Technology

Harmonic Announces Third Quarter 2024 Results

Published

2 years ago

October 28, 2024

Record revenue with Broadband revenue up 92% year over year

Video returned to profitability with greater than 10% Adjusted EBITDA margin

SAN JOSE, Calif., Oct. 28, 2024 /PRNewswire/ — Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the third quarter of 2024.

“Our third quarter results demonstrated strong execution as we achieved record total company revenue and Adjusted EBITDA, with both broadband and video revenue exceeding expectations,” said Nimrod Ben-Natan, president and chief executive officer of Harmonic. “This strong quarterly performance coupled with our market leading technology solutions leaves us well-positioned for further future growth.”

Q3 Financial and Business Highlights

Financial

Revenue: $195.8 million, up 54% compared to $127.2 million in the prior year periodBroadband segment revenue: $145.3 million, compared to $75.8 million in the prior year periodVideo segment revenue: $50.4 million, compared to $51.4 million in the prior year periodGross margin: GAAP 53.5% and non-GAAP 53.7%, both higher compared to GAAP 48.5% and non-GAAP 49.5% in the prior year periodBroadband segment non-GAAP gross margin: 48.3% compared to 44.5% in the prior year periodVideo segment non-GAAP gross margin: 69.0% compared to 56.9% in the prior year periodOperating income (loss): GAAP income $35.4 million and non-GAAP income $44.5 million, compared to GAAP loss $8.6 million and non-GAAP income $0.1 million in the prior year periodNet income (loss): GAAP net income $21.7 million and non-GAAP net income of $29.9 million, compared to GAAP net loss $6.5 million and non-GAAP net income $0.0 million in the prior year periodNon-GAAP adjusted EBITDA: $43.4 million income compared to $3.5 million income in the prior year periodNet income (loss) per share: GAAP net income per share of $0.19 and non-GAAP net income per share of $0.26, compared to GAAP net loss per share of $0.06 and non-GAAP net income per share of $0.00 in the prior year periodBacklog and deferred revenue of $584.7 millionCash: $58.2 million, compared to $75.6 million in the prior year period

Business

Commercially deployed our cOSTM solution with 121 customers, serving 32.0 million cable modemsComcast and Harmonic demonstrated the industry’s first Unified DOCSIS 4.0 and fiber solution at SCTE TechExpo24, with Unified DOCSIS 4.0 technology now available for all MSOsIncreased Broadband customer diversification with 7 new customer wins, including Bluepeak Fiber and Tribal Ready selecting Harmonic’s cOS broadband platformFurther progress on Video sales pipeline of larger Appliance and Tier 1 SaaS opportunities

Select Financial Information

GAAP

Non-GAAP

Key Financial Results

Q3 2024

Q2 2024

Q3 2023

Q3 2024

Q2 2024

Q3 2023

(Unaudited, in millions, except per share data)

Net revenue

$ 195.8

$ 138.7

$ 127.2

Net income (loss)

$ 21.7

$ (12.5)

$ (6.5)

$ 29.9

$ 9.3

$ —

Net income (loss) per share

$ 0.19

$ (0.11)

$ (0.06)

$ 0.26

$ 0.08

$ 0.00

Other Financial Information

Q3 2024

Q2 2024

Q3 2023

(Unaudited, in millions)

Adjusted EBITDA for the quarter (1)

$ 43.4

$ 16.1

$ 3.5

Bookings for the quarter

$ 171.4

$ 72.4

$ 96.3

Backlog and deferred revenue as of quarter end

$ 584.7

$ 613.1

$ 627.2

Cash and cash equivalents as of quarter end

$ 58.2

$ 45.9

$ 75.6

(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to “Preliminary Net Income (loss) to Consolidated Segment Adjusted EBITDA Reconciliation” below for a reconciliation to net income (loss), the most comparable GAAP measure.

* Not applicable

Explanations regarding our use of non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations”.

Financial Guidance

Q4 2024 GAAP Financial Guidance

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total GAAP

Broadband

Video

Total GAAP

Net revenue

$ 160

$ 45

$ 205

$ 170

$ 50

$ 220

Gross margin %

55.4 %

56.7 %

Gross profit

$ 114

$ 125

Tax rate

26 %

Net income

$ 30

$ 36

Net income per share

$ 0.26

$ 0.31

Shares (1)

117.8

(1) Diluted shares assumes stock price at $13.34 (Q3 2024 average price).

2024 GAAP Financial Guidance

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total GAAP

Broadband

Video

Total GAAP

Net revenue (1)

$ 477

$ 184

$ 662

$ 487

$ 189

$ 677

Gross margin %

53.6 %

54.0 %

Gross profit

$ 354

$ 366

Tax rate

26 %

Net income

$ 31

$ 37

Net income per share

$ 0.27

$ 0.32

Shares (2)

117.5

(1) Components may not sum to total due to rounding.

(2) Diluted shares assumes stock price at $13.34 (Q3 2024 average price).

