Yahoo Finance Harmonic Inc (HLIT) Q1 2024 Earnings Call Transcript Highlights: Navigating Challenges and ...
Total Revenue: $122.1 million
Broadband Revenue: $78.9 million, down 21% year-over-year
Video Segment Revenue: $43.2 million, with SaaS revenue at $12.9 million, up 11% year-over-year
EPS: $0 per share
Gross Margin: Total company 52.5%, Broadband 47.5%, Video 61.6%
Bookings: $146.1 million with a book-to-bill ratio of 1.2
Backlog and Deferred Revenue: Record $677.8 million
Free Cash Flow: $24.9 million
Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss Harmonic's dependency on the evolution of amplifiers for the rollout of Docsis 4.0? A: Walter Jankovic, CFO of Harmonic, explained that operators upgrading to Docsis 4.0 are forward-looking and prefer equipment that is upgradable. He mentioned that the industry is progressing well with full duplex amplifiers, expecting field trials this year and deployment in 2025.
Q: What impact has the strategic review had on the video segment, and how much of the shortfall can be attributed to customers pausing due to the review? A: Patrick Harshman, CEO, noted that the strategic review caused some customers to pause, impacting decisions. However, with the review concluded, discussions have resumed. The impact on the full-year guidance is marginal, with ongoing headwinds in the appliance business being a more significant factor.
Q: Could you provide more details on the significant ramp expected in broadband sales in the second half of the year? A: Patrick Harshman mentioned that Harmonic is closely tracking expectations with major customers for a demand increase in H2, supported by a strong supply chain. The company also anticipates revenue growth from other customers beyond the two largest ones.
Q: Can you give more color on the seven-figure fiber to the home deal mentioned? A: Patrick Harshman confirmed it involves an existing Tier one international customer adopting a new generation of fiber products, with deployment expected in the second half of the year.
Q: Could you update us on customer conversations at NAB regarding streaming in the video business? A: Patrick Harshman described a vibrant market at NAB, with significant interest in new content packaging and personalized advertising models. He highlighted a strong pipeline for SaaS streaming opportunities, particularly in sports, driven by innovative advertising models.
Q: Can you expand on the in-stream advertising opportunity and its market readiness? A: Patrick Harshman clarified that while personalized ads exist, matching these with live programming is new and generating significant interest. He anticipates progress in this area over the next few quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
