------------- | | **Net Revenue** | $86,918 | $51,109 | $84,878 | $48,257 | $92,937 | $45,803 | | **Gross Profit** | $40,412 | $34,249 | $47,080 | $32,055 | $44,236 | $29,494 | | **Gross Margin (%)** | 46.5 % | 67.0 % | 55.5 % | 66.4 % | 47.6 % | 64.4 % | Segment Revenue and Gross Margin (Six Months) | Metric | YTD Q2 2025 Broadband (thousands of dollars) | YTD Q2 2025 Video (thousands of dollars) | YTD Q2 2024 Broadband (thousands of dollars) | YTD Q2 2024 Video (thousands of dollars) | | :----------- | :------------------------------- | :----------------------------- | :------------------------------- | :----------------------------- | | **Net Revenue** | $171,796 | $99,366 | $171,834 | $88,966 | | **Gross Profit** | $87,492 | $66,304 | $81,730 | $56,063 | | **Gross Margin (%)** | 50.9 % | 66.7 % | 47.6 % | 63.0 % | [Financial Guidance](index=2&type=section&id=Financial%20Guidance) [Q3 2025 GAAP Financial Guidance](index=2&type=section&id=Q3%202025%20GAAP%20Financial%20Guidance) Harmonic projects Q3 2025 GAAP net revenue between $120 million and $135 million, with gross margin of 52.5% to 53.8%, and net income (loss) per share between -$0.04 and $0 Q3 2025 GAAP Financial Guidance | Metric | Low End (million $) | High End (million $) | | :--------------------- | :------------------ | :----------------- | | **Net Revenue** | $120 | $135 | | **Broadband Revenue** | $75 | $85 | | **Video Revenue** | $45 | $50 | | **Gross Margin (%)** | 52.5 % | 53.8 % | | **Gross Profit** | $63 | $73 | | **Tax Rate (%)** | 43 % | 43 % | | **Net Income (Loss)** | $(4) | $— | | **Net Income (Loss) Per Share ($)** | $(0.04) | $— | | **Diluted Shares Outstanding (million)** | 113.9 | 114.7 | - GAAP gross profit guidance includes approximately **$1 million** impact from tariffs[7](index=7&type=chunk) [Q3 2025 Non-GAAP Financial Guidance](index=2&type=section&id=Q3%202025%20Non-GAAP%20Financial%20Guidance) The company anticipates Q3 2025 Non-GAAP gross margin between 52.5% and 53.8%, Adjusted EBITDA between $7 million and $14 million, and Non-GAAP net income per share of $0.02 to $0.07 Q3 2025 Non-GAAP Financial Guidance | Metric | Low End (million $) | High End (million $) | | :--------------------- | :------------------ | :----------------- | | **Gross Margin (%)** | 52.5 % | 53.8 % | | **Broadband Gross Margin (%)** | 45.0 % | 46.0 % | | **Video Gross Margin (%)** | 65.0 % | 67.0 % | | **Gross Profit** | $63 | $73 | | **Broadband Gross Profit** | $34 | $39 | | **Video Gross Profit** | $29 | $34 | | **Adjusted EBITDA** | $7 | $14 | | **Broadband Adjusted EBITDA** | $5 | $9 | | **Video Adjusted EBITDA** | $2 | $5 | | **Tax Rate (%)** | 21 % | 21 % | | **Net Income Per Share ($)** | $0.02 | $0.07 | | **Diluted Shares Outstanding (million)** | 114.7 | 114.7 | - Non-GAAP gross profit guidance includes approximately **$1 million** impact from tariffs[9](index=9&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Use and Limitations of Non-GAAP Measures](index=3&type=section&id=Use%20and%20Limitations%20of%20Non-GAAP%20Measures) Harmonic uses Non-GAAP financial measures to supplement GAAP, providing deeper insights into financial and business trends for management's operational decisions, while acknowledging they are not GAAP substitutes and may differ from other companies' metrics - Management utilizes Non-GAAP measures to understand, manage, and evaluate the business, and to formulate operating budgets and decisions[13](index=13&type=chunk) - Non-GAAP measures are not substitutes for GAAP, may differ from those used by other companies, and should not be considered in isolation but evaluated with corresponding GAAP measures[14](index=14&type=chunk)[15](index=15&type=chunk) [Non-GAAP Adjustments Explained](index=4&type=section&id=Non-GAAP%20Adjustments%20Explained) Harmonic makes several adjustments to GAAP metrics for Non-GAAP reporting, primarily excluding stock-based compensation, restructuring charges, non-cash interest, depreciation, non-recurring