Q4 2024 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Gross margin %

53.0 %

64.0 %

55.4 %

54.0 %

66.0 %

56.7 %

Gross profit

$ 85

$ 29

$ 114

$ 92

$ 33

$ 125

Adjusted EBITDA(2)

$ 54

$ 2

$ 55

$ 59

$ 5

$ 64

Tax rate

21 %

Net income per share

$ 0.33

$ 0.39

Shares (3)

117.8

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below. Components may not sum to total due to rounding.

(2) Refer to “Net Income to Consolidated Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income, the most comparable GAAP measure.

(3) Diluted shares assumes stock price at $13.34 (Q3 2024 average price).

2024 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Gross margin %

49.6 %

64.9 %

53.9 %

50.0 %

65.4 %

54.3 %

Gross profit

$ 237

$ 120

$ 356

$ 244

$ 124

$ 368

Adjusted EBITDA(2)

$ 118

$ 1

$ 119

$ 123

$ 4

$ 127

Tax rate

21 %

Net income per share (3)

$ 0.67

$ 0.73

Shares (3)

117.5

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below. Components may not sum to total due to rounding.

(2) Refer to “Net Income to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income, the most comparable GAAP measure.

(3) Diluted shares assumes stock price at $13.34 (Q3 2024 average price).

Conference Call Information

Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, October 28, 2024. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register.vevent.com/register/BI24dc955b30d3439abf656ef581cfa35c. A replay will be available after 5:00 p.m. PT on the same website.

About Harmonic Inc.

Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry’s first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers’ homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, in no particular order, the following: customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable, satellite, telco, broadcast and media industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband and Video businesses will not continue to develop in their current direction or pace; the impact of general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOSTM and VOS product solutions; dependence on various broadband and video industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the impact on our business of natural disasters. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic’s filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2023, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic’s results of operations in conjunction with the corresponding GAAP measures.

The Company believes that the presentation of non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.

The non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to non-GAAP results published by other companies. A reconciliation of the historical non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.

Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Stock-based compensation – Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies.

Restructuring and related charges – Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.

Non-cash interest expense expenses related to convertible notes and other debt – We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors’ ability to view the Company’s results from management’s perspective. In addition, we believe excluding these costs from the non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.

Discrete tax items and tax effect of non-GAAP adjustments – The income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures in order to provide a more meaningful measure of non-GAAP net income.

Depreciation – Depreciation expense, along with interest, tax and stock-based compensation expense, and restructuring charges, is excluded from Adjusted EBITDA because we do not believe depreciation and the other items relate to the ordinary course of our business or are reflective of our underlying business performance.

Non-recurring advisory fees – There were non-recurring costs that we excluded from non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives.

Asset impairment and related charges – We exclude asset impairment and related charges due to the nature of such expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of impairments of fixed assets, right-of-use assets and related leasehold improvements, and other unrecoverable facility costs due to the intended change in use of certain leased space.

Harmonic Inc.

Preliminary Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value)

September 27,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$ 58,174

$ 84,269

Restricted cash

327

—

Accounts receivable, net

173,730

141,531

Inventories

73,864

83,982

Prepaid expenses and other current assets

30,273

20,950

Total current assets

336,368

330,732

Property and equipment, net

28,396

36,683

Operating lease right-of-use assets

13,471

20,817

Goodwill

239,597

239,150

Deferred income taxes

107,380

104,707

Other non-current assets

34,649

36,117

Total assets

$ 759,861

$ 768,206

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Convertible debt

$ —

$ 114,880

Current portion of long-term debt

1,944

—

Current portion of other borrowings

5,285

4,918

Accounts payable

42,480

38,562

Deferred revenue

50,891

46,217

Operating lease liabilities

5,971

6,793

Other current liabilities

55,091

61,024

Total current liabilities

161,662

272,394

Long-term debt

112,819

—

Other long-term borrowings

9,458

10,495

Operating lease liabilities, non-current

15,647

18,965

Other non-current liabilities

31,338

29,478

Total liabilities

330,924

331,332

Stockholders’ equity:

Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding

—

Common stock, $0.001 par value, 150,000 shares authorized; 116,511 and 112,407 shares
issued and outstanding at September 27, 2024 and December 31, 2023, respectively

117

112

Additional paid-in capital

2,424,322

2,405,043

Accumulated deficit

(1,991,615)

(1,962,575)

Accumulated other comprehensive loss

(3,887)

(5,706)

Total stockholders’ equity

428,937

436,874

Total liabilities and stockholders’ equity

$ 759,861

$ 768,206

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 27, 2024

September 29, 2023

September 27, 2024

September 29, 2023

Revenue:

Appliance and integration

$ 153,685

$ 84,760

$ 329,464

$ 310,681

SaaS and service

42,071

42,443

127,092

130,134

Total net revenue

195,756

127,203

456,556

440,815

Cost of revenue:

