Harmonic(US:HLIT)2025-02-14 21:20Revenue Performance - Total net revenue for 2024 was $678.7 million, an increase of $70.8 million or 12% compared to 2023[219] - Appliance and integration revenue increased by $71.5 million to $507.4 million, primarily driven by a $99.8 million increase in Broadband segment revenue[219] - SaaS and service revenue decreased by $0.7 million to $171.3 million, mainly due to a $6.6 million decrease in Video segment support services[220] - Americas net revenue increased by $109.6 million to $557.3 million, driven by a $115.1 million increase in Broadband segment revenue[221] - EMEA net revenue decreased by $35.1 million to $92.6 million, primarily due to lower sales in both Video and Broadband segments[222] - APAC net revenue decreased by $3.6 million to $28.9 million, primarily due to a decline in Video product sales[223] - Broadband segment revenue increased by $99.7 million, or 26%, in 2024, while Video segment revenue decreased by $28.9 million, or 13%[236][238] - Total net revenue for 2024 reached $678.722 million, a 11.6% increase from $607.907 million in 2023[288] Profitability and Expenses - Gross profit for 2024 was $365.9 million, representing a gross margin of 53.9%, an improvement of 250 basis points from 2023[224][225] - Net income for 2024 was $39.217 million, a significant decrease of 53.3% compared to $83.994 million in 2023[291] - Total gross profit increased to $365.921 million in 2024, up from $312.545 million in 2023, reflecting a gross margin improvement[288] - Operating expenses rose to $302.785 million in 2024, compared to $290.373 million in 2023, primarily due to increased research and development costs[288] - Selling, general and administrative expenses decreased by $10.2 million in 2024, representing a 6% reduction compared to 2023, primarily due to headcount reductions and non-recurring advisory fees[228] - Research and development expenses decreased by $5.3 million to $121.0 million, accounting for 18% of total net revenue[226] Cash Flow and Financial Position - Net cash provided by operating activities surged by $54.9 million to $61.9 million in 2024, compared to $7.1 million in 2023[250] - Cash and cash equivalents at the end of 2024 were $101.789 million, an increase from $84.269 million at the end of 2023[297] - The company's total assets increased to $796.5 million in 2024 from $768.2 million in 2023, reflecting a growth in cash and cash equivalents to $101.5 million[286] - The company’s total current liabilities decreased to $167.6 million in 2024 from $272.4 million in 2023, showing a significant reduction in short-term obligations[286] - The company’s additional paid-in capital increased to $2.43 billion in 2024 from $2.41 billion in 2023, reflecting ongoing investment and capital raising efforts[286] Debt and Financing - As of December 31, 2024, the company had $128.1 million in outstanding indebtedness, with $75.0 million from the Revolving Facility and $39.5 million from the Term Facility[242] - The company entered into a Master Receivables Purchase Agreement allowing the sale of up to $30,000,000 in eligible billed receivables, with no receivables sold under this agreement as of December 31, 2024[362] - The carrying amount of long-term debt as of December 31, 2024, was $114,278,000, with the fair value approximating this amount due to variable interest rates[358] - The company had borrowings of $75.0 million under the Revolving Facility and $39.5 million under the Term Facility as of December 31, 2024[385] Taxation - The provision for income taxes was $18.7 million in 2024, a significant increase from a benefit of $(64.9) million in 2023, due to the prior period release of a valuation allowance[235] - The effective tax rate for 2024 was 32%, a significant change from the effective tax rate of (339%) in 2023[406] Shareholder Activities - The company authorized a share repurchase program of up to $200 million, effective through February 2028[243] - The company repurchased approximately 2.4 million shares of common stock for an aggregate amount of $30 million during the year ended December 31, 2024[404] - The Company granted 77,571 PRSUs and 329,166 MRSUs during the fiscal year 2024[389] Impairments and Charges - The company recorded an impairment charge of $1.8 million related to internally developed software and lease-related impairment charges totaling $10.9 million in 2024[230] - The Company recorded a total restructuring cost of $16,000,000 in 2024, aimed at improving efficiencies in the Video business[368] - The Company recorded total lease-related impairment and other charges of $10.9 million in 2024, including $3.9 million in right-of-use asset impairments[350] Inventory and Receivables - The company’s net inventory totaled $64 million as of December 31, 2024, with a provision for excess and obsolete inventory being a critical audit matter due to management's estimates[273] - As of December 31, 2024, accounts receivable totaled $180,541,000, an increase from $144,731,000 in 2023, with a net total of $178,013,000 after allowances[361] - The total inventory decreased from $83,982,000 in 2023 to $64,004,000 in 2024, with finished goods dropping from $43,987,000 to $37,634,000[363] Other Financial Metrics - The company recorded a remeasurement gain of approximately $2.4 million during the year ended December 31, 2024, from foreign currency exposure[330] - The total allowance for expected credit losses decreased from $3,200,000 in 2023 to $2,528,000 in 2024, reflecting improved collectability[362] - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the independent auditor's opinion[277]