Harmonic (NasdaqGS:HLIT) M&A Announcement Transcript

Harmonic Investor Conference Call Summary Company Overview - Company: Harmonic (NasdaqGS:HLIT) - Industry: Video streaming technology Key Points M&A Announcement - Harmonic announced a binding offer from MediaKind to sell its video business segment for approximately $145 million in cash [4] - The transaction is expected to close in the first half of 2026, pending customary closing conditions and regulatory approvals [4] Strategic Implications - The sale is viewed as a strategic and transformative transaction that will enhance Harmonic's ability to expand its broadband business [4] - The transaction will allow Harmonic to leverage its expanding installed base and unlock additional growth opportunities [5] - The capital from the sale will be used to increase investment in Harmonic's rapidly growing fiber business, which is gaining traction among cable operators and telcos [5] Financial Impact - The pending sale is expected to provide a healthy capital infusion, part of which will support a $200 million share repurchase program [5] - The simplification of operations by no longer managing two distinct operational models is anticipated to improve operational effectiveness and agility [5] Future Outlook - Harmonic expressed confidence in MediaKind's ability to innovate and support customers post-sale, highlighting MediaKind's proven track record in the industry [6] - The company reaffirmed its guidance for Q4 2025, indicating stability in its financial outlook despite the pending sale [6] Upcoming Events - Harmonic will participate in a Raymond James TMT and Consumer Conference and a Fireside Chat at the Barclays' 23rd Annual Global Technology Conference [9] - These events will be webcast and available for viewing on Harmonic's Investor Relations website [9] Additional Notes - The call included a reminder that forward-looking statements are based on management's beliefs and assumptions, and actual results may differ due to various risks and uncertainties [2][3] - No questions were raised during the Q&A session, indicating a possible lack of immediate investor concerns or clarity on the transaction [8]