Delaware | 000-25826 | 77-0201147 |
(State or other jurisdiction of incorporation or organization) | Commission File Number | (I.R.S. Employer Identification Number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Description | ||
99.1 | Press release of Harmonic Inc., issued on April 22, 2014 |
Date: April 22, 2014 | HARMONIC INC. | |||||
By: | /s/ Carolyn V. Aver | |||||
Carolyn V. Aver | ||||||
Chief Financial Officer |
Exhibit Number | Description | ||
99.1 | Press release of Harmonic Inc., issued on April 22, 2014. |
• | Net revenue in the range of $113.0 million to $123.0 million |
• | GAAP gross margins in the range of 49.5% to 50.5% |
• | GAAP operating expenses in the range of $61.0 million to $62.0 million |
• | Non-GAAP gross margins in the range of 52.5% to 53.5% |
• | Non-GAAP operating expenses in the range of $54.5 million to $55.5 million |
Carolyn V. Aver | Blair King |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | Harmonic Inc. |
+1.408.542.2500 | +1.408.490.6172 |
March 28, 2014 | December 31, 2013 | ||||||
(In thousands, except par value amounts) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 69,192 | $ | 90,329 | |||
Short-term investments | 78,547 | 80,252 | |||||
Accounts receivable, net | 77,515 | 75,052 | |||||
Inventories | 30,304 | 36,926 | |||||
Deferred income taxes | 25,831 | 24,650 | |||||
Prepaid expenses and other current assets | 28,216 | 21,521 | |||||
Total current assets | 309,605 | 328,730 | |||||
Property and equipment, net | 34,103 | 34,945 | |||||
Goodwill, intangibles and other assets | 231,041 | 242,409 | |||||
Total assets | $ | 574,749 | $ | 606,084 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 19,847 | $ | 22,380 | |||
Income taxes payable | 98 | 331 | |||||
Deferred revenue | 33,528 | 27,020 | |||||
Accrued liabilities | 31,848 | 35,349 | |||||
Total current liabilities | 85,321 | 85,080 | |||||
Income taxes payable, long-term | 15,353 | 15,165 | |||||
Other non-current liabilities | 11,594 | 11,673 | |||||
Total liabilities | 112,268 | 111,918 | |||||
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; 95,735 and 99,413 shares issued and outstanding at March 28, 2014 and December 31, 2013, respectively | 96 | 99 | |||||
Additional paid-in capital | 2,309,955 | 2,336,275 | |||||
Accumulated deficit | (1,847,409 | ) | (1,841,999 | ) | |||
Accumulated other comprehensive loss | (161 | ) | (209 | ) | |||
Total stockholders' equity | 462,481 | 494,166 | |||||
Total liabilities and stockholders' equity | $ | 574,749 | $ | 606,084 |
Three months ended | |||||||
March 28, 2014 | March 29, 2013 | ||||||
(in thousands, except per share amounts) | |||||||
Net revenue | $ | 108,032 | $ | 101,672 | |||
Cost of revenue | 55,720 | 55,507 | |||||
Gross profit | 52,312 | 46,165 | |||||
Operating expenses: | |||||||
Research and development | 23,888 | 25,251 | |||||
Selling, general and administrative | 33,547 | 33,269 | |||||
Amortization of intangibles | 1,950 | 2,088 | |||||
Restructuring and related charges | 149 | 424 | |||||
Total operating expenses | 59,534 | 61,032 | |||||
Loss from operations | (7,222 | ) | (14,867 | ) | |||
Interest and other income (expense), net | 89 | (103 | ) | ||||
Loss from continuing operations before income taxes | (7,133 | ) | (14,970 | ) | |||
Benefit from income taxes | (1,723 | ) | (5,467 | ) | |||
Loss from continuing operations | (5,410 | ) | (9,503 | ) | |||
Income from discontinued operations, net of taxes (including gain on disposal of $14,956, net of taxes, for the three months ended March 29, 2013) | — | 15,924 | |||||
Net income (loss) | $ | (5,410 | ) | $ | 6,421 | ||
Basic net income (loss) per share from: | |||||||
Continuing operations | $ | (0.06 | ) | $ | (0.08 | ) | |
Discontinued operations | $ | 0.00 | $ | 0.14 | |||
Net income (loss) | $ | (0.06 | ) | $ | 0.06 | ||
Diluted net income (loss) per share from: | |||||||
