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 October 28, 2013 |
Date: October 28, 2013 | 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 October 28, 2013. |
![]() | ![]() |
• | Net revenue in the range of $115 million to $125 million |
• | GAAP gross margins in the range of 46% to 47% |
• | GAAP operating expenses in the range of $59 million to $60 million |
• | Non-GAAP gross margins in the range of 51% to 52% |
• | Non-GAAP operating expenses in the range of $53 million to $54 million |
Carolyn V. Aver | Michael Bishop |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | +1.408.542.2760 |
+1.408.542.2500 |
September 27, 2013 | December 31, 2012 | ||||||
(In thousands, except par value amounts) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 93,330 | $ | 96,670 | |||
Short-term investments | 75,966 | 104,506 | |||||
Accounts receivable, net | 85,069 | 85,920 | |||||
Inventories | 40,369 | 64,270 | |||||
Deferred income taxes | 20,144 | 21,870 | |||||
Prepaid expenses and other current assets | 14,757 | 23,636 | |||||
Total current assets | 329,635 | 396,872 | |||||
Property and equipment, net | 35,551 | 38,122 | |||||
Goodwill, intangibles and other assets | 251,967 | 282,537 | |||||
Total assets | $ | 617,153 | $ | 717,531 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 19,987 | $ | 25,447 | |||
Income taxes payable | 577 | 1,797 | |||||
Deferred revenue | 34,115 | 33,235 | |||||
Accrued liabilities | 33,118 | 42,415 | |||||
Total current liabilities | 87,797 | 102,894 | |||||
Income taxes payable, long-term | 12,155 | 49,309 | |||||
Other non-current liabilities | 11,694 | 11,915 | |||||
Total liabilities | 111,646 | 164,118 | |||||
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; 100,901 and 114,193 shares issued and outstanding at September 27, 2013 and December 31, 2012, respectively | 101 | 114 | |||||
Additional paid-in capital | 2,345,512 | 2,432,790 | |||||
Accumulated deficit | (1,839,639 | ) | (1,879,026 | ) | |||
Accumulated other comprehensive loss | (467 | ) | (465 | ) | |||
Total stockholders' equity | 505,507 | 553,413 | |||||
Total liabilities and stockholders' equity | $ | 617,153 | $ | 717,531 |
Three months ended | Nine months ended | ||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Net revenue | 122,918 | 120,391 | 341,718 | 358,890 | |||||||||||
Cost of revenue | 66,126 | 65,513 | 180,869 | 198,469 | |||||||||||
Gross profit | 56,792 | 54,878 | 160,849 | 160,421 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 24,560 | 25,586 | 75,631 | 77,205 | |||||||||||
Selling, general and administrative | 32,527 | 31,132 | 100,220 | 93,862 | |||||||||||
Amortization of intangibles | 2,001 | 2,179 | 6,099 | 6,548 | |||||||||||
Restructuring and related charges | 259 | — | 925 | — | |||||||||||
Total operating expenses | 59,347 | 58,897 | 182,875 | 177,615 | |||||||||||
Loss from operations | (2,555 | ) | (4,019 | ) | (22,026 | ) | (17,194 | ) | |||||||
Interest and other income (expense), net | 277 | (36 | ) | 71 | 482 | ||||||||||
Loss from continuing operations before income taxes | (2,278 | ) | (4,055 | ) | (21,955 | ) | (16,712 | ) | |||||||
(Benefit from) provision for income taxes | (38,953 | ) | 414 | (45,723 | ) | 367 | |||||||||
Income (loss) from continuing operations | 36,675 | (4,469 | ) | 23,768 | (17,079 | ) | |||||||||
Income (loss) from discontinued operations, net of taxes (including gain on disposal of $14,813, net of taxes, for the nine months ended September 27, 2013) | 91 | (3,761 | ) | 15,619 | 1,338 | ||||||||||
Net income (loss) | $ | 36,766 | $ | (8,230 | ) | $ | 39,387 | $ | (15,741 | ) | |||||
Basic net income (loss) per share from: | |||||||||||||||
Continuing operations | $ | 0.36 | $ | (0.04 | ) | $ | 0.22 | $ | (0.15 | ) | |||||
Discontinued operations | $ | — | $ | (0.03 | ) | $ | 0.14 | $ | 0.01 | ||||||
Net income (loss) | $ | 0.36 | $ | (0.07 | ) | $ | 0.36 | $ | (0.13 | ) | |||||
Diluted net income (loss) per share from: | |||||||||||||||
Continuing operations | $ | 0.36 | $ | (0.04 | ) | $ | 0.22 | $ | (0.15 | ) | |||||
Discontinued operations | $ | — | $ | (0.03 | ) | $ | 0.14 | $ | 0.01 | ||||||
Net income (loss) | $ | 0.36 | $ | (0.07 | ) | $ | 0.36 | $ | (0.13 | ) | |||||
