Science & Technology
Science and Technology
Science and Technology
Thu, February 3, 2011
SAN JOSE, CA--(Marketwire - February 3, 2011) - Harmonic Inc. (
Net revenue for the fourth quarter of 2010 was $138.2 million, which excluded $0.8 million of certain deferred revenue that would otherwise have been recognized by Omneon had the acquisition not occurred, up from $86.7 million in the fourth quarter of 2009. Total bookings in the fourth quarter of 2010 were approximately $134.8 million, up from approximately $107.6 million for the fourth quarter of 2009. For the full year 2010, net revenue was $423.3 million, which excluded $2.1 million of certain deferred revenue referenced above, up from $319.6 million in 2009.
Omneon contributed $30.9 million in net revenue during the fourth quarter of 2010, which excluded certain deferred revenue referenced above. Excluding Omneon's contribution, Harmonic's stand-alone net revenue was $107.3 million in the fourth quarter of 2010, up 8% from the previous quarter and up 24% from the fourth quarter of 2009. For the full year 2010, Harmonic's stand-alone net revenue was $386.8 million, up 21% from 2009.
The growth in revenues reflected continued demand across different geographies and markets, as well as year end spending by some of our customers. International sales represented 54% of Harmonic's net revenues for the fourth quarter of 2010.
The Company reported a GAAP net loss for the fourth quarter of 2010 of $13.7 million, or $0.12 per share, compared to net income of $47 thousand, or $0.00 per diluted share, for the fourth quarter of 2009. For the full year 2010, the Company's GAAP net loss was $4.3 million, or $0.04 per share, compared to a GAAP net loss of $24.1 million, or $0.25 per share, in 2009.
Non-GAAP net income for the fourth quarter of 2010 was $12.5 million, or $0.11 per diluted share, up from $6.3 million, or $0.07 per diluted share, for the same period of 2009. For the full year 2010, non-GAAP net income was $36.4 million, or $0.35 per diluted share, compared to $18.0 million, or $0.19 per diluted share, for 2009. See "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Income (Loss) Reconciliation" below.
For the fourth quarter of 2010, Harmonic had GAAP gross margins of 44% and GAAP operating margins of (2%), compared to 45% and 4%, respectively, for the same period of 2009. Non-GAAP gross margins were 51% and non-GAAP operating margins were 13% for the fourth quarter of 2010, up from 48% and 11%, respectively, for the same period of 2009.
As of December 31, 2010, the Company had cash, cash equivalents and short-term investments of $120.4 million, up from $110.1 million as of October 1, 2010.
"Throughout 2010, Harmonic significantly expanded its leadership position in enabling the new video economy," said Patrick Harshman, President and Chief Executive Officer. "Our traditional business grew by 21%, driven by the growing worldwide investment in video services, and by our strong competitive position and expanding international sales organization. The September acquisition of Omneon further expanded the breadth of our solutions, our global broadcast and media customer base and our international presence.
"Moving into 2011, we expect broadcasters, media companies and video service providers around the globe to continue to invest in producing and delivering high-value video programming and services. You can expect us to continue to introduce innovative video technologies that enable this dynamic video marketplace. We're excited about our expanding opportunities for growth in 2011 and beyond."
Business Outlook
Harmonic anticipates net revenue in a range of $129 million to $132 million for the first quarter of 2011. GAAP gross margins and operating expenses for the first quarter of 2011 are expected to be in the range of 45% to 47% and $61 to $62 million, respectively. Non-GAAP gross margins and operating expenses for the first quarter of 2011, which will exclude charges for stock-based compensation and the amortization of intangibles, are anticipated to be in the range of 50% to 52% and $53 to $54 million, respectively.
Conference Call Information
Harmonic will host a conference call today to discuss its financial results at 2:00 P.M. Pacific (5:00 P.M. Eastern). A listen-only broadcast of the conference call can be accessed on the Company's website at [ www.harmonicinc.com ] or by calling +1.706.634.9047 (conference identification code 50192422). The replay will be available after 6:00 P.M. Pacific at the same website address or by calling +1.706.645.9291 (conference identification code 50192422).
About Harmonic Inc.
