Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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, $0.001 par value | |
Trading Symbol | HLIT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 111,355,319 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000851310 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 90,877 | $ 89,586 |
Accounts receivable, net | 88,135 | 108,427 |
Inventories | 131,642 | 120,949 |
Prepaid expenses and other current assets | 27,451 | 26,337 |
Total current assets | 338,105 | 345,299 |
Property and equipment, net | 38,936 | 39,814 |
Operating lease right-of-use assets | 24,347 | 25,469 |
Goodwill | 238,433 | 237,739 |
Other non-current assets | 63,994 | 61,697 |
Total assets | 703,815 | 710,018 |
Current liabilities: | ||
Convertible debt, current | 114,204 | 113,981 |
Other debts, current | 4,684 | 4,756 |
Accounts payable | 55,404 | 67,455 |
Deferred revenue | 65,606 | 62,383 |
Operating lease liabilities, current | 6,731 | 6,773 |
Other current liabilities | 59,269 | 66,724 |
Total current liabilities | 305,898 | 322,072 |
Other debts, non-current | 11,350 | 11,161 |
Operating lease liabilities, non-current | 22,872 | 24,110 |
Other non-current liabilities | 27,909 | 28,169 |
Total liabilities | 368,029 | 385,512 |
Commitments and contingencies (Note 11) | ||
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; 111,332 and 109,871 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 111 | 110 |
Additional paid-capital | 2,384,806 | 2,380,651 |
Accumulated deficit | (2,041,476) | (2,046,569) |
Accumulated other comprehensive loss | (7,655) | (9,686) |
Total stockholders’ equity | 335,786 | 324,506 |
Total liabilities and stockholders’ equity | $ 703,815 | $ 710,018 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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) | 111,332,000 | 109,871,000 |
Common stock, shares outstanding (in shares) | 111,332,000 | 109,871,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Total net revenue | $ 157,649 | $ 147,439 |
Total cost of revenue | 73,595 | 78,257 |
Total gross profit | 84,054 | 69,182 |
Operating expenses: | ||
Research and development | 33,509 | 28,833 |
Selling, general and administrative | 39,282 | 36,643 |
Restructuring and related charges | 83 | 1,170 |
Total operating expenses | 72,874 | 66,646 |
Income from operations | 11,180 | 2,536 |
Interest expense, net | (706) | (1,433) |
Other income (expense), net | (293) | 62 |
Income before income taxes | 10,181 | 1,165 |
Provision for income taxes | 5,088 | 2,694 |
Net income (loss) | $ 5,093 | $ (1,529) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0.05 | $ (0.01) |
Diluted (in dollars per share) | $ 0.04 | $ (0.01) |
Weighted average shares outstanding: | ||
Basic (in shares) | 110,794 | 103,994 |
Diluted (in shares) | 117,758 | 103,994 |
Appliance and integration | ||
Total net revenue | $ 114,794 | $ 112,984 |
Total cost of revenue | 59,748 | 66,382 |
SaaS and service | ||
Total net revenue | 42,855 | 34,455 |
Total cost of revenue | $ 13,847 | $ 11,875 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 5,093 | $ (1,529) |
Other comprehensive income (loss) before tax: | ||
Change in foreign currency translation adjustments | 1,959 | (1,702) |
Other comprehensive income (loss) before tax | 1,959 | (1,702) |
Provision for (benefit from) income taxes | (72) | 63 |
Other comprehensive income (loss), net of tax | 2,031 | (1,765) |
Total comprehensive income (loss) | $ 7,124 | $ (3,294) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ 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 Loss | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2021 | 102,959,000 | 102,959,000 | |||||||||||
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) | (1,529) | (1,529) | |||||||||||
Other comprehensive income (loss), net of tax | (1,765) | (1,765) | |||||||||||
Issuance of common stock under stock option, award and purchase plans, net (in shares) | 1,877,000 | ||||||||||||
Issuance of common stock under award and purchase plans, net | 274 | $ 2 | 272 | ||||||||||
Repurchase of common stock (in shares) | (233,000) | ||||||||||||
Repurchase of common stock | (2,141) | (2,141) | |||||||||||
Stock-based compensation | 7,811 | 7,811 | |||||||||||
Ending balance (in shares) at Apr. 01, 2022 | 104,603,000 | ||||||||||||
Ending balance at Apr. 01, 2022 | $ 284,653 | $ 105 | 2,362,873 | (2,073,288) | (5,037) | ||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 109,871,000 | 109,871,000 | |||||||||||
Beginning balance at Dec. 31, 2022 | $ 324,506 | $ 110 | 2,380,651 | (2,046,569) | (9,686) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income (loss) | 5,093 | 5,093 | |||||||||||
Other comprehensive income (loss), net of tax | 2,031 | 2,031 | |||||||||||