consulting fees, and asset impairments to reflect core business performance - Non-GAAP adjustments include **stock-based compensation, restructuring and related charges, non-cash interest expense related to convertible notes, depreciation, non-recurring consulting fees, asset impairment and related charges, and the income tax effect of Non-GAAP adjustments**[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - These adjustments aim to provide a more comparable view of long-term core business performance and exclude the impact of non-recurring or non-cash items[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Preliminary Condensed Consolidated Balance Sheets](index=5&type=section&id=Preliminary%20Condensed%20Consolidated%20Balance%20Sheets) As of June 27, 2025, Harmonic's total assets were $783.3 million, a slight decrease from December 31, 2024, with increased cash and cash equivalents but significantly reduced net accounts receivable Preliminary Condensed Consolidated Balance Sheets (Selected) | Item | June 27, 2025 (thousands of dollars) | December 31, 2024 (thousands of dollars) | | :----------------------- | :----------------------------------- | :----------------------------------- | | **Assets** | | | | Cash and cash equivalents | 123,918 | 101,457 | | Accounts receivable, net | 120,665 | 178,013 | | Inventories | 71,138 | 64,004 | | Total current assets | 342,857 | 366,076 | | Goodwill | 241,718 | 236,876 | | **Total Assets** | **783,347** | **796,506** | | **Liabilities and Stockholders' Equity** | | | | Deferred revenue | 51,188 | 47,069 | | Total current liabilities | 172,209 | 167,569 | | Total liabilities | 336,945 | 331,248 | | Total stockholders' equity | 446,402 | 465,258 | | **Total Liabilities and Stockholders' Equity** | **783,347** | **796,506** | [Preliminary Condensed Consolidated Statements of Operations](index=6&type=section&id=Preliminary%20Condensed%20Consolidated%20Statements%20of%20Operations) In Q2 2025, Harmonic's net revenue was $138.0 million, with operating income of $3.9 million and net income of $2.9 million, marking a significant improvement from prior year's losses, driven by enhanced gross profit and reduced operating expenses Preliminary Condensed Consolidated Statements of Operations (Selected) | Item | Three Months Ended June 27, 2025 (thousands of dollars) | Three Months Ended June 28, 2024 (thousands of dollars) | Six Months Ended June 27, 2025 (thousands of dollars) | Six Months Ended June 28, 2024 (thousands of dollars) | | :----------------------- | :-------------------------------------- | :-------------------------------------- | :------------------------------------ | :------------------------------------ | | **Total Net Revenue** | $138,027 | $138,740 | $271,162 | $260,800 | | Equipment and integration revenue | $94,067 | $94,184 | $185,608 | $175,779 | | SaaS and services revenue | $43,960 | $44,556 | $85,554 | $85,021 | | **Total Gross Profit** | $73,793 | $73,457 | $152,367 | $136,538 | | **Operating Expenses** | $69,923 | $89,087 | $138,370 | $161,694 | | Research and development expenses | $29,442 | $28,784 | $60,791 | $59,489 | | Selling, general and administrative expenses | $38,194 | $39,821 | $75,292 | $78,686 | | **Operating Income (Loss)** | $3,870 | $(15,630) | $13,997 | $(25,156) | | **Net Income (Loss)** | $2,871 | $(12,532) | $8,811 | $(20,621) | | **Diluted Net Income (Loss) Per Share ($)** | $0.03 | $(0.11) | $0.08 | $(0.18) | [Preliminary Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Preliminary%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 27, 2025, Harmonic's net cash from operating activities significantly increased to $71.9 million, with net cash used in investing activities of $5.7 million and financing activities of $48.9 million, leading to increased cash and restricted cash Preliminary Condensed Consolidated Statements of Cash Flows (Selected) | Item | Six Months Ended June 27, 2025 (thousands of