Harmonic: 'CableOS' Growth Powers Record Q3
SAN JOSE, Calif. -- Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the third quarter of 2019.
"We delivered strong revenue growth and record earnings, powered by the growing success of our CableOS solution," said Patrick Harshman, president and chief executive officer of Harmonic. "Our Cable Access segment continues to lead the market through new deployments and recently-announced fiber-to-the-home functionality. Similarly, our Video business transformation to live OTT has been bolstered by the launch of innovative new live streaming capabilities and new customer deployments."
Q3 Financial and Business Highlights
- Revenue: $115.7 million, up 15.0% year over year.
- SaaS and service revenue: $32.6 million, up 13.9% year over year.
- Gross margin: GAAP 65.3% and non-GAAP 67.0%, compared to GAAP 49.8% and non-GAAP 52.1% in the year ago period.
- Cable Access gross margin: 77.1%, compared to 38.7% in the year ago period.
- Video gross margin: 57.7%, compared to 57.2% in the year ago period.
- Operating income: GAAP income $22.5 million and non-GAAP income $29.9 million, compared to GAAP loss $3.7 million and non-GAAP income $5.7 million in the year ago period.
- EPS: GAAP net income per share 12 cents and non-GAAP net income per share 25 cents, compared to GAAP net loss per share 9 cents and non-GAAP net income per share 4 cents in the year ago period.
- Cash: $66.7 million, up $8.6 million quarter over quarter and up $5.0 million year over year.
- Completed a new $115.5 million convertible debt issuance to refinance approximately 65% of existing convertible debt, reducing potential dilution by 5% and annual interest cost by 19%.
- CableOS deployments scaled to over 935,000 served cable modems, up 20% quarter over quarter.
- Extended Cable Access market leadership, announcing CableOS solution with expanded cloud-native and new fiber-to-the-home capabilities.
- Video SaaS offering now deployed with 36 customers, up 29% quarter over quarter and 140% year over year.
- Expanded addressed video market by launching new CDN optimization solution for high-demand live video streaming services.