Harmonic(US:HLIT)2024-07-29 20:11Revenue Performance - Revenue for Q2 2024 was $138.7 million, a 14% increase quarter over quarter, but down from $156.0 million in the prior year period[4] - Total net revenue for the three months ended June 28, 2024, was $138.74 million, a decrease of 11% compared to $155.96 million for the same period in 2023[33] - Total revenue for the six months ended June 28, 2024, was $260,800 thousand, down 16.8% from $313,612 thousand in the same period of 2023[40] - For the six months ended June 28, 2024, total revenue was $260.800 million, with a net loss of $(20.621) million, down from a net income of $6.648 million in the same period of 2023[53] Segment Performance - Broadband segment revenue was $92.9 million, compared to $97.1 million in the prior year, while Video segment revenue was $45.8 million, down from $58.9 million[4] - For the three months ended June 28, 2024, Harmonic Inc. reported Broadband revenue of $92.937 million and Video revenue of $45.803 million, resulting in total revenue of $138.740 million[50] - Adjusted EBITDA for Broadband was $16.320 million with a margin of 17.6%, while Video had an Adjusted EBITDA of $(0.263) million with a margin of (0.6)% for the same period[50] Profitability and Margins - GAAP gross margin was 52.9%, down from 54.5% in the prior year, while non-GAAP gross margin was 53.1%, down from 54.7%[4] - Gross profit for the three months ended June 28, 2024, was $73.46 million, down from $84.94 million in the same period last year, representing a decline of 13%[33] - The company reported a gross margin of 52.4% for the six months ended June 28, 2024, compared to 53.9% for the same period in 2023[42] - Non-GAAP net income for the same period was $9.28 million, compared to a loss of $8.09 million in the previous quarter, indicating a significant turnaround[46] Net Income and Loss - GAAP net loss was $12.5 million, compared to a net income of $1.6 million in the prior year, and non-GAAP net income was $9.3 million, down from $14.0 million[4] - Net loss for the three months ended June 28, 2024, was $12.53 million, compared to a net income of $1.56 million for the same period in 2023[33] - Net income for the six months ended June 28, 2024, was a loss of $20,621 thousand, compared to a net income of $6,648 thousand for the same period in 2023[36] Cash and Liquidity - Cash and cash equivalents decreased to $45.9 million from $71.0 million in the prior year[4] - The company reported a total current asset decrease from $330.73 million as of December 31, 2023, to $284.55 million as of June 28, 2024[31] - The company’s cash and cash equivalents decreased from $84.27 million as of December 31, 2023, to $45.85 million as of June 28, 2024[31] - Cash flows from operating activities provided $4,666 thousand for the six months ended June 28, 2024, compared to cash used of $10,252 thousand in the same period of 2023[36] Guidance and Projections - For Q3 2024, the company expects total GAAP net revenue guidance between $175 million and $190 million[7] - For the full year 2024, total GAAP net revenue guidance is projected to be between $645 million and $695 million[8] - Harmonic Inc. provided Q3 2024 financial guidance with expected revenue between $175 million and $190 million, and net income guidance of $16 million to $22 million[55] - The company anticipates 2024 revenue guidance of $645 million to $695 million, with net income projected between $23 million and $45 million[56] Operating Expenses - Operating expenses increased to $89.09 million for the three months ended June 28, 2024, compared to $74.98 million in the same period last year, marking a rise of 19%[33] - Total operating expenses for the three months ended June 28, 2024, were $89.09 million, up from $72.61 million in the previous quarter, indicating increased investment in operations[46] Restructuring and Charges - The company incurred restructuring and related charges of $11.48 million for the three months ended June 28, 2024, compared to no such charges in the same period last year[33] - Harmonic Inc. has indicated ongoing investments in restructuring and related charges, with $11.482 million recorded in the latest quarter[53] Other Financial Metrics - Backlog and deferred revenue stood at $613.1 million[4] - The company incurred $9,000 thousand in lease-related asset impairment and other charges during the six months ended June 28, 2024[36] - The company issued shares of common stock upon redemption of the 2024 Notes, totaling $4,578 thousand[38]