Harmonic(US:HLIT)2023-02-28 21:06Financial Performance - Total net revenue for the year ended December 31, 2022, was $624,957,000, representing a 23% increase from $507,149,000 in 2021[208] - Net income for 2022 was $28.18 million, compared to a net income of $13.25 million in 2021, representing a 112.9% increase[276] - Total comprehensive income for 2022 was $21.77 million, compared to $4.13 million in 2021, indicating a significant improvement[279] - Total assets as of December 31, 2022, were $710.02 million, a slight increase from $693.69 million in 2021[274] - Total stockholders' equity increased to $324.51 million in 2022, compared to $295.91 million in 2021, marking a 9.7% growth[274] Revenue Breakdown - Appliance and integration revenue increased by 28% to $473,806,000 in 2022, while SaaS and service revenue grew by 10% to $151,151,000[208] - Revenue from the Americas increased by 35% to $452,869,000 in 2022, driven by the penetration of existing Broadband customers and new deployments[208] - EMEA revenue grew by 5% to $133,095,000, primarily due to the expansion of customer deployments in the Broadband segment[210] - APAC revenue decreased by 13% to $38,993,000, mainly due to reduced sales of Video Appliance products[210] - Video segment revenue decreased by 5% to $274.2 million in 2022, while Broadband segment revenue increased by 60% to $350.8 million[224][226] Expenses - Gross profit for 2022 was $315,884,000, with a gross margin of 50.5%, slightly down from 51.2% in 2021[211] - Research and development expenses rose to $120,307,000 in 2022, an 18% increase compared to $102,231,000 in 2021, accounting for 19% of total net revenue[213] - Selling, general and administrative expenses rose to $146.7 million in 2022, a 6% increase from $138.1 million in 2021, representing 23% of total net revenue[215] - Total restructuring and related charges increased to $3.9 million in 2022, a 469% increase from $681,000 in 2021, primarily due to higher severance and employee benefit costs[218][219] Cash Flow and Investments - Net cash provided by operating activities decreased by $35.5 million in 2022, totaling $5.476 million compared to $41.017 million in 2021[235] - Net cash used in investing activities decreased by $11.7 million in 2022, primarily due to proceeds from the sale of an investment in Encoding.com[237] - Net cash used in financing activities increased by $51.1 million in 2022, mainly due to the repayment of $37.7 million principal of the 2022 Notes[238] - The company recorded net billings in foreign currencies of approximately 15% of total company billings in 2022, down from 18% in 2021[241] Debt and Financing - As of December 31, 2022, the company had $131.4 million in outstanding indebtedness, with $4.8 million due in the next nine months[229] - The company authorized a share repurchase program of up to $100 million, with approximately $94.9 million remaining available as of December 31, 2022[230] - The Company has $115.5 million in 2.00% Convertible Senior Notes due September 1, 2024, with a carrying amount of $113.981 million as of December 31, 2022[372] - The Company entered into a Credit Agreement with a revolving loan facility of up to $25.0 million, with no borrowings outstanding as of December 31, 2022[380] Shareholder Equity and Compensation - The weighted average diluted shares outstanding increased to 112.38 million in 2022 from 106.17 million in 2021[276] - The intrinsic value of stock options exercised in 2022 was $3.9 million, compared to $2.1 million in 2021 and $0.2 million in 2020[385] - Total share-based compensation expense for 2022 was $25.2 million, an increase from $24.1 million in 2021 and $18.0 million in 2020[389] - As of December 31, 2022, total unrecognized share-based compensation cost related to unvested RSUs was $19.7 million, expected to be recognized over approximately 1.4 years[389] Economic Outlook and Challenges - The company anticipates continued challenges from high inflation and potential economic disruptions affecting customer spending patterns[198] - The company expects fluctuations in cash provided by operating activities due to various macroeconomic factors, including COVID-19 and the Russia-Ukraine conflict[236]