Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-25826 | |
Entity Registrant Name | HARMONIC INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0201147 | |
Entity Address, Address Line One | 2590 Orchard Parkway | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95131 | |
City Area Code | 408 | |
Local Phone Number | 542-2500 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | HLIT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,436,413 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000851310 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 105,280 | $ 133,431 |
Accounts receivable, net | 105,581 | 88,529 |
Inventories | 99,024 | 71,195 |
Prepaid expenses and other current assets | 26,798 | 29,972 |
Total current assets | 336,683 | 323,127 |
Property and equipment, net | 40,431 | 42,721 |
Operating lease right-of-use assets | 25,258 | 30,968 |
Other non-current assets | 61,625 | 56,657 |
Goodwill | 233,874 | 240,213 |
Total assets | 697,871 | 693,686 |
Current liabilities: | ||
Convertible debt, current | 37,657 | 36,824 |
Other debts, current | 4,401 | 4,992 |
Accounts payable | 60,892 | 64,429 |
Deferred revenue | 58,023 | 57,226 |
Operating lease liabilities, current | 6,591 | 7,346 |
Other current liabilities | 54,378 | 53,644 |
Total current liabilities | 221,942 | 224,461 |
Convertible debt, non-current | 113,761 | 98,941 |
Other debts, non-current | 10,095 | 12,989 |
Operating lease liabilities, non-current | 24,132 | 29,120 |
Other non-current liabilities | 27,320 | 31,379 |
Total liabilities | 397,250 | 396,890 |
Commitments and contingencies (Note 12) | ||
Convertible debt (Note 7) | 0 | 883 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value, 150,000 shares authorized; 105,421 and 102,959 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 105 | 103 |
Additional paid-capital | 2,375,529 | 2,387,039 |
Accumulated deficit | (2,052,700) | (2,087,957) |
Accumulated other comprehensive loss | (22,313) | (3,272) |
Total stockholders’ equity | 300,621 | 295,913 |
Total liabilities and stockholders’ equity | $ 697,871 | $ 693,686 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 105,421,000 | 102,959,000 |
Common stock, shares outstanding (in shares) | 105,421,000 | 102,959,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Total net revenue | $ 155,738 | $ 126,321 | $ 460,623 | $ 351,345 |
Total cost of revenue | 77,134 | 60,167 | 230,436 | 169,541 |
Total gross profit | 78,604 | 66,154 | 230,187 | 181,804 |
Operating expenses: | ||||
Research and development | 30,466 | 26,552 | 89,219 | 74,863 |
Selling, general and administrative | 36,379 | 34,231 | 109,790 | 102,728 |
Amortization of intangibles | 0 | 0 | 0 | 507 |
Restructuring and related charges | 335 | 0 | 2,136 | 43 |
Total operating expenses | 67,180 | 60,783 | 201,145 | 178,141 |
Income from operations | 11,424 | 5,371 | 29,042 | 3,663 |
Interest expense, net | (1,284) | (2,686) | (4,111) | (7,919) |
Other income (expense), net | (118) | (213) | 4,218 | 659 |
Income (loss) before income taxes | 10,022 | 2,472 | 29,149 | (3,597) |
Provision for income taxes | 1,282 | 942 | 7,098 | 3,006 |
Net income (loss) | $ 8,740 | $ 1,530 | $ 22,051 | $ (6,603) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.08 | $ 0.01 | $ 0.21 | $ (0.07) |
Diluted (in dollars per share) | $ 0.08 | $ 0.01 | $ 0.20 | $ (0.07) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 105,228 | 102,099 | 104,617 | 101,057 |
Diluted (in shares) | 113,185 | 106,421 | 110,911 | 101,057 |
Appliance and integration | ||||
Total net revenue | $ 116,441 | $ 91,853 | $ 351,293 | $ 250,427 |
Total cost of revenue | 64,932 | 47,326 | 193,655 | 130,310 |
SaaS and service | ||||
Total net revenue | 39,297 | 34,468 | 109,330 | 100,918 |
Total cost of revenue | $ 12,202 | $ 12,841 | $ 36,781 | $ 39,231 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 8,740 | $ 1,530 | $ 22,051 | $ (6,603) |
Other comprehensive income (loss) before tax: | ||||
Change in foreign currency translation adjustments | (8,840) | (2,372) | (18,150) | (5,302) |
Other comprehensive loss before tax | (8,840) | (2,372) | (18,150) | (5,302) |
Provision for income taxes | 523 | 128 | 891 | 339 |
Other comprehensive loss, net of tax | (9,363) | (2,500) | (19,041) | (5,641) |
Total comprehensive income (loss) | $ (623) | $ (970) | $ 3,010 | $ (12,244) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2020 | 98,204 | ||||||||||||
Beginning balance at Dec. 31, 2020 | $ 258,302 | $ 98 | $ 2,353,559 | $ (2,101,211) | $ 5,856 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | (6,603) | (6,603) | |||||||||||
Other comprehensive loss, net of tax | (5,641) | (5,641) | |||||||||||
Issuance of common stock under stock option, award and purchase plans, net (in shares) | 4,345 | ||||||||||||
Issuance of common stock under stock option, award and purchase plans, net | 9,783 | $ 5 | 9,778 | ||||||||||
Stock-based compensation | 18,955 | 18,955 | |||||||||||
Reclassification from equity to mezzanine equity for 2022 Notes | (1,115) | (1,115) | |||||||||||
Ending balance (in shares) at Oct. 01, 2021 | 102,549 | ||||||||||||
Ending balance at Oct. 01, 2021 | 273,681 | $ 103 | 2,381,177 | (2,107,814) | 215 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 98,204 | ||||||||||||
Beginning balance at Dec. 31, 2020 | $ 258,302 | $ 98 | 2,353,559 | (2,101,211) | 5,856 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Accounting Standards Update [Extensible Enumeration] | ASU 2020-06 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 102,959 | 102,959 | 102,959 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 295,913 | $ (13,910) | $ 282,003 | $ 103 | $ 103 | 2,387,039 | $ (32,249) | $ 2,354,790 | (2,087,957) | $ 18,339 | $ (2,069,618) | (3,272) | $ (3,272) |
Beginning balance (in shares) at Jul. 02, 2021 | 101,794 | ||||||||||||
Beginning balance at Jul. 02, 2021 | 267,324 | $ 102 | 2,373,851 | (2,109,344) | 2,715 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 1,530 | 1,530 | |||||||||||
Other comprehensive loss, net of tax | (2,500) | (2,500) | |||||||||||
Issuance of common stock under stock option, award and purchase plans, net (in shares) | 755 | ||||||||||||
Issuance of common stock under stock option, award and purchase plans, net | 1,908 | $ 1 | 1,907 | ||||||||||
Stock-based compensation | 6,534 | 6,534 | |||||||||||
Reclassification from equity to mezzanine equity for 2022 Notes | (1,115) | (1,115) | |||||||||||
Ending balance (in shares) at Oct. 01, 2021 | 102,549 | ||||||||||||
Ending balance at Oct. 01, 2021 | $ 273,681 | $ 103 | 2,381,177 | (2,107,814) | 215 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 102,959 | 102,959 | 102,959 | ||||||||||
Beginning balance at Dec. 31, 2021 | $ 295,913 | $ (13,910) | $ 282,003 | $ 103 | $ 103 | 2,387,039 | $ (32,249) | $ 2,354,790 | (2,087,957) | $ 18,339 | $ (2,069,618) | (3,272) | $ (3,272) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 22,051 | 22,051 | |||||||||||
Other comprehensive loss, net of tax | (19,041) | (19,041) | |||||||||||
Issuance of common stock under stock option, award and purchase plans, net (in shares) | 3,033 | ||||||||||||
Issuance of common stock under stock option, award and purchase plans, net | $ 1,115 | $ 3 | 1,112 | ||||||||||
Repurchase of common stock (in shares) | (600) | (571) | |||||||||||
Repurchase of common stock | $ (5,134) | $ (1) | (5,133) | ||||||||||
Stock-based compensation | $ 19,627 | 19,627 | |||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 105,421 | 105,421 | |||||||||||