dollars) | Six Months Ended June 28, 2024 (thousands of dollars) | | :------------------------------------------------ | :------------------------------------ | :------------------------------------ | | **Net Cash Provided by Operating Activities** | $71,908 | $4,666 | | **Net Cash Used in Investing Activities** | $(5,672) | $(3,856) | | **Net Cash Used in Financing Activities** | $(48,883) | $(34,923) | | **Effect of Exchange Rate Changes** | $5,132 | $(1,391) | | **Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash** | $22,485 | $(35,504) | | **Cash, Cash Equivalents and Restricted Cash at Period End** | $124,274 | $48,765 | | Comprised of: Cash and cash equivalents | $123,918 | $45,850 | | Comprised of: Restricted cash | $356 | $2,827 | - Net cash used in financing activities primarily included repayment of long-term debt and common stock repurchases, with **$50.102 million** spent on common stock repurchases[29](index=29&type=chunk) [Supplemental Cash Flow Disclosure](index=8&type=section&id=Supplemental%20Cash%20Flow%20Disclosure) For the six months ended June 27, 2025, Harmonic's net income taxes paid were $13.764 million, net interest paid was $2.715 million, and capital expenditures incurred but not yet paid totaled $1.141 million Supplemental Cash Flow Disclosure (Six Months) | Item | Six Months Ended June 27, 2025 (thousands of dollars) | Six Months Ended June 28, 2024 (thousands of dollars) | | :----------------------- | :------------------------------------ | :------------------------------------ | | **Income Taxes Paid, Net** | $13,764 | $11,407 | | **Interest Paid, Net** | $2,715 | $1,895 | | **Capital Expenditures Incurred But Not Yet Paid** | $1,141 | $282 | [GAAP to Non-GAAP Reconciliations](index=11&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) [Q2 2025 GAAP to Non-GAAP Reconciliations](index=11&type=section&id=Q2%202025%20GAAP%20to%20Non-GAAP%20Reconciliations) In Q2 2025, Harmonic's GAAP net income of $2.871 million adjusted to Non-GAAP net income of $10.3 million, with Non-GAAP gross margin at 54.1% and operating income at 10.1% of revenue, after accounting for stock-based compensation, restructuring, and other items Q2 2025 GAAP to Non-GAAP Reconciliations (Selected) | Item | GAAP (thousands of dollars) | Adjustments (thousands of dollars) | Non-GAAP (thousands of dollars) | | :----------------------- | :-------------------------- | :------------------------- | :------------------------ | | **Revenue** | $138,027 | $— | $138,027 | | **Gross Profit** | $73,793 | $868 | $74,661 | | **Total Operating Expenses** | $69,923 | $(9,194) | $60,729 | | **Operating Income** | $3,870 | $10,062 | $13,932 | | **Net Income** | $2,871 | $7,429 | $10,300 | | **Gross Margin (%)** | 53.5 % | | 54.1 % | | **Operating Income (%)** | 2.8 % | | 10.1 % | | **Diluted Net Income Per Share ($)** | $0.03 | | $0.09 | [Q1 2025 GAAP to Non-GAAP Reconciliations](index=11&type=section&id=Q1%202025%20GAAP%20to%20Non-GAAP%20Reconciliations) In Q1 2025, Harmonic's GAAP net income of $5.94 million adjusted to Non-GAAP net income of $13.387 million, with Non-GAAP gross margin at 59.4% and operating income at 14.0% of revenue, after accounting for stock-based compensation and tax impacts Q1 2025 GAAP to Non-GAAP Reconciliations (Selected) | Item | GAAP (thousands of dollars) | Adjustments (thousands of dollars) | Non-GAAP (thousands of dollars) | | :----------------------- | :-------------------------- | :------------------------- | :------------------------ | | **Revenue** | $133,135 | $— | $133,135 | | **Gross Profit** | $78,574 | $561 | $79,135 | | **Total Operating Expenses** | $68,447 | $(7,904) | $60,543 | | **Operating Income** | $10,127 | $8,465 | $18,592 | | **Net Income** | $5,940 | $7,447 | $13,387 | | **Gross Margin (%)** | 59.0 % | | 59.4 % | | **Operating Income (%)** | 7.6 % | | 14.0 % | | **Diluted Net Income Per Share ($)** | $0.05 | | $0.11 | [Q2 2024 GAAP to Non-GAAP