Harmonic Inc. offers a comprehensive, innovative and market-leading portfolio of video infrastructure solutions, spanning content production to multi-screen video delivery. Harmonic customers can efficiently create, prepare and deliver differentiated video services over broadcast, cable, Internet, mobile, satellite and telecom networks, while simplifying end-to-end asset management, reducing costs and streamlining workflows.
Harmonic (
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 our final results for the fourth quarter ended December 31, 2010; our expectation that, with the addition of Omneon in September 2010, we will further expand the breadth of our solutions, our customer base of global broadcast and media companies and our international presence; our expectation that broadcasters, media companies and video service providers will invest in high-value video programming and services; our expectation that we will introduce innovative video technologies that enable the dynamic video marketplace; our expectations about expanded opportunities for growth; and our expectations regarding net revenue, GAAP gross margins, GAAP operating expenses, non-GAAP gross margins and non-GAAP operating expenses for the first quarter of 2011. Our expectations and beliefs 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 the possibility, in no particular order, that: we will not be able to integrate Omneon into our business as effectively or efficiently as expected; Omneon does not provide Harmonic with the benefits that we expect from the acquisition; the trends toward more high-definition, on-demand and anytime, anywhere video will not continue to develop at its current pace, or at all; the possibility that our products will not generate sales that are commensurate with our expectations; the mix of products and services sold in various geographies and the effect it has on gross margins; delays or decreases in capital spending in the cable, satellite and telco and broadcast and media industries; customer concentration and consolidation; the impact of general economic conditions, including recent turmoil in the global financial markets, particularly on international sales and operations; market acceptance of new or existing Harmonic products; losses of one or more key customers; risks associated with Harmonic's international operations; inventory management; the effect of competition; difficulties associated with rapid technological changes in Harmonic's markets; the need to introduce new and enhanced products and the risk that our product development is not timely or does not result in expected benefits or market acceptance; risks associated with unpredictable sales cycles; our dependence on contract manufacturers; and the risks that our international sales and support center will not provide the operational or tax benefits that we anticipate or that its expenses exceed our plans. 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 annual report filed on Form 10-K for the year ended December 31, 2009, our Form 10-Q for the quarter ended October 1, 2010 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.
EDITOR'S NOTE -- Product and company names used herein are trademarks or registered trademarks of their respective owners.
HARMONIC INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, ---------------------- 2010 2009 ---------- ---------- (In thousands) ASSETS Current assets: Cash and cash equivalents $ 96,533 $ 152,477 Short-term investments 23,838 118,593 Accounts receivable, net 101,652 64,838 Inventories 58,065 35,066 Deferred income taxes 39,849 26,503 Prepaid expenses and other current assets 28,614 20,821 ---------- ---------- Total current assets 348,551 418,298 Property and equipment, net 39,825 25,941 Goodwill, intangibles and other assets 332,010 112,065 ---------- ---------- Total assets $ 720,386 $ 556,304 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 26,300 $ 22,065 Income taxes payable 6,791 609 Deferred revenue 46,279 32,855 Accrued liabilities 51,283 37,584 ---------- ---------- Total current liabilities 130,653 93,113 Income taxes payable, long-term 48,883 43,948 Financing liability, long-term - 6,908 Deferred income taxes, long-term 14,849 - Other non-current liabilities 5,798 4,862 ---------- ---------- Total liabilities 200,183 148,831 ---------- ---------- Stockholders' equity: Common stock 2,397,783 2,280,041 Accumulated deficit (1,876,868) (1,872,533) Accumulated other comprehensive loss (712) (35) ---------- ---------- Total stockholders' equity 520,203 407,473 ---------- ---------- Total liabilities and stockholders' equity $ 720,386 $ 556,304 ========== ========== HARMONIC INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended Year ended December 31, December 31, -------------------- -------------------- 2010 2009 2010 2009 --------- ---------- --------- --------- (In thousands, except per share