Continuing operations | $ | (0.06 | ) | $ | (0.08 | ) | |
Discontinued operations | $ | 0.00 | $ | 0.14 | |||
Net income (loss) | $ | (0.06 | ) | $ | 0.06 | ||
Shares used in per share calculation: | |||||||
Basic | 97,921 | 115,219 | |||||
Diluted | 97,921 | 115,219 |
Three months ended | |||||||
March 28, 2014 | March 29, 2013 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (5,410 | ) | $ | 6,421 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Amortization of intangibles | 6,666 | 7,033 | |||||
Depreciation | 4,227 | 4,040 | |||||
Stock-based compensation | 3,807 | 3,986 | |||||
Gain on sale of discontinued operations, net of tax | — | (14,956 | ) | ||||
Loss on impairment of fixed assets | — | 101 | |||||
Deferred income taxes | 3,510 | (204 | ) | ||||
Provision for excess and obsolete inventories | 722 | 567 | |||||
Allowance for doubtful accounts, returns and discounts | (536 | ) | 1,116 | ||||
Excess tax benefits from stock-based compensation | (185 | ) | — | ||||
Other non-cash adjustments, net | 462 | 408 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (1,927 | ) | (10,888 | ) | |||
Inventories | 5,900 | 6,832 | |||||
Prepaid expenses and other assets | (6,671 | ) | (8,597 | ) | |||
Accounts payable | (2,533 | ) | (2,796 | ) | |||
Deferred revenue | 6,382 | 2,667 | |||||
Income taxes payable | 278 | (1,257 | ) | ||||
Accrued and other liabilities | (3,447 | ) | (216 | ) | |||
Net cash provided by (used in) operating activities | 11,245 | (5,743 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of investments | (14,084 | ) | (25,908 | ) | |||
Proceeds from sales and maturities of investments | 15,382 | 20,249 | |||||
Purchases of property and equipment | (3,431 | ) | (4,274 | ) | |||
Proceeds from sale of discontinued operations, net of selling costs | — | 44,336 | |||||
Net cash (used in) provided by investing activities | (2,133 | ) | 34,403 | ||||
Cash flows from financing activities: | |||||||
Payments for repurchase of common stock | (29,075 | ) | (9,268 | ) | |||
Proceeds from (repurchases of) common stock issued to employees | (1,377 | ) | 2,508 | ||||
Excess tax benefits from stock-based compensation | 185 | — | |||||
Net cash used in financing activities | (30,267 | ) | (6,760 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 18 | (106 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (21,137 | ) | 21,794 | ||||
Cash and cash equivalents at beginning of period | 90,329 | 96,670 | |||||
Cash and cash equivalents at end of period | $ | 69,192 | $ | 118,464 |
Three months ended | |||||||||||||
March 28, 2014 | March 29, 2013 | ||||||||||||
(In thousands, except percentages) | |||||||||||||
Product | |||||||||||||
Video Processing | $ | 46,683 | 43 | % | $ | 42,906 | 42 | % | |||||
Production and Playout | 17,335 | 16 | % | 22,230 | 22 | % | |||||||
Cable Edge | 24,242 | 23 | % | 17,339 | 17 | % | |||||||
Services and Support | 19,772 | 18 | % | 19,197 | 19 | % | |||||||
Total | $ | 108,032 | 100 | % | $ | 101,672 | 100 | % | |||||
Geography | |||||||||||||
United States | $ | 53,625 | 50 | % | $ | 42,350 | 42 | % | |||||
International | 54,407 | 50 | % | 59,322 | 58 | % | |||||||
Total | $ | 108,032 | 100 | % | $ | 101,672 | 100 | % | |||||
Market | |||||||||||||
Cable | $ | 44,799 | 41 | % | $ | 39,191 | 39 | % | |||||
Satellite and Telco | 26,711 | 25 | % | 23,322 | 23 | % | |||||||
Broadcast and Media | 36,522 | 34 | % | 39,159 | 38 | % | |||||||
Total | $ | 108,032 | 100 | % | $ | 101,672 | 100 | % |
Three months ended | ||||||||||||
March 28, 2014 | ||||||||||||
Gross Profit | Total Operating Expense | Income (Loss) from Operations | Net Income (Loss) | |||||||||
GAAP from continuing operations | $ | 52,312 | $ | 59,534 | $ | (7,222 | ) | $ | (5,410 | ) | ||
Stock-based compensation in cost of revenue | 516 | — | 516 | 516 | ||||||||
Stock-based compensation in research and development | — | (1,101 | ) | 1,101 | 1,101 | |||||||