Ending balance at Sep. 30, 2022 | $ 300,621 | $ 105 | 2,375,529 | (2,052,700) | (22,313) | ||||||||
Beginning balance (in shares) at Jul. 01, 2022 | 105,061 | ||||||||||||
Beginning balance at Jul. 01, 2022 | 296,836 | $ 105 | 2,371,001 | (2,061,320) | (12,950) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 8,740 | 8,740 | |||||||||||
Other comprehensive loss, net of tax | (9,363) | (9,363) | |||||||||||
Issuance of common stock under stock option, award and purchase plans, net (in shares) | 374 | ||||||||||||
Issuance of common stock under stock option, award and purchase plans, net | (1,932) | (1,932) | |||||||||||
Repurchase of common stock (in shares) | (14) | ||||||||||||
Repurchase of common stock | (120) | (120) | |||||||||||
Stock-based compensation | $ 6,460 | 6,460 | |||||||||||
Ending balance (in shares) at Sep. 30, 2022 | 105,421 | 105,421 | |||||||||||
Ending balance at Sep. 30, 2022 | $ 300,621 | $ 105 | $ 2,375,529 | $ (2,052,700) | $ (22,313) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Oct. 01, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 22,051 | $ (6,603) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 9,225 | 9,395 |
Amortization of intangibles | 0 | 507 |
Stock-based compensation | 19,621 | 18,863 |
Amortization of convertible debt discount | 897 | 4,685 |
Amortization of warrant | 1,298 | 1,302 |
Foreign currency remeasurement | (3,312) | (3,435) |
Deferred income taxes | 1,798 | 1,268 |
Provision for expected credit losses and returns | 1,835 | 3,049 |
Provision for excess and obsolete inventories | 4,521 | 1,849 |
Gains on sale of investment in equity securities | (4,370) | 0 |
Other adjustments | 419 | 215 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (22,115) | (12,470) |
Inventories | (34,952) | (18,783) |
Other assets | (10,371) | 2,614 |
Accounts payable | 1,305 | 10,144 |
Deferred revenues | (955) | 9,978 |
Other liabilities | (770) | 11,078 |
Net cash provided by (used in) operating activities | (13,875) | 33,656 |
Cash flows from investing activities: | ||
Proceeds from sale of investment | 7,962 | 0 |
Purchases of property and equipment | (7,389) | (10,570) |
Net cash provided by (used in) investing activities | 573 | (10,570) |
Cash flows from financing activities: | ||
Repurchase of common stock | (5,133) | 0 |
Proceeds from other debts | 3,499 | 3,861 |
Repayment of other debts | (4,480) | (6,070) |
Proceeds from common stock issued to employees | 6,129 | 11,401 |
Taxes paid related to net share settlement of equity awards | (5,014) | (1,619) |
Net cash provided by (used in) financing activities | (4,999) | 7,573 |
Effect of exchange rate changes on cash and cash equivalents | (9,850) | (870) |
Net increase (decrease) in cash and cash equivalents | (28,151) | 29,789 |
Cash and cash equivalents at beginning of period | 133,431 | 98,645 |
Cash and cash equivalents at end of period | 105,280 | 128,434 |
Supplemental schedule of non-cash investing activities: | ||
Capital expenditures incurred but not yet paid | $ 819 | $ 1,055 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the Company's financial position as of balance sheet dates and its operating results and cash flows for the interim periods presented. Operating results for the three and nine-month periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Certain prior period balances have been reclassified to conform to the current period’s presentation. These reclassifications did not have a material impact on previously reported financial statements. The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2021 Form 10-K. There have been no significant changes to these policies during the nine months ended September 30, 2022. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity. The Company adopted ASU 2020-06 effective on January 1, 2022, using the modified retrospective method. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. As a result, the Company no longer separately presents in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature is no longer amortized into income as interest expense over the life of the instrument. The cumulative effect of the ASU adoption was as follows: Adjustments from Balance at Adoption of Balance at (in thousands) December 31, 2021 ASU 2020-06 January 1, 2022 Liabilities Convertible debt, current $ 36,824 $ 626 $ 37,450 Convertible debt, non-current 98,941 14,167 113,108 Mezzanine equity Convertible debt 883 (883) — Equity Additional paid-capital 2,387,039 (32,249) 2,354,790 Accumulated deficit (2,087,957) 18,339 (2,069,618) The impact of ASU adoption on the consolidated statement of operations for the three and nine months ended September 30, 2022 was to decrease net interest expense by $1.4 million and $4.2 million, respectively. This had the effect of increasing the basic and diluted net income per share for the three and nine months ended September 30, 2022 by approximately $0.01 and $0.04, respectively. The required use of if-converted method to calculate the impact of convertible notes on diluted earnings per share does not have a material impact. The Company is contractually required to settle the principal amount of 2022 Notes and 2024 Notes in cash. Accordingly, the dilutive effect of the Company's 2022 Notes and 2024 Notes will be limited to the conversion premium. The adoption of this ASU does not have any impact on the consolidated statement of cash flows. From time to time, new accounting pronouncements are issued by the FASB, or other standards setting bodies, that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position, results of operations and cash flows upon adoption. |
INVESTMENTS IN EQUITY SECURITIE
INVESTMENTS IN EQUITY SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN EQUITY SECURITIES | INVESTMENTS IN EQUITY SECURITIES In May 2022, the Company sold its investment in Encoding.com, Inc. for total consideration of up to approximately $10.7 million. The Company received $7.8 million in May 2022 and recognized a gain of $4.2 million. The balance of the consideration of up to approximately $2.9 million will be payable to the Company within 18 months from the date of sale, subject to certain conditions and indemnity obligations, and will be recorded upon receipt by the Company. |
CONTRACT ASSETS AND DEFERRED RE
CONTRACT ASSETS AND DEFERRED REVENUE | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT ASSETS AND DEFERRED REVENUE | CONTRACT ASSETS AND DEFERRED REVENUE Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Contract assets and deferred revenue consisted of the following: As of (in thousands) September 30, 2022 December 31, 2021 Contract assets $ 5,378 $ 8,101 Deferred revenue $ 76,563 $ 78,167 Contract assets and the non-current portion of Deferred revenue are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities,” respectively, on the Condensed Consolidated Balance Sheets. Revenue recognized during the three months ended September 30, 2022 and October 1, 2021, that was included in the deferred revenue balances at December 31, 2021 and 2020 was $7.9 million and $8.2 million, respectively. Revenue recognized during the nine months ended September 30, 2022 and October 1, 2021, that was included in the deferred revenue balances at December 31, 2021 and 2020, was $42.7 million and $47.3 million, respectively. Remaining performance obligations represent contracted revenues that had not yet been recognized and future revenue recognition is expected. The aggregate balance of the Company’s remaining performance obligations as of September 30, 2022 was $504.3 million, of which approximately 81% is expected to be recognized as revenue over the next 12 months and the remainder thereafter. Refer to Note 11, “Segment Information” for disaggregated revenue information. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease expense are as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Operating lease cost $ 1,767 $ 1,911 $ 5,802 $ 5,654 Variable lease cost 503 467 1395 1494 Total lease cost $ 2,270 $ 2,378 $ 7,197 $ 7,148 Supplemental information related to leases are as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,925 $ 1,987 $ 5,803 $ 5,744 Right-of-use assets obtained in exchange for operating lease obligations $ — $ 194 $ 206 $ 5,670 |
