Technology
Dolby Laboratories Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Published
2 years agoon
By
SAN FRANCISCO, Nov. 19, 2024 /PRNewswire/ — Dolby Laboratories, Inc. (NYSE:DLB) today announced the company’s financial results for the fourth quarter and fiscal year 2024.
“We are pleased with the progress we made in fiscal 2024,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “As we enter fiscal 2025, we have strong momentum with Dolby Atmos and Dolby Vision, our imaging patent portfolio has gotten stronger with the GE Licensing acquisition, and we are excited about our opportunity with Dolby.io, which is well positioned to provide real time interactive experiences for sports and entertainment.”
Fourth Quarter Fiscal 2024 Financial Highlights
Total revenue was $305 million, compared to $291 million for the fourth quarter of fiscal 2023.GAAP net income was $59 million, or $0.61 per diluted share, compared to GAAP net income of $9 million, or $0.09 per diluted share, for the fourth quarter of fiscal 2023. On a non-GAAP basis, fourth quarter net income was $78 million, or $0.81 per diluted share, compared to $64 million, or $0.65 per diluted share, for the fourth quarter of fiscal 2023.Dolby repurchased approximately 251,000 shares of its common stock and ended the quarter with approximately $402 million of stock repurchase authorization available going forward.
Full Year Fiscal 2024 Financial Highlights
Total revenue was $1.27 billion, compared to $1.30 billion for the full year of fiscal 2023.GAAP net income was $262 million, or $2.69 per diluted share, compared to GAAP net income of $201 million, or $2.05 per diluted share, for the full year of fiscal 2023. On a non-GAAP basis, full year net income was $369 million, or $3.79 per diluted share, compared to $348 million, or $3.56 per diluted share, for the full year of fiscal 2023.Cash flows from operations were $327 million, compared to $367 million for the full year of fiscal 2023.
A complete listing of Dolby’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Business Highlights
We closed the acquisition of GE Licensing, which we expect to be accretive to margins and earnings on a non-GAAP basis in fiscal 2025, and which gives us a stronger position in imaging patents.We acquired THEO Technologies, expanding Dolby.io’s ability to offer customers the best solutions for real-time streaming experiences that drive fan engagement and interactivity.We added two new automotive partners in Q4; WEY, a Chinese car company that specializes in premium Crossovers and SUVs, and Smart, a JV between Mercedes and Geely. We now have over 20 automotive OEM partners supporting Dolby Atmos, up from 10 partners one year ago.Meta announced support for Dolby Atmos across its MetaQuest headset device lineup.Apple launched the iPhone 16, which supports Dolby Atmos and Dolby Vision, and records in Dolby Vision.Xiaomi announced new 4K QLED TVs that support Dolby Vision.Australia selected Dolby AC-4 as part of its new broadcast set-top-box specification.Polytron, an Indonesian TV OEM, launched a new TV that supports Dolby Atmos and Dolby Vision.Lenovo’s new Thinkpad X1 Carbon Gen 13 Aura Edition supports Dolby Vision, and its Thinkbook 16 Gen7+ and Thinkbook 16 Gen 7 supports Dolby Atmos.Alienware released 27 4K Dual Resolution Gaming Monitor that supports Dolby Atmos.
Upcoming Investor Event
Dolby is hosting an event at CES for the financial community where we will demonstrate a wide array of our technologies. The event will be held at 7:00 a.m. PT on Wednesday, January 8, 2025. Please send an email to IR@dolby.com for more information.
Dividend
Today, Dolby announced a cash dividend of $0.33 per share of Class A and Class B common stock, payable on December 10, 2024, to stockholders of record as of the close of business on December 3, 2024.
Revolving Credit Facility
On November 14, 2024, Dolby entered into a Credit Agreement with Bank of America for a $250 million revolving credit facility. The facility includes $150 million of uncommitted incremental capacity, has a five-year term and can be terminated early without penalty. Dolby has not drawn on the facility. Further details regarding the Credit Agreement are set out in a Form 8-K filed by Dolby with the U.S. Securities and Exchange Commission on November 19, 2024.
Financial Outlook
Dolby’s financial outlook relies, in part, on estimates of royalty-based revenue that take into consideration various factors that are subject to uncertainty, including consumer demand for electronic products. In addition, actual results could differ materially from the estimates Dolby is providing below due in part to uncertainty resulting from the macroeconomic effect of certain conditions, including supply chain constraints, international conflicts, geopolitical instability, and fluctuations in inflation and interest rates. The uncertainty resulting from these factors has greatly reduced its visibility into Dolby’s future outlook. To the extent possible, the estimates Dolby is providing for future periods reflect certain assumptions about the potential impact of certain of these items, based upon a consideration of currently available external and internal data and information. These assumptions are subject to risks and uncertainties. For more information, see “Forward-Looking Statements” in this press release for a description of certain risks that Dolby faces, and the section captioned “Risk Factors” in its Annual Report on Form 10-K for fiscal 2024, to be filed on or around the date hereof.
Dolby is providing the following estimates for its first quarter of fiscal 2025:
Total revenue is estimated to range from $330 million to $360 million.Licensing revenue is estimated to range from $305 million to $335 million.Gross margins are anticipated to be approximately 87% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $230 million to $240 million on a GAAP basis and from $190 million to $200 million on a non-GAAP basis.Effective tax rate is anticipated to be around 20.5% on a GAAP basis and around 18.5% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $0.53 to $0.68 on a GAAP basis and from $0.96 to $1.11 on a non-GAAP basis.
Dolby is providing the following estimates for the full year of fiscal 2025:
Total revenue is expected to range from $1.33 billion to $1.39 billion.Gross margins are anticipated to be approximately 87% on a GAAP basis and approximately 90% on a non-GAAP basis.Operating expenses are anticipated to range from $908 million to $918 million on a GAAP basis and from $765 million to $775 million on a non-GAAP basis.Dolby expects operating margins to be roughly 20% on a GAAP basis and to be roughly 33% on a non-GAAP basis.Diluted earnings per share is anticipated to range from $2.43 to $2.58 on a GAAP basis and from $3.99 to $4.14 on a non-GAAP basis.
Conference Call Information
Members of Dolby management will lead a conference call open to all interested parties to discuss fourth quarter and full year fiscal 2024 financial results for Dolby Laboratories at 2:00 p.m. PT (5:00 p.m. ET) on Tuesday, November 19, 2024. Access to the teleconference will be available at http://investor.dolby.com or by dialing 1-800-715-9871 (+1-646-307-1963 for international callers) and entering confirmation code 5587811.
A replay of the call will be available from 5:00 p.m. PT (8:00 p.m. ET) on Tuesday, November 19, 2024, until 8:59 p.m. PT (11:59 p.m. ET) on Tuesday, November 26, 2024 by dialing 1-800-770-2030 (+1-609-800-9909 for international callers) and entering the confirmation code 5587811. An archived version of the teleconference will also be available on the Dolby website, http://investor.dolby.com.
Non-GAAP Financial Information
To supplement Dolby’s financial statements presented on a GAAP basis, Dolby management uses, and Dolby provides to investors, certain non-GAAP financial measures as an additional tool to evaluate Dolby’s operating results in a manner that focuses on what Dolby’s management believes to be its ongoing business operations and performance. We believe these non-GAAP financial measures are also helpful to investors in enabling comparability of operating performance between periods and among peer companies. Additionally, Dolby’s management regularly uses our supplemental non-GAAP financial measures to make operating decisions, for planning and forecasting purposes and determining bonus payouts. Specifically, Dolby excludes the following as adjustments from one or more of its non-GAAP financial measures:
Stock-based compensation expense: Stock-based compensation, unlike cash-based compensation, utilizes subjective assumptions in the methodologies used to value the various stock-based award types that Dolby grants. These assumptions may differ from those used by other companies. To facilitate more meaningful comparisons between its underlying operating results and those of other companies, Dolby excludes stock-based compensation expense.