Appliance and integration

77,683

48,992

171,635

166,177

SaaS and service

13,341

16,527

43,651

43,960

Total cost of revenue

91,024

65,519

215,286

210,137

Total gross profit

104,732

61,684

241,270

230,678

Operating expenses:

Research and development

30,073

30,316

89,562

96,030

Selling, general and administrative

35,851

39,245

114,537

121,300

Asset impairment and related charges

3,103

—

12,103

—

Restructuring and related charges

281

726

14,800

809

Total operating expenses

69,308

70,287

231,002

218,139

Income (loss) from operations

35,424

(8,603)

10,268

12,539

Interest expense, net

(2,686)

(619)

(4,833)

(2,125)

Other income (expense), net

(3,932)

343

(3,602)

(86)

Income (loss) before income taxes

28,806

(8,879)

1,833

10,328

Provision for (benefit from) income taxes

7,088

(2,384)

736

10,175

Net income (loss)

$ 21,718

$ (6,495)

$ 1,097

$ 153

Net income (loss) per share:

Basic

$ 0.19

$ (0.06)

$ 0.01

$ —

Diluted

$ 0.19

$ (0.06)

$ 0.01

$ —

Weighted average shares outstanding:

Basic

116,403

112,031

114,594

111,431

Diluted

117,358

112,031

117,385

117,910

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Nine Months Ended

September 27, 2024

September 29, 2023

Cash flows from operating activities:

Net income

$ 1,097

$ 153

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

9,171

9,178

Asset impairment and related charges

12,103

—

Stock-based compensation

19,587

20,724

Foreign currency remeasurement

6,513

(814)

Deferred income taxes, net

(2,673)

2,026

Provision for excess and obsolete inventories

3,135

6,514

Other adjustments

435

1,689

Changes in operating assets and liabilities:

Accounts receivable, net

(31,611)

(2,558)

Inventories

6,592

14,532

Other assets

(3,489)

6,164

Accounts payable

1,787

(20,606)

Deferred revenues

2,062

(9,208)

Other liabilities

(11,323)

(27,002)

Net cash provided by operating activities

13,386

792

Cash flows from investing activities:

Purchases of short-term investments

—

(6,305)

Purchases of property and equipment

(6,840)

(5,749)

Net cash used in investing activities

(6,840)

(12,054)

Cash flows from financing activities:

Proceeds from long-term debt

115,000

—

Repayment of convertible debt

(115,500)

—

Payments for debt issuance costs

(332)

—

Repurchase of common stock

(30,047)

—

Proceeds from other borrowings

3,943

3,829

Repayment of other borrowings

(4,797)

(4,721)

Proceeds from common stock issued to employees

6,628

6,552

Taxes paid related to net share settlement of equity awards

(6,877)

(8,643)

Net cash used in financing activities

(31,982)

(2,983)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(332)

281

Net decrease in cash and cash equivalents and restricted cash

(25,768)

(13,964)

Cash and cash equivalents and restricted cash at beginning of period

84,269

89,586

Cash and cash equivalents and restricted cash at end of period

$ 58,501

$ 75,622

Cash and cash equivalents and restricted cash at end of period

Cash and cash equivalents

$ 58,174

$ 75,622

Restricted cash

327

—

Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows

$ 58,501

$ 75,622

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Nine Months Ended

September 27, 2024

September 29, 2023

Supplemental cash flow disclosure:

Income tax payments, net

$ 12,894

$ 6,376

Interest payments, net

$ 4,363

$ 1,921

Supplemental schedule of non-cash investing activities:

Capital expenditures incurred but not yet paid

$ 709

$ 1,802

Supplemental schedule of non-cash financing activities:

Shares of common stock issued upon redemption of the 2024 Notes

4,578

—

Harmonic Inc.

Preliminary GAAP Revenue Information

(Unaudited, in thousands, except percentages)

Three Months Ended

September 27, 2024

June 28, 2024

September 29, 2023

Geography

Americas

$ 167,720

86 %

$ 109,597

79 %

$ 91,221

72 %

EMEA

20,269

10 %

22,680

16 %

28,465

22 %

APAC

7,767

4 %

6,463

5 %

7,517

6 %

Total

$ 195,756

100 %

$ 138,740

100 %

$ 127,203

100 %

Market

Service Provider

$ 159,993

82 %

$ 104,429

75 %

$ 87,747

69 %

Broadcast and Media

35,763

18 %

34,311

25 %

39,456

31 %

Total

$ 195,756

100 %

$ 138,740

100 %

$ 127,203

100 %

Nine Months Ended

September 27, 2024

September 29, 2023

Geography

Americas

$ 370,348

81 %

$ 318,294

72 %

EMEA

66,509

15 %

97,648

22 %

APAC

19,699

4 %

24,873

6 %

Total

$ 456,556

100 %

$ 440,815

100 %

Market

Service Provider

$ 351,115

77 %

$ 314,439

71 %

Broadcast and Media

105,441

23 %

126,376

29 %

Total

$ 456,556

100 %

$ 440,815

100 %

Harmonic Inc.

