Segment Information

9 Months Ended

Sep. 30, 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				Nine months ended
	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
	(In thousands)
Video processing products	$	57,027	$	51,005	$	172,310	$	139,893
Production and playout products (1)		26,619		4,880		73,005		4,880
Edge and access products		38,308		34,712		109,662		104,519
Service and support		16,917		14,187		50,725		35,857
	$	138,871	$	104,784	$	405,702	$	285,149

(1) The three and nine months ended October 1, 2010 include Omneon’s revenue commencing on the date of acquisition, September 15, 2010.

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				Nine months ended
	September 30, 2011		October 1, 2010		September 30, 2011		October 1, 2010
	(In thousands)
Net revenue:
United States	$	68,718	$	54,538	$	183,250	$	146,387
International		70,153		50,246		222,452		138,762
	$	138,871	$	104,784	$	405,702	$	285,149
	September 30, 2011		December 31, 2010
	(In thousands)
Property and equipment, net:
United States	$	31,749	$	32,104
International		7,630		7,721
	$	39,379	$	39,825

Major Customers. For the three and nine months ended September 30, 2011, revenue from Comcast accounted for 12% and 11% of net revenue, respectively. For the three and nine months ended October 1, 2010, revenue from Comcast accounted for 26% and 19% of net revenue, respectively. As of September 30, 2011, Comcast accounted for 14% of net accounts receivable.