amounts) Net revenue $ 138,194 $ 86,657 $ 423,344 $ 319,566 Cost of revenue 76,813 47,308 227,943 185,206 --------- ---------- --------- --------- Gross profit 61,381 39,349 195,401 134,360 Operating expenses: Research and development 24,252 15,610 77,197 61,435 Selling, general and administrative 37,232 19,707 108,150 81,138 Amortization of intangibles 2,885 533 4,912 3,822 --------- ---------- --------- --------- Total operating expenses 64,369 35,850 190,259 146,395 --------- ---------- --------- --------- Income (loss) from operations (2,988) 3,499 5,142 (12,035) Interest and other income, net 225 429 297 2,300 --------- ---------- --------- --------- Income (loss) before income taxes (2,763) 3,928 5,439 (9,735) Provision for income taxes 10,975 3,881 9,774 14,404 --------- ---------- --------- --------- Net income (loss) $ (13,738) $ 47 $ (4,335) $ (24,139) ========= ========== ========= ========= Net income (loss) per share: Basic $ (0.12) $ 0.00 $ (0.04) $ (0.25) ========= ========== ========= ========= Diluted $ (0.12) $ 0.00 $ (0.04) $ (0.25) ========= ========== ========= ========= Weighted average shares: Basic 112,062 96,109 101,487 95,833 Diluted 112,062 96,597 101,487 95,833 HARMONIC INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Year ended December 31, ------------------------------ 2010 2009 -------------- -------------- (In thousands) Cash flows from operating activities: Net income (loss) $ (4,335) $ (24,139) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of intangibles 17,425 11,904 Depreciation 9,990 8,655 Stock-based compensation 15,539 10,579 Net loss on disposal of fixed assets 162 198 Deferred income taxes (248) 11,818 Other non-cash adjustments, net 1,529 2,594 Changes in assets and liabilities, net of effect of acquisitions: Accounts receivable, net (19,744) 5,426 Inventories (11,979) 7,726 Prepaid expenses and other assets (5,445) (2,313) Accounts payable (3,080) 5,735 Deferred revenue 5,086 2,072 Income taxes payable 11,017 1,389 Accrued excess facility costs (2,412) (6,044) Accrued and other liabilities 4,332 (24,512) -------------- -------------- Net cash provided by operating activities 17,837 11,088 -------------- -------------- Cash flows from investing activities: Purchases of investments (51,457) (129,202) Proceeds from sales and maturities of investments 144,230 157,881 Acquisition of property and equipment (35,624) (8,086) Acquisition of Scopus, net of cash received - (63,053) Acquisition of Omneon, net of cash received (153,254) - Other acquisitions (250) (452) -------------- -------------- Net cash used in investing activities (96,355) (42,912) -------------- -------------- Cash flows from financing activities: Building improvement allowance from landlord 18,833 - Proceeds from issuance of common stock, net 3,859 4,243 -------------- -------------- Net cash provided by financing activities 22,692 4,243 -------------- -------------- Effect of exchange rate changes on cash and cash equivalents (118) 167 -------------- -------------- Net decrease in cash and cash equivalents (55,944) (27,414) Cash and cash equivalents at beginning of period 152,477 179,891 -------------- -------------- Cash and cash equivalents at end of period $ 96,533 $ 152,477 ============== ============== HARMONIC INC. Revenue Information (Unaudited) Three months ended December 31, Year ended December 31, ----------------------------- ----------------------------- 2010 2009 2010 2009 -------------- -------------- -------------- -------------- (In thousands, except percentages) Product Video Processing $ 63,005 46% $ 48,813 56% $ 202,898 48% $ 162,654 51% Production and Playout 27,699 20% - 0% 32,579 8% - 0% Edge and Access 30,787 22% 28,223 33% 135,306 32% 117,355 37% Services and Support 16,703 12% 9,621 11% 52,561 12% 39,557 12% --------- --- --------- --- --------- --- --------- --- Total $ 138,194 100% $ 86,657 100% $ 423,344 100% $ 319,566 100% ========= ========= ========= ========= Geography United States $ 63,194 46% $ 43,091 50% $ 209,583 50% $ 162,023 51% International 75,000 54% 43,566 50% 213,761 50% 157,543 49% --------- --- --------- --- --------- --- --------- --- Total $ 138,194 100% $ 86,657 100% $ 423,344 100% $ 319,566 100% ========= ========= ========= ========= Market Cable $ 65,806 48% $ 53,836 62% $ 238,000 56% $ 192,941 60% Satellite and Telco 28,363 20% 23,741 27% 94,435 22% 91,603 29% Broadcast and Media 44,025 32% 9,080 11% 90,909 22% 35,022 11% --------- --- --------- --- --------- --- --------- --- Total $ 138,194 100% $ 86,657 100% $ 423,344 100% $ 319,566 100% ========= ========= ========= =========
NOTE: We have revised our product categories to move software products into the Video Processing category. In addition, we have revised our market categories to combine the Telco revenue with the Satellite category. The data for prior periods has been revised to conform with this presentation.