Preliminary Segment Information

(Unaudited, in thousands, except percentages)

Three Months Ended September 27, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 145,338

$ 50,418

$ 195,756

$ —

$ 195,756

Gross profit

70,256

(1)

34,770

(1)

105,026

(1)

(294)

104,732

Gross margin %

48.3 %

(1)

69.0 %

(1)

53.7 %

(1)

53.5 %

Three Months Ended June 28, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 92,937

$ 45,803

$ 138,740

$ —

$ 138,740

Gross profit

44,236

(1)

29,494

(1)

73,730

(1)

(273)

73,457

Gross margin %

47.6 %

(1)

64.4 %

(1)

53.1 %

(1)

52.9 %

Three Months Ended September 29, 2023

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 75,806

$ 51,397

$ 127,203

$ —

$ 127,203

Gross profit

33,763

(1)

29,241

(1)

63,004

(1)

(1,320)

61,684

Gross margin %

44.5 %

(1)

56.9 %

(1)

49.5 %

(1)

48.5 %

Nine Months Ended September 27, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 317,172

$ 139,384

$ 456,556

$ —

$ 456,556

Gross profit

151,986

(1)

90,833

(1)

242,819

(1)

(1,549)

241,270

Gross margin %

47.9 %

(1)

65.2 %

(1)

53.2 %

(1)

52.8 %

Nine Months Ended September 29, 2023

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 273,253

$ 167,562

$ 440,815

$ —

$ 440,815

Gross profit

133,129

(1)

100,158

(1)

233,287

(1)

(2,609)

230,678

Gross margin %

48.7 %

(1)

59.8 %

(1)

52.9 %

(1)

52.3 %

(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” above and “GAAP to Non-GAAP Reconciliations” below.

Harmonic Inc.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Three Months Ended September 27, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$ 195,756

$ 104,732

$ 69,308

$ 35,424

$ (6,618)

$ 21,718

Stock-based compensation

—

294

(5,416)

5,710

—

5,710

Restructuring and related charges

—

(281)

281

—

281

Asset impairment and related charges (1)

—

(3,103)

3,103

—

3,103

Discrete tax items and tax effect of non-GAAP adjustments

—

(871)

Total adjustments

—

294

(8,800)

9,094

—

8,223

Non-GAAP

$ 195,756

$ 105,026

$ 60,508

$ 44,518

$ (6,618)

$ 29,941

As a % of revenue (GAAP)

53.5 %

35.4 %

18.1 %

(3.4) %

11.1 %

As a % of revenue (Non-GAAP)

53.7 %

30.9 %

22.7 %

(3.4) %

15.3 %

Diluted net income per share:

GAAP

$ 0.19

Non-GAAP

$ 0.26

Shares used in per share calculation:

GAAP and Non-GAAP

117,358

(1) Includes write-off of $1.8 million for internally developed capitalized software, and impairment charges of $0.8 million for right-of-use assets, $0.1 million for leasehold improvements and $0.4 million related to the fair value of other unrecoverable facility costs.

Three Months Ended June 28, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income
(Loss) from
Operations

Total Non-
operating
Expense, net

Net Income
(Loss)

GAAP

$ 138,740

$ 73,457

$ 89,087

$ (15,630)

$ (805)

$ (12,532)

Stock-based compensation

—

273

(6,681)

6,954

—

6,954

Restructuring and related charges

—

(11,482)

11,482

—

11,482

Non-recurring advisory fees

—

(406)

406

—

406

Asset impairment and related charges (1)

—

(9,000)

9,000

—

9,000

Non-cash interest expense related to convertible notes

—

338

Discrete tax items and tax effect of non-GAAP adjustments

—

(6,369)

Total adjustments

—

273

(27,569)

27,842

338

21,811

Non-GAAP

$ 138,740

$ 73,730

$ 61,518

$ 12,212

$ (467)

$ 9,279

As a % of revenue (GAAP)

52.9 %

64.2 %

(11.3) %

(0.6) %

(9.0) %

As a % of revenue (Non-GAAP)

53.1 %

44.3 %

8.8 %

(0.3) %

6.7 %

Diluted net income (loss) per share:

GAAP

$ (0.11)

Non-GAAP

$ 0.08

Shares used in per share calculation:

GAAP

115,030

Non-GAAP

116,690

(1) Includes impairment charges of $2.9 million for right-of-use assets, $4.2 million for leasehold improvements, and $1.9 million related to the fair value of other unrecoverable facility costs.