OTHER FINANCIAL STATEMENT INFOR
OTHER FINANCIAL STATEMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL STATEMENT INFORMATION | OTHER FINANCIAL STATEMENT INFORMATION The following tables provide details of selected balance sheet components: Accounts receivable, net: As of (in thousands) September 30, 2022 December 31, 2021 Accounts receivable $ 108,304 $ 91,382 Less: allowances for expected credit losses and sales returns (2,723) (2,853) Total $ 105,581 $ 88,529 Inventories: As of (in thousands) September 30, 2022 December 31, 2021 Raw materials $ 35,456 $ 22,245 Work-in-process 3,181 3,993 Finished goods 53,689 37,545 Service-related spares 6,698 7,412 Total $ 99,024 $ 71,195 Prepaid expenses and other current assets: As of (in thousands) September 30, 2022 December 31, 2021 Prepaid expenses $ 5,648 $ 8,074 Contract assets 5,426 8,101 Other current assets 15,724 13,797 Total $ 26,798 $ 29,972 Property and equipment, net: As of (in thousands) September 30, 2022 December 31, 2021 Machinery and equipment $ 81,637 $ 78,461 Capitalized software 37,615 38,306 Leasehold improvements 40,048 40,658 Furniture and fixtures 2,876 2,820 Construction-in-progress 3,035 1,892 Property and equipment, gross 165,211 162,137 Less: accumulated depreciation and amortization (124,780) (119,416) Total $ 40,431 $ 42,721 Other current liabilities: As of (in thousands) September 30, 2022 December 31, 2021 Accrued employee compensation and related expenses $ 21,521 $ 26,820 Other 32,857 26,824 Total $ 54,378 $ 53,644 |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE DEBT | CONVERTIBLE DEBT 4.375% Convertible Senior Notes due 2022 (the “2022 Notes”) In June 2020, the Company issued the 2022 Notes with an aggregate principal amount of $37.7 million in a non-cash exchange for its 2020 Notes with an equal principal amount pursuant to an indenture, dated June 2, 2020 (the “2022 Notes Indenture”), by and between the Company and U.S. Bank National Association, as trustee. The 2022 Notes bear interest at a rate of 4.375% per year, payable in cash on June 1 and December 1 of each year. The 2022 Notes will mature on December 1, 2022, unless earlier repurchased or redeemed by the Company, or converted pursuant to their terms. The 2022 Notes were initially convertible into cash, shares of the Company’s common stock, par value $0.001 (“Common Stock”), or a combination thereof, at the Company’s election, at an initial conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of 2022 Notes (which is equivalent to an initial conversion price of approximately $5.75 per share). Pursuant to the supplemental indenture entered into by the Company and the trustee during the fourth quarter of fiscal 2021, the Company made an irrevocable election to settle the principal amounts of the 2022 Notes solely with cash and may pay or deliver, as the case may be, any conversion value greater than the principal amount in cash, shares of common stock or a combination thereof, at the Company’s election. The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes and under other circumstances as set forth in the 2022 Notes Indenture. Prior to the close of business on the business day immediately preceding September 1, 2022, the 2022 Notes were convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ended on June 26, 2020 (and only during such fiscal quarter), if the last reported sale price of Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2022 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Common Stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Commencing on September 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2022 Notes are convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances. As of September 30, 2022, the 2022 Notes were convertible and the net carrying amount of $37.6 million was classified as a current liability. As the 2022 Notes were issued in exchange for the 2020 Notes, which was accounted for as an extinguishment, the 2022 Notes were initially accounted for at fair value, which was estimated to be $44.4 million. In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2022 Notes was initially valued at $8.3 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital.” The remaining amount of $36.0 million, which represents the fair value of the liability component of the 2022 Notes, was recorded as the initial carrying value of the 2022 Notes. The initial debt discount on the 2022 Notes was $1.7 million, calculated as the difference between the stated principal amount of $37.7 million and the initial carrying value of the liability component of $36.0 million. The debt discount was being amortized, prior to adoption of ASU 2020-06, to interest expense at the effective interest rate over the contractual term of the 2022 Notes. As discussed in the Note 2. “Recent Accounting Pronouncements”, effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method and, as a result, accounted for the Convertible debt as a single liability measured at amortized cost. The following table presents the components of the 2022 Notes: As of (in thousands, except for years and percentages) September 30, 2022 December 31, 2021 Liability component: Principal amount $ 37,707 $ 37,707 Less: Debt discount, net of amortization — (672) Less: Debt issuance costs, net of amortization (50) (211) Carrying amount $ 37,657 $ 36,824 Remaining debt discount amortization period (years) n/a 0.9 Effective interest rate on liability component n/a 6.95 % The following table presents interest expense recognized for the 2022 Notes: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Contractual interest expense $ 412 $ 412 $ 1,236 $ 1,236 Amortization of debt discount — 171 — 508 Amortization of debt issuance costs 69 54 207 159 Total interest expense recognized $ 481 $ 637 $ 1,443 $ 1,903 2.00% Convertible Senior Notes due 2024 (the “2024 Notes”) In September 2019, the Company issued the 2024 Notes with an aggregate principal amount of $115.5 million pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank National Association, as trustee. The 2024 Notes bear interest at a rate of 2.00% per year, payable semiannually on March 1 and September 1 of each year. The 2024 Notes will mature on September 1, 2024, unless earlier repurchased or redeemed by the Company, or converted pursuant to their terms. The 2024 Notes were initially convertible into cash, shares of the Company’s common stock, par value $0.001 (“Common Stock”), or a combination thereof, at the Company’s election, at an initial conversion rate of 115.5001 shares of Common Stock per $1,000 principal amount of 2024 Notes (which is equivalent to an initial conversion price of approximately $8.66 per share). Pursuant to the supplemental indenture entered into by the Company and the trustee during the fourth quarter of fiscal 2021, the Company made an irrevocable election to settle the