Use of Non-GAAP Financial Measures
In establishing operating budgets, managing its business performance, and setting internal measurement targets, the Company excludes a number of items required by GAAP. Management believes that these accounting charges and credits, most of which are non-cash or non-recurring in nature, are not useful in managing its operations and business. Historically, the Company has also publicly presented these supplemental non-GAAP measures in order to assist the investment community to see the Company "through the eyes of management," and thereby enhance understanding of its operating performance. The non-GAAP measures presented here are gross margins, operating expense, net income and net income per 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 contained in this press release. Management has excluded expenses incurred as a result of acquisitions made by the Company and restructuring activities, such as severance, charges incurred for excess facilities, an anticipated litigation settlement and losses on product discontinuances, as these are the result of infrequent events or have arisen outside of the ordinary course of the Company's continuing operations. Additionally, management has excluded non-cash charges for stock-based compensation expense, the fair value write up of acquired inventories sold, and the amortization of intangibles related to acquisitions made by the Company. Finally, management has excluded certain discrete tax adjustments, as these do not reflect future expected tax provisions or effective rates, nor does the inclusion of this information in calculating our net income provide a meaningful comparison of current versus prior period net income.
HARMONIC INC. GAAP to Non-GAAP Net Income (Loss) Reconciliation (Unaudited) Three months ended Three months ended December 31, 2010 December 31, 2009 ------------------------------- ------------------------------- Net Gross Operating Income Gross Operating Net Margin Expense (Loss) Margin Expense Income --------- --------- --------- --------- --------- --------- (In thousands, except per share amounts) GAAP $ 61,381 $ 64,369 $ (13,738) $ 39,349 $ 35,850 $ 47 Purchase accounting fair value adjustments related to inventory 2,061 - 2,061 - - - Cost of revenue related to stock-based compensation expense 676 - 676 431 - 431 Cost of revenue related to severance costs 63 - 63 85 - 85 Research and development expense related to stock-based compensation expense - (1,578) 1,578 - (1,075) 1,075 Research and development expense related to severance costs - (47) 47 - - - Selling, general and administrative expense related to stock-based compensation expense - (3,105) 3,105 - (1,435) 1,435 Selling, general and administrative expense related to excess facility costs - (2,973) 2,973 - (71) 71 Selling, general and administrative expense related to anticipated litigation settlement - (863) 863 - - - Selling, general and administrative expense related to severance costs (508) 508 - - - Selling, general and administrative expense related to restructuring costs - - - - (46) 46 Acquisition costs related to Omneon - (175) 175 - - - Amortization of intangibles 5,636 (2,885) 8,521 2,149 (533) 2,682 Discrete tax items and adjustments - - 5,633 - - 467 --------- --------- --------- --------- --------- --------- Non-GAAP $ 69,817 $ 52,235 $ 12,465 $ 42,014 $ 32,690 $ 6,339 ========= ========= ========= ========= ========= ========= GAAP net income (loss) per share - basic $ (0.12) $ 0.00 ========= ========= GAAP net income (loss) per share - diluted $ (0.12) $ 0.00 ========= ========= Non-GAAP net income per share - basic $ 0.11 $ 0.07 ========= ========= Non-GAAP net income per