HARMONIC INC
For the period ended Jun 27, 2025. Filed Aug 1, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2025 · Filed Aug 1, 2025
HLIT$9.51+2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-28; filed 2025-05-01.
0000851310-25-000041
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-27; filed 2025-08-01.
0000851310-25-000076
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 89 previous paragraphs and 94 current paragraphs.
65 unchanged; 20 reworded; 7 added; 4 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Appliance and integration net revenue was flat during the three months ended June 27, 2025, compared to the corresponding period in 2024.
Current report
SaaS and service net revenue increased by $0.5 million during the six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $3.3 million increase in SaaS revenue, mainly driven by the acquisition of new customers, partially offset by a $2.2 million decline in Video segment support services and a $0.6 million decrease in Broadband professional services revenue.
Current report
Selling, general and administrative expenses decreased by $1.6 million in the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a reduction in spending resulting from headcount reductions related to 2024 restructuring activities in the Video business.
Current report
Other Income, Net
Current report
During the six months ended June 27, 2025, our Broadband segment revenue and profit margin were relatively flat, compared to the corresponding period in 2024.
Current report
During the three months ended June 27, 2025, our Video segment revenue increased by $5.3 million, compared to the corresponding period in 2024, primarily due to a $5.3 million increase in appliance and integration revenue from sales to existing customers, driven by improved market dynamics and recent customer wins. SaaS revenue also increased by $1.4 million, mainly from the acquisition of new customers. These increases were partially offset by a $1.4 million decrease in support services revenue, resulting from lower contract renewals.
Current report
During the six months ended June 27, 2025, our Video segment revenue increased by $10.4 million, compared to the corresponding period in 2024, primarily due to a $9.3 million increase in appliance and integration revenue from sales to existing customers, driven by improved market dynamics and recent customer wins. SaaS revenue also increased by $3.3 million, mainly from the acquisition of new customers. These increases were partially offset by a $2.2 million decrease in support services revenue, resulting from lower contract renewals.
Removed paragraphs (4)
Previous report
*Not meaningful
Previous report
Other Expense, Net
Previous report
*Not meaningful
Previous report
Our Video segment revenue increased by $5.1 million for the three months ended March 28, 2025, compared to the corresponding period in 2024. This growth was driven by a $4.0 million increase in appliance and integration revenue, reflecting higher sales to existing customers and a $1.1 million increase in SaaS and services revenue. The latter was primarily due to a $1.9 million increase in SaaS revenue from new customer acquisitions, partially offset by a $0.8 million decline in support services resulting from lower contract renewals.
Reworded paragraphs (20)
Previous wording
We conduct business in three geographic regions—the Americas, Europe, the Middle East, and Africa (EMEA), and Asia-Pacific (APAC)—and operate in two segments, Broadband and Video. Our Broadband business sells broadband access solutions and related services, including our cOS™ software-based broadband access solutions, to broadband operators globally. Our Video business sells video processing, production and playout solutions, and services worldwide to cable operators and satellite and telco Pay-TV service providers, which we refer to collectively as “service providers,” as well as to broadcast and media companies, including streaming media companies.
Current wording
We conduct business in three geographic regions—the Americas, Europe, the Middle East, and Africa, and Asia-Pacific —and operate in two segments, Broadband and Video. Our Broadband business sells broadband access solutions and related services, including our cOS™ software-based broadband access solutions, to broadband operators globally. Our Video business sells video processing, production and playout solutions, and services worldwide to cable operators and satellite and telco Pay-TV service providers, which we refer to collectively as “service providers,” as well as to broadcast and media companies, including streaming media companies.
Previous wording
Our critical accounting estimates are disclosed in our 2024 Annual Report on Form 10-K, as filed with the SEC on February 14, 2025. There have been no significant changes to these estimates during the three months ended March 28, 2025.
Current wording
Our critical accounting estimates are disclosed in our 2024 Annual Report on Form 10-K, as filed with the SEC on February 14, 2025. There have been no significant changes to these estimates during the six months ended June 27, 2025.