principal amounts of the 2024 Notes solely with cash and may pay or deliver, as the case may be, any conversion value greater than the principal amount in cash, shares of common stock or a combination thereof, at the Company’s election. The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes or a notice of redemption and under other circumstances, in each case, as set forth in the 2024 Notes Indenture. The 2024 Notes will be convertible at certain times and upon the occurrence of certain events in the future, in each case, specified in the 2024 Notes Indenture. Further, on or after June 1, 2024, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2024 Notes may convert all or a portion of their 2024 Notes regardless of these conditions. In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2024 Notes was valued at $24.9 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital”. The resulting debt discount on the 2024 Notes was being amortized, prior to adoption of ASU 2020-06, to interest expense at the effective interest rate over the contractual term of the 2024 Notes. As discussed in the Note 2. “Recent Accounting Pronouncements”, effective January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method and, as a result, accounted for the Convertible debt as a single liability measured at amortized cost. The following table presents the components of the 2024 Notes: As of (in thousands, except for years and percentages) September 30, 2022 December 31, 2021 Liability component: Principal amount $ 115,500 $ 115,500 Less: Debt discount, net of amortization — (14,576) Less: Debt issuance costs, net of amortization (1,739) (1,983) Carrying amount $ 113,761 $ 98,941 Remaining debt discount amortization period (years) n/a 2.7 Effective interest rate on liability component n/a 7.95 % The following table presents interest expense recognized for the 2024 Notes: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Contractual interest expense $ 578 $ 578 $ 1,734 $ 1,734 Amortization of debt discount — 1,193 — 3,505 Amortization of debt issuance costs 220 162 654 476 Total interest expense recognized $ 798 $ 1,933 $ 2,388 $ 5,715 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Share-based Compensation Plans The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Cost of revenue $ 607 $ 545 $ 1,691 $ 1,840 Research and development expense 2,109 2,129 5,988 5,699 Selling, general and administrative expense 3,744 3,762 11,942 11,328 Total $ 6,460 $ 6,436 $ 19,621 $ 18,867 Restricted Stock Units: (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2021 3,878 $ 7.31 Granted 2,637 9.25 Vested (2,634) 7.48 Forfeited (120) 8.39 Balance at September 30, 2022 3,761 $ 8.63 The Company’s stock benefit plans include the 2002 Employee Stock Purchase Plan (“ESPP”) and current active stock plans adopted in 1995 and 2002 (“1995 Stock Plan” and “2002 Director Plan”, respectively). Refer to Note 12, “Employee Benefit Plans” of Notes to Consolidated Financial Statements in the 2021 Form 10-K for details pertaining to each plan. The Company’s stockholders approved an amendment to the ESPP at the 2022 annual meeting of stockholders (the “2022 Annual Meeting”) to increase the number of shares of common stock reserved for issuance under the ESPP by 1,000,000 shares. The Company’s stockholders also approved an amendment to the 1995 Stock Plan at the 2022 Annual Meeting to increase the number of shares of common stock reserved for issuance thereunder by 7,000,000 shares. As of September 30, 2022, an aggregate of 11,645,946 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 7,760,174 shares remained available for future grants. As of September 30, 2022, an aggregate of 706,377 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 524,199 shares remained available for future grants. Share Repurchase Program On February 3, 2022, the Board of Directors authorized the Company to repurchase up to $100 million of the Company’s outstanding shares of common stock through February 2025. The Company is authorized to repurchase, from time-to-time, shares of its outstanding common stock through open market purchases and 10b5-1 trading plans, in accordance with applicable rules and regulations, at such time and such prices as management may decide. The program does not obligate the Company to repurchase any specific number of shares and may be discontinued at any time. The actual timing and amount of repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. During the nine months ended September 30, 2022, the company repurchased and retired approximately 0.6 million shares of the Company’s common stock for an aggregate amount of $5.1 million. As of September 30, 2022, approximately $94.9 million of the share repurchase authorization remained available for repurchases under this program. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company’s financial instruments not measured at fair value on a recurring basis were as follows: September 30, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2022 Notes $ 37,657 $ — $ 87,245 $ — $ 36,824 $ — $ 78,619 $ — 2024 Notes $ 113,761 $ — $ 180,358 $ — $ 98,941 $ — $ 173,419 $ — The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The difference between the carrying value and the fair value is primarily due to the spread between the conversion price and the market value of the shares underlying the conversion as of each respective balance sheet date. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of the basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Numerator: Net income (loss) $ 8,740 $ 1,530 $ 22,051 $ (6,603) Denominator: Weighted average number of shares outstanding: Basic 105,228 102,099 104,617 101,057 2022 Notes 3,078 2,356 2,718 — 2024 Notes 2,678 461 1,569 — Stock options 218 311 238 — Restricted stock units 1,920 1,185 1,725 — Stock purchase rights under the ESPP 63 9 44 — Diluted 113,185 106,421 110,911 101,057 Net income (loss) per share: Basic $ 0.08 $ 0.01 $ 0.21 $ (0.07) Diluted $ 0.08 $ 0.01 $ 0.20 $ (0.07) The diluted net loss per share was the same as basic net loss per share for the nine months ended October 1, 2021, as the inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for the period. The following table sets forth the potential weighted common shares outstanding and anti-dilutive weighted shares that were excluded from the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 2022 Notes — — — 2,085 Stock options — — — 926 Restricted stock units 22 69 43 3,079 Stock purchase rights under the ESPP — — — 381 Total 22 69 43 6,471 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated regularly by the Company’s Chief Operating Decision Maker (the “CODM”), in deciding how to allocate resources and assess performance. The Company’s CODM is its Chief Executive Officer. Based on the Company’s internal reporting structure, the Company consists of two operating segments: Video and Broadband. During the third quarter of fiscal 2022, the Company’s Cable Access segment was renamed the Broadband segment to reflect a broader strategic view of the category. There has been no change to the composition of the segment; therefore, no prior periods were restated. The operating segments were determined based on the nature of the products offered. The Video segment provides video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications Pay-TV service providers. The Broadband segment provides cable access solutions and related services to cable operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. The following