share - diluted $ 0.11 $ 0.07 ========= ========= Shares used in per share calculation - basic 112,062 96,109 ========= ========= Shares used in per share calculation - diluted, GAAP 112,062 96,597 ========= ========= Shares used in per share calculation - diluted, Non-GAAP 113,670 96,597 ========= ========= Year ended Year ended December 31, 2010 December 31, 2009 ------------------------------- ------------------------------- Net Net Gross Operating Income Gross Operating Income Margin Expense (Loss) Margin Expense (Loss) --------- --------- --------- --------- --------- --------- (In thousands, except per share amounts) GAAP $ 195,401 $ 190,259 $ (4,335) $ 134,360 $ 146,395 $ (24,139) Purchase accounting fair value adjustments related to inventory 2,473 - 2,473 1,142 - 1,142 Cost of revenue related to stock-based compensation expense 2,197 - 2,197 1,517 - 1,517 Cost of revenue related to Scopus product discontinuance - - - 5,965 - 5,965 Cost of revenue related to severance costs 63 - 63 907 - 907 Research and development expense related to stock-based compensation expense - (5,013) 5,013 - (3,846) 3,846 Research and development expense related to restructuring costs - - - - (712) 712 Research and development expense related to severance costs - (47) 47 - - - Selling, general and administrative expense related to stock-based compensation expense - (8,329) 8,329 - (5,215) 5,215 Selling, general and administrative expense related to excess facility costs - (2,748) 2,748 - (494) 494 Selling, general and administrative expense related to restructuring costs - - - - (2,337) 2,337 Selling, general and administrative expense related to severance costs - (1,503) 1,503 - - - Selling, general and administrative expense related to anticipated litigation settlement - (863) 863 - - - Acquisition costs related to Omneon - (5,867) 5,867 - - - Acquisition costs related to Scopus - - - - (3,367) 3,367 Amortization of intangibles 12,513 (4,912) 17,425 8,042 (3,822) 11,864 Discrete tax items and adjustments - - (5,816) - - 4,732 --------- --------- --------- --------- --------- --------- Non-GAAP $ 212,647 $ 160,977 $ 36,377 $ 151,933 $ 126,602 $ 17,959 ========= ========= ========= ========= ========= ========= GAAP net income (loss) per share - basic $ (0.04) $ (0.25) ========= ========= GAAP net income (loss) per share - diluted $ (0.04) $ (0.25) ========= ========= Non-GAAP net income per share - basic $ 0.36 $ 0.19 ========= ========= Non-GAAP net income per share - diluted $ 0.35 $ 0.19 ========= ========= Shares used in per share calculation - basic 101,487 95,833 ========= ========= Shares used in per share calculation - diluted, GAAP 101,487 95,833 ========= ========= Shares used in per share calculation - diluted, Non-GAAP 102,512 96,354 ========= ========= Harmonic Inc. Proforma Revenue Information (Unaudited) 2009Q1 2009Q2 2009Q3 2009Q4 ------------- -------------- -------------- -------------- (In thousands, except percentages) PRODUCT Harmonic Video Processing $ 35,664 53% $ 38,297 47% $ 39,880 48% $ 48,813 56% Production and Playout - 0% - 0% - 0% - 0% Edge and Access 24,243 36% 32,216 40% 32,673 39% 28,223 33% Services and Support 7,848 11% 10,780 13% 11,308 13% 9,621 11% -------- --- --------- --- --------- --- --------- --- Total $ 67,755 100% $ 81,293 100% $ 83,861 100% $ 86,657 100% Omneon Video Processing $ - 0% $ - 0% $ - 0% $ - 0% Production and Playout 25,356 89% 21,773 86% 20,102 86% 24,165 86% Edge and Access - 0% - 0% - 0% - 0% Services and Support 2,982 11% 3,518 14% 3,266 14% 3,834 14% -------- --- --------- --- --------- --- --------- --- Total $ 28,338 100% $ 25,291 100% $ 23,368 100% $ 27,999 100% Consolidated Video Processing $ 35,664 