Harmonic (HLIT) Q2 Earnings call transcript Jul 29, 2024

In Harmonic's second quarter earnings call, the company reported strong results across both its Broadband and Video segments, showcasing a solid execution of its operating plans. Nimrod Ben-Natan, the President and CEO, highlighted the company's progress in achieving its long-term growth strategy, with a focus on expanding its broadband strategy for multiyear growth.

Broadband Business Momentum

The Broadband segment, which accounted for $92.9 million in revenue, demonstrated impressive growth, up 17% sequentially and 20% year-over-year. The company's cOS platform, which enables higher speeds, reliability, and customer satisfaction, is gaining traction in the market as broadband service providers invest in their networks. This trend is expected to continue as the company ships a record number of DOCSIS 4.0 outdoor nodes, aiming to deliver symmetric multi-gig services over existing HFC networks.

Video Business Stabilization and Growth Opportunities

The Video segment reported $45.8 million in revenue, slightly down from the prior year but up 6% sequentially. The SaaS segment, which is a significant part of the Video business, has seen modest growth and is now showing more momentum, particularly with live sports streaming and the adoption of 4K immersive formats. The company also highlighted its focus on driving profitable growth in the video business, with a restructuring plan that is expected to achieve cost savings and streamline operations.

Looking Ahead: Confidence and Future Growth

Harmonic's confidence in its future growth prospects is evident, with the reaffirmation of full-year 2024 revenue guidance in both Broadband and Video segments. The company's strong financial position, with a solid backlog and deferred revenue, underscores its ability to capitalize on market opportunities and invest in strategic initiatives.

The company's success in the first half of 2024 and its focus on executing its growth plans have positioned it well for sustained growth. With a clear focus on innovation, market leadership, and customer relationships, Harmonic is poised to create greater value for its shareholders in the long term.

Key Takeaways

- Harmonic reported strong second-quarter results, with both Broadband and Video segments performing well and showing solid execution of the company's strategic plans. - The company's focus on expanding its broadband strategy, leveraging its unique market position and technology advantages, is driving growth and revenue expansion. - The Video segment is showing signs of stabilization and growth, with a focus on driving profitable growth through strategic initiatives and operational streamlining. - Harmonic's confidence in its future growth prospects is evident, with the reaffirmation of full-year 2024 revenue guidance and a strong financial position. - The company's focus on innovation, market leadership, and customer relationships positions it well for sustained growth and value creation for its shareholders.