Amortization of acquisition-related intangibles: Dolby amortizes intangible assets acquired in connection with business combinations. These intangible assets consist of patents and technology, customer relationships, and other intangibles. Dolby records amortization charges relating to these intangible assets in its GAAP financial statements, and Dolby views these charges as items arising from pre-acquisition activities that are determined by the timing and valuation of its acquisitions. As these amortization charges do not directly correlate to its operations during any particular period, Dolby excludes these charges to facilitate an evaluation of its current operating performance and comparisons to its past operating results. In addition, while amortization expense of acquisition-related intangible assets is excluded from Non-GAAP Net Income, the revenue generated from those assets is not excluded.
Restructuring charges or credits: Restructuring charges are costs associated with restructuring plans and primarily relate to costs associated with exit or disposal activities, employee severance benefits, and asset impairments. For the fourth quarter of fiscal 2023, we excluded from non-GAAP net income and diluted earnings per share a restructuring charge of about $30 million comprised of approximately $13 million for severance and related benefits and an impairment loss of approximately $17 million related primarily to internally developed software for projects we are no longer pursuing. Dolby excludes restructuring costs, including any adjustments to charges recorded in prior periods (which may be credits), as Dolby believes that these costs are not representative of its normal operating activities and therefore, excluding these amounts enables a more effective comparison of its past operating performance and to that of other companies.
Income tax adjustments: The income tax effects of the aforementioned non-GAAP adjustments do not directly correlate to its operating performance so Dolby believes that excluding such income tax effects provides a more meaningful view of its underlying operating results to management and investors.
Impact from Tax Reform: The enactment of the U.S. Tax Cuts and Jobs Act (Tax Reform), and any related amendments or revisions, requires certain discrete and infrequent charges that are not representative of current operating results and therefore, excluding these amounts enables a more effective comparison to our past operating performance.
Using the aforementioned adjustments, Dolby provides various non-GAAP financial measures including, but not limited to: non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, and non-GAAP effective tax rate. Dolby’s management believes it is useful for itself and investors to review both GAAP and non-GAAP measures to assess the performance of Dolby’s business, including as a means to evaluate period-to-period comparisons. Dolby’s management does not itself, nor does it suggest that investors should, consider non-GAAP financial measures in isolation from, superior to, or as a substitute for, financial information prepared in accordance with GAAP. Whenever Dolby uses non-GAAP financial measures, it provides a reconciliation of the non-GAAP financial measures to the most closely applicable GAAP financial measures. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as detailed above and below. Investors are also encouraged to review Dolby’s GAAP financial statements as reported in its US Securities and Exchange Commission (SEC) filings. A reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release and on the Dolby investor relations website, http://investor.dolby.com.
Forward-Looking Statements
Certain statements in this press release and in our earnings calls, including, but not limited to, expected financial results for the first quarter of fiscal 2025 and full year fiscal 2025, Dolby’s ability to expand existing business, navigate challenging periods, pursue its long-term growth opportunities, and advance its other long-term objectives are “forward-looking statements” that inherently involve substantial risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those provided. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the potential impacts of economic conditions on Dolby’s business operations, financial results, and financial position (including the impact to Dolby partners and disruption of the supply chain and delays in shipments of consumer products; the level at which Dolby technologies are incorporated into products and the consumer demand for such products; delays in the development and release of new products or services that contain Dolby technologies; delays in royalty reporting or delinquent payment by partners or licensees; lengthening sales cycles; the impact to the overall cinema market including adverse impact to Dolby’s revenue recognized on box-office sales and demand for cinema products and services; and macroeconomic conditions that affect discretionary spending and access to products that contain Dolby technologies); risks associated with geopolitical issues and international conflicts; risks associated with trends in the markets in which Dolby operates, including the broadcast, mobile, consumer electronics, PC, and other markets; the loss of, or reduction in sales by, a key customer, partner, or licensee; pricing pressures; risks relating to changing trends in the way that content is distributed and consumed; risks relating to conducting business internationally, including trade restrictions and changes in diplomatic or trade relationships; risks relating to maintaining patent coverage; the timing of Dolby’s receipt of royalty reports and payments from its licensees, including recoveries; changes in tax regulations; timing of revenue recognition under licensing agreements and other contractual arrangements; Dolby’s ability to develop, maintain, and strengthen relationships with industry participants; Dolby’s ability to develop and deliver innovative products and technologies in response to new and growing markets; competitive risks; risks associated with conducting business in China and other countries that have historically limited recognition and enforcement of intellectual property and contractual rights; risks associated with the health of the motion picture and cinema industries generally; Dolby’s ability to increase its revenue streams and to expand its business generally, and to continue to expand its business beyond its current technology offerings; risks associated with acquiring and successfully integrating businesses or technologies; and other risks detailed in Dolby’s SEC filings and reports, including the risks identified under the section captioned “Risk Factors” in its Annual Report on Form 10-K filed on or around the date hereof. Dolby may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements. Forward-looking statements are based upon information available to us as of the date of such statements, and while Dolby believes such information forms a reasonable basis for such statements, such information may be limited or incomplete. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. Except as required by law, Dolby disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around the globe. From movies and TV shows, to apps, music, sports and gaming, Dolby transforms the science of sight and sound into spectacular experiences for billions of people worldwide. Dolby partners with artists, storytellers, developers, and businesses to revolutionize entertainment and communications with Dolby Atmos, Dolby Vision, Dolby Cinema, and Dolby.io.
Dolby, Dolby Atmos, Dolby Vision, Dolby Cinema, Dolby.io, and the double-D symbol are among the registered and unregistered trademarks of Dolby Laboratories in the United States and/or other countries. Other trademarks remain the property of their respective owners.
DOLBY LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
Fiscal Quarter Ended
Fiscal Year Ended
September 27,
2024
September 29,
2023
September 27,
2024
September 29,
2023
Revenue:
Licensing
$ 282,705
$ 265,203
$ 1,181,794
$ 1,197,930
Products and services
22,101
25,359
91,927
101,814
Total revenue
304,806
290,562
1,273,721
1,299,744
Cost of revenue:
Cost of licensing
18,764
14,556
67,204
64,890
Cost of products and services
15,232
20,996
73,292
87,676
Total cost of revenue
33,996
35,552
140,496
152,566
Gross profit
270,810
255,010
1,133,225
1,147,178
Operating expenses:
Research and development
68,636
70,426
263,663
271,523
Sales and marketing
87,901
90,870
334,460
354,364
General and administrative
69,209
66,612
270,392
258,477
Restructuring charges/(credits)
(1,290)
30,596
6,384
47,061
Total operating expenses
224,456
258,504
874,899
931,425
Operating income/(loss)
46,354
(3,494)
258,326
215,753
Other income/(expense):
Interest income/(expense), net
6,854
9,280
34,077
28,086
Other income, net
6,526
3,247
20,076
6,214
Total other income
13,380
12,527
54,153
34,300
Income before income taxes
59,734
9,033
312,479
250,053
(Provision for)/benefit from income taxes
(868)
875
(48,163)
(48,409)
Net income including noncontrolling interest
58,866
9,908
264,316
201,644
Less: net income attributable to noncontrolling interest
(296)
(722)
(2,491)
(988)
Net income attributable to Dolby Laboratories, Inc.