Previous wording
Appliance and integration net revenue increased by $9.9 million during the three months ended March 28, 2025, compared to the corresponding period in 2024. The growth was primarily driven by a $5.9 million increase in our Broadband segment revenue, reflecting higher sales to existing customers due to increased deployments. The remaining $4.0 million increase was attributable to the Video segment, also driven by increased sales to existing customers.
Current wording
Appliance and integration net revenue increased by $9.8 million during the six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $9.3 million increase in our Video segment revenue driven by higher sales to existing customers due to improved market dynamics and recent customer wins.
Previous wording
SaaS and service net revenue increased by $1.1 million during the three months ended March 28, 2025, compared to the corresponding period in 2024, primarily due to a $1.9 million increase in SaaS revenue, mainly driven by the acquisition of new customers. This increase was partially offset by a $0.8 million decline in support services revenue in the Video segment due to lower contract renewals.
Current wording
SaaS and service net revenue decreased by $0.6 million during the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $1.4 million decline in Video segment support services revenue due to lower contract renewals and a $0.6 million decline in Broadband professional services revenue during the three-month period. These decreases were partially offset by a $1.4 million increase in SaaS revenue, mainly driven by the acquisition of new customers.
Previous wording
Our gross margin improved by 730 basis points in the three months ended March 28, 2025, compared to the corresponding period in 2024, driven by contributions from both the Broadband and the Video segments. The margin expansion of 540 basis points in the Broadband segment was primarily due to benefits from a favorable product mix. The margin expansion of 190 basis points in the Video segment was also primarily due to a favorable appliance product mix.
Current wording
Our gross margin improved by 380 basis points in the six months ended June 27, 2025, compared to the corresponding period in 2024, driven by contributions from both the Broadband and the Video segments. The margin expansion of 230 basis points in Broadband segment and 150 basis points in Video segment were primarily driven by a favorable product mix.
Previous wording
Research and development expenses increased by $0.6 million, compared to the corresponding period in 2024. The increase was primarily driven by a $3.0 million increase in investments to support the growth of our Broadband business, partially offset by a $2.4 million decrease in the Video business due to headcount reductions from 2024 restructuring activities.
Current wording
Research and development expenses increased by $1.3 million in the six months ended June 27, 2025, compared to the corresponding period in 2024. The increase was primarily driven by a $4.5 million increase in investments to support the growth of our Broadband business, partially offset by a $3.2 million decrease in the Video business due to headcount reductions from 2024 restructuring activities.
Previous wording
Selling, general and administrative expenses decreased by $1.8 million in the three months ended March 28, 2025, compared to the corresponding period in 2024, primarily due to a $4.0 million decrease in the Video business resulting from headcount reductions related to 2024 restructuring activities, partially offset by a $2.2 million increase in spending to support the growth of the Broadband business.
Current wording
Selling, general and administrative expenses decreased by $3.4 million in the six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $5.4 million decrease in the Video business resulting from headcount reductions related to 2024 restructuring activities, partially offset by a $2.0 million increase in spending to support the growth of the Broadband business.
Previous wording
Restructuring and related charges in the three months ended March 28, 2025 decreased by $3.5 million compared to the corresponding period in 2024, primarily due to higher severance and employee benefits costs recorded in connection with 2024 restructuring activities in the prior period. Refer to Note 11, “Restructuring and Related Charges,” of the Notes to our condensed consolidated financial statements for additional information.
Current wording
Restructuring and related charges in the three and six months ended June 27, 2025 decreased by $10.8 million and $13.9 million, respectively, compared to the corresponding periods in 2024, primarily due to higher severance and employee benefits costs recorded in connection with 2024 restructuring activities in the prior periods. Refer to Note 11, “Restructuring and Related Charges,” of the Notes to our condensed consolidated financial statements for additional information.
Previous wording
Interest expense, net in the three months ended March 28, 2025 increased by $0.8 million compared to the corresponding period in 2024, primarily due to higher interest rates for the borrowings under the Credit Agreement compared to the interest rate for the 2024 Notes. Refer to Note 6, “Debt,” of the Notes to our condensed consolidated financial statements for additional information regarding the interest rates applicable to our outstanding loans.