Issuance of common stock under stock option, award and purchase plans, net (in shares) | 1,461,000 | ||||||||||||
Issuance of common stock under award and purchase plans, net | $ (3,268) | $ 1 | (3,269) | ||||||||||
Repurchase of common stock (in shares) | 0 | ||||||||||||
Stock-based compensation | $ 7,424 | 7,424 | |||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 111,332,000 | 111,332,000 | |||||||||||
Ending balance at Mar. 31, 2023 | $ 335,786 | $ 111 | $ 2,384,806 | $ (2,041,476) | $ (7,655) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 5,093 | $ (1,529) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 3,030 | 3,111 |
Stock-based compensation | 7,424 | 7,586 |
Amortization of convertible debt discount | 223 | 297 |
Amortization of warrant | 435 | 429 |
Foreign currency remeasurement | 1,290 | (563) |
Deferred income taxes, net | 547 | 627 |
Provision for expected credit losses and returns | 253 | 1,348 |
Provision for excess and obsolete inventories | 2,027 | 2,738 |
Other adjustments | 45 | 77 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 20,277 | (28,479) |
Inventories | (10,547) | (11,841) |
Other assets | (2,566) | (3,949) |
Accounts payable | (12,507) | (12,260) |
Deferred revenues | 1,721 | 18,408 |
Other liabilities | (10,475) | (3,482) |
Net cash provided by (used in) operating activities | 6,270 | (27,482) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,331) | (2,438) |
Net cash used in investing activities | (2,331) | (2,438) |
Cash flows from financing activities: | ||
Repurchase of common stock | 0 | (2,141) |
Repayment of other debts | (152) | (99) |
Proceeds from common stock issued to employees | 3,085 | 2,966 |
Taxes paid related to net share settlement of equity awards | (6,353) | (2,693) |
Net cash used in financing activities | (3,420) | (1,967) |
Effect of exchange rate changes on cash and cash equivalents | 772 | (805) |
Net increase (decrease) in cash and cash equivalents | 1,291 | (32,692) |
Cash and cash equivalents at beginning of period | 89,586 | 133,431 |
Cash and cash equivalents at end of period | 90,877 | 100,739 |
Supplemental schedule of non-cash investing activities: | ||
Capital expenditures incurred but not yet paid | $ 881 | $ 1,328 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). The accompanying 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-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2023. 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. The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2022 Form 10-K. There have been no significant changes to these policies during the three months ended March 31, 2023. |
INVESTMENTS IN EQUITY SECURITIE
INVESTMENTS IN EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
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 | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, 2023 December 31, 2022 Contract assets $ 5,033 $ 5,580 Deferred revenue $ 82,245 $ 80,471 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 March 31, 2023 that was included within the deferred revenue balance at January 1, 2023 was $21.2 million. Revenue recognized during the three months ended April 1, 2022, that was included within the deferred revenue balance at January 1, 2022 was $23.5 million. Remaining performance obligations represent contracted revenues that have not yet been recognized and include deferred revenue and unbilled amounts that will be recognized as revenue in the future. The aggregate balance of the Company’s remaining performance obligations as of March 31, 2023 was $631.6 million, majority of which is expected to be recognized as revenue over the next 12 months and the remainder thereafter. Refer to Note 10, “Segment Information” for disaggregated revenue information. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease expense are as follows: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Operating lease cost $ 1,764 $ 1,887 Variable lease cost 425 461 Total lease cost $ 2,189 $ 2,348 Supplemental information related to leases are as follows: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,828 $ 1,916 Right-of-use assets obtained in exchange for operating lease obligations $ — $ 129 |
OTHER FINANCIAL STATEMENT INFOR
