In This Article:
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Total Revenue: $195.8 million, a 54% increase year over year.
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Broadband Revenue: $145.3 million, up 92% year over year.
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Video Revenue: $50.4 million, with SaaS streaming revenue of $14.2 million, up 13.1% year over year.
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Gross Margin: 53.7%, above the high end of guidance.
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Broadband Gross Margin: 48.3%, up 380 basis points year over year.
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Video Gross Margin: 69%, up 1,210 basis points year over year.
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Adjusted EBITDA: $43.4 million, with $37.5 million from Broadband and $6 million from Video.
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EPS: $0.26 per share.
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Bookings: $171.4 million, with a book-to-bill ratio of 0.9.
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Backlog and Deferred Revenue: $584.7 million.
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Cash and Cash Equivalents: $58.2 million.
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Free Cash Flow: $5.7 million.
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Days Sales Outstanding (DSO): 80 days.
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Days Inventory on Hand: 73 days.
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Q4 2024 Revenue Guidance: $205 million to $220 million.
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Q4 2024 EPS Guidance: $0.33 to $0.39.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Harmonic Inc (NASDAQ:HLIT) reported record Q3 results with total revenue and adjusted EBITDA exceeding guidance.
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The Broadband segment saw a significant revenue increase of 92% year-over-year, driven by strong customer demand and market leadership.
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The Video segment returned to profitability with a greater than 10% adjusted EBITDA margin, aided by rightsizing actions and revenue execution.
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Harmonic Inc (NASDAQ:HLIT) secured business with 7 new customers in the Broadband segment, highlighting growing demand for modernized cable network solutions.
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The company reaffirmed its full-year Broadband 2024 revenue guidance and raised its EBITDA guidance, indicating confidence in future performance.
Negative Points
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There are short-term challenges anticipated in 2025 due to ecosystem integration requirements and new Unified RF front-end development.
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Customer deployment timing plans are being pushed out, creating a short-term Broadband revenue headwind in 2025.
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The Video segment's revenue was slightly down compared to the previous year, indicating ongoing challenges in this market.
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The company faces dependency on the availability and maturity of amplifiers for future deployments, which could impact growth.
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Customer concentration remains high, with Comcast and Charter representing a significant portion of total revenue, indicating a need for diversification.
Q & A Highlights
Q: Can you explain the upside in broadband for the September quarter? Was it primarily timing, and can you provide any color on product mix affecting margins? A: The higher-than-expected results were due to delivery timing and our ability to ship products to customers. We reaffirmed our full-year guidance for broadband, indicating a shift rather than an increase. The product mix shifted slightly, leading to improved gross margins in Q3. - Walter Jankovic, CFO