Credit Facilities

9 Months Ended

Sep. 30, 2011

Financing Liability for Construction in Progress [Abstract]

CREDIT FACILITIES

NOTE 8: CREDIT FACILITIES

Harmonic has a bank line of credit facility with Silicon Valley Bank, which provides for borrowings of up to $10.0 million and matures on August 25, 2012. As of September 30, 2011, other than standby letters of credit and guarantees (Note 15), there were no amounts outstanding under the line of credit facility and there were no borrowings in the nine months ended September 30, 2011. This facility, which became effective in August 2011, contains a financial covenant that requires Harmonic to maintain a ratio of unrestricted cash, accounts receivable and short term investments to current liabilities (less deferred revenue) of at least 1.75 to 1.00. As of September 30, 2011, the Company’s ratio under that covenant was 3.61 to 1. In the event of noncompliance by Harmonic with the covenants under the facility, including the financial covenant referenced above, Silicon Valley Bank would be entitled to exercise its remedies under the facility, including declaring all obligations immediately due and payable. At September 30, 2011, Harmonic was in compliance with the covenants under the line of credit facility. Future borrowings pursuant to the line would bear interest at the bank’s prime rate (3.25% at September 30, 2011) or LIBOR for the desired borrowing period (an annualized rate of 0.24% for a one month borrowing period at September 30, 2011) plus 1.75%. Borrowings are not collateralized.