OTHER FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, 2023 December 31, 2022 Accounts receivable $ 90,091 $ 110,576 Less: allowances for expected credit losses and sales returns (1,956) (2,149) Total $ 88,135 $ 108,427 Inventories: As of (in thousands) March 31, 2023 December 31, 2022 Finished goods $ 72,891 $ 65,308 Raw materials 49,770 46,081 Work-in-process 3,194 3,251 Service-related spares 5,787 6,309 Total $ 131,642 $ 120,949 Prepaid expenses and other current assets: As of (in thousands) March 31, 2023 December 31, 2022 Prepaid expenses $ 4,649 $ 5,558 Contract assets 5,033 5,583 Other current assets 17,769 15,196 Total $ 27,451 $ 26,337 Property and equipment, net: As of (in thousands) March 31, 2023 December 31, 2022 Machinery and equipment $ 74,767 $ 75,589 Capitalized software 29,420 30,588 Leasehold improvements 39,480 39,199 Furniture and fixtures 2,852 2,739 Construction-in-progress 3,210 2,691 Property and equipment, gross 149,729 150,806 Less: accumulated depreciation and amortization (110,793) (110,992) Total $ 38,936 $ 39,814 Other current liabilities: As of (in thousands) March 31, 2023 December 31, 2022 Accrued employee compensation and related expenses $ 22,437 $ 29,675 Other 36,832 37,049 Total $ 59,269 $ 66,724 |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE DEBT | CONVERTIBLE DEBT 2.00% Convertible Senior Notes due 2024 (the “2024 Notes”) In September 2019, the Company issued $115.5 million of the 2024 Notes pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee. The 2024 Notes bear interest at a rate of 2.00% per year, payable semi-annually on March 1 and September 1 of each year, beginning March 1, 2020. The 2024 Notes will mature on September 1, 2024, unless earlier repurchased by the Company, 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, or a combination thereof, at the Company’s election, at an initial conversion rate of 115.5001 shares of the Company’s common stock per $1,000 principal amount of the 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 the fiscal year ended December 31, 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 the Company’s 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. The 2024 Notes remained convertible as of March 31, 2023, as the last reported sale price of the Company’s common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter was greater than or equal to 130% of the conversion price of the 2024 Notes on each applicable trading day. All $114.2 million of the net carrying amount of the 2024 Notes outstanding as of March 31, 2023 was classified as a current liability as of that date. The following table presents the components of the 2024 Notes: As of (in thousands, except for years and percentages) March 31, 2023 December 31, 2022 Liability: Principal amount $ 115,500 $ 115,500 Less: Debt issuance costs, net of amortization (1,296) (1,519) Carrying amount $ 114,204 $ 113,981 The following table presents interest expense recognized for the 2024 Notes: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Contractual interest expense $ 578 $ 578 Amortization of debt issuance costs 223 217 Total interest expense recognized $ 801 $ 795 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
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 (in thousands) March 31, 2023 April 1, 2022 Cost of revenue $ 850 $ 527 Research and development expense 2,099 2,536 Selling, general and administrative expense 4,475 4,523 Total $ 7,424 $ 7,586 Restricted Stock Units: (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2022 3,499 $ 8.93 Granted 1,216 12.83 Vested (1,500) 8.78 Forfeited (229) 8.83 Balance at March 31, 2023 2,986 $ 10.45 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 13, “Employee Benefit Plans” of Notes to Consolidated Financial Statements in the 2022 Form 10-K for details pertaining to each plan. As of March 31, 2023, an aggregate of 9,552,296 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 6,753,467 shares remained available for future grants. As of March 31, 2023, an aggregate of 637,671 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 451,077 shares remained available for future grants. Share Repurchase Program In February 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. There were no repurchase activities during the three months ended March 31, 2023. As of March 31, 2023, approximately $94.9 million of the share repurchase authorization remained available for repurchases under this program. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2024 Notes $ 114,204 $ — $ 198,892 $ — $ 113,981 $ — $ 181,139 $ — The fair value of the Company’s convertible notes is influenced by interest rates, the price of the Company’s common stock 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 (in thousands, except per share amounts) March 31, 2023 April 1, 2022 Numerator: Net income (loss) $ 5,093 $ (1,529) Denominator: Weighted average number of shares outstanding: Basic 110,794 103,994 2024 Notes 4,964 — Restricted stock units 2,000 — Diluted 117,758 103,994 Net income (loss) per share: Basic $ 0.05 $ (0.01) Diluted $ 0.04 $ (0.01) The diluted net income per share was materially the same as basic net income per share for the three months ended March 31, 2023. The following table sets forth the potential dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effects were