Three Months Ended September 29, 2023

Revenue

Gross Profit

Total
Operating
Expense

Income
(Loss) from
Operations

Total Non-
operating
Expense, net

Net Income
(Loss)

GAAP

$ 127,203

$ 61,684

$ 70,287

$ (8,603)

$ (276)

$ (6,495)

Stock-based compensation

—

606

(6,635)

7,241

—

7,241

Restructuring and related charges

—

714

(362)

1,076

—

1,076

Non-recurring advisory fees

—

(364)

364

—

364

Non-cash interest expense related to convertible notes

—

226

Discrete tax items and tax effect of non-GAAP adjustments

—

(2,390)

Total adjustments

—

1,320

(7,361)

8,681

226

6,517

Non-GAAP

$ 127,203

$ 63,004

$ 62,926

$ 78

$ (50)

$ 22

As a % of revenue (GAAP)

48.5 %

55.3 %

(6.8) %

(0.2) %

(5.1) %

As a % of revenue (Non-GAAP)

49.5 %

0.1 %

— %

Diluted net income (loss) per share:

GAAP

$ (0.06)

Non-GAAP

$ 0.00

Shares used in per share calculation:

GAAP

112,031

Non-GAAP

116,710

Nine Months Ended September 27, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$ 456,556

$ 241,270

$ 231,002

$ 10,268

$ (8,435)

$ 1,097

Stock-based compensation

—

1,089

(18,498)

19,587

—

19,587

Restructuring and related charges

—

460

(14,800)

15,260

15,271

Non-recurring advisory fees

—

(755)

755

—

755

Asset impairment and related charges (1)

—

(12,103)

12,103

—

12,103

Non-cash interest expense related to convertible notes

—

567

Discrete tax items and tax effect of non-GAAP adjustments

—

(9,778)

Total adjustments

—

1,549

(46,156)

47,705

578

38,505

Non-GAAP

$ 456,556

$ 242,819

$ 184,846

$ 57,973

$ (7,857)

$ 39,602

As a % of revenue (GAAP)

52.8 %

50.6 %

2.2 %

(1.8) %

0.2 %

As a % of revenue (Non-GAAP)

53.2 %

40.5 %

12.7 %

(1.7) %

8.7 %

Diluted net income per share:

GAAP

$ 0.01

Non-GAAP

$ 0.34

Shares used in per share calculation:

GAAP and Non-GAAP

117,385

(1) Includes write-off of $1.8 million for internally developed capitalized software, and impairment charges of $3.7 million for right-of-use assets, $4.3 million for leasehold improvements, and $2.3 million related to the fair value of other unrecoverable facility costs.

Nine Months Ended September 29, 2023

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$ 440,815

$ 230,678

$ 218,139

$ 12,539

$ (2,211)

$ 153

Stock-based compensation

—

1,895

(18,829)

20,724

—

20,724

Restructuring and related charges

—

714

(445)

1,159

—

1,159

Non-recurring advisory fees

—

(2,499)

2,499

—

2,499

Non-cash interest expense related to convertible notes

—

672

Discrete tax items and tax effect of non-GAAP adjustments

—

3,099

Total adjustments

—

2,609

(21,773)

24,382

672

28,153

Non-GAAP

$ 440,815

$ 233,287

$ 196,366

$ 36,921

$ (1,539)

$ 28,306

As a % of revenue (GAAP)

52.3 %

49.5 %

2.8 %

(0.5) %

— %

As a % of revenue (Non-GAAP)

52.9 %

44.5 %

8.4 %

(0.3) %

6.4 %

Diluted net income per share:

GAAP

$ —

Non-GAAP

$ 0.24

Shares used in per share calculation:

GAAP and Non-GAAP

117,910

Harmonic Inc.

Calculation of Adjusted EBITDA by Segment (Unaudited)

(In thousands, except percentages)

Three Months Ended September 27, 2024

Broadband

Video

Income from operations (1)

$ 38,192

$ 6,326

Depreciation

2,001

859

Other non-operating expense, net

(2,733)

(1,199)

Adjusted EBITDA(2)

$ 37,460

$ 5,986

Revenue

$ 145,338

$ 50,418

Adjusted EBITDA margin % (2)

25.8 %

11.9 %

Three Months Ended June 28, 2024

Broadband

Video

Income (loss) from operations (1)

$ 13,781

$ (1,569)

Depreciation

2,133

1,093

Other non-operating income, net

406

213

Adjusted EBITDA(2)

$ 16,320

$ (263)

Revenue

$ 92,937

$ 45,803

Adjusted EBITDA margin % (2)

17.6 %

(0.6) %

Three Months Ended September 29, 2023

Broadband

Video

Income (loss) from operations (1)

$ 6,128

$ (6,050)

Depreciation

1,746

1,343

Other non-operating income, net

211

132

Adjusted EBITDA(2)

$ 8,085

$ (4,575)

Revenue

$ 75,806

$ 51,397

Adjusted EBITDA margin % (2)

10.7 %

(8.9) %

Nine Months Ended September 27, 2024

Broadband

Video

Income (loss) from operations (1)

$ 60,567

$ (2,594)

Depreciation

6,120

3,051

Other non-operating expense, net

(2,506)

(1,085)

Adjusted EBITDA(2)

$ 64,181

$ (628)

Revenue

$ 317,172

$ 139,384

Adjusted EBITDA margin % (2)

20.2 %

(0.5) %

Nine Months Ended September 29, 2023

Broadband

Video

Income (loss) from operations (1)

$ 44,307

$ (7,386)

Depreciation

5,061

4,117

Other non-operating expense, net

(44)

(42)

Adjusted EBITDA(2)

$ 49,324

$ (3,311)

Revenue

$ 273,253

$ 167,562

Adjusted EBITDA margin % (2)

18.1 %

(2.0) %

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations” above.