$ 58,570
$ 9,186
$ 261,825
$ 200,656
Net income per share:
Basic
$ 0.61
$ 0.10
$ 2.74
$ 2.10
Diluted
$ 0.61
$ 0.09
$ 2.69
$ 2.05
Weighted-average shares outstanding:
Basic
95,395
95,701
95,544
95,771
Diluted
96,593
97,678
97,325
97,733
DOLBY LABORATORIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
September 27,
2024
September 29,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 482,047
$ 745,364
Restricted cash
95,705
72,602
Short-term investments
—
139,148
Accounts receivable, net
315,465
262,245
Contract assets, net
197,478
182,130
Inventories, net
33,728
35,623
Prepaid expenses and other current assets
69,994
50,692
Total current assets
1,194,417
1,487,804
Long-term investments
89,267
97,812
Property, plant, and equipment, net
479,109
481,581
Operating lease right-of-use assets
39,046
40,199
Goodwill and intangible assets, net
967,722
575,836
Deferred taxes
219,758
201,860
Other non-current assets
120,609
94,674
Total assets
$ 3,109,928
$ 2,979,766
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 17,380
$ 20,925
Accrued liabilities
347,529
351,399
Income taxes payable
9,045
4,769
Contract liabilities
31,644
31,505
Operating lease liabilities
12,238
13,628
Total current liabilities
417,836
422,226
Non-current contract liabilities
34,593
39,997
Non-current operating lease liabilities
34,754
37,020
Other non-current liabilities
135,852
108,339
Total liabilities
623,035
607,582
Stockholders’ equity:
Class A common stock
53
53
Class B common stock
41
41
Retained earnings
2,496,255
2,391,990
Accumulated other comprehensive loss
(19,187)
(36,984)
Total stockholders’ equity – Dolby Laboratories, Inc.
2,477,162
2,355,100
Noncontrolling interest
9,731
17,084
Total stockholders’ equity
2,486,893
2,372,184
Total liabilities and stockholders’ equity
$ 3,109,928
$ 2,979,766
DOLBY LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Fiscal Year Ended
September 27,
2024
September 29,
2023
Operating activities:
Net income including noncontrolling interest
$ 264,316
$ 201,644
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
75,559
82,558
Stock-based compensation
119,825
118,486
Amortization of operating lease right-of-use assets
11,768
12,956
Amortization of premium on investments
(2,919)
(860)
Benefit from credit losses
(2,256)
(793)
Deferred income taxes
(21,612)
(18,337)
Impairment loss on internally developed software
—
16,225
Other non-cash items affecting net income
(10,828)
(2,800)
Changes in operating assets and liabilities:
Accounts receivable, net
(28,967)
47,779
Contract assets, net
(8,707)
347
Inventories
(2,654)
(13,226)
Operating lease right-of-use assets
(8,420)
(8,817)
Prepaid expenses and other assets
10,097
3,868
Accounts payable and accrued liabilities
(34,554)
(52,315)
Income taxes, net
(4,501)
(8,722)
Contract liabilities
(9,738)
(8,379)
Operating lease liabilities
(5,263)
(5,818)
Other non-current liabilities
(13,894)
3,285
Net cash provided by operating activities
327,252
367,081
Investing activities:
Purchases of marketable securities
(160,198)
(172,955)
Proceeds from sales of marketable securities
234,061
54,964
Proceeds from maturities of marketable securities
157,729
176,833
Purchases of property, plant, and equipment
(30,007)
(30,339)
Business combinations, net of cash and restricted cash acquired
(487,877)
25,703
Net cash provided by/(used in) investing activities
(286,292)
54,206
Financing activities:
Proceeds from issuance of common stock
40,203
47,781
Repurchase of common stock
(160,001)
(149,276)
Payment of cash dividend
(114,579)
(103,407)
Distributions to noncontrolling interest
(5,164)
(266)
Purchase of noncontrolling interest in business combinations
(9,920)
—
Equity issued in connection with business combination
722
—
Shares repurchased for tax withholdings on vesting of restricted stock
(39,075)
(31,144)
Payment of deferred consideration for prior business combinations
—
(500)
Net cash used in financing activities
(287,814)
(236,812)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash
6,640
5,120
Net increase/(decrease) in cash, cash equivalents, and restricted cash
(240,214)
189,595
Cash, cash equivalents, and restricted cash at beginning of period
817,966
628,371
Cash, cash equivalents, and restricted cash at end of period
$ 577,752
$ 817,966
Licensing Revenue by Market
(unaudited)
The following table presents the composition of our licensing revenue and percentage of total licensing revenue for all periods presented (in thousands, except percentage amounts):
Fiscal Quarter Ended
Fiscal Year Ended
Market
September 27, 2024
September 29, 2023
September 27, 2024
September 29, 2023
Broadcast
$ 95,779
34 %
$ 102,448
39 %
$ 409,105
35 %
$ 451,719
38 %
Mobile
48,701
17 %
36,122
14 %
235,774
20 %
243,897
20 %
CE
42,024
15 %
41,682
16 %
165,817
14 %
170,197
14 %
PC
34,077
12 %
27,240
10 %
141,300
12 %
124,362
10 %
Other
62,124
22 %
57,711
21 %
229,798
19 %
207,755
18 %
Total licensing revenue
$ 282,705
100 %
$ 265,203
100 %
$ 1,181,794
100 %
$ 1,197,930
100 %
GAAP to Non-GAAP Reconciliations
(unaudited)
The following tables present Dolby’s GAAP financial measures reconciled to the non-GAAP financial measures included in this release for the fourth quarter and fiscal years ended September 27, 2024 and September 29, 2023:
Net income:
Fiscal Quarter Ended
Fiscal Year Ended
(in thousands)
September 27,
2024
September 29,
2023
September 27,
2024
September 29,
2023
GAAP net income attributable to Dolby Laboratories, Inc.
$ 58,570
$ 9,186
$ 261,825
$ 200,656
Stock-based compensation (1)
29,679
28,195
119,825
118,486
Amortization of acquisition-related intangibles (2)
6,296
3,306
15,552
10,056
Restructuring charges/(credits)
(1,290)
30,596
6,384
47,061
Impact of Tax Reform
(10,042)
—
(10,042)
—
Income tax adjustments
(4,777)
(7,339)
(24,528)
(28,249)
Non-GAAP net income attributable to Dolby Laboratories, Inc.