anti-dilutive: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Convertible debt — 4,244 Stock options — 387 Restricted stock units 72 3,066 Stock purchase rights under the ESPP 300 409 Total 372 8,106 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATIONOperating 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”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the internal reporting structure, the Company consists of two operating segments: Video and Broadband. The operating segments were determined based on the nature of the products offered. The Video segment provides video processing, production and playout solutions and services worldwide to broadcast and media companies, new streaming media companies, broadband operators, and satellite and telecommunications (“telco”) Pay-TV service providers. The Broadband segment provides broadband access solutions and related services to broadband 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 (in thousands) March 31, 2023 April 1, 2022 Video Revenue $ 57,298 $ 65,842 Gross profit 34,614 38,684 Operating income (loss) (1,426) 3,139 Broadband Revenue $ 100,351 $ 81,597 Gross profit 50,290 31,011 Operating income 20,113 8,139 Total Revenue $ 157,649 $ 147,439 Gross profit 84,904 69,695 Operating income 18,687 11,278 A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Total consolidated segment operating income $ 18,687 $ 11,278 Unallocated corporate expenses (1) (83) (1,156) Stock-based compensation (7,424) (7,586) Consolidated income from operations 11,180 2,536 Non-operating expense, net (999) (1,371) Income before income taxes $ 10,181 $ 1,165 (1) Together with 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 (in thousands) March 31, 2023 April 1, 2022 Net revenue (1) United States $ 105,741 $ 86,878 Other countries 51,908 60,561 Total $ 157,649 $ 147,439 (1) Revenue is attributed to countries based on the location of the customer. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal proceedings From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, 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. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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. |
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”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the internal reporting structure, the Company consists of two operating segments: Video and Broadband. The operating segments were determined based on the nature of the products offered. The Video segment provides video processing, production and playout solutions and services worldwide to broadcast and media companies, new streaming media companies, broadband operators, and satellite and telecommunications (“telco”) Pay-TV service providers. The Broadband segment provides broadband access solutions and related services to broadband 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. |
CONTRACT ASSETS AND DEFERRED _2
CONTRACT ASSETS AND DEFERRED REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, 2023 December 31, 2022 Contract assets $ 5,033 $ 5,580 Deferred revenue $ 82,245 $ 80,471 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense | The components of lease expense are as follows: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Operating lease cost $ 1,764 $ 1,887 Variable lease cost 425 461 Total lease cost $ 2,189 $ 2,348 Supplemental information related to leases are as follows: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,828 $ 1,916 Right-of-use assets obtained in exchange for operating lease obligations $ — $ 129 |
OTHER FINANCIAL STATEMENT INF_2
OTHER FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, 2023 December 31, 2022 Accounts receivable $ 90,091 $ 110,576 Less: allowances for expected credit losses and sales returns (1,956) (2,149) Total $ 88,135 $ 108,427 |
Schedule of Inventories | Inventories: As of (in thousands) March 31, 2023 December 31, 2022 Finished goods $ 72,891 $ 65,308 Raw materials 49,770 46,081 Work-in-process 3,194 3,251 Service-related spares 5,787 6,309 Total $ 131,642 $ 120,949 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets: As of (in thousands) March 31, 2023 December 31, 2022 Prepaid expenses $ 4,649 $ 5,558 Contract assets 5,033 5,583 Other current assets 17,769 15,196 Total $ 27,451 $ 26,337 |
Schedule of Property and Equipment, Net | Property and equipment, net: As of (in thousands) March 31, 2023 December 31, 2022 Machinery and equipment $ 74,767 $ 75,589 Capitalized software 29,420 30,588 Leasehold improvements 39,480 39,199 Furniture and fixtures 2,852 2,739 Construction-in-progress 3,210 2,691 Property and equipment, gross 149,729 150,806 Less: accumulated depreciation and amortization (110,793) (110,992) Total $ 38,936 $ 39,814 |