(2) Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. Refer below for the “Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation”.

Harmonic Inc.

Preliminary Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Unaudited)

(In thousands, except percentages)

Three Months Ended

September 27, 2024

June 28, 2024

September 29, 2023

Net income (loss) (GAAP)

$ 21,718

$ (12,532)

$ (6,495)

Provision for (benefit from) income taxes

7,088

(3,903)

(2,384)

Interest expense, net

2,686

1,424

619

Depreciation

2,860

3,226

3,089

EBITDA

34,352

(11,785)

(5,171)

Adjustments

Stock-based compensation

5,710

6,954

7,241

Restructuring and related charges

281

11,482

1,076

Non-recurring advisory fees

—

406

364

Asset impairment and related charges

3,103

9,000

—

Total consolidated segment adjusted EBITDA (Non-GAAP)

$ 43,446

$ 16,057

$ 3,510

Revenue

$ 195,756

$ 138,740

$ 127,203

Net income (loss) margin (GAAP)

11.1 %

(9.0) %

(5.1) %

Consolidated segment Adjusted EBITDA margin (Non-GAAP)

22.2 %

11.6 %

2.8 %

Nine Months Ended

September 27, 2024

September 29, 2023

Net income (GAAP)

$ 1,097

$ 153

Provision for income taxes

736

10,175

Interest expense, net

4,833

2,125

Depreciation

9,171

9,178

EBITDA

15,837

21,631

Adjustments

Stock-based compensation

19,587

20,724

Restructuring and related charges

15,271

1,159

Non-recurring advisory fees

755

2,499

Asset impairment and related charges

12,103

—

Total consolidated segment adjusted EBITDA (Non-GAAP)

$ 63,553

$ 46,013

Revenue

$ 456,556

$ 440,815

Net income margin (GAAP)

0.2 %

— %

Consolidated segment Adjusted EBITDA margin (Non-GAAP)

13.9 %

10.4 %

Harmonic Inc.

GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)

(In millions, except percentages and per share data)

Q4 2024 Financial Guidance (1)

Revenue

Gross Profit

Total Operating
Expense

Income from
Operations

Net Income

GAAP

$ 205

$ 220

$ 114

$ 125

$ 70

$ 73

$ 44

$ 52

$ 30

$ 36

Stock-based compensation expense

—

(9)

Tax effect of non-GAAP adjustments

—

Total adjustments

—

(9)

Non-GAAP

$ 205

$ 220

$ 114

$ 125

$ 61

$ 64

$ 53

$ 61

$ 39

$ 46

As a % of revenue (GAAP)

55.4 %

56.7 %

34.1 %

33.2 %

21.5 %

23.6 %

14.6 %

16.4 %

As a % of revenue (Non-GAAP)

55.4 %

56.7 %

29.8 %

29.1 %

25.7 %

27.6 %

19.0 %

20.9 %

Diluted net income per share:

GAAP

$ 0.26

$ 0.31

Non-GAAP

$ 0.33

$ 0.39

Shares used in per share calculation:

GAAP and Non-GAAP

117.8

(1) Components may not sum to total due to rounding.

2024 Financial Guidance (1)

Revenue

Gross Profit

Total Operating
Expense

Income from
Operations

Net Income

GAAP

$ 662

$ 677

$ 354

$ 366

$ 301

$ 304

$ 54

$ 62

$ 31

$ 37

Stock-based compensation expense

—

(27)

Restructuring and related charges

—

(15)

Non-recurring advisory fees

—

(1)

Asset impairment and related charges

—

(12)

Non-cash interest expense related to convertible notes

—

Tax effect of non-GAAP adjustments

—

(10)

(9)

Total adjustments

—

(55)

Non-GAAP

$ 662

$ 677

$ 356

$ 368

$ 246

$ 249

$ 111

$ 119

$ 79

$ 86

As a % of revenue (GAAP)

53.6 %

54.0 %

45.5 %

44.9 %

8.2 %

9.2 %

4.7 %

5.5 %

As a % of revenue (Non-GAAP)

53.9 %

54.3 %

37.2 %

36.8 %

16.7 %

17.6 %

11.9 %

12.7 %

Diluted net income per share:

GAAP

$ 0.27

$ 0.32

Non-GAAP

$ 0.67

$ 0.73

Shares used in per share calculation:

GAAP and Non-GAAP

117.5

(1) Components may not sum to total due to rounding.

Harmonic Inc.