$ 78,436
$ 63,944
$ 369,016
$ 348,010
(1) Stock-based compensation included in above line items:
Cost of products and services
$ 362
$ 388
$ 1,501
$ 1,697
Research and development
9,703
9,643
38,214
39,472
Sales and marketing
9,994
9,279
40,128
40,038
General and administrative
9,620
8,885
39,982
37,279
(2) Amortization of acquisition-related intangibles included in above line items:
Cost of licensing
$ 2,789
$ 62
$ 2,890
$ 248
Cost of products and services
768
650
2,350
3,248
Research and development
—
—
—
253
Sales and marketing
867
721
2,824
3,137
General and administrative
1,872
1,873
7,488
3,170
Diluted earnings per share:
Fiscal Quarter Ended
Fiscal Year Ended
September 27,
2024
September 29,
2023
September 27,
2024
September 29,
2023
GAAP diluted earnings per share
$ 0.61
$ 0.09
$ 2.69
$ 2.05
Stock-based compensation
0.30
0.29
1.23
1.21
Amortization of acquisition-related intangibles
0.06
0.03
0.16
0.10
Restructuring charges/(credits)
(0.01)
0.31
0.07
0.48
Impact of Tax Reform
(0.10)
—
(0.11)
—
Income tax adjustments
(0.05)
(0.07)
(0.25)
(0.28)
Non-GAAP diluted earnings per share
$ 0.81
$ 0.65
$ 3.79
$ 3.56
Weighted-average shares outstanding – diluted (in thousands)
96,593
97,678
97,325
97,733
The following tables present a reconciliation between GAAP and non-GAAP versions of the estimated financial measures for the first quarter of fiscal 2025 and full year fiscal 2025 included in this release:
Gross margin:
Q1 2025
Fiscal 2025
GAAP gross margin
87.0 %
87.0 %
Stock-based compensation
0.1 %
0.1 %
Amortization of acquisition-related intangibles
2.9 %
2.9 %
Non-GAAP gross margin
90.0 %
90.0 %
Operating expenses (in millions):
Q1 2025
Fiscal 2025
GAAP operating expenses (low – high end of range)
$230 – $240
$908 – $918
Stock-based compensation
(37)
(134)
Amortization of acquisition-related intangibles
(3)
(9)
Non-GAAP operating expenses (low – high end of range)
$190 – $200
$765 – $775
Operating margin:
Fiscal 2025
GAAP operating margin
20% +/-
Stock-based compensation
10 %
Amortization of acquisition-related intangibles
3 %
Non-GAAP operating margin
33% +/-
Effective tax rate:
Q1 2025
GAAP effective tax rate
20.5 %
Stock-based compensation (low – high end of range)
(2%) – 0%
Amortization of acquisition-related intangibles (low – high end of range)
(1%) – 0%
Non-GAAP effective tax rate
18.5 %
Diluted earnings per share:
Q1 2025
Fiscal 2025
Low
High
Low
High
GAAP diluted earnings per share
$ 0.53
$ 0.68
$ 2.43
$ 2.58
Stock-based compensation
0.39
0.39
1.39
1.39
Amortization of acquisition-related intangibles
0.12
0.12
0.45
0.45
Income tax adjustments
(0.08)
(0.08)
(0.28)
(0.28)
Non-GAAP diluted earnings per share
$ 0.96
$ 1.11
$ 3.99
$ 4.14
Weighted-average shares outstanding – diluted (in thousands)
97,400
97,400
97,500
97,500
Investor Contact:
Peter Goldmacher
415-254-7415
peter.goldmacher@dolby.com
Media Contact:
media@dolby.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/dolby-laboratories-reports-fourth-quarter-and-fiscal-year-2024-financial-results-302310222.html
SOURCE Dolby Laboratories, Inc.
You may like
Technology
Cooper Standard Adopts Tax Benefits Preservation Plan to Protect its Tax Benefits and Shareholder Value
Published
56 seconds agoon
November 2, 2026By
NORTHVILLE, Mich., Nov. 2, 2026 /PRNewswire/ — Cooper-Standard Holdings Inc. (“Cooper Standard” or the “Company”) (NYSE: CPS) today announced that its Board of Directors (the “Board”) adopted a tax benefits preservation plan (the “Rights Agreement”) in an effort to protect stockholder value by attempting to protect against a possible limitation on the Company’s ability to use its net operating loss carryforwards, any loss or deduction attributable to a “net unrealized built-in loss” and other tax attributes (collectively, “Tax Benefits”) under the Internal Revenue Code (the “Code”).
As of September 30, 2026, Cooper Standard’s estimated U.S. Tax Benefits are approximately $215 million, which may be available to offset its future taxable income. The Company views its Tax Benefits as highly valuable assets, which are likely to inure to the benefit of the Company and its stockholders. However, if the Company experiences an “ownership change,” as defined in Section 382 of the Code, its ability to use the Tax Benefits could be substantially limited, and the timing of the usage of the Tax Benefits could be substantially delayed, which could significantly impair the value of the Tax Benefits. Generally, an “ownership change” occurs if the percentage of the Company’s stock owned by one or more “five percent stockholders” increases by more than fifty percentage points over the lowest percentage of stock owned by such stockholders at any time during the prior three-year period or, if sooner, since the last “ownership change” experienced by the Company.
The Rights Agreement is intended to act as a deterrent to any person acquiring 4.9% or more of the outstanding shares (an “acquiring person”) of the Company’s common stock without the approval of the Board. This would protect the Tax Benefits because changes in ownership by a person owning less than 4.9% of the common stock are not included in the calculation of “ownership change” for purposes of Section 382 of the Code.
The record date for the distribution of the rights is November 12, 2026. Under the Rights Agreement, the rights will initially trade with the Company’s common stock and will generally become exercisable only if a person (or any persons acting as a group) acquires 4.9% or more of the Company’s outstanding common stock. If the rights become exercisable, all holders of rights (other than any triggering person) will be entitled to acquire shares of common stock at a 50% discount. Under the Rights Agreement, any person who currently owns 4.9% or more of the Company’s common stock may continue to own its shares of common stock but may not acquire any additional shares without triggering the Rights Agreement. Under the Rights Agreement, the Board has the discretion to exempt any transaction and to exempt any person (or group of persons) from the provisions of the Rights Agreement.
The rights expire, unless earlier terminated, on the earliest to occur of: (i) the close of business on November 1, 2029; (ii) the time at which the Rights are redeemed; (iii) the time at which all exercisable Rights are exchanged; (iv) the close of business on November 1, 2027, if the approval of the Company’s stockholders of the Rights Agreement has not been obtained by that date; (v) the repeal of Section 382 of the Code if the Board determines that the Rights Agreement is no longer necessary or desirable for the preservation of the Tax Benefits; or (vii) the time at which the Board determines that the Tax Benefits are fully utilized or no longer available under Section 382 of the Code or that an ownership change under Section 382 of the Code would not adversely impact in any material respect the time period in which the Company could use the Tax Benefits, or materially impair the amount of the Tax Benefits that could be used by the Company in any particular time period, for applicable tax purposes.
Additional information about the Rights Agreement is available on a Form 8-K filed by Cooper Standard with the U.S. Securities and Exchange Commission.
About Cooper Standard
Cooper Standard, headquartered in Northville, Mich., with locations in 20 countries, is a leading global supplier of sealing and fluid handling systems and components. Utilizing our materials science and manufacturing expertise, we create innovative and sustainable engineered solutions for diverse transportation and industrial markets. Cooper Standard’s approximately 22,000 team members (including contingent workers) are at the heart of our success, continuously improving our business and surrounding communities. Learn more at www.cooperstandard.com or follow us on LinkedIn, X, Facebook, Instagram or YouTube.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “outlook,” “guidance,” “forecast,” or future or conditional verbs, such as “will,” “should,” “could,” “would,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you that these expectations, beliefs and projections will be achieved. Forward-looking statements are not guarantees of future performance and are subject to significant risks and uncertainties that may cause actual results or achievements to be materially different from the future results or achievements expressed or implied by the forward-looking statements. Among other items, such factors may include: volatility or decline of the Company’s stock price, or absence of stock price appreciation; impacts and disruptions related to the wars in Ukraine and the Middle East; escalating pricing pressures; our ability to achieve commercial recoveries and to offset the adverse impact of higher commodity and other costs through pricing and other negotiations with our customers; work stoppages or other labor disruptions with our employees or our customers’ employees; prolonged or material contractions in automotive sales and production volumes; our inability to realize sales represented by awarded business; loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry; availability and increasing volatility in costs of manufactured components and raw materials; disruptions in our supply base or our customers’ supply base; competitive threats and commercial risks associated with our diversification strategy; possible variability of our working capital requirements; risks associated with our international operations, including changes in laws, regulations, and policies governing the terms of foreign trade such as increased trade restrictions and tariffs; our ability to collect tariff recoveries from our customers; foreign currency exchange rate fluctuations; our ability to control the operations of our joint ventures for our sole benefit; our substantial amount of indebtedness and rates of interest; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposed on us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings plans; significant costs related to manufacturing facility closings or consolidation; our ability to execute new program launches; our ability to meet customers’ needs for new and improved products; the possibility that our acquisitions and divestitures may not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including environmental, health and safety laws and regulations; legal and regulatory proceedings, claims or investigations against us; the potential impact of any future public health events on our financial condition and results of operations; the ability of our intellectual property to withstand legal challenges; cyber-attacks, data privacy concerns, other disruptions in, or the inability to implement upgrades to, our information technology systems; the possible volatility of our annual effective tax rate; the possibility of a failure to maintain effective controls and procedures; the possibility of future impairment charges to our goodwill and long-lived assets; our ability to identify, attract, develop and retain a skilled, engaged and diverse workforce; our ability to procure insurance at reasonable rates; and our dependence on our subsidiaries for cash to satisfy our obligations; and other risks and uncertainties, including those detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date of this press release and we undertake no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except where we are expressly required to do so by law.