37% $ 38,297 36% $ 39,880 37% $ 48,813 43% Production and Playout 25,356 26% 21,773 20% 20,102 19% 24,165 21% Edge and Access 24,243 25% 32,216 30% 32,673 30% 28,223 24% Services and Support 10,830 12% 14,298 14% 14,574 14% 13,455 12% -------- --- --------- --- --------- --- --------- --- Total $ 96,093 100% $ 106,584 100% $ 107,229 100% $ 114,656 100% ======== ========= ========= ========= GEOGRAPHY Harmonic United States $ 32,118 47% $ 46,532 57% $ 40,282 48% $ 43,091 50% International 35,637 53% 34,761 43% 43,579 52% 43,566 50% -------- --- --------- --- --------- --- --------- --- Total $ 67,755 100% $ 81,293 100% $ 83,861 100% $ 86,657 100% Omneon United States $ 11,590 41% $ 7,012 28% $ 7,438 32% $ 8,974 32% International 16,748 59% 18,279 72% 15,930 68% 19,025 68% -------- --- --------- --- --------- --- --------- --- Total $ 28,338 100% $ 25,291 100% $ 23,368 100% $ 27,999 100% Consolidated United States $ 43,708 45% $ 53,544 50% $ 47,720 45% $ 52,065 45% International 52,385 55% 53,040 50% 59,509 55% 62,591 55% -------- --- --------- --- --------- --- --------- --- Total $ 96,093 100% $ 106,584 100% $ 107,229 100% $ 114,656 100% ======== ========= ========= ========= MARKET Harmonic Cable $ 38,214 56% $ 53,645 66% $ 47,246 56% $ 53,836 62% Satellite and Telco 23,048 34% 18,897 23% 25,917 31% 23,741 27% Broadcast and Media 6,493 10% 8,751 11% 10,698 13% 9,080 11% -------- --- --------- --- --------- --- --------- --- Total $ 67,755 100% $ 81,293 100% $ 83,861 100% $ 86,657 100% Omneon Cable $ 407 1% $ 364 1% $ 336 1% $ 403 1% Satellite and Telco 3,918 14% 3,508 14% 3,233 14% 3,879 14% Broadcast and Media 24,013 85% 21,419 85% 19,799 85% 23,717 85% -------- --- --------- --- --------- --- --------- --- Total $ 28,338 100% $ 25,291 100% $ 23,368 100% $ 27,999 100% Consolidated Cable $ 38,621 40% $ 54,009 51% $ 47,582 44% $ 54,239 47% Satellite and Telco 26,966 28% 22,405 21% 29,150 27% 27,620 24% Broadcast and Media 30,506 32% 30,170 28% 30,497 29% 32,797 29% -------- --- --------- --- --------- --- --------- --- Total $ 96,093 100% $ 106,584 100% $ 107,229 100% $ 114,656 100% ======== ========= ========= ========= 2009 2010Q1 2010Q2 -------------- -------------- -------------- (In thousands, except percentages) PRODUCT Harmonic Video Processing $ 162,654 51% $ 38,890 46% $ 49,998 52% Production and Playout - 0% - 0% - 0% Edge and Access 117,355 37% 35,544 42% 34,263 36% Services and Support 39,557 12% 10,388 12% 11,283 12% --------- --- --------- --- --------- --- Total $ 319,566 100% $ 84,822 100% $ 95,544 100% Omneon Video Processing $ - 0% $ - 0% $ - 0% Production and Playout 91,396 87% 24,828 88% 26,589 83% Edge and Access - 0% - 0% - 0% Services and Support 13,600 13% 3,389 12% 5,340 17% --------- --- --------- --- --------- --- Total $ 104,996 100% $ 28,217 100% $ 31,929 100% Consolidated Video Processing $ 162,654 38% $ 38,890 34% $ 49,998 39% Production and Playout 91,396 22% 24,828 22% 26,589 21% Edge and Access 117,355 28% 35,544 32% 34,263 27% Services and Support 53,157 12% 13,777 12% 16,623 13% --------- --- --------- --- --------- --- Total $ 424,562 100% $ 113,039 100% $ 127,473 100% ========= ========= ========= GEOGRAPHY Harmonic United States $ 162,023 51% $ 42,592 50% $ 49,259 52% International 157,543 49% 42,230 50% 46,285 48% --------- --- --------- --- --------- --- Total $ 319,566 100% $ 84,822 100% $ 95,544 100% Omneon United States $ 35,014 33% $ 7,040 25% $ 16,197 51% International 69,982 67% 21,177 75% 15,732 49% --------- --- --------- --- --------- --- Total $ 104,996 100% $ 28,217 100% $ 31,929 100% Consolidated United States $ 197,037 46% $ 49,632 44% $ 65,456 51% International 227,525 54% 63,407 56% 62,017 