Calculation of Adjusted EBITDA by Segment on Financial Guidance (Unaudited) (1)

(In millions)

Q4 2024 Financial Guidance

Broadband

Video

Income from operations (2)

$ 52

$ 57

$ 1

$ 4

Depreciation

Segment adjusted EBITDA(3)

$ 54

$ 59

$ 2

$ 5

2024 Financial Guidance

Broadband

Video

Income (loss) from operations (2)

$ 112

$ 117

$ (2)

$ 1

Depreciation

Other non-operating expense, net

(3)

(1)

Segment adjusted EBITDA(3)

$ 118

$ 123

$ 1

$ 4

(1) Components may not sum to total due to rounding.

(2) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” above.

(3) Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer below for the “Net income to Consolidated Segment Adjusted EBITDA reconciliation on Financial Guidance”.

Harmonic Inc.

Net Income to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance (Unaudited) (1)

(In millions)

Q4 2024 Financial Guidance

2024 Financial Guidance

Net income (GAAP)

$ 30

$ 36

$ 31

$ 37

Provision for income taxes

Interest expense, net

Depreciation

EBITDA

Adjustments

Stock-based compensation

Restructuring and related charges

—

Asset impairment and related charges

—

Non-recurring advisory fees

—

Total consolidated segment adjusted EBITDA (Non-GAAP) (2)

$ 55

$ 64

$ 119

$ 127

(1) Components may not sum to total due to rounding.

(2) Consolidated Segment adjusted EBITDA is a Non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” above.

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SOURCE Harmonic Inc.

Technology

FULTON FINANCIAL CORPORATION APPOINTS DAVID S. SCHULZ TO BOARD OF DIRECTORS

Published

52 minutes ago

July 21, 2026

LANCASTER, Pa., July 21, 2026 /PRNewswire/ — Fulton Financial Corporation (NASDAQ: FULT) (“Fulton”) today announced the appointment of David S. Schulz as a member of its board of directors (the “Board”) for a term commencing September 14, 2026 and expiring at Fulton’s 2027 annual meeting of shareholders.

“We’re excited to welcome Dave to Fulton’s board of directors,” said Curt Myers, Fulton Chairman, CEO, and President. “Dave brings extensive financial leadership experience gained through more than a decade of service with publicly traded companies. His expertise in finance, strategic planning, risk, and mergers and acquisitions will provide valuable perspective as we continue to execute our growth strategy and create long-term value for our shareholders, customers and communities.”

With the addition of Schulz, Fulton’s Board will have 11 members, and he will serve on the Audit and Risk committees. Schulz has also been appointed to the board of directors of Fulton’s banking subsidiary, Fulton Bank, N.A.

Schulz served as Senior Vice President and Chief Financial Officer of Wesco International, Inc. (“Wesco”) from 2016 to June 2020, Executive Vice President and Chief Financial Officer of Wesco from June 2020 to February 2026 and as Executive Vice President and Special Advisor to the CEO of Wesco from February 2026 until his retirement on May 31, 2026.

Prior to joining Wesco, Schulz served as Senior Vice President and Chief Operating Officer of Armstrong Flooring, Inc. and was previously Senior Vice President and Chief Financial Officer of Armstrong World Industries, Inc. and Vice President of Finance of the Armstrong Building Products division.

Before joining Armstrong World Industries in 2011, he held various financial leadership roles with Procter & Gamble and The J.M. Smucker Company. He was also an officer in the United States Marine Corps.

In 2025, Schulz joined the board of Sterling Infrastructure, Inc., and he was appointed as chair of the audit committee in 2026. He also serves on the company’s compensation and talent development committee.

ABOUT FULTON FINANCIAL CORPORATION

Fulton, a $34 billion Lancaster, Pa.-based financial holding company, has more than 3,400 employees and operates more than 215 financial centers in Pennsylvania, New Jersey, Maryland, Delaware and Virginia through Fulton Bank, N.A. Additional information on Fulton can be found at https://investor.fultonbank.com.

Contact: Steve Trapnell
717-291-2739

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SOURCE Fulton Financial Corporation

Technology

Octavio Marquez Elected to MSA Safety Board of Directors

Published

52 minutes ago

July 21, 2026

PITTSBURGH, July 21, 2026 /PRNewswire/ — The Board of Directors of MSA Safety Inc. (NYSE: MSA), a global leader in the development of advanced industrial safety technology products and solutions, today announced that Octavio Marquez, president and chief executive officer of Diebold Nixdorf, has been elected to the company’s Board of Directors. His election was part of the MSA Board’s regular succession plans.

“We are very pleased to have the opportunity to add Octavio to the MSA Board,” said Robert A. Bruggeworth, MSA chairman. “He brings a broad range of executive leadership experience, including strategy development, capital allocation, business transformation and serving international markets, which will serve MSA well.”

“Octavio’s perspectives will be an asset to me and our entire Executive Leadership Team,” said Steven C. Blanco, MSA president and CEO. “It is a pleasure to welcome Octavio to MSA, and I look forward to working with him.”