Contact for Analysts:
Roger Hendriksen
Cooper Standard
(248) 596-6465
roger.hendriksen@cooperstandard.com
Contact for Media:
Chris Andrews
Cooper Standard
(248) 596-6217
View original content to download multimedia:https://www.prnewswire.com/news-releases/cooper-standard-adopts-tax-benefits-preservation-plan-to-protect-its-tax-benefits-and-shareholder-value-302926932.html
SOURCE Cooper Standard
Technology
Harmonic Announces Third Quarter 2026 Results
Published
59 seconds agoon
November 2, 2026By
Revenue increased 64% year over year to $148.8 million, well above the high end of guidance
Rest-of-Market revenue more than doubled year over year to a record 46% of total revenue
Company raises full-year 2026 revenue outlook to $545 million – $555 million
SAN JOSE, Calif., Nov. 2, 2026 /PRNewswire/ — Harmonic Inc. (Nasdaq: HLIT) today announced its unaudited results for the third quarter ended October 2, 2026.
“Our accelerating momentum led to a breakout third quarter with revenue growing 64% year over year, driven mainly by Rest-of-Market growth which more than doubled year over year,” said Nimrod Ben-Natan, president and chief executive officer of Harmonic. “Additionally, we continued executing on our strategy by introducing new fiber and intelligence products including our Recon platform, Oyster+, cOS Loop™ and cOS SensAI™. We remain confident in our ability to deliver sustainable, profitable growth while simultaneously investing to significantly increase our addressable markets as outlined in our recent Investor Day.”
Financial and Business Highlights for Continuing Operations
Q3 2026
GAAP
Non-GAAP
(Unaudited, in millions, except per share data)
Net revenue
$
148.8
$
n/a
Operating profit (1)
26.2
33.0
Net income per share (1)
$
0.16
$
0.23
Backlog and deferred revenue of $534.0 million, an increase of 58%, compared to $338 million last yearCash: $142.8 million at October 2, 2026, compared to $124.1 million at December 31, 2025$160 million available under our revolving credit facility at October 2, 2026, compared to $85 million at July 3, 2026, due to a $75 million repayment in the third quarter
Business Highlights
Commercially deployed our cOS™ solution with 167 customers, serving 52.6 million CPE devices, with ongoing expansion across all tier-1 accounts and new customer winsRest-of-Market bookings represented over 60% of total Q3 bookings, reflecting meaningful progress in customer diversificationLaunched cOS SensAI, a recurring revenue service, in September following extended trials; secured first customer wins and began migrating existing cloud customers to the platformUnveiled Recon, developed in collaboration with Comcast, extending Harmonic’s intelligence portfolio to fiber reliability and helping operators detect and resolve network issues before subscribers are affectedAcquired a vendor-agnostic fiber management and provisioning platform company
_________________________________
(1) Includes stranded costs of approximately $1.5 million for Q3 2026.
Discontinued Operations – Video Business
The results of the Company’s Video Business are presented as held-for-sale and discontinued operations in the condensed consolidated statements of operations and condensed consolidated balance sheets for all periods presented in this press release. As previously announced, on December 8, 2025, the Company entered into a Put Option Agreement to sell its Video business to Leone Media Inc. (d/b/a MediaKind) for a purchase price of $145 million in cash (the “Disposition”). On March 20, 2026, MediaKind and the Company executed the Asset Purchase Agreement (the “APA”) for the Disposition.
On June 16, 2026, the Company and MediaKind completed the Disposition. Proceeds from the sale were $137.9 million paid at closing, subject to final post-closing adjustments under the terms of the APA. Following the Disposition, Harmonic operates as a pure-play broadband company with a single reportable segment: Broadband. As such, and unless stated otherwise, all results presented in the following table reflect those of continuing operations. The Company and MediaKind are in the process of finalizing the post-closing adjustments, which are currently expected to be completed in the first quarter of 2027.
Select Financial Information for Continuing Operations
GAAP
Non-GAAP
Key Financial Results
Q3 2026
Q2 2026
Q3 2025
Q3 2026
Q2 2026
Q3 2025
(Unaudited, in millions, except per share data)
Net revenue
$
148.8
$
133.5
$
90.5
n/a
n/a
n/a
Operating profit (1)
$
26.2
$
23.6
$
4.0
$
33.0
$
31.3
$
10.1
Net income (loss) per share
$
0.16
$
0.16
$
(0.00)
$
0.23
$
0.21
$
0.07
Other Financial Information
Q3 2026
Q2 2026
Q3 2025
(Unaudited, in millions)
Bookings for the quarter
$
105.9
$
144.3
$
97.4
Backlog and deferred revenue as of quarter end
$
534.0
$
587.6
$
338.0
Cash and cash equivalents as of quarter end
$
142.8
$
231.9
$
127.4
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.”
_________________________________
(1) Includes stranded costs of approximately $1.5 million in Q3 2026, $2.3 million in Q2 2026, and $2.2 million in Q3 2025.
GAAP Financial Guidance for Continuing Operations
Q4 2026 GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)
Low
High
Net revenue
$
141
$
151
Gross margin %
51.0 %
52.0 %
Operating profit (2)
$
22
$
28
Tax rate
31.0 %
31.0 %
Net income per share
$
0.13
$
0.16
Shares (3)
109.2
109.2
2026 GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)
Low
High
Net revenue
$
545
$
555
Gross margin %
51.9 %
52.3 %
Operating profit (2)
$
93
$
99
Tax rate
31.0 %
31.0 %
Net income per share
$
0.54
$
0.57
Shares (3)
110.2
110.2
Non-GAAP Financial Guidance for Continuing Operations
Q4 2026 Non-GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)
Low
High
Gross margin %
51.0 %
52.0 %
Gross profit
$
72
$
79
Operating profit (2)
$
28
$
34
Tax rate
23.0 %
23.0 %
Net income per share
$
0.19
$
0.23
Shares (3)
109.2
109.2
2026 Non-GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)
Low
High
Gross margin %
52.1 %
52.4 %
Gross profit
$
284
$
291
Operating profit (2)
$
118
$
124
Tax rate
23.0 %
23.0 %
Net income per share
$
0.80
$
0.84
Shares (3)
110.2
110.2
_________________________________
(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below. Components may not sum due to rounding.
(2) Includes approximately $1.5 million and $7.6 million of stranded costs associated with the Video business divestiture for Q4 2026 and FY 2026, respectively.
(3) Diluted shares assume stock price of $11.98 (Q3 2026 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, November 2, 2026. 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-conf.media-server.com/register/BI3ab9c6deda3a4df08222bd943609a117. 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 solutions, is transforming multi-gigabit connectivity. The company’s industry-leading cOS™ virtualized broadband platform, suite of solutions for fiber and DOCSIS, and a growing portfolio of AI-powered network intelligence solutions, enable broadband service providers to simplify operations, deliver exceptional subscriber experiences and expand revenue streams. With thousands of vCMTS servers and hundreds of thousands of RPDs deployed globally, Harmonic powers next-generation broadband services with five-nines reliability. Anchored with a customer-first approach and driven by a legacy of innovation, Harmonic supports broadband service providers at every stage of their network evolution. 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, but not limited to, statements related to our expectations regarding: net revenue; gross margins; operating expenses; operating income (loss), including stranded costs associated with the disposition of the Video business; 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, but are not limited to, 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 or telco 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 business will not continue to develop in their current direction or pace; the impact of tariffs and 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 cOS™ product solutions; dependence on various broadband 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; stock repurchases may not be conducted in the timeframe or in the manner we expect, or at all; and the impact on our business of natural disasters. In some cases, you can identify forward-looking statements by terminology such as, “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “believes,” “intends,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other comparable terminology. 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, 2025, 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), 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.