table provides summary financial information by reportable segment: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Video Revenue $ 63,824 $ 68,729 $ 205,881 $ 202,415 Gross profit 37,859 42,534 124,679 118,879 Operating income 2,907 7,904 17,317 13,235 Broadband Revenue $ 91,914 $ 57,592 $ 254,742 $ 148,930 Gross profit 41,343 24,165 107,290 65,111 Operating income 15,303 3,903 33,573 10,191 Total Revenue $ 155,738 $ 126,321 $ 460,623 $ 351,345 Gross profit 79,202 66,699 231,969 183,990 Operating income 18,210 11,807 50,890 23,426 A reconciliation of the Company’s consolidated segment operating income to consolidated income (loss) before income taxes is as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Total consolidated segment operating income $ 18,210 $ 11,807 $ 50,890 $ 23,426 Unallocated corporate expenses (1) (326) — (2,227) (389) Stock-based compensation (6,460) (6,436) (19,621) (18,867) Amortization of intangibles — — — (507) Consolidated income from operations 11,424 5,371 29,042 3,663 Non-operating income (expense), net (1,402) (2,899) 107 (7,260) Income (loss) before income taxes $ 10,022 $ 2,472 $ 29,149 $ (3,597) (1) Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments. Geographic Information Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Net revenue (1) United States $ 89,940 $ 64,451 $ 282,927 $ 192,840 Other countries 65,798 61,870 177,696 158,505 Total $ 155,738 $ 126,321 $ 460,623 $ 351,345 (1) Revenue is attributed to countries based on the location of the customer. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Indemnification The Company is obligated to indemnify its officers and the members of its Board of Directors pursuant to its bylaws and contractual indemnity agreements. The Company also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). There have been no amounts accrued in respect of these indemnification provisions through September 30, 2022. Legal proceedings From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, audits of royalty payments for licensed technology and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably probable losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On October 28, 2022, the Company entered into a fourth amendment (“Amendment No.4”) to its existing credit agreement, dated December 19, 2019 by and among the Company and Harmonic International GmbH as co-borrowers, certain subsidiaries of the Company from time to time party thereto, as guarantors, and JPMorgan Chase Bank, N.A., as lender (as amended, the “Credit Agreement”) to, among other things (i) extend the maturity date of the Credit Agreement to the earlier of (a) October 28, 2025 or (b) subject to certain exceptions, the date that is 90 days prior to the maturity date of the 2024 Notes (to the extent such notes remain outstanding as of such date), (ii) amend the interest rate provisions to replace LIBOR with SOFR as the interest rate benchmark and (iii) make certain other revisions as more fully set forth therein. As amended, the revolving loans bear interest, at the Company’s election, at a floating rate per annum equal to either (1) 2.00% plus the greater of (i) 2.50% and (ii) the prime rate as reported in the Wall Streat Journal from time to time, or (2) 3.00% plus adjusted term SOFR for an interest period of one, three or six months. The Credit Agreement provides for a secured revolving credit facility in an aggregate principal amount of up to $25 million. No amounts were drawn as of the date of this Quarterly Report on Form 10-Q. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassification | Certain prior period balances have been reclassified to conform to the current period’s presentation. These reclassifications did not have a material impact on previously reported financial statements. |
Recent Accounting Pronouncements | In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Accounting for Convertible Instruments in an Entity’s Own Equity, which simplifies the accounting for convertible instruments and contracts on an entity’s own equity. The Company adopted ASU 2020-06 effective on January 1, 2022, using the modified retrospective method. Among other changes, ASU 2020-06 removes from U.S. GAAP the liability and equity separation model for convertible instruments with a cash conversion feature. As a result, the Company no longer separately presents in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature is no longer amortized into income as interest expense over the life of the instrument. |
Segment Information | Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated regularly by the Company’s Chief Operating Decision Maker (the “CODM”), in deciding how to allocate resources and assess performance. The Company’s CODM is its Chief Executive Officer. Based on the Company’s internal reporting structure, the Company consists of two operating segments: Video and Broadband. During the third quarter of fiscal 2022, the Company’s Cable Access segment was renamed the Broadband segment to reflect a broader strategic view of the category. There has been no change to the composition of the segment; therefore, no prior periods were restated. The operating segments were determined based on the nature of the products offered. |
Indemnification | The Company is obligated to indemnify its officers and the members of its Board of Directors pursuant to its bylaws and contractual indemnity agreements. The Company also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Accounting Standards Update and Change in Accounting Principle | The cumulative effect of the ASU adoption was as follows: Adjustments from Balance at Adoption of Balance at (in thousands) December 31, 2021 ASU 2020-06 January 1, 2022 Liabilities Convertible debt, current $ 36,824 $ 626 $ 37,450 Convertible debt, non-current 98,941 14,167 113,108 Mezzanine equity Convertible debt 883 (883) — Equity Additional paid-capital 2,387,039 (32,249) 2,354,790 Accumulated deficit (2,087,957) 18,339 (2,069,618) |
CONTRACT ASSETS AND DEFERRED _2
CONTRACT ASSETS AND DEFERRED REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Deferred Revenue | Contract assets and deferred revenue consisted of the following: As of (in thousands) September 30, 2022 December 31, 2021 Contract assets $ 5,378 $ 8,101 Deferred revenue $ 76,563 $ 78,167 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense | The components of lease expense are as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Operating lease cost $ 1,767 $ 1,911 $ 5,802 $ 5,654 Variable lease cost 503 467 1395 1494 Total lease cost $ 2,270 $ 2,378 $ 7,197 $ 7,148 Supplemental information related to leases are as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,925 $ 1,987 $ 5,803 $ 5,744 Right-of-use assets obtained in exchange for operating lease obligations $ — $ 194 $ 206 $ 5,670 |
OTHER FINANCIAL STATEMENT INF_2
OTHER FINANCIAL STATEMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | The following tables provide details of selected balance sheet components: Accounts receivable, net: As of (in thousands) September 30, 2022 December 31, 2021 Accounts receivable $ 108,304 $ 91,382 Less: allowances for expected credit losses and sales returns (2,723) (2,853) Total $ 105,581 $ 88,529 |
Schedule of Inventories | Inventories: As of (in thousands) September 30, 2022 December 31, 2021 Raw materials $ 35,456 $ 22,245 Work-in-process 3,181 3,993 Finished goods 53,689 37,545 Service-related spares 6,698 7,412 Total $ 99,024 $ 71,195 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets: As of (in thousands) September 30, 2022 December 31, 2021 Prepaid expenses $ 5,648 $ 8,074 Contract assets 5,426 8,101 Other current assets 15,724 13,797 Total $ 26,798 $ 29,972 |
