Harmonic Revenues Drop 14% in Q2 as CableOS Deployments Rise

SAN JOSE, Calif. -- Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the second quarter of 2019.

"We delivered solid second quarter results, while also strengthening our strategic positioning and long-term business outlook," said Patrick Harshman, president and chief executive officer of Harmonic. "Our CableOS program momentum accelerated with two new material customer commitments. On the Video side of our business, we continued to execute our OTT SaaS transformation while delivering another quarter of positive operating income."

Q2 Financial and Business Highlights

  • Revenue: GAAP $84.9 million, down 14.4% year over year; non-GAAP $84.9 million, down 14.6% year over year.

  • Gross margin: GAAP 51.8%, compared to 52.0% in the year ago period; non-GAAP 53.6%, compared to 54.0% in the year ago period.

  • SaaS and service revenue: $30.4 million, 35.9% of total revenue, compared to 30.9% in the year ago period.

  • SaaS and service gross margin: GAAP 61.8% and non-GAAP 62.6%, a decrease of 272 and 298 basis points, respectively, year over year.

  • Cash: ended Q2 with $58.1 million, down $11.9 million quarter over quarter.

  • CableOS deployments continued to scale, over 780,000 served cable modems, up 16% quarter over quarter.

  • $175 million CableOS software license agreement signed with Comcast in July.

  • CableOS supply agreement with estimated total value greater than $55 million signed with international cable operator in July.

  • Video SaaS deployed by 28 customers, up 65% year over year.

    Harmonic Inc.

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