Current wording
Interest expense, net in the three months ended June 27, 2025 decreased slightly, compared to the corresponding period in 2024. Interest expense, net in the six months ended June 27, 2025 increased by $0.6 million, compared to the corresponding period in 2024, primarily due to higher interest rates for the borrowings under the Credit Agreement compared to the interest rate for the 2024 Notes. Refer to Note 6, “Debt,” of the Notes to our condensed consolidated financial statements for additional information regarding the interest rates applicable to our outstanding loans.
Previous wording
The changes in other expense, net in the three months ended March 28, 2025, compared to the corresponding period in 2024, were primarily due to lower unrealized foreign exchange losses resulting from the fluctuation of the Euro against the U.S. dollar.
Current wording
Other income, net decreased in the three and six months ended June 27, 2025, compared to the corresponding periods in 2024, primarily due to lower unrealized foreign exchange gains resulting from the fluctuation of the Euro against the U.S. dollar.
Previous wording
The change in provision for (benefit from) income taxes during the three months ended March 28, 2025 compared to the corresponding period in 2024, was primarily due to pre-tax earnings in the current period, compared to the pre-tax loss in the prior period.
Current wording
The changes in provision for (benefit from) income taxes during the three and six months ended June 27, 2025, compared to the corresponding periods in 2024, were primarily due to pre-tax earnings in the current periods, compared to the pre-tax losses in the prior periods.
Previous wording
Our Broadband segment revenue increased by $6.0 million during the three months ended March 28, 2025, compared to the corresponding period in 2024. The increases were primarily driven by appliance and integration revenues, mainly attributed to higher sales to existing customers due to increased deployments. The operating margin of our Broadband segment improved mainly due to higher sales and gross margin expansion.
Current wording
During the three months ended June 27, 2025, our Broadband segment revenue decreased by $6.0 million, compared to the corresponding period in 2024. The decrease was primarily driven by appliance and integration revenues, mainly attributed to the timing of projects related to the deployments of new technology by our customers. The operating margin of our Broadband segment declined during the current period, mainly due to lower sales.
Previous wording
Video segment operating margin improved during the three months ended March 28, 2025, compared to the corresponding period in 2024, primarily due to higher sales, gross margin expansion and savings from headcount reductions related to 2024 restructuring activities.
Current wording
Video segment operating margin improved during the three months and six months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to higher sales, gross margin expansion and savings from headcount reductions related to 2024 restructuring activities.
Previous wording
As of March 28, 2025, we had outstanding $128.1 million in aggregate principal amount of indebtedness, consisting of our $75.0 million Revolving Facility and our $39.0 million Term Facility loan under our Credit Agreement, and other debts, of which $7.6 million is scheduled to become due in the 12-month period following March 28, 2025. As of March 28, 2025, our total minimum lease payments are $23.9 million, of which $4.6 million is due before December 31, 2025, and $5.9 million is due within 12 months of March 28, 2025.
Current wording
As of June 27, 2025, we had outstanding $131.2 million in aggregate principal amount of indebtedness, consisting of our $75.0 million Revolving Facility loan and our $38.5 million Term Facility loan under our Credit Agreement, and other debts, of which $8.3 million is scheduled to become due in the 12-month period following June 27, 2025. As of June 27, 2025, our total minimum lease payments are $22.9 million, of which $3.2 million is due before December 31, 2025, and $6.1 million is due within 12 months of June 27, 2025.
Previous wording
In February 2025, the Board of Directors authorized us to repurchase, from time to time, up to $200 million of our outstanding shares of common stock through February 2028 (the “Share Repurchase Authorization”), at such time and such prices as management may decide. The program does not obligate us to repurchase any specific number of shares and may be discontinued at any time. As of March 28, 2025, approximately $163.9 million of the Share Repurchase Authorization remained available for repurchases under this program.