Schedule of Property and Equipment, Net | Property and equipment, net: As of (in thousands) September 30, 2022 December 31, 2021 Machinery and equipment $ 81,637 $ 78,461 Capitalized software 37,615 38,306 Leasehold improvements 40,048 40,658 Furniture and fixtures 2,876 2,820 Construction-in-progress 3,035 1,892 Property and equipment, gross 165,211 162,137 Less: accumulated depreciation and amortization (124,780) (119,416) Total $ 40,431 $ 42,721 |
Schedule of Other Current Liabilities | Other current liabilities: As of (in thousands) September 30, 2022 December 31, 2021 Accrued employee compensation and related expenses $ 21,521 $ 26,820 Other 32,857 26,824 Total $ 54,378 $ 53,644 |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the components of the 2022 Notes: As of (in thousands, except for years and percentages) September 30, 2022 December 31, 2021 Liability component: Principal amount $ 37,707 $ 37,707 Less: Debt discount, net of amortization — (672) Less: Debt issuance costs, net of amortization (50) (211) Carrying amount $ 37,657 $ 36,824 Remaining debt discount amortization period (years) n/a 0.9 Effective interest rate on liability component n/a 6.95 % The following table presents the components of the 2024 Notes: As of (in thousands, except for years and percentages) September 30, 2022 December 31, 2021 Liability component: Principal amount $ 115,500 $ 115,500 Less: Debt discount, net of amortization — (14,576) Less: Debt issuance costs, net of amortization (1,739) (1,983) Carrying amount $ 113,761 $ 98,941 Remaining debt discount amortization period (years) n/a 2.7 Effective interest rate on liability component n/a 7.95 % |
Schedule of Convertible Debt Interest | The following table presents interest expense recognized for the 2022 Notes: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Contractual interest expense $ 412 $ 412 $ 1,236 $ 1,236 Amortization of debt discount — 171 — 508 Amortization of debt issuance costs 69 54 207 159 Total interest expense recognized $ 481 $ 637 $ 1,443 $ 1,903 The following table presents interest expense recognized for the 2024 Notes: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Contractual interest expense $ 578 $ 578 $ 1,734 $ 1,734 Amortization of debt discount — 1,193 — 3,505 Amortization of debt issuance costs 220 162 654 476 Total interest expense recognized $ 798 $ 1,933 $ 2,388 $ 5,715 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Cost of revenue $ 607 $ 545 $ 1,691 $ 1,840 Research and development expense 2,109 2,129 5,988 5,699 Selling, general and administrative expense 3,744 3,762 11,942 11,328 Total $ 6,460 $ 6,436 $ 19,621 $ 18,867 |
Schedule of Restricted Stock Units Outstanding | (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2021 3,878 $ 7.31 Granted 2,637 9.25 Vested (2,634) 7.48 Forfeited (120) 8.39 Balance at September 30, 2022 3,761 $ 8.63 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Not Measured at Fair Value on a Recurring Basis | The Company’s financial instruments not measured at fair value on a recurring basis were as follows: September 30, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2022 Notes $ 37,657 $ — $ 87,245 $ — $ 36,824 $ — $ 78,619 $ — 2024 Notes $ 113,761 $ — $ 180,358 $ — $ 98,941 $ — $ 173,419 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations | The following table sets forth the computation of the basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended (in thousands, except per share amounts) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Numerator: Net income (loss) $ 8,740 $ 1,530 $ 22,051 $ (6,603) Denominator: Weighted average number of shares outstanding: Basic 105,228 102,099 104,617 101,057 2022 Notes 3,078 2,356 2,718 — 2024 Notes 2,678 461 1,569 — Stock options 218 311 238 — Restricted stock units 1,920 1,185 1,725 — Stock purchase rights under the ESPP 63 9 44 — Diluted 113,185 106,421 110,911 101,057 Net income (loss) per share: Basic $ 0.08 $ 0.01 $ 0.21 $ (0.07) Diluted $ 0.08 $ 0.01 $ 0.20 $ (0.07) |
Schedule of Antidilutive Securities | The diluted net loss per share was the same as basic net loss per share for the nine months ended October 1, 2021, as the inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for the period. The following table sets forth the potential weighted common shares outstanding and anti-dilutive weighted shares that were excluded from the computation of basic and diluted net income (loss) per share: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 2022 Notes — — — 2,085 Stock options — — — 926 Restricted stock units 22 69 43 3,079 Stock purchase rights under the ESPP — — — 381 Total 22 69 43 6,471 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table provides summary financial information by reportable segment: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Video Revenue $ 63,824 $ 68,729 $ 205,881 $ 202,415 Gross profit 37,859 42,534 124,679 118,879 Operating income 2,907 7,904 17,317 13,235 Broadband Revenue $ 91,914 $ 57,592 $ 254,742 $ 148,930 Gross profit 41,343 24,165 107,290 65,111 Operating income 15,303 3,903 33,573 10,191 Total Revenue $ 155,738 $ 126,321 $ 460,623 $ 351,345 Gross profit 79,202 66,699 231,969 183,990 Operating income 18,210 11,807 50,890 23,426 |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the Company’s consolidated segment operating income to consolidated income (loss) before income taxes is as follows: Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Total consolidated segment operating income $ 18,210 $ 11,807 $ 50,890 $ 23,426 Unallocated corporate expenses (1) (326) — (2,227) (389) Stock-based compensation (6,460) (6,436) (19,621) (18,867) Amortization of intangibles — — — (507) Consolidated income from operations 11,424 5,371 29,042 3,663 Non-operating income (expense), net (1,402) (2,899) 107 (7,260) Income (loss) before income taxes $ 10,022 $ 2,472 $ 29,149 $ (3,597) (1) Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments. |
Schedule of Revenue from External Customers by Geographic Areas | Geographic Information Three Months Ended Nine Months Ended (in thousands) September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Net revenue (1) United States $ 89,940 $ 64,451 $ 282,927 $ 192,840 Other countries 65,798 61,870 177,696 158,505 Total $ 155,738 $ 126,321 $ 460,623 $ 351,345 (1) Revenue is attributed to countries based on the location of the customer. |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS - Cumulative Effect of ASU Adoption (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Liabilities | ||
Convertible debt, current | $ 37,657 | $ 36,824 |
Convertible debt, non-current | 113,761 | 98,941 |
Mezzanine equity | ||
Convertible debt | 0 | 883 |
Equity | ||
Additional paid-capital | 2,375,529 | 2,387,039 |
Accumulated deficit | $ (2,052,700) | (2,087,957) |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2020-06 | ||
Liabilities | ||
Convertible debt, current | 626 | |
Convertible debt, non-current | 14,167 | |
Mezzanine equity | ||
Convertible debt | (883) | |
Equity | ||
Additional paid-capital | (32,249) | |
Accumulated deficit | 18,339 | |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Liabilities | ||
Convertible debt, current | 37,450 | |
Convertible debt, non-current | 113,108 | |
Mezzanine equity | ||
Convertible debt | 0 | |
Equity | ||
Additional paid-capital | 2,354,790 | |