Schedule of Other Current Liabilities | Other current liabilities: As of (in thousands) March 31, 2023 December 31, 2022 Accrued employee compensation and related expenses $ 22,437 $ 29,675 Other 36,832 37,049 Total $ 59,269 $ 66,724 |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the components of the 2024 Notes: As of (in thousands, except for years and percentages) March 31, 2023 December 31, 2022 Liability: Principal amount $ 115,500 $ 115,500 Less: Debt issuance costs, net of amortization (1,296) (1,519) Carrying amount $ 114,204 $ 113,981 |
Schedule of Convertible Debt Interest | The following table presents interest expense recognized for the 2024 Notes: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Contractual interest expense $ 578 $ 578 Amortization of debt issuance costs 223 217 Total interest expense recognized $ 801 $ 795 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 (in thousands) March 31, 2023 April 1, 2022 Cost of revenue $ 850 $ 527 Research and development expense 2,099 2,536 Selling, general and administrative expense 4,475 4,523 Total $ 7,424 $ 7,586 |
Schedule of Restricted Stock Units Outstanding | (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2022 3,499 $ 8.93 Granted 1,216 12.83 Vested (1,500) 8.78 Forfeited (229) 8.83 Balance at March 31, 2023 2,986 $ 10.45 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2024 Notes $ 114,204 $ — $ 198,892 $ — $ 113,981 $ — $ 181,139 $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 (in thousands, except per share amounts) March 31, 2023 April 1, 2022 Numerator: Net income (loss) $ 5,093 $ (1,529) Denominator: Weighted average number of shares outstanding: Basic 110,794 103,994 2024 Notes 4,964 — Restricted stock units 2,000 — Diluted 117,758 103,994 Net income (loss) per share: Basic $ 0.05 $ (0.01) Diluted $ 0.04 $ (0.01) |
Schedule of Antidilutive Securities | The diluted net income per share was materially the same as basic net income per share for the three months ended March 31, 2023. The following table sets forth the potential dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effects were anti-dilutive: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Convertible debt — 4,244 Stock options — 387 Restricted stock units 72 3,066 Stock purchase rights under the ESPP 300 409 Total 372 8,106 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segments | The following table provides summary financial information by reportable segment: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Video Revenue $ 57,298 $ 65,842 Gross profit 34,614 38,684 Operating income (loss) (1,426) 3,139 Broadband Revenue $ 100,351 $ 81,597 Gross profit 50,290 31,011 Operating income 20,113 8,139 Total Revenue $ 157,649 $ 147,439 Gross profit 84,904 69,695 Operating income 18,687 11,278 |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows: Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Total consolidated segment operating income $ 18,687 $ 11,278 Unallocated corporate expenses (1) (83) (1,156) Stock-based compensation (7,424) (7,586) Consolidated income from operations 11,180 2,536 Non-operating expense, net (999) (1,371) Income before income taxes $ 10,181 $ 1,165 (1) Together with 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 Net Revenue by Geographic Region | Geographic Information Three Months Ended (in thousands) March 31, 2023 April 1, 2022 Net revenue (1) United States $ 105,741 $ 86,878 Other countries 51,908 60,561 Total $ 157,649 $ 147,439 (1) Revenue is attributed to countries based on the location of the customer. |
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 sales of investments | 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 - Schedule of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 5,033 | $ 5,580 |
Deferred revenue | $ 82,245 | $ 80,471 |
CONTRACT ASSETS AND DEFERRED _4
CONTRACT ASSETS AND DEFERRED REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized that was included within the deferred revenue balance | $ 21.2 | $ 23.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 631.6 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
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 | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,764 | $ 1,887 |
Variable lease cost | 425 | 461 |
Total lease cost | 2,189 | 2,348 |
Supplemental information related to leases are as follows: | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 1,828 | 1,916 |
Right-of-use assets obtained in exchange for operating lease obligations | $ 0 | $ 129 |
OTHER FINANCIAL STATEMENT INF_3
OTHER FINANCIAL STATEMENT INFORMATION - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 90,091 | $ 110,576 |
Less: allowances for expected credit losses and sales returns | (1,956) | (2,149) |
Total | $ 88,135 | $ 108,427 |