Asset impairment and related charges – We exclude 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 goodwill, 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.
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.
Divestiture related employee compensation costs – There were non-recurring costs that we excluded from Non-GAAP results relating to employee compensation costs resulting from the divestiture.
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.
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. This non-recurring adjustment has been excluded from the Company’s non-GAAP tax rate and non-GAAP financial measures, as management believes exclusion of this item provides more meaningful period-to-period comparisons of ongoing operating performance.
Harmonic Inc.
Preliminary Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)
October 2, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
142,841
$
124,105
Accounts receivable, net of allowances for credit losses of $413 and $227 as of
October 2, 2026 and December 31, 2025, respectively
117,110
85,935
Inventories
94,825
47,840
Prepaid expenses and other current assets
24,856
12,530
Assets held for sale
—
223,961
Total current assets
379,632
494,371
Property and equipment, net
23,577
25,648
Operating lease right-of-use assets
11,596
13,687
Goodwill
64,587
60,900
Deferred income taxes, net
90,910
104,043
Other non-current assets
18,801
19,834
Total assets
$
589,103
$
718,483
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$
2,944
$
2,944
Accounts payable
56,435
23,093
Deferred revenue
20,435
31,519
Operating lease liabilities
5,563
6,433
Other current liabilities
70,781
48,288
Liabilities to be disposed of
—
85,671
Total current liabilities
156,158
197,948
Long-term debt
33,410
109,140
Operating lease liabilities, non-current
12,208
14,664
Other non-current liabilities
11,771
13,485
Total liabilities
213,547
335,237
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; 108,965 and
111,186 shares issued and outstanding at October 2, 2026 and December 31,
2025, respectively
109
111
Additional paid-in capital
2,488,443
2,466,177
Accumulated deficit
(2,103,595)
(2,076,406)
Accumulated other comprehensive loss
(9,401)
(6,636)
Total stockholders’ equity
375,556
383,246
Total liabilities and stockholders’ equity
$
589,103
$
718,483
Harmonic Inc.
Preliminary Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended
Nine Months Ended
October 2, 2026
September 26, 2025
October 2, 2026
September 26, 2025
Revenue:
Appliance and integration
$
137,187
$
76,179
$
357,962
$
220,305
SaaS and service
11,651
14,313
46,033
41,983
Total net revenue
148,838
90,492
403,995
262,288
Cost of revenue:
Appliance and integration
67,726
42,253
174,997
116,339
SaaS and service
3,993
5,940
18,376
17,384
Total cost of revenue
71,719
48,193
193,373
133,723
Total gross profit
77,119
42,299
210,622
128,565
Operating expenses:
Research and development
23,558
18,701
65,638
56,357
Selling, general and administrative
27,300
18,681
74,215
58,944
Asset impairment and related charges
205
—
633
1,637
Restructuring and related charges
(103)
887
(103)
1,315
Total operating expenses
50,960
38,269
140,383
118,253
Income from operations
26,159
4,030
70,239
10,312
Interest income (expense), net
231
(1,001)
(1,930)
(3,402)
Other income (expense), net
(591)
440
(1,212)
(1,373)
Income before income taxes
25,799
3,469
67,097
5,537
Provision for income taxes
7,705
3,984
22,304
4,540
Income (loss) from continuing operations, net of tax
18,094
(515)
44,793
997
Income (loss) from discontinued operations, net of tax
(3,456)
3,209
(25,170)
10,508
Net income
$
14,638
$
2,694
$
19,623
$
11,505
Net income (loss) per share:
Basic:
Continuing operations
$
0.17
$
(0.00)
$
0.41
$
0.01
Discontinued operations
(0.04)
0.02
(0.23)
0.09
Basic net income per share
$
0.13
$
0.02
$
0.18
$
0.10
Diluted:
Continuing operations
$
0.16
$
(0.00)
$
0.41
$
0.01
Discontinued operations
(0.03)
0.02
(0.23)
0.09
Diluted net income per share
$
0.13
$
0.02
$
0.18
$
0.10
Weighted average common shares:
Basic
109,111
112,982
109,161
114,221
Diluted
110,259
112,982
110,433
114,602
Harmonic Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Nine Months Ended
October 2, 2026
September 26, 2025
Cash flows from Continuing and Discontinued Operations
Cash flows from operating activities:
Net income
$
19,623
$
11,505
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
8,315
8,215
Asset impairment and related charges
633
1,637
Stock-based compensation
27,524
23,486
Foreign currency remeasurement
(88)
446
Deferred income taxes, net
21,875
(3,120)
Loss on divestiture
6,566
—
Provision for excess and obsolete inventories
1,429
2,789
Other
95
61
Changes in operating assets and liabilities:
Accounts receivable, net
(35,481)
74,121
Inventories
(51,525)
(3,944)
Prepaid expenses and other assets
(11,021)
10,359
Accounts payable
34,264
(13,785)
Deferred revenues
(4,252)
1,173
Other liabilities
5,992
(17,265)
Net cash provided by operating activities
23,949
95,678
Cash flows from investing activities:
Net proceeds from divestiture, net of cash retained and transaction costs (1)
131,963
—
Acquisitions of businesses, net of cash acquired
(1,809)
—
Purchases of property and equipment
(5,831)
(8,404)
Net cash provided by (used in) investing activities
124,323
(8,404)
Cash flows from financing activities:
Proceeds from long-term debt
170,000
95,000
Repayment of long-term debt and other borrowings
(248,644)
(101,897)
Repurchase of common stock
(46,582)
(65,757)
Proceeds from other borrowings
—
3,835
Proceeds from common stock issued to employees
4,534
5,983
Taxes paid related to net share settlement of equity awards
(6,740)
(3,795)
Net cash used in financing activities
(127,432)
(66,631)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(2,089)
5,283
Net increase in cash and cash equivalents and restricted cash
18,751
25,926
Cash and cash equivalents and restricted cash at beginning of period (2)
124,461
101,789
Cash and cash equivalents and restricted cash at end of period
$
143,212
$
127,715
Cash and cash equivalents and restricted cash at end of period
Cash and cash equivalents
$
142,841
$
127,376
Restricted cash included in other current assets
371
339
Total cash, cash equivalents and restricted cash as shown in the condensed
consolidated statement of cash flows
$
143,212
$
127,715
_________________________________
1 Net proceeds from divestiture includes transaction costs of $3.8 million and cash retained in the business sold of $2.1 million.
2 Restricted cash included in other current assets was $0.4 million and $0.3 million as of December 31, 2025 and 2024 respectively.
Harmonic Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Nine Months Ended
October 2, 2026
September 26, 2025
Supplemental cash flow disclosure:
Income tax payments, net
$
5,532
$
14,496
Interest payments, net
1,999
2,897
Supplemental schedule of non-cash investing activities:
Capital expenditures incurred but not yet paid
934
968
Acquisition holdback consideration not yet paid
$
1,631
$
—
Harmonic Inc.