Accumulated deficit | $ (2,069,618) |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in interest expense, net | $ (1,284) | $ (2,686) | $ (4,111) | $ (7,919) |
Basic net loss per share (in dollars per share) | $ 0.08 | $ 0.01 | $ 0.21 | $ (0.07) |
Diluted net loss per share (in dollars per share) | $ 0.08 | $ 0.01 | $ 0.20 | $ (0.07) |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2020-06 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Decrease in interest expense, net | $ 1,400 | $ 4,200 | ||
Basic net loss per share (in dollars per share) | $ 0.01 | $ 0.04 | ||
Diluted net loss per share (in dollars per share) | $ 0.01 | $ 0.04 |
INVESTMENTS IN EQUITY SECURIT_2
INVESTMENTS IN EQUITY SECURITIES (Details) - EDC $ in Millions | 1 Months Ended |
May 31, 2022 USD ($) | |
Equity Securities without Readily Determinable Fair Value [Line Items] | |
Total consideration | $ 10.7 |
Proceeds from sale of investment | 7.8 |
Gain on sale of investment | 4.2 |
Potential additional consideration on sale of equity securities | $ 2.9 |
Expiration period | 18 months |
CONTRACT ASSETS AND DEFERRED _3
CONTRACT ASSETS AND DEFERRED REVENUE - Summary of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 5,378 | $ 8,101 |
Deferred revenue | $ 76,563 | $ 78,167 |
CONTRACT ASSETS AND DEFERRED _4
CONTRACT ASSETS AND DEFERRED REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized that was included within the deferred revenue balance | $ 7.9 | $ 8.2 | $ 42.7 | $ 47.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, amount | $ 504.3 | $ 504.3 | ||
Revenue, remaining performance obligation, proportion to be recognized in next twelve months (as a percent) | 81% | 81% | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | 12 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,767 | $ 1,911 | $ 5,802 | $ 5,654 |
Variable lease cost | 503 | 467 | 1,395 | 1,494 |
Total lease cost | 2,270 | 2,378 | 7,197 | 7,148 |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,925 | 1,987 | 5,803 | 5,744 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 0 | $ 194 | $ 206 | $ 5,670 |
OTHER FINANCIAL STATEMENT INF_3
OTHER FINANCIAL STATEMENT INFORMATION - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 108,304 | $ 91,382 |
Less: allowances for expected credit losses and sales returns | (2,723) | (2,853) |
Total | $ 105,581 | $ 88,529 |
OTHER FINANCIAL STATEMENT INF_4
OTHER FINANCIAL STATEMENT INFORMATION - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 35,456 | $ 22,245 |
Work-in-process | 3,181 | 3,993 |
Finished goods | 53,689 | 37,545 |
Service-related spares | 6,698 | 7,412 |
Total | $ 99,024 | $ 71,195 |
OTHER FINANCIAL STATEMENT INF_5
OTHER FINANCIAL STATEMENT INFORMATION - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 5,648 | $ 8,074 |
Contract assets | 5,426 | 8,101 |
Other current assets | 15,724 | 13,797 |
Total | $ 26,798 | $ 29,972 |
OTHER FINANCIAL STATEMENT INF_6
OTHER FINANCIAL STATEMENT INFORMATION - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 165,211 | $ 162,137 |
Less: accumulated depreciation and amortization | (124,780) | (119,416) |
Total | 40,431 | 42,721 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 81,637 | 78,461 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 37,615 | 38,306 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 40,048 | 40,658 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,876 | 2,820 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,035 | $ 1,892 |
OTHER FINANCIAL STATEMENT INF_7
OTHER FINANCIAL STATEMENT INFORMATION - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued employee compensation and related expenses | $ 21,521 | $ 26,820 |
Other | 32,857 | 26,824 |
Total | $ 54,378 | $ 53,644 |
CONVERTIBLE DEBT - Narrative (D
CONVERTIBLE DEBT - Narrative (Details) $ / shares in Units, $ in Thousands | Jun. 02, 2020 USD ($) d $ / shares | Sep. 13, 2019 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Sep. 25, 2020 USD ($) |
Debt Instrument [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument principal amount | $ 37,707 | $ 37,707 | |||
Fair value of 2022 Notes used to settle 2020 Notes | $ 44,400 | ||||
Unamortized debt discount | 0 | 672 | |||
2022 Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument stated percentage (as a percent) | 4.375% | ||||
Debt instrument principal amount | $ 37,700 | 37,600 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||
Debt instrument conversion ratio | 0.1739978 | ||||
Debt instrument conversion price (in dollars per share) | $ / shares | $ 5.75 | ||||
Carrying amount of equity component | $ 8,300 | ||||
Convertible debt | 36,000 | ||||
Unamortized debt discount | $ 1,700 | ||||
2022 Notes | Senior Notes | Stock Price Greater or Equal 130 Percent of Note Conversion Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument threshold trading days | d | 20 | ||||
Debt instrument threshold consecutive trading days | d | 30 | ||||
Debt instrument threshold percentage of stock price trigger (as a percent) | 130% | ||||
2022 Notes | Senior Notes | Note Price Less Than 98 Percent of Stock Price Times Conversion Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument threshold trading days | d | 5 | ||||
Debt instrument threshold consecutive trading days | d | 5 | ||||
Debt instrument threshold percentage of stock price trigger (as a percent) | 98% | ||||
2024 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument principal amount | 115,500 | 115,500 | |||
Unamortized debt discount | $ 0 | $ 14,576 | |||
2024 Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument stated percentage (as a percent) | 2% | ||||
Debt instrument principal amount | $ 115,500 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||
Debt instrument conversion ratio | 0.1155001 | ||||
Debt instrument conversion price (in dollars per share) | $ / shares | $ 8.66 | ||||
Carrying amount of equity component | $ 24,900 |
CONVERTIBLE DEBT - Components o
CONVERTIBLE DEBT - Components of Convertible Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||
Carrying amount | $ 36,824 | $ 37,657 |
2022 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | 37,707 | 37,707 |
Less: Debt discount, net of amortization | (672) | 0 |
Less: Debt issuance costs, net of amortization | (211) | (50) |
Carrying amount | $ 36,824 | 37,657 |
Remaining debt discount amortization period (years) | 10 months 24 days | |
Effective interest rate on liability component | 6.95% | |
2024 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 115,500 | 115,500 |
Less: Debt discount, net of amortization | (14,576) | 0 |
Less: Debt issuance costs, net of amortization | $ (1,983) | $ (1,739) |
Remaining debt discount amortization period (years) | 2 years 8 months 12 days | |
Effective interest rate on liability component | 7.95% |
CONVERTIBLE DEBT - Interest Exp
CONVERTIBLE DEBT - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 412 | $ 412 | $ 1,236 | $ 1,236 |
Amortization of debt discount | 0 | 171 | 0 | 508 |
Amortization of debt issuance costs | 69 | 54 | 207 | 159 |
Total interest expense recognized | 481 | 637 | 1,443 | 1,903 |
2024 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 578 | 578 | 1,734 | 1,734 |
Amortization of debt discount | 0 | 1,193 | 0 | 3,505 |
Amortization of debt issuance costs | 220 | 162 | 654 | 476 |
Total interest expense recognized | $ 798 | $ 1,933 | $ 2,388 | $ 5,715 |
STOCKHOLDERS_ EQUITY - Share-Ba
STOCKHOLDERS’ EQUITY - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 6,460 | $ 6,436 | $ 19,621 | $ 18,867 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 607 | 545 | 1,691 | 1,840 |