Stock-based compensation in selling, general and administrative | — | (2,190 | ) | 2,190 | 2,190 | |||||||
Amortization of intangibles | 4,716 | (1,950 | ) | 6,666 | 6,666 | |||||||
Restructuring and related charges | 79 | (149 | ) | 228 | 228 | |||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | (2,471 | ) | |||||||
Non-GAAP from continuing operations | $ | 57,623 | $ | 54,144 | $ | 3,479 | $ | 2,820 | ||||
As a % of revenue (GAAP) | 48.4 | % | 55.1 | % | (6.7 | )% | (5.0 | )% | ||||
As a % of revenue (Non-GAAP) | 53.3 | % | 50.1 | % | 3.2 | % | 2.6 | % | ||||
Diluted net income (loss) per share from continuing operations: | ||||||||||||
Diluted net loss per share from continuing operations-GAAP | $ | (0.06 | ) | |||||||||
Diluted net income per share from continuing operations-Non-GAAP | $ | 0.03 | ||||||||||
Shares used to compute diluted net income (loss) per share from continuing operations: | ||||||||||||
GAAP | 97,921 | |||||||||||
Non-GAAP | 99,256 | |||||||||||
Three months ended | ||||||||||||
December 31, 2013 | ||||||||||||
Gross Profit | Total Operating Expense | Income (Loss) from Operations | Net Income (Loss) | |||||||||
GAAP from continuing operations | $ | 59,596 | $ | 60,594 | $ | (998 | ) | $ | (2,179 | ) | ||
Stock-based compensation in cost of revenue | 574 | — | 574 | 574 | ||||||||
Stock-based compensation in research and development | — | (1,031 | ) | 1,031 | 1,031 | |||||||
Stock-based compensation in selling, general and administrative | — | (2,531 | ) | 2,531 | 2,531 | |||||||
Amortization of intangibles | 4,763 | (1,997 | ) | 6,760 | 6,760 | |||||||
Restructuring and related charges | 293 | (496 | ) | 789 | 789 | |||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | (1,220 | ) | |||||||
Non-GAAP from continuing operations | $ | 65,226 | $ | 54,539 | $ | 10,687 | $ | 8,286 | ||||
As a % of revenue (GAAP) | 49.6 | % | 50.4 | % | (0.8 | )% | (1.8 | )% | ||||
As a % of revenue (Non-GAAP) | 54.3 | % | 45.4 | % | 8.9 | % | 6.9 | % | ||||
Diluted net income (loss) per share from continuing operations: | ||||||||||||
Diluted net loss per share from continuing operations-GAAP | $ | (0.02 | ) | |||||||||
Diluted net income per share from continuing operations-Non-GAAP | $ | 0.08 | ||||||||||
Shares used to compute diluted net income (loss) per share from continuing operations: | ||||||||||||
GAAP | 100,372 | |||||||||||
Non-GAAP | 101,937 | |||||||||||
Three months ended | ||||||||||||
March 29, 2013 | ||||||||||||
Gross Profit | Total Operating Expense | Loss from Operations | Net Loss | |||||||||
GAAP from continuing operations | $ | 46,165 | $ | 61,032 | $ | (14,867 | ) | $ | (9,503 | ) | ||
Stock-based compensation in cost of revenue | 611 | — | 611 | 611 | ||||||||
Stock-based compensation in research and development | — | (1,203 | ) | 1,203 | 1,203 | |||||||
Stock-based compensation in selling, general and administrative | — | (2,085 | ) | 2,085 | 2,085 | |||||||
Amortization of intangibles | 4,945 | (2,088 | ) | 7,033 | 7,033 | |||||||
Restructuring and related charges | 141 | (424 | ) | 565 | 565 | |||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | (4,738 | ) | |||||||
Non-GAAP from continuing operations | $ | 51,862 | $ | 55,232 | $ | (3,370 | ) | $ | (2,744 | ) | ||
As a % of revenue (GAAP) | 45.4 | % | 60.0 | % | (14.6 | )% | (9.3 | )% | ||||
As a % of revenue (Non-GAAP) | 51.0 | % | 54.3 | % | (3.3 | )% | (2.7 | )% | ||||
Diluted net loss per share from continuing operations: | ||||||||||||
Diluted net loss per share from continuing operations-GAAP | $ | (0.08 | ) | |||||||||
Diluted net loss per share from continuing operations-Non-GAAP | $ | (0.02 | ) | |||||||||
Shares used to compute diluted net loss per share from continuing operations: | ||||||||||||
GAAP | 115,219 | |||||||||||
Non-GAAP | 115,219 |
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