49% --------- --- --------- --- --------- --- Total $ 424,562 100% $ 113,039 100% $ 127,473 100% ========= ========= ========= MARKET Harmonic Cable $ 192,941 60% $ 56,017 66% $ 53,106 56% Satellite and Telco 91,603 29% 19,798 23% 32,403 34% Broadcast and Media 35,022 11% 9,007 11% 10,035 10% --------- --- --------- --- --------- --- Total $ 319,566 100% $ 84,822 100% $ 95,544 100% Omneon Cable $ 1,510 1% $ 424 1% $ 449 1% Satellite and Telco 14,538 14% 5,232 19% 3,815 12% Broadcast and Media 88,948 85% 22,561 80% 27,665 87% --------- --- --------- --- --------- --- Total $ 104,996 100% $ 28,217 100% $ 31,929 100% Consolidated Cable $ 194,451 46% $ 56,441 50% $ 53,555 42% Satellite and Telco 106,141 25% 25,030 22% 36,218 28% Broadcast and Media 123,970 29% 31,568 28% 37,700 30% --------- --- --------- --- --------- --- Total $ 424,562 100% $ 113,039 100% $ 127,473 100% ========= ========= ========= 2010Q3 2010Q4 2010 -------------- -------------- -------------- (In thousands, except percentages) PRODUCT Harmonic Video Processing $ 51,005 51% $ 63,005 59% $ 202,898 52% Production and Playout - 0% - 0% - 0% Edge and Access 34,712 35% 30,787 29% 135,306 35% Services and Support 13,453 14% 13,485 12% 48,609 13% --------- --- --------- --- --------- --- Total $ 99,170 100% $ 107,277 100% $ 386,813 100% Omneon Video Processing $ - 0% $ - 0% $ - 0% Production and Playout 26,024 86% 27,699 87% 105,140 86% Edge and Access - 0% - 0% - 0% Services and Support 4,307 14% 4,029 13% 17,065 14% --------- --- --------- --- --------- --- Total $ 30,331 100% $ 31,728 100% $ 122,205 100% Consolidated Video Processing $ 51,005 39% $ 63,005 45% $ 202,898 40% Production and Playout 26,024 20% 27,699 20% 105,140 21% Edge and Access 34,712 27% 30,787 22% 135,306 26% Services and Support 17,760 14% 17,514 13% 65,674 13% --------- --- --------- --- --------- --- Total $ 129,501 100% $ 139,005 100% $ 509,018 100% ========= ========= ========= GEOGRAPHY Harmonic United States $ 51,895 52% $ 54,065 50% $ 197,811 51% International 47,275 48% 53,212 50% 189,002 49% --------- --- --------- --- --------- --- Total $ 99,170 100% $ 107,277 100% $ 386,813 100% Omneon United States $ 10,520 35% $ 10,165 32% $ 43,922 36% International 19,811 65% 21,563 68% 78,283 64% --------- --- --------- --- --------- --- Total $ 30,331 100% $ 31,728 100% $ 122,205 100% Consolidated United States $ 62,415 48% $ 64,230 46% $ 241,733 47% International 67,086 52% 74,775 54% 267,285 53% --------- --- --------- --- --------- --- Total $ 129,501 100% $ 139,005 100% $ 509,018 100% ========= ========= ========= MARKET Harmonic Cable $ 62,993 64% $ 65,019 61% $ 237,135 61% Satellite and Telco 24,745 25% 27,212 25% 104,158 27% Broadcast and Media 11,432 11% 15,046 14% 45,520 12% --------- --- --------- --- --------- --- Total $ 99,170 100% $ 107,277 100% $ 386,813 100% Omneon Cable $ 426 1% $ 798 2% $ 2,097 2% Satellite and Telco 3,467 11% 1,243 4% 13,757 11% Broadcast and Media 26,438 88% 29,687 94% 106,351 87% --------- --- --------- --- --------- --- Total $ 30,331 100% $ 31,728 100% $ 122,205 100% Consolidated Cable $ 63,419 49% $ 65,817 47% $ 239,232 47% Satellite and Telco 28,212 22% 28,455 21% 117,915 23% Broadcast and Media 37,870 29% 44,733 32% 151,871 30% --------- --- --------- --- --------- --- Total $ 129,501 100% $ 139,005 100% $ 509,018 100% ========= ========= =========
NOTE: Data includes a full quarter proforma revenue for Omneon for the periods shown, including certain deferred revenue excluded in reported results. We have revised our market categories to combine the Telco revenue with the Satellite category. The data for prior periods has been revised to conform with this presentation.