Reconciliations](index=12&type=section&id=Q2%202024%20GAAP%20to%20Non-GAAP%20Reconciliations) In Q2 2024, Harmonic's GAAP net loss of $12.532 million adjusted to Non-GAAP net income of $9.279 million, with Non-GAAP gross margin at 53.1% and operating income at 8.8% of revenue, after accounting for various non-GAAP adjustments Q2 2024 GAAP to Non-GAAP Reconciliations (Selected) | Item | GAAP (thousands of dollars) | Adjustments (thousands of dollars) | Non-GAAP (thousands of dollars) | | :----------------------- | :-------------------------- | :------------------------- | :------------------------ | | **Revenue** | $138,740 | $— | $138,740 | | **Gross Profit** | $73,457 | $273 | $73,730 | | **Total Operating Expenses** | $89,087 | $(27,569) | $61,518 | | **Operating Income (Loss)** | $(15,630) | $27,842 | $12,212 | | **Net Income (Loss)** | $(12,532) | $21,811 | $9,279 | | **Gross Margin (%)** | 52.9 % | | 53.1 % | | **Operating Income (%)** | (11.3)% | | 8.8 % | | **Diluted Net Income (Loss) Per Share ($)** | $(0.11) | | $0.08 | [Six Months Ended June 27, 2025 GAAP to Non-GAAP Reconciliations](index=12&type=section&id=Six%20Months%20Ended%20June%2027%2C%202025%20GAAP%20to%20Non-GAAP%20Reconciliations) For the six months ended June 27, 2025, Harmonic's GAAP net income of $8.811 million adjusted to Non-GAAP net income of $23.687 million, with Non-GAAP gross margin at 56.7% and operating income at 12.0% of revenue, after various non-GAAP adjustments Six Months Ended June 27, 2025 GAAP to Non-GAAP Reconciliations (Selected) | Item | GAAP (thousands of dollars) | Adjustments (thousands of dollars) | Non-GAAP (thousands of dollars) | | :----------------------- | :-------------------------- | :------------------------- | :------------------------ | | **Revenue** | $271,162 | $— | $271,162 | | **Gross Profit** | $152,367 | $1,429 | $153,796 | | **Total Operating Expenses** | $138,370 | $(17,098) | $121,272 | | **Operating Income** | $13,997 | $18,527 | $32,524 | | **Net Income** | $8,811 | $14,876 | $23,687 | | **Gross Margin (%)** | 56.2 % | | 56.7 % | | **Operating Income (%)** | 5.2 % | | 12.0 % | | **Diluted Net Income Per Share ($)** | $0.08 | | $0.21 | [Six Months Ended June 28, 2024 GAAP to Non-GAAP Reconciliations](index=13&type=section&id=Six%20Months%20Ended%20June%2028%2C%202024%20GAAP%20to%20Non-GAAP%20Reconciliations) For the six months ended June 28, 2024, Harmonic's GAAP net loss of $20.621 million adjusted to Non-GAAP net income of $9.661 million, with Non-GAAP gross margin at 52.8% and operating income at 5.2% of revenue, after various non-GAAP adjustments Six Months Ended June 28, 2024 GAAP to Non-GAAP Reconciliations (Selected) | Item | GAAP (thousands of dollars) | Adjustments (thousands of dollars) | Non-GAAP (thousands of dollars) | | :----------------------- | :-------------------------- | :------------------------- | :------------------------ | | **Revenue** | $260,800 | $— | $260,800 | | **Gross Profit** | $136,538 | $1,255 | $137,793 | | **Total Operating Expenses** | $161,694 | $(37,356) | $124,338 | | **Operating Income (Loss)** | $(25,156) | $38,611 | $13,455 | | **Net Income (Loss)** | $(20,621) | $30,282 | $9,661 | | **Gross Margin (%)** | 52.4 % | | 52.8 % | | **Operating Income (%)** | (9.6)% | | 5.2 % | | **Diluted Net Income (Loss) Per Share ($)** | $(0.18) | | $0.08 | [Calculation of Adjusted EBITDA by Segment (Historical)](index=14&type=section&id=Calculation%20of%20Adjusted%20EBITDA%20by%20Segment%20(Historical)) This section presents historical Adjusted EBITDA and margins for Harmonic's broadband and video segments, showing video's consistent positive and higher margins, while broadband's Adjusted EBITDA margin decreased in Q2 2025 Calculation of Adjusted EBITDA by Segment (Three Months) | Metric | Q2 2025 Broadband (thousands of dollars) | Q2 2025 Video (thousands of dollars) | Q1 2025 Broadband (thousands of dollars) | Q1 2025 Video (thousands of dollars) | Q2 2024 Broadband (thousands of dollars) | Q2 