Financial Data and Key Metrics Changes - Total company revenue increased by 9% year over year to $133.1 million, with EPS rising from $0.00 to $0.11 driven by higher profitability [20][24] - Adjusted EBITDA reached $21 million, exceeding previous expectations [6][20] - Cash balance at quarter end was $148.7 million, a substantial increase of $47.3 million sequentially, despite $36.1 million returned to shareholders through share repurchases [7][20] Business Line Data and Key Metrics Changes - Broadband revenue for Q1 was $84.9 million, with adjusted EBITDA of $15.9 million, both showing year-over-year growth [20][21] - Video revenue was $48.3 million, up 11.8% year over year, with adjusted EBITDA of $5.3 million reflecting strong revenue momentum [20][21] - Video SaaS revenue was $14.8 million, up 15% year over year, indicating robust growth in this segment [18][21] Market Data and Key Metrics Changes - The company closed the quarter with backlog and deferred revenue at $485.1 million, indicating a durable business model [7][26] - The book-to-bill ratio for the quarter was 0.9, compared to 0.7 in Q4 2024 and 1.2 in Q1 2024, reflecting a shift in customer deployment timing [25][26] Company Strategy and Development Direction - The company is navigating the shift to Unified DOCSIS 4.0, expecting a below-trend revenue year for broadband in 2025 but anticipating a rebound in 2026 [7][8] - Harmonic's strategy includes targeted investments to drive organic growth and returning capital to shareholders through stock repurchases [21][23] - The company is exploring inorganic expansion opportunities that complement its current capabilities [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term growth despite short-term headwinds from tariff uncertainties and the transition to Unified DOCSIS 4.0 [34][50] - The company has not seen changes in customer behavior due to tariffs, indicating strong fundamentals [30][50] - Management expects to mitigate tariff impacts through supply chain optimization and cost management [31][32] Other Important Information - The company anticipates a tariff impact of approximately $3 million on Q2 margins, primarily related to broadband [32] - The liquidity position at quarter end included $148.7 million in cash and $82 million in undrawn credit facilities, providing ample resources to manage economic uncertainties [23] Q&A Session Summary Question: Update on unified DOCSIS delay related to amplifier piece - Management indicated that there is no change in expectations regarding the availability of unified amplifiers [37] Question: Should the company consider buying products ahead of delivery to work around tariffs? - Management is exploring options to bring in inventory sooner, given the current pause in tariffs [40] Question: When will the fiber business become a material part of revenue? - Management noted that fiber business is becoming sizable, with significant bookings and expansions [41][42] Question: Source of uncertainty in the second half guidance - The uncertainty is primarily due to macroeconomic factors and tariff fluctuations, impacting visibility for the rest of the year [46][48] Question: Options for diversifying manufacturing footprint - Management is considering options beyond Asia, including potential near-shore manufacturing in Mexico [55] Question: Changes in visibility of spending trajectory from largest MSO customers - Management has not seen any changes in customer behavior to date [57] Question: Explanation for the expected drop in broadband margins - The drop is attributed to a mix of COS licenses and anticipated tariff impacts [59] Question: Update on smart amplifier availability - Management confirmed that progress is in line with expectations regarding the availability of smart amplifiers [73]

Harmonic (HLIT) Q1 2025 Earnings Call April 28, 2025 05:00 PM ET Company Participants David Hanover - Investor RelationsNimrod Ben-Natan - President & CEOWalter Jankovic - Chief Financial OfficerVictor Chiu - Equity Research Associate - Telecom & TechnologyAlyssa Shreves - Vice President - Equity Research Conference Call Participants Steven Frankel - Managing Director, Senior Research AnalystRyan Koontz - Managing Director - Research AnalystTim Savageaux - MD & Senior Research Analyst Operator Welcome to th ...

Harmonic (HLIT) Q1 2025 Earnings Call April 28, 2025 05:00 PM ET Company Participants David Hanover - Investor RelationsNimrod Ben-Natan - President & CEOWalter Jankovic - Chief Financial OfficerVictor Chiu - Equity Research Associate - Telecom & TechnologyAlyssa Shreves - Vice President - Equity Research Conference Call Participants Steven Frankel - Managing Director, Senior Research AnalystRyan Koontz - Managing Director - Research AnalystTim Savageaux - MD & Senior Research Analyst Operator Welcome to th ...

Broadband gross margins and profitability exceeded expectationsStrong Video results with revenue and profitability surpassing high end of guidanceRobust cash flow generation resulted in cash balance of $149 million at quarter endSAN JOSE, Calif., April 28, 2025 /PRNewswire/ -- Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the first quarter of 2025."Our first quarter results reflect strong execution as we exceeded expectations for Video revenue as well as gross margin and Adjusted EB ...