Current wording
In February 2025, the Board of Directors authorized us to repurchase, from time to time, up to $200 million of our outstanding shares of common stock through February 2028 (the “Share Repurchase Authorization”), at such time and such prices as management may decide. The program does not obligate us to repurchase any specific number of shares and may be discontinued at any time. As of June 27, 2025, approximately $149.9 million of the Share Repurchase Authorization remained available for repurchases under this program.
Previous wording
As of March 28, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $148.7 million, net accounts receivable of $98.6 million, $30.0 million from our Master Receivables Purchase Agreement (described below), and $82.0 million remaining available under the Revolving Facility of our Credit Agreement, and financing from French government agencies.
Current wording
As of June 27, 2025, our principal sources of liquidity consisted of cash and cash equivalents of $123.9 million, net accounts receivable of $120.7 million, $30.0 million from our Master Receivables Purchase Agreement (described below), and $82.0 million remaining available under the Revolving Facility of our Credit Agreement, and financing from French government agencies.
Previous wording
Our cash and cash equivalents of $148.7 million as of March 28, 2025 consisted of bank deposits held throughout the world and money market funds, of which $50.8 million was held outside of the United States. At present, such foreign funds are considered to be indefinitely reinvested in foreign countries to the extent of indefinitely reinvested foreign earnings. In the event funds from foreign operations are needed to fund cash needs in the United States and if U.S. taxes have not already been previously accrued, we may be required to accrue and pay additional U.S. and foreign withholding taxes in order to repatriate these funds.
Current wording
Our cash and cash equivalents of $123.9 million as of June 27, 2025 consisted of bank deposits held throughout the world and money market funds, of which $43.7 million was held outside of the United States. At present, such foreign funds are considered to be indefinitely reinvested in foreign countries to the extent of indefinitely reinvested foreign earnings. In the event funds from foreign operations are needed to fund cash needs in the United States and if U.S. taxes have not already been previously accrued, we may be required to accrue and pay additional U.S. and foreign withholding taxes in order to repatriate these funds.
Previous wording
Net cash provided by operating activities increased by $56.8 million during the first three months of fiscal 2025, compared to the corresponding period in fiscal 2024. The increase was primarily due to a decrease in cash used in our working capital, and net income of $5.9 million in the current period, compared to a net loss of $8.1 million in the prior period.
Current wording
Net cash provided by operating activities increased by $67.2 million during the first six months of fiscal 2025, compared to the corresponding period in fiscal 2024. The increase was primarily driven by improved working capital performance, and a net income of $8.8 million in the current period, compared to a net loss of $20.6 million in the prior period.
Previous wording
Net cash used in investing activities was relatively flat during the first three months of fiscal 2025, compared to the corresponding period in 2024.
Current wording
Net cash used in investing activities increased by $1.8 million during the first six months of fiscal 2025, compared to the corresponding period in 2024, primarily due to higher purchases of property and equipment in the current period.
Previous wording
Net cash used in financing activities increased by $12.2 million during the first three months of fiscal 2025, compared to the corresponding period in 2024, primarily due to $14.4 million in higher stock repurchases and $0.5 million repayment of the term loan, partially offset by a $2.9 million lower payment of tax withholding obligations related to net share settlement of restricted stock units.
Current wording
Net cash used in financing activities increased by $14.0 million during the first six months of fiscal 2025, compared to the corresponding period in 2024, primarily due to the $20.1 million higher stock repurchases in the current period. These were partially offset by $3.8 million in proceeds from other loans, and a $3.0 million reduction in tax withholding payments related to net share settlement of restricted stock units.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Our gross margin improved by 60 basis points in the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily driven by margin expansion in the Video segment, mainly due to benefits from a favorable appliance product mix.
Current report — wording carried from elsewhere
Research and development expenses increased slightly in the three months ended June 27, 2025, compared to the corresponding period in 2024, primarily due to a $1.7 million increase to support our Broadband business, partially offset by a $1.0 million decrease in the Video business due to headcount reductions from 2024 restructuring activities.