2024 Video (thousands of dollars) | | :--------------------- | :------------------------------------- | :----------------------------------- | :------------------------------------- | :----------------------------------- | :------------------------------------- | :----------------------------------- | | **Operating Income (Loss)** | $8,585 | $5,347 | $14,021 | $4,571 | $13,781 | $(1,569) | | **Depreciation** | $1,929 | $743 | $1,964 | $756 | $2,133 | $1,093 | | **Other Non-Operating Income, Net** | $255 | $104 | $(124) | $(48) | $406 | $213 | | **Adjusted EBITDA** | $10,769 | $6,194 | $15,861 | $5,279 | $16,320 | $(263) | | **Revenue** | $86,918 | $51,109 | $84,878 | $48,257 | $92,937 | $45,803 | | **Adjusted EBITDA Margin (%)** | 12.4 % | 12.1 % | 18.7 % | 10.9 % | 17.6 % | (0.6)% | Calculation of Adjusted EBITDA by Segment (Six Months) | Metric | YTD Q2 2025 Broadband (thousands of dollars) | YTD Q2 2025 Video (thousands of dollars) | YTD Q2 2024 Broadband (thousands of dollars) | YTD Q2 2024 Video (thousands of dollars) | | :--------------------- | :----------------------------------- | :--------------------------------- | :----------------------------------- | :--------------------------------- | | **Operating Income (Loss)** | $22,606 | $9,918 | $22,375 | $(8,920) | | **Depreciation** | $3,893 | $1,499 | $4,119 | $2,192 | | **Other Non-Operating Income, Net** | $131 | $56 | $227 | $114 | | **Adjusted EBITDA** | $26,630 | $11,473 | $26,721 | $(6,614) | | **Revenue** | $171,796 | $99,366 | $171,834 | $88,966 | | **Adjusted EBITDA Margin (%)** | 15.5 % | 11.5 % | 15.6 % | (7.4)% | [Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Historical)](index=15&type=section&id=Net%20Income%20(Loss)%20to%20Consolidated%20Segment%20Adjusted%20EBITDA%20Reconciliation%20(Historical)) This section reconciles historical GAAP net income (loss) to Non-GAAP consolidated segment Adjusted EBITDA, adjusting for income taxes, interest, depreciation, stock-based compensation, restructuring, non-recurring consulting fees, and asset impairments Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Three Months) | Item | Q2 2025 (thousands of dollars) | Q1 2025 (thousands of dollars) | Q2 2024 (thousands of dollars) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | **Net Income (Loss) (GAAP)** | $2,871 | $5,940 | $(12,532) | | Provision (Benefit) for income taxes | $105 | $2,541 | $(3,903) | | Interest expense, net | $1,253 | $1,474 | $1,424 | | Depreciation | $2,672 | $2,720 | $3,226 | | **EBITDA** | $6,901 | $12,675 | $(11,785) | | **Adjustments** | | | | | Stock-based compensation | $7,697 | $8,465 | $6,954 | | Restructuring and related charges | $650 | $— | $11,482 | | Non-recurring consulting fees | $78 | $— | $406 | | Lease-related asset impairment and other charges | $1,637 | $— | $9,000 | | **Consolidated Segment Adjusted EBITDA (Non-GAAP)** | $16,963 | $21,140 | $16,057 | | **Revenue** | $138,027 | $133,135 | $138,740 | | **Net Income (Loss) Margin (GAAP) (%)** | 2.1 % | 4.5 % | (9.0)% | | **Consolidated Segment Adjusted EBITDA Margin (Non-GAAP) (%)** | 12.3 % | 15.9 % | 11.6 % | Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Six Months) | Item | YTD Q2 2025 (thousands of dollars) | YTD Q2 2024 (thousands of dollars) | | :----------------------------------- | :--------------------------------- | :--------------------------------- | | **Net Income (Loss) (GAAP)** | $8,811 | $(20,621) | | Provision (Benefit) for income taxes | $2,646 | $(6,352) | | Interest expense, net | $2,727 | $2,147 | | Depreciation | $5,392 | $6,311 | | **EBITDA** | $19,576 | $(18,515) | | **Adjustments** | | | | Stock-based compensation | $16,162 | $13,877 | | Restructuring and related charges | $650 | $14,990 | | Non-recurring consulting fees | $78 | $755 | | Lease-related asset impairment and other charges | $1,637 | $9,000 | | **Consolidated Segment Adjusted EBITDA (Non-GAAP)** | $38,103 | $20,107 | | **Revenue** | $271,162 | $260,800 | | **Consolidated Segment Adjusted EBITDA Margin (Non-GAAP) (%)** | 14.0 % | 7.7 % | [Q3 2025 Financial Guidance GAAP to Non-GAAP Reconciliations](index=16&type=section&id=Q3%202025%20Financial%20Guidance%20GAAP%20to%20Non-GAAP%20Reconciliations) This section provides Q3 2025 financial guidance GAAP to Non-GAAP reconciliations, with key adjustments for stock-based compensation and restructuring charges, projecting Non-GAAP net income (loss) to improve from GAAP's -$4 million to $0 to $2 million to $8 million Q3 2025 Financial Guidance GAAP to Non-GAAP Reconciliations (Selected) | Item | GAAP (Low-High) (million $) | Adjustments (million $) | Non-GAAP (Low-High) (million $) | | :----------------------- | :-------------------------- | :---------------------- | :------------------------------ | | **Gross Profit** | $63 - $73 | $— | $63 - $73 | | **Total Operating Expenses** | $68 - $70 | $(9) | $59 - $61 | | **Operating Income** | $(5) - $3 | $9 | $4 - $11 | | **Net Income (Loss)** | $(4) - $— | $6 - $8 | $2 - $8 | | **Diluted Net Income (Loss) Per Share ($)** | $(0.04) - $— | | $0.02 - $0.07 | - Key adjustments include **stock-based compensation ($8 million)** and **restructuring and related charges ($1 million)**, along with tax impacts[47](index=47&type=chunk) [Q3 2025 Financial Guidance Calculation of Adjusted EBITDA by Segment](index=16&type=section&id=Q3%202025%20Financial%20Guidance%20Calculation%20of%20Adjusted%20EBITDA%20by%20Segment) This section provides Q3 2025 financial guidance for Adjusted EBITDA by segment, projecting broadband Adjusted EBITDA between $5 million and $9 million, and video Adjusted EBITDA between $2 million and $5 million Q3 2025 Financial Guidance Calculation of Adjusted EBITDA by Segment | Metric | Broadband (Low-High) (million $) | Video (Low-High) (million $) | | :--------------------- | :------------------------------- | :--------------------------- | | **Operating Income** | $3 - $7 | $1 - $4 | | **Depreciation** | $2 - $2 | $1 - $1 | | **Segment Adjusted EBITDA** | $5 - $9 | $2 - $5 | [Q3 2025 Financial Guidance Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation](index=17&type=section&id=Q3%202025%20Financial%20Guidance%20Net%20Income%20(Loss)%20to%20Consolidated%20Segment%20Adjusted%20EBITDA%20Reconciliation) This section reconciles Q3 2025 financial guidance for GAAP net income (loss) to consolidated segment Adjusted EBITDA, adjusting for income taxes, interest, depreciation, stock-based compensation, and restructuring charges Q3 2025 Financial Guidance Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation | Item | Q3 2025 Financial Guidance (Low-High) (million $) | | :----------------------------------- | :---------------------------------- | | **Net Income (Loss) (GAAP)** | $(4) - $— | | Provision (Benefit) for income taxes | $(2) - $1 | | Interest expense, net | $1 - $1 | | Depreciation | $3 - $3 | | **EBITDA** | $(2) - $5 | | **Adjustments** | | | Stock-based compensation | $8 - $8 | | Restructuring and related charges | $1 - $1 | | **Consolidated Segment Adjusted EBITDA (Non-GAAP)** | $7 - $14 |

Core Insights - Harmonic Inc. reported strong second quarter results for 2025, with revenue and profitability in both Video and Broadband segments exceeding the high end of their guidance [2][4] - The company is experiencing momentum in the Video segment and anticipates moderate growth in Broadband, with positive indicators for future performance [2][4] Financial Performance - Q2 2025 net revenue was $138.0 million, slightly down from $138.7 million in Q2 2024 [7] - Broadband segment revenue decreased to $86.9 million from $92.9 million year-over-year, while Video segment revenue increased to $51.1 million from $45.8 million [7] - GAAP net income for Q2 2025 was $2.9 million, compared to a net loss of $12.5 million in the prior year [7] - Non-GAAP net income was $10.3 million, up from $9.3 million in Q2 2024 [7] - Adjusted EBITDA for the quarter was $17.0 million, compared