Preliminary GAAP Revenue Information
(Unaudited, in thousands, except percentages)
Three Months Ended
October 2, 2026
July 3, 2026
September 26, 2025
Geography
Americas
$
133,063
90 %
$
120,603
91 %
$
80,040
88 %
EMEA
10,993
7 %
8,421
6 %
9,717
11 %
APAC
4,782
3 %
4,438
3 %
735
1 %
Total
$
148,838
100 %
$
133,462
100 %
$
90,492
100 %
Customer
Top 2 customers (1)
$
80,103
54 %
$
84,053
63 %
$
56,306
62 %
Rest-of-Market
68,735
46 %
49,409
37 %
34,186
38 %
Total
$
148,838
100 %
$
133,462
100 %
$
90,492
100 %
Nine Months Ended
October 2, 2026
September 26, 2025
Geography
Americas
$
360,096
89 %
$
235,346
90 %
EMEA
29,873
7 %
24,113
9 %
APAC
14,026
4 %
2,829
1 %
Total
$
403,995
100 %
$
262,288
100 %
Customer
Top 2 customers (1)
$
235,257
58 %
$
165,420
63 %
Rest-of-Market
168,738
42 %
96,868
37 %
Total
$
403,995
100 %
$
262,288
100 %
(1) Based on largest subscriber footprint
Harmonic Inc.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)
Three Months Ended October 2, 2026
Revenue
Gross
Profit
Total
Operating
Expense
Income from
Operations
Total
Non-
operating
Expense, net
Net Income
GAAP
$
148,838
$
77,119
$
50,960
$
26,159
$
(360)
$
18,094
Stock-based compensation
—
402
(5,655)
6,057
—
6,057
Restructuring and related charges
—
—
103
(103)
—
(103)
Non-recurring advisory fees
—
—
(214)
214
—
214
Divestiture related employee compensation costs
—
—
(450)
450
—
450
Lease-related asset impairment and other charges (1)
—
—
(205)
205
—
205
Discrete tax items and tax effect of Non-GAAP adjustments
—
—
—
—
—
202
Total adjustments
—
402
(6,421)
6,823
—
7,025
Non-GAAP
$
148,838
$
77,521
$
44,539
$
32,982
$
(360)
$
25,119
As a % of revenue (GAAP)
51.8 %
34.2 %
17.6 %
(0.2) %
12.2 %
As a % of revenue (Non-GAAP)
52.1 %
29.9 %
22.2 %
(0.2) %
16.9 %
Diluted net income per share:
GAAP
$
0.16
Non-GAAP
$
0.23
Shares used in per share calculation:
GAAP and Non-GAAP
110,259
(1) Includes impairment charges of $0.2 million for right-of-use assets.
Three Months Ended July 3, 2026
Revenue
Gross
Profit
Total
Operating
Expense
Income from
Operations
Total
Non-
operating
Expense, net
Net Income
GAAP
$
133,462
$
69,888
$
46,257
$
23,631
$
(1,661)
$
17,051
Stock-based compensation
—
808
(6,476)
7,284
—
7,284
Lease-related asset impairment and other charges (1)
—
—
(428)
428
—
428
Discrete tax items and tax effect of Non-GAAP adjustments
—
—
—
—
—
(1,908)
Total adjustments
—
808
(6,904)
7,712
—
5,804
Non-GAAP
$
133,462
$
70,696
$
39,353
$
31,343
$
(1,661)
$
22,855
As a % of revenue (GAAP)
52.4 %
34.7 %
17.7 %
(1.2) %
12.8 %
As a % of revenue (Non-GAAP)
53.0 %
29.5 %
23.5 %
(1.2) %
17.1 %
Diluted net income per share:
GAAP
$
0.16
Non-GAAP
$
0.21
Shares used in per share calculation:
GAAP and Non-GAAP
109,682
(1) Includes impairment charges of $0.1 million for right-of-use assets and $0.3 million related to the fair value of other unrecoverable facility costs.
Harmonic Inc.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)
Three Months Ended September 26, 2025
Revenue
Gross
Profit
Total
Operating
Expense
Income from
Operations
Total
Non-
operating
Expense, net
Net Income
(Loss)
GAAP
$
90,492
$
42,299
$
38,269
$
4,030
$
(561)
$
(515)
Stock-based compensation
—
125
(5,032)
5,157
—
5,157
Restructuring and related charges
—
—
(887)
887
—
887
Discrete tax items and tax effect of Non-GAAP adjustments
—
—
—
—
—
1,986
Total adjustments
—
125
(5,919)
6,044
—
8,030
Non-GAAP
$
90,492
$
42,424
$
32,350
$
10,074
$
(561)
$
7,515
As a % of revenue (GAAP)
46.7 %
42.3 %
4.5 %
(0.6) %
(0.6) %
As a % of revenue (Non-GAAP)
46.9 %
35.7 %
11.1 %
(0.6) %
8.3 %
Diluted net income (loss) per share:
GAAP
$
(0.00)
Non-GAAP
$
0.07
Shares used in per share calculation:
GAAP
112,982
Non-GAAP
113,323
Nine Months Ended October 2, 2026
Revenue
Gross
Profit
Total
Operating
Expense
Income from
Operations
Total
Non-
operating
Expense, net
Net Income
GAAP
$
403,995
$
210,622
$
140,383
$
70,239
$
(3,142)
$
44,793
Stock-based compensation
—
1,475
(17,430)
18,905
—
18,905
Restructuring and related charges
—
—
103
(103)
—
(103)
Non-recurring advisory fees
—
—
(214)
214
—
214
Divestiture related employee compensation costs
—
—
(450)
450
—
450
Lease-related asset impairment and other charges (1)
—
—
(633)
633
—
633
Discrete tax items and tax effect of non-GAAP adjustments
—
—
—
—
—
1,875
Total adjustments
—
1,475
(18,624)
20,099
—
21,974
Non-GAAP
$
403,995
$
212,097
$
121,759
$
90,338
$
(3,142)
$
66,767
As a % of revenue (GAAP)
52.1 %
34.7 %
17.4 %
(0.8) %
11.1 %
As a % of revenue (Non-GAAP)
52.5 %
30.1 %
22.4 %
(0.8) %
16.5 %
Diluted net income per share:
GAAP
$
0.41
Non-GAAP
$
0.60
Shares used in per share calculation:
GAAP and Non-GAAP
110,433
(1) Includes impairment charges of $0.3 million for right-of-use assets and $0.3 million related to the fair value of other unrecoverable facility costs.
Nine Months Ended September 26, 2025
Revenue
Gross
Profit
Total
Operating
Expense
Income from
Operations
Total
Non-
operating
Expense, net
Net Income
GAAP
$
262,288
$
128,565
$
118,253
$
10,312
$
(4,775)
$
997
Stock-based compensation
—
743
(15,086)
15,829
—
15,829
Restructuring and related charges
—
—
(1,315)
1,315
—
1,315
Lease-related asset impairment and other charges (1)
—
—
(1,637)
1,637
—
1,637
Discrete tax items and tax effect of non-GAAP adjustments
—
—
—
—
—
(566)
Total adjustments
—
743
(18,038)
18,781
—
18,215
Non-GAAP
$
262,288
$
129,308
$
100,215
$
29,093
$
(4,775)
$
19,212
As a % of revenue (GAAP)
49.0 %
45.1 %
3.9 %
(1.8) %
0.4 %
As a % of revenue (Non-GAAP)
49.3 %
38.2 %
11.1 %
(1.8) %
7.3 %
Diluted net income per share:
GAAP
$
0.01
Non-GAAP
$
0.17
Shares used in per share calculation:
GAAP and Non-GAAP
114,221
(1) Includes impairment charges of $0.4 million for right-of-use assets, $0.3 million for leasehold improvements, and $0.9 million related to the fair value
of other unrecoverable facility costs.
Harmonic Inc.
GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)(1)
(In millions, except percentages and per share data)
Q4 2026 Financial Guidance
Revenue
Gross Profit
Total Operating
Expense
Income from
Operations
Net Income
GAAP
$
141
to
$
151
$
72
to
$
79
$
50
to
$
51
$
22
to
$
28
$
14
to
$
18
Stock-based compensation
—
—
(6)
6
6
Tax effect of Non-GAAP adjustments
—
—
—
—
1
Total adjustments
—
—
(6)
6
7
7
Non-GAAP
$
141
to
$
151
$
72
to
$
79
$
44
to
$
45
$
28
to
$
34
$
21
to
$
25
As a % of revenue (GAAP)
51.0 %
to
52.0 %
35.5 %
to
33.8 %
15.6 %
to
18.5 %
9.9 %
to
11.9 %
As a % of revenue (Non-GAAP)
51.0 %
to
52.0 %
31.2 %
to
29.8 %
19.9 %
to
22.5 %
14.9 %
to
16.6 %
Diluted net income per share:
GAAP
$
0.13
to
$
0.16
Non-GAAP
$
0.19
to
$
0.23
Shares used in per share calculation:
GAAP and Non-GAAP
109.2
FY 2026 Financial Guidance
Revenue
Gross Profit
Total Operating
Expense
Income from
Operations
Net Income
GAAP
$
545
to
$
555
$
283
to
$
290
$
190
to
$
191
$
93
to
$
99
$
59
to
$
63
Stock-based compensation
—
1
(23)
24
24
Lease-related asset impairment and related charges
—
—
(1)
1
1
Tax effect of Non-GAAP adjustments
—
—
—
—
4
Total adjustments
—
1
(24)
25
29
to
29
Non-GAAP
$
545
to
$
555
$
284
to
$
291
$
166
to
$
167
$
118
to
$
124
$
88
to
$
92
As a % of revenue (GAAP)
51.9 %
to
52.3 %
34.9 %
to
34.4 %
17.1 %
to
17.8 %
10.8 %
to
11.4 %
As a % of revenue (Non-GAAP)
52.1 %
to
52.4 %
30.5 %
to
30.1 %
21.7 %
to
22.3 %
16.1 %
to
16.6 %
Diluted net income per share:
GAAP
$
0.54
to
$
0.57
Non-GAAP
$
0.80
to
$
0.84
Shares used in per share calculation:
GAAP and non-GAAP
110.2
_________________________________
(1) Components may not sum to total due to rounding.
View original content to download multimedia:https://www.prnewswire.com/news-releases/harmonic-announces-third-quarter-2026-results-302925916.html
SOURCE Harmonic Inc.
Technology
POMDOCTOR LIMITED Announces Receipt of Nasdaq Notifications Regarding Continued Listing Requirements
Published
1 minute agoon
November 2, 2026By
GUANGZHOU, China, Nov. 2, 2026 /PRNewswire/ — POMDOCTOR LIMITED (“Pomdoctor” or the “Company”) (Nasdaq: POM), a digital healthcare company focused on advancing AI-enabled healthcare solutions and predictive healthcare capabilities, today announced that on October 28, 2026, it received two letters (the “Letters”) from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) regarding deficiencies with respect to certain continued listing requirements of The Nasdaq Global Market.
The first Letter notified the Company that, based upon the Company’s MVLS for the 30 consecutive business days from September 16, 2026 through October 27, 2026, the Company no longer meets the requirement under Nasdaq Listing Rule 5450(b)(2)(A) to maintain market value of listed securities (“MVLS”) of at least $50 million (the “MVLS Requirement”). The Staff also noted that the Company does not meet the requirements under Nasdaq Listing Rule 5450(b)(3) (A).
Pursuant to Nasdaq Listing Rule 5810(c)(3)(C), the Company has a compliance period of 180 calendar days, or until April 26, 2027, to regain compliance with the MVLS Requirement. If at any time during the compliance period the Company’s MVLS closes at $50 million or more for a minimum of ten consecutive business days, Nasdaq will provide the Company with written confirmation of compliance and the matter will be closed.
The second Letter notified the Company that, based upon the Company’s MVPHS for the 30 consecutive business days from September 16, 2026 through October 27, 2026, the Company no longer meets the requirement under Nasdaq Listing Rule 5450(b)(2&3)(C) to maintain a minimum market value of publicly held shares (“MVPHS”) of $15 million (the “MVPHS Requirement”).
Pursuant to Nasdaq Listing Rule 5810(c)(3)(D), the Company has a compliance period of 180 calendar days, or until April 26, 2027, to regain compliance with the MVPHS Requirement. If at any time during the compliance period the Company’s MVPHS closes at $15 million or more for a minimum of ten consecutive business days, Nasdaq will provide the Company with written confirmation of compliance and the matter will be closed.
If the Company does not regain compliance prior to the expiration of the applicable compliance period, the Company will receive written notification that its securities are subject to delisting. At that time, the Company may appeal the delisting determination to a Hearings Panel.
The Company intends to monitor its MVLS and MVPHS and evaluate available options to regain compliance with the applicable continued listing requirements within the compliance period.
There can be no assurance that the Company will regain compliance with the applicable Nasdaq continued listing requirements within the compliance period or otherwise maintain compliance with Nasdaq’s other continued listing requirements.
About POMDOCTOR LIMITED
POMDOCTOR LIMITED (Nasdaq: POM) is a digital healthcare company focused on advancing AI-enabled healthcare solutions and expanding predictive healthcare capabilities. The Company leverages physician resources, wearable technologies, artificial intelligence, healthcare payment networks and real-world healthcare data to support more personalized, continuous and data-driven healthcare services.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include, without limitation, statements concerning the Company’s ability and plans to regain and maintain compliance with Nasdaq’s continued listing requirements, including the MVLS Requirement and the MVPHS Requirement, the Company’s evaluation of alternatives available to regain compliance, and the continued listing of the Company’s Class A ordinary shares on Nasdaq.
Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. Factors that could cause actual results to differ materially include, among others, the Company’s ability to regain and maintain compliance with the MVLS Requirement, the MVPHS Requirement and other Nasdaq continued listing requirements, fluctuations in the market price of the Company’s Class A ordinary shares, and the other risks and uncertainties described in the Company’s filings with the U.S. Securities and Exchange Commission.
The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release, except as required by applicable law.
Investor Relations Contact
POMDOCTOR LIMITED
Investor Relations Department
Email: ir@7lk.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
View original content:https://www.prnewswire.com/news-releases/pomdoctor-limited-announces-receipt-of-nasdaq-notifications-regarding-continued-listing-requirements-302925899.html
SOURCE POMDOCTOR LIMITED
Cooper Standard Adopts Tax Benefits Preservation Plan to Protect its Tax Benefits and Shareholder Value
Harmonic Announces Third Quarter 2026 Results
POMDOCTOR LIMITED Announces Receipt of Nasdaq Notifications Regarding Continued Listing Requirements
Send Rakhi to UK swiftly with UK Gifts Portal
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Nullmax and Renesas Forge Strategic Partnership to Deliver Competitive ADAS Solutions for the Global Market
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Coin Market4 days agoBinance hack may involve private key ‘misuse,’ not theft: Blockaid CEO
-
Coin Market4 days agoCanton Foundation grants RedStone 15.8M Canton Coin for pricing standard
-
Technology4 days agoMoonello Shifts Focus to AI and Software Engineering, Introduces Four Fixed-Fee Services
-
Technology4 days agoFrom Catapult to capital: NextFin Asia reaches first investment milestone with Indonesia’s Finfra
-
Technology4 days agoAppian Defense Cloud Achieves IL5 Authorization Across Department of War Operations
-
Technology4 days agoUnited Premier Soccer League Names Corgi Insurance Its Official Insurance Partner
-
Technology4 days ago
Thirty Weihai Companies Added to Shandong’s Green Factory List
-
Technology4 days agoThirty Weihai Companies Added to Shandong’s Green Factory List
