Harmonic(US:HLIT)2026-02-24 22:14Financial Performance - Total net revenue for fiscal 2025 was $360.5 million, a decrease of 26% compared to $488.2 million in fiscal 2024[227]. - Gross profit for fiscal 2025 was $174.7 million, a decline of 27% from $240.1 million in fiscal 2024[235]. - The company’s gross margin for fiscal 2025 was 48.5%, a slight decline from 49.2% in fiscal 2024[235]. - Americas net revenue decreased by $128.8 million in 2025, mainly due to a $148.0 million reduction in U.S. appliance and integration revenue[229]. - APAC net revenue increased by 149% in 2025 compared to 2024, primarily driven by a DOCSIS expansion project from a new customer[230]. - Net sales from discontinued operations were $210.3 million in 2025, up from $190.5 million in 2024, driven by a $15.9 million increase in appliance and integration revenue[272]. Expenses - Research and development expenses increased to $76.3 million in 2025, up 5% from $72.6 million in 2024[237]. - Selling, general and administrative expenses rose to $81.4 million in 2025, a 3% increase from $79.2 million in 2024[241]. - Lease-related asset impairment and other charges decreased to $1.6 million in 2025 from $10.9 million in 2024, a reduction of 85%[243]. - Interest expense, net decreased to $(3.8) million in 2025 from $(6.5) million in 2024, a decrease of 41%[248]. - Other income (expense), net changed to $(1.4) million in 2025 from $3.3 million in 2024, a decline of 143%[251]. - Provision for income taxes decreased to $7.6 million in 2025 from $20.8 million in 2024, a decrease of 63%[254]. Cash Flow and Debt - Net cash provided by operating activities increased by $46.0 million in 2025, totaling $107.97 million compared to $61.92 million in 2024[263]. - The company had outstanding indebtedness of $112.3 million as of December 31, 2025, including a $75.0 million Revolving Facility and a $37.3 million Term Facility loan[259]. - As of December 31, 2025, cash and cash equivalents totaled $124.1 million, with $58.3 million held outside the United States[262]. - As of December 31, 2025, the carrying values of variable-rate debt included $37.1 million for the Term Loan and $75.0 million for the Revolving Loan[276]. - A hypothetical 100 basis point change in interest rates would affect interest expense on the loans by approximately $1.1 million over the next twelve months[276]. Strategic Initiatives - The company entered into a Put Option Agreement to sell its Video business for $145 million, expected to close in the first half of fiscal 2026[219]. - The company authorized a share repurchase program of up to $200 million, with approximately $121.0 million remaining available for repurchases as of December 31, 2025[260]. Revenue Breakdown - Appliance and integration revenue decreased by $131.0 million in 2025, primarily due to customer deployment timing delays associated with DOCSIS 4.0[228]. - In 2025, approximately 100% of the consolidated net revenues were generated from U.S. dollar functional subsidiaries[275]. - Net billings in foreign currencies accounted for about 6%, 5%, and 11% of total company billings in 2025, 2024, and 2023, respectively[275]. - Stranded costs from the disposition of the Video business were $3.6 million, $4.5 million, and $7.4 million for 2025, 2024, and 2023, respectively[242].