to $16.1 million in the prior year [7] Business Highlights - The company reported bookings of $158.4 million for the quarter, significantly higher than $72.4 million in Q2 2024 [7] - Backlog and deferred revenue as of the quarter end stood at $504.5 million [7] - Cash and cash equivalents at the end of Q2 2025 were $123.9 million, compared to $45.9 million in the prior year [7] - Harmonic repurchased approximately 1.6 million shares of common stock for $14.0 million [7] - The company commercially deployed its cOSTM solution with 136 customers, serving 35.3 million cable modems [7] Future Outlook - For Q3 2025, the company expects net revenue in the range of $120 million to $135 million, with gross margins projected at 52.5% to 53.8% [6] - The company anticipates that the ongoing development of Unified DOCSIS 4.0 will provide tailwinds for growth in 2026 [2][4]

Group 1 - Civitas Capital Group appointed Mine Ekim as Managing Director, Legal & Head of Investor Experience, bringing over 15 years of international legal and compliance expertise [1][2] - Ms. Ekim will oversee fund formation, regulatory and compliance matters, and firmwide legal initiatives, while enhancing investor engagement and operational excellence [1][2] - The company has worked with more than 1,500 investors across 40 countries over the past 15 years, focusing on providing niche opportunities in U.S. real estate [4] Group 2 - Daniel J. Healy, CEO of Civitas, emphasized Ms. Ekim's global perspective and commitment to investor-first thinking as key attributes for the company's growth and innovation [2] - Ms. Ekim has held significant roles at major organizations, including Dow Jones & Company and Shell, and most recently served as Managing Director, Legal & Compliance at a real estate investment firm [2][3] - She is recognized for her leadership and dedication to mentorship, having been named one of the "50 Women to Watch" by Corporate Counsel Business Journal in 2023 [3]

Core Insights - Harmonic is showcasing innovative solutions at IBC2025 aimed at enhancing video streaming and broadcast delivery, focusing on hybrid cloud and on-premises solutions, AI-driven workflows, and advancements in live sports streaming [1][2][8] Group 1: Innovations and Solutions - The company emphasizes hybrid cloud and on-premises streaming solutions to improve viewer engagement and operational efficiency [1] - AI-driven workflows and innovative ad insertion technologies are highlighted as key components to unlock new monetization opportunities [1][5] - Harmonic's Software Spectrum X media server offers double the channel density for UHD workflows, enhancing video resolution and quality of experience (QoE) [5] Group 2: Revenue Maximization - Harmonic's advancements allow broadcasters and service providers to maximize revenue streams through innovative ad solutions and programmatic ad buying efficiencies [3][5] - The VOS360 Ad SaaS automatically inserts ad breaks in VOD assets and live content, facilitating monetization without manual operations [5] Group 3: Live Sports Streaming - The company is innovating live sports streaming solutions that enhance monetization, protect content against piracy, and improve fan engagement with low latency and advanced multiview capabilities [5] - AI-powered features such as speech-to-text, real-time highlight creation, and automated translation are set to elevate viewer experiences [5][12] Group 4: Collaboration and Partnerships - Harmonic is collaborating with industry leaders to drive innovation in video streaming and broadcast delivery, integrating solutions with major system integrators and managed services providers [4][12] - The partnership with VisualOn aims to enhance viewer engagement through immersive multiview capabilities [12]

