Segment Information

6 Months Ended

Jul. 01, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 14: SEGMENT INFORMATION

The Company operates its business in one reportable segment, which is the design, manufacture and sale of video infrastructure solutions, spanning content production to multi-screen video delivery. Harmonic’s products enable customers to create, prepare and deliver video services over broadcast, cable, Internet, mobile, satellite and networks. Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the chief operating decision maker in deciding how to allocate resources and assessing performance. Our chief operating decision maker is our Chief Executive Officer. The acquisition of Omneon in September 2010 resulted in an additional product line, production and playout, but did not impact our reportable segments.

The Company’s revenue by product type is summarized as follows:

	Three months ended				Six months ended
	July 1, 2011		July 2, 2010		July 1, 2011		July 2, 2010
			(In thousands)
Video processing products	$	51,525	$	49,998	$	115,283	$	88,888
Production and playout products		25,453		—		46,386		—
Edge and access products		40,178		34,263		71,354		69,807
Service and support		16,840		11,283		33,808		21,671
	$	133,996	$	95,544	$	266,831	$	180,366

Our revenue by geographic region, based on the location of our customer, and our property and equipment, net by geographic region, is summarized as follows:

	Three months ended				Six months ended
	July 1, 2011		July 2, 2010		July 1, 2011		July 2, 2010
	(In thousands)
Net revenue:
United States	$	55,578	$	49,259	$	114,532	$	91,850
International		78,418		46,285		152,299		88,516
	$	133,996	$	95,544	$	266,831	$	180,366

	July 1, 2011		December 31, 2010
	(In thousands)
Property and equipment, net:
United States	$	31,875	$	32,104
International		7,803		7,721
	$	39,678	$	39,825

Major Customers. For both the three and six months ended July 1, 2011, revenue from Comcast accounted for 11% of net revenue. For the three and six months ended July 2, 2010, revenue from Comcast accounted for 16% and 15% of net revenue, respectively. For the three months ended July 2, 2010, revenue from Echostar accounted for 10% of net revenue. As of July 1, 2011, Comcast accounted for 14% of net accounts receivable.