OTHER FINANCIAL STATEMENT INF_4
OTHER FINANCIAL STATEMENT INFORMATION - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 72,891 | $ 65,308 |
Raw materials | 49,770 | 46,081 |
Work-in-process | 3,194 | 3,251 |
Service-related spares | 5,787 | 6,309 |
Total | $ 131,642 | $ 120,949 |
OTHER FINANCIAL STATEMENT INF_5
OTHER FINANCIAL STATEMENT INFORMATION - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 4,649 | $ 5,558 |
Contract assets | 5,033 | 5,583 |
Other current assets | 17,769 | 15,196 |
Total | $ 27,451 | $ 26,337 |
OTHER FINANCIAL STATEMENT INF_6
OTHER FINANCIAL STATEMENT INFORMATION - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 149,729 | $ 150,806 |
Less: accumulated depreciation and amortization | (110,793) | (110,992) |
Total | 38,936 | 39,814 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 74,767 | 75,589 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 29,420 | 30,588 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 39,480 | 39,199 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,852 | 2,739 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,210 | $ 2,691 |
OTHER FINANCIAL STATEMENT INF_7
OTHER FINANCIAL STATEMENT INFORMATION - Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued employee compensation and related expenses | $ 22,437 | $ 29,675 |
Other | 36,832 | 37,049 |
Total | $ 59,269 | $ 66,724 |
CONVERTIBLE DEBT - Narrative (D
CONVERTIBLE DEBT - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Sep. 13, 2019 USD ($) $ / shares | Mar. 31, 2023 USD ($) day | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Convertible debt, current | $ 114,204 | $ 113,981 | |
2024 Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument principal amount | 115,500 | $ 115,500 | |
2024 Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated percentage (as a percent) | 2% | ||
Debt instrument principal amount | $ 115,500 | ||
Debt instrument conversion ratio | 0.1155001 | ||
Debt instrument conversion price (in dollars per share) | $ / shares | $ 8.66 | ||
Convertible debt, current | $ 114,200 | ||
2024 Notes | Senior Notes | Stock Price Greater or Equal 130 Percent of Note Conversion Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument threshold trading days | day | 20 | ||
Debt instrument threshold consecutive trading days | day | 30 | ||
Debt instrument threshold percentage of stock price trigger (as a percent) | 130% |
CONVERTIBLE DEBT - Components o
CONVERTIBLE DEBT - Components of Convertible Notes (Details) - 2024 Notes - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal amount | $ 115,500 | $ 115,500 |
Less: Debt issuance costs, net of amortization | (1,296) | (1,519) |
Carrying amount | $ 114,204 | $ 113,981 |
CONVERTIBLE DEBT - Interest Exp
CONVERTIBLE DEBT - Interest Expense (Details) - 2024 Notes - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 578 | $ 578 |
Amortization of debt issuance costs | 223 | 217 |
Total interest expense recognized | $ 801 | $ 795 |
STOCKHOLDERS_ EQUITY - Share-Ba
STOCKHOLDERS’ EQUITY - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 7,424 | $ 7,586 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 850 | 527 |
Research and development expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 2,099 | 2,536 |
Selling, general and administrative expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 4,475 | $ 4,523 |
STOCKHOLDERS_ EQUITY - Restrict
STOCKHOLDERS’ EQUITY - Restricted Stock Units Outstanding (Details) - Restricted stock units shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 3,499 |
Granted (in shares) | shares | 1,216 |
Vested (in shares) | shares | (1,500) |
Forfeited (in shares) | shares | (229) |
Ending balance (in shares) | shares | 2,986 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 8.93 |
Granted (in dollars per share) | $ / shares | 12.83 |
Vested (in dollars per share) | $ / shares | 8.78 |
Forfeited (in dollars per share) | $ / shares | 8.83 |
Ending balance (in dollars per share) | $ / shares | $ 10.45 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Feb. 28, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock repurchase program, authorized amount | $ 100 | |
Stock repurchased and retired during period (in shares) | 0 | |
Remaining stock repurchase authorization amount | $ 94.9 | |
Stock Plan 1995 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 9,552,296 | |
Shares available for grant (in shares) | 6,753,467 | |
Director Option Plans 2002 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 637,671 | |
Shares available for grant (in shares) | 451,077 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - 2024 Notes - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 114,204 | $ 113,981 |
Fair Value, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 198,892 | 181,139 |
Fair Value