Core Viewpoint - Harmonic is set to release its second quarter 2025 financial results on July 28, 2025, after market close, followed by a live webcast to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for the second quarter of 2025 will be announced after market close on July 28, 2025 [1]. - A live webcast to discuss the results will take place at 2:00 p.m. PT on the same day [1]. Group 2: Participation Details - Telephone participants must register in advance to receive a confirmation email with details on joining the audio version of the webcast [2]. - The live webcast will be accessible via Harmonic's Investor Relations website [2]. - Participants are advised to join the conference call or sign on to the webcast at least 15 minutes prior to the start [2]. Group 3: Replay Information - A replay of the live event will be available on the Investor Relations website after 5:00 p.m. PT [3]. Group 4: Company Overview - Harmonic is a leader in virtualized broadband and video delivery solutions, enabling media companies and service providers to deliver high-quality video streaming and broadcast services globally [4]. - The company has innovated broadband networking with the first virtualized broadband solution, allowing flexible deployment of gigabit internet services [4]. - Harmonic's solutions facilitate the monetization of live and on-demand content across various screens [4].

Core Insights - Harmonic's cOS platform has been selected by Mediacom Communications to modernize its network, enabling the provision of multigigabit and symmetrical broadband services with enhanced reliability and lower operating costs [1][2] - The deployment of Harmonic's Unified DOCSIS 4.0 solution supports Mediacom's transition to a distributed access architecture (DAA), improving internet speed and reducing latency for consumers [1][3] - Mediacom is among the first North American operators to implement DOCSIS 4.0 services, utilizing both Full Duplex (FDX) and Frequency Division Duplex (FDD) technologies [3] Company Overview - Harmonic is recognized as a market leader in cable broadband equipment, virtual CMTS, and DAA, with a significant installed base and a strong presence in the broadband industry [4] - The cOS platform supports over 33 million customer premises equipment (CPE) devices globally, catering to leading operators across North America, Europe, Latin America, and Asia [4] - Mediacom is the fifth-largest cable operator in the U.S., providing high-speed data, video, phone, and mobile services to over 3 million households and businesses across 22 states [7][8]

Core Insights - Harmonic, Inc. (HLIT) has partnered with Vectra, a leading Internet provider in Poland, to deploy its cOS virtualized broadband platform, aiming to enhance Vectra's multigigabit broadband services and support the transition to deep fiber infrastructure [1][10] - Vectra becomes the first operator to implement Harmonic's PTP-less distributed access architecture (DAA), which simplifies operations and increases reliability in broadband services [2][10] - The collaboration includes integrating Harmonic's advanced technologies such as Reef Remote PHY Shelves and SeaStar Optical Node, facilitating fiber connectivity in existing coaxial cabling [3][10] Industry Impact - This deployment is a significant milestone for the global broadband industry, as it showcases innovative solutions that can streamline operations and enhance service delivery [2] - The platform allows for a cost-effective migration from DOCSIS to PON, enabling Vectra to offer new revenue streams through bitstream access and wholesale services [4] - The demand for high-speed Internet is driving operators to expand networks while optimizing costs, positioning Harmonic as a leader in delivering scalable broadband solutions [7] Market Position - Harmonic is recognized as a market leader in virtual CMTS and DAA, with its cOS platform powering broadband services for over 33 million customer premises equipment (CPEs) globally [6] - The partnership with Netceed, a key solutions provider, is crucial for ensuring the successful and timely deployment of the broadband infrastructure [5]