Shares used in per share calculation: | |||||||||||||||
Basic | 101,144 | 116,517 | 108,695 | 116,946 | |||||||||||
Diluted | 102,723 | 116,517 | 109,879 | 116,946 |
Nine months ended | |||||||
September 27, 2013 | September 28, 2012 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 39,387 | $ | (15,741 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Amortization of intangibles | 20,569 | 22,004 | |||||
Depreciation | 12,365 | 11,337 | |||||
Stock-based compensation | 11,953 | 14,122 | |||||
Gain on sale of discontinued operations, net of tax | (14,813 | ) | — | ||||
Loss on impairment of fixed assets | 149 | — | |||||
Deferred income taxes | (10,647 | ) | 1,627 | ||||
Provision for inventories | 2,813 | 2,466 | |||||
Allowance for doubtful accounts, returns and discounts | 1,161 | 2,012 | |||||
Excess tax benefits from stock-based compensation | — | (80 | ) | ||||
Other non-cash adjustments, net | 1,220 | 560 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (310 | ) | 13,240 | ||||
Inventories | 10,509 | (85 | ) | ||||
Prepaid expenses and other assets | 8,522 | 1,847 | |||||
Accounts payable | (5,418 | ) | 364 | ||||
Deferred revenue | 5,127 | 3,307 | |||||
Income taxes payable | (39,209 | ) | (1,482 | ) | |||
Accrued and other liabilities | (8,244 | ) | (5,352 | ) | |||
Net cash provided by operating activities | 35,134 | 50,146 | |||||
Cash flows from investing activities: | |||||||
Purchases of investments | (54,773 | ) | (94,123 | ) | |||
Proceeds from sales and maturities of investments | 82,187 | 75,362 | |||||
Purchases of property and equipment | (11,249 | ) | (9,850 | ) | |||
Proceeds from sale of discontinued operations, net of selling costs | 43,527 | — | |||||
Net cash provided by (used in) investing activities | 59,692 | (28,611 | ) | ||||
Cash flows from financing activities: | |||||||
Payments for repurchase of common stock | (103,496 | ) | (14,388 | ) | |||
Proceeds from issuance of common stock, net | 5,355 | 4,922 | |||||
Excess tax benefits from stock-based compensation | — | 80 | |||||
Net cash used in financing activities | (98,141 | ) | (9,386 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (25 | ) | 103 | ||||
Net (decrease) increase in cash and cash equivalents | (3,340 | ) | 12,252 | ||||
Cash and cash equivalents at beginning of period | 96,670 | 90,983 | |||||
Cash and cash equivalents at end of period | $ | 93,330 | $ | 103,235 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||
September 27, 2013 | September 28, 2012 | September 27, 2013 | September 28, 2012 | ||||||||||||||||||||||||
(In thousands, except percentages) | |||||||||||||||||||||||||||
Product | |||||||||||||||||||||||||||
Video Processing | $ | 58,047 | 47 | % | $ | 49,899 | 41 | % | $ | 163,362 | 48 | % | $ | 161,880 | 45 | % | |||||||||||
Production and Playout | 19,976 | 16 | % | 23,786 | 20 | % | 63,543 | 19 | % | 65,327 | 18 | % | |||||||||||||||
Cable Edge | 20,690 | 17 | % | 24,196 | 20 | % | 51,060 | 15 | % | 73,524 | 21 | % | |||||||||||||||
Services and Support | 24,205 | 20 | % | 22,510 | 19 | % | 63,753 | 18 | % | 58,159 | 16 | % | |||||||||||||||
Total | $ | 122,918 | 100 | % | $ | 120,391 | 100 | % | $ | 341,718 | 100 | % | $ | 358,890 | 100 | % | |||||||||||
Geography | |||||||||||||||||||||||||||
United States | $ | 53,878 | 44 | % | $ | 50,675 | 42 | % | $ | 151,848 | 44 | % | $ | 163,476 | 46 | % | |||||||||||
International | 69,040 | 56 | % | 69,716 | 58 | % | 189,870 | 56 | % | 195,414 | 54 | % | |||||||||||||||
Total | $ | 122,918 | 100 | % | $ | 120,391 | 100 | % | $ | 341,718 | 100 | % | $ | 358,890 | 100 | % | |||||||||||
Market | |||||||||||||||||||||||||||
Cable | $ | 47,632 | 39 | % | $ | 51,302 | 43 | % | $ | 129,114 | 38 | % | $ | 155,433 | 43 | % | |||||||||||
Satellite and Telco | 24,900 | 20 | % | 27,997 | 23 | % | 76,463 | 22 | % | 81,726 | 23 | % | |||||||||||||||
Broadcast and Media | 50,386 | 41 | % | 41,092 | 34 | % | 136,141 | 40 | % | 121,731 | 34 | % | |||||||||||||||
Total | $ | 122,918 | 100 | % | $ | 120,391 | 100 | % | $ | 341,718 | 100 | % | $ | 358,890 | 100 | % |
Three months ended | ||||||||||||
September 27, 2013 | ||||||||||||