Mr. Marquez joined Diebold Nixdorf in 2014 and has held senior leadership roles across the company’s Global Banking organization and its Americas region, including as executive vice president of Global Banking and senior vice president of the Americas. Before joining Diebold Nixdorf, Mr. Marquez held leadership positions at Dell EMC, Hewlett Packard Enterprise, IBM and NCR.

Diebold Nixdorf automates, digitizes and transforms the way people bank and shop. As a partner to the majority of the world’s top 100 financial institutions and top 25 global retailers, its integrated solutions connect digital and physical channels conveniently, securely and efficiently for millions of customers every day. Headquartered in North Canton, Ohio, Diebold Nixdorf employs approximately 20,000 employees globally, supporting more than 100 countries.

Mr. Marquez holds a degree in business and finance from Universidad Iberoamericana and has completed executive education programs at MIT Sloan, The Wharton School and The University of Texas at Austin.

About MSA Safety

MSA Safety Incorporated (NYSE: MSA) is the global leader in advanced industrial safety technology products and solutions. Driven by its singular mission of safety, the company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders. With 2025 revenues of $1.9 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania, and employs a team of approximately 5,300 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com.

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SOURCE MSA Safety

Technology

BlueFolder Field Service Software Launches New AI-Powered Features to Transform How Teams Work

Published

52 minutes ago

July 21, 2026

New AI capabilities instantly surface customer insights and transform technician notes into actionable summaries to help field service teams work faster, stay aligned, and deliver better service

AUBURN, Ala., July 21, 2026 /PRNewswire/ — BlueFolder field service software recently announced the launch of two powerful new AI features: AI-Powered Customer Summaries and AI-Powered Field Notes Summarization. Together, these capabilities are designed to eliminate the time-consuming, manual work of reviewing fragmented customer records and lengthy technician notes—giving field service teams instant clarity to respond faster, make smarter decisions, and deliver exceptional service.

BlueFolder expands it’s field service and work order management suite with two exciting new AI field service features.

Built directly into the BlueFolder platform, both features leverage artificial intelligence to automatically compile and summarize complex, unstructured data into clear, easy-to-read overviews. The result: technicians, dispatchers, and managers always have the context they need, right when they need it.

AI-Powered Customer Summaries

As field service organizations grow, customer information becomes increasingly scattered across emails, service request logs, and communication histories. BlueFolder’s AI Customer Summary feature addresses this challenge head-on by consolidating those interactions into a single, actionable snapshot.

Instead of manually digging through multiple records before a service call or customer interaction, teams can now access a real-time summary highlighting key concerns, past service activity, and recent updates. The feature goes beyond basic summarization and surfaces critical business insights such as equipment past due for maintenance, approaching warranty expirations, and proactive revenue opportunities, empowering teams to recommend follow-ups or upgrades directly from the customer record.

Built-in traceability links each summary back to its original source communications, so users can validate insights with confidence, ensuring both speed and accuracy in every customer interaction.

AI-Powered Field Notes Summarization

In many service organizations, technicians log updates across multiple visits, often resulting in long, fragmented notes that are difficult to review at a glance. BlueFolder’s AI Field Notes Summarization feature solves this by automatically condensing multiple technician entries into a structured summary that highlights key milestones, actions taken, and next steps.

Rather than scrolling through pages of updates, managers and dispatchers can immediately understand job status and determine what needs to happen next, improving alignment between field and office teams, accelerating decision-making, and reducing miscommunication. The feature is especially valuable for complex or multi-day jobs, where clear continuity and smooth technician handoffs are critical to delivering consistent service. It’s another featuring making BlueFolder’s work order management software capabilities stronger every day.

“History is one of the most powerful tools a service team has — the problem is it’s usually buried. BlueFolder’s new AI features fix that. Your team walks into every interaction already knowing the customer, knowing the equipment, and exactly where things stand. That changes the entire experience,” says John Shaw, VP, Technology, Service Operations.

AI as a Core Part of the BlueFolder Platform

The launch of these two features reflects BlueFolder’s broader commitment to embedding AI throughout its field service management software as an integrated layer of intelligence that makes every workflow smarter. Rather than requiring teams to change how they work, BlueFolder’s AI capabilities are designed to surface the right information at the right moment automatically, within the tools that technicians, dispatchers, and managers already use every day.

“AI is transforming what’s possible in field service, and BlueFolder is answering that call. These features are the result of deep platform expertise and a clear vision for where the industry is headed. We’re embedding intelligence throughout the platform because we know it makes our customers more competitive, more efficient, and better positioned to grow,” says Stephen Myslicki, Group President of Field Services.

Availability

Both AI-Powered Customer Summaries and AI-Powered Field Notes Summarization are available now to BlueFolder customers as optional, easy-to-enable features within the platform. They are part of BlueFolder’s growing suite of AI-driven capabilities designed to help field service organizations operate more efficiently and scale with confidence.

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SOURCE BlueFolder