Research and development expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | 2,109 | 2,129 | 5,988 | 5,699 |
Selling, general and administrative expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation | $ 3,744 | $ 3,762 | $ 11,942 | $ 11,328 |
STOCKHOLDERS_ EQUITY - Restrict
STOCKHOLDERS’ EQUITY - Restricted Stock Units Outstanding (Details) - Restricted stock units shares in Thousands | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 3,878 |
Granted (in shares) | shares | 2,637 |
Vested (in shares) | shares | (2,634) |
Forfeited (in shares) | shares | (120) |
Ending balance (in shares) | shares | 3,761 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 7.31 |
Granted (in dollars per share) | $ / shares | 9.25 |
Vested (in dollars per share) | $ / shares | 7.48 |
Forfeited (in dollars per share) | $ / shares | 8.39 |
Ending balance (in dollars per share) | $ / shares | $ 8.63 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Feb. 03, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase program, authorized amount | $ 100,000 | ||
Stock repurchased and retired during period (in shares) | 600,000 | ||
Value of stock repurchased and retired during period | $ 120 | $ 5,134 | |
Remaining stock repurchase authorization amount | $ 94,900 | $ 94,900 | |
Stock Plan 1995 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in common stock reserved for issuance (in shares) | 7,000,000 | ||
Common stock reserved for issuance (in shares) | 11,645,946 | 11,645,946 | |
Shares available for grant (in shares) | 7,760,174 | 7,760,174 | |
Director Option Plans 2002 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance (in shares) | 706,377 | 706,377 | |
Shares available for grant (in shares) | 524,199 | 524,199 | |
Stock purchase rights under the ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Increase in common stock reserved for issuance (in shares) | 1,000,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 37,657 | $ 36,824 |
Carrying Value | 113,761 | 98,941 |
2022 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 37,657 | 36,824 |
2024 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 113,761 | 98,941 |
Fair Value, Nonrecurring | 2022 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 37,657 | 36,824 |
Fair Value, Nonrecurring | 2022 Notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Nonrecurring | 2022 Notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 87,245 | 78,619 |
Fair Value, Nonrecurring | 2022 Notes | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Nonrecurring | 2024 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 113,761 | 98,941 |
Fair Value, Nonrecurring | 2024 Notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Nonrecurring | 2024 Notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 180,358 | 173,419 |
Fair Value, Nonrecurring | 2024 Notes | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Numerator: | ||||
Net income (loss) | $ 8,740 | $ 1,530 | $ 22,051 | $ (6,603) |
Denominator: | ||||
Basic (in shares) | 105,228 | 102,099 | 104,617 | 101,057 |
Diluted (in shares) | 113,185 | 106,421 | 110,911 | 101,057 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.08 | $ 0.01 | $ 0.21 | $ (0.07) |
Diluted (in dollars per share) | $ 0.08 | $ 0.01 | $ 0.20 | $ (0.07) |
Stock options | ||||
Denominator: | ||||
Weighted average number diluted shares outstanding, Basic (in shares) | 218 | 311 | 238 | 0 |
Restricted stock units | ||||
Denominator: | ||||
Weighted average number diluted shares outstanding, Basic (in shares) | 1,920 | 1,185 | 1,725 | 0 |
Stock purchase rights under the ESPP | ||||
Denominator: | ||||
Weighted average number diluted shares outstanding, Basic (in shares) | 63 | 9 | 44 | 0 |
2022 Notes | ||||
Denominator: | ||||
Weighted average number diluted shares outstanding, Basic (in shares) | 3,078 | 2,356 | 2,718 | 0 |
2024 Notes | ||||
Denominator: | ||||
Weighted average number diluted shares outstanding, Basic (in shares) | 2,678 | 461 | 1,569 | 0 |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential weighted common shares outstanding excluded from diluted net loss per share (in shares) | 22 | 69 | 43 | 6,471 |
2022 Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential weighted common shares outstanding excluded from diluted net loss per share (in shares) | 0 | 0 | 0 | 2,085 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential weighted common shares outstanding excluded from diluted net loss per share (in shares) | 0 | 0 | 0 | 926 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential weighted common shares outstanding excluded from diluted net loss per share (in shares) | 22 | 69 | 43 | 3,079 |
Stock purchase rights under the ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential weighted common shares outstanding excluded from diluted net loss per share (in shares) | 0 | 0 | 0 | 381 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 155,738 | $ 126,321 | $ 460,623 | $ 351,345 |
Gross profit | 78,604 | 66,154 | 230,187 | 181,804 |
Operating income | 11,424 | 5,371 | 29,042 | 3,663 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 155,738 | 126,321 | 460,623 | 351,345 |
Gross profit | 79,202 | 66,699 | 231,969 | 183,990 |
Operating income | 18,210 | 11,807 | 50,890 | 23,426 |
Operating Segments | Video | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 63,824 | 68,729 | 205,881 | 202,415 |
Gross profit | 37,859 | 42,534 | 124,679 | 118,879 |
Operating income | 2,907 | 7,904 | 17,317 | 13,235 |
Operating Segments | Broadband | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 91,914 | 57,592 | 254,742 | 148,930 |
Gross profit | 41,343 | 24,165 | 107,290 | 65,111 |
Operating income | $ 15,303 | $ 3,903 | $ 33,573 | $ 10,191 |
SEGMENT INFORMATION - Segment I
SEGMENT INFORMATION - Segment Income or Loss Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated segment operating income (loss) | $ 11,424 | $ 5,371 | $ 29,042 | $ 3,663 |
Unallocated corporate expenses | (67,180) | (60,783) | (201,145) | (178,141) |
Stock-based compensation | (6,460) | (6,436) | (19,621) | (18,867) |
Amortization of intangibles | 0 | 0 | 0 | (507) |
Non-operating income (expense), net | (1,402) | (2,899) | 107 | (7,260) |
Income (loss) before income taxes | 10,022 | 2,472 | 29,149 | (3,597) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated segment operating income (loss) | 18,210 | 11,807 | 50,890 | 23,426 |
Corporate, Non-segments | ||||
Segment Reporting Information [Line Items] | ||||
Unallocated corporate expenses | $ (326) | $ 0 | $ (2,227) | $ (389) |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 155,738 | $ 126,321 | $ 460,623 | $ 351,345 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | 89,940 | 64,451 | 282,927 | 192,840 |
Other countries | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 65,798 | $ 61,870 | $ 177,696 | $ 158,505 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Sep. 30, 2022 USD ($) |
Indemnification | |
Other Commitments [Line Items] | |
Accrual for indemnification provisions | $ 0 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event - Revolving Credit Facility - JPMORGAN CHASE BANK - USD ($) | Nov. 04, 2022 | Oct. 28, 2022 |
Subsequent Event [Line Items] | ||
Maturity factor, period required | 90 days | |
Floating rate per annum | 2% | |
Basis spread on interest rate | 2.50% | |
Principal amount | $ 25,000,000 | |
Amount drawn | $ 0 | |
Secured Overnight Financing Rate (SOFR) | ||
Subsequent Event [Line Items] | ||
Basis spread on variable rate | 3% |