Gross Profit | Total Operating Expense | Income (loss) from Operations | Net Income (loss) | |||||||||
GAAP from continuing operations | $ | 56,792 | $ | 59,347 | $ | (2,555 | ) | $ | 36,675 | |||
Stock-based compensation in cost of revenue | 605 | — | 605 | 605 | ||||||||
Stock-based compensation in research and development | — | (1,076 | ) | 1,076 | 1,076 | |||||||
Stock-based compensation in selling, general and administrative | — | (2,264 | ) | 2,264 | 2,264 | |||||||
Amortization of intangibles | 4,763 | (2,001 | ) | 6,764 | 6,764 | |||||||
Restructuring and related charges | 324 | (259 | ) | 583 | 583 | |||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | (40,846 | ) | |||||||
Non-GAAP from continuing operations | $ | 62,484 | $ | 53,747 | $ | 8,737 | $ | 7,121 | ||||
As a % of revenue (GAAP) | 46.2 | % | 48.3 | % | (2.1 | )% | 29.8 | % | ||||
As a % of revenue (Non-GAAP) | 50.8 | % | 43.7 | % | 7.1 | % | 5.8 | % | ||||
Diluted income (loss) per share from continuing operations: | ||||||||||||
Diluted net income per share from continuing operations-GAAP | $ | 0.36 | ||||||||||
Diluted net income per share from continuing operations-Non-GAAP | $ | 0.07 | ||||||||||
Shares used to compute diluted income (loss) per share from continuing operations: | ||||||||||||
GAAP | 102,723 | |||||||||||
Non-GAAP | 102,723 | |||||||||||
Three months ended | ||||||||||||
June 28, 2013 | ||||||||||||
Gross Profit | Total Operating Expense | Income (loss) from Operations | Net Income (loss) | |||||||||
GAAP from continuing operations | $ | 57,892 | $ | 62,496 | $ | (4,604 | ) | $ | (3,404 | ) | ||
Stock-based compensation in cost of revenue | 622 | — | 622 | 622 | ||||||||
Stock-based compensation in research and development | — | (1,121 | ) | 1,121 | 1,121 | |||||||
Stock-based compensation in selling, general and administrative | — | (2,279 | ) | 2,279 | 2,279 | |||||||
Proxy contest consultant expenses in selling, general and administrative | — | (750 | ) | 750 | 750 | |||||||
Amortization of intangibles | 4,762 | (2,010 | ) | 6,772 | 6,772 | |||||||
Restructuring and related charges | 65 | (242 | ) | 307 | 307 | |||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | (2,803 | ) | |||||||
Non-GAAP from continuing operations | $ | 63,341 | $ | 56,094 | $ | 7,247 | $ | 5,644 | ||||
As a % of revenue (GAAP) | 49.4 | % | 53.4 | % | (3.9 | )% | (2.9 | )% | ||||
As a % of revenue (Non-GAAP) | 54.1 | % | 47.9 | % | 6.2 | % | 4.8 | % | ||||
Diluted income (loss) per share from continuing operations: | ||||||||||||
Diluted net loss per share from continuing operations-GAAP | $ | (0.03 | ) | |||||||||
Diluted net income per share from continuing operations-Non-GAAP | $ | 0.05 | ||||||||||
Shares used to compute diluted income (loss) per share from continuing operations: | ||||||||||||
GAAP | 109,938 | |||||||||||
Non-GAAP | 110,909 | |||||||||||
Three months ended | ||||||||||||
September 28, 2012 | ||||||||||||
Gross Profit | Total Operating Expense | Income (loss) from Operations | Net Income (loss) | |||||||||
GAAP from continuing operations | $ | 54,878 | $ | 58,897 | $ | (4,019 | ) | $ | (4,469 | ) | ||
Stock-based compensation in cost of revenue | 659 | — | 659 | 659 | ||||||||
Stock-based compensation in research and development | — | (1,450 | ) | 1,450 | 1,450 | |||||||
Stock-based compensation in selling, general and administrative | — | (2,388 | ) | 2,388 | 2,388 | |||||||
Amortization of intangibles | 5,048 | (2,179 | ) | 7,227 | 7,227 | |||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | (1,427 | ) | |||||||
Non-GAAP from continuing operations | $ | 60,585 | $ | 52,880 | $ | 7,705 | $ | 5,828 | ||||
As a % of revenue (GAAP) | 45.6 | % | 48.9 | % | (3.3 | )% | (3.7 | )% | ||||
As a % of revenue (Non-GAAP) | 50.3 | % | 43.9 | % | 6.4 | % | 4.8 | % | ||||
Diluted income (loss) per share from continuing operations: | ||||||||||||
Diluted net loss per share from continuing operations-GAAP | $ | (0.04 | ) | |||||||||
Diluted net income per share from continuing operations-Non-GAAP | $ | 0.05 | ||||||||||
Shares used to compute diluted income (loss) per share from continuing operations: | ||||||||||||
GAAP | 116,517 | |||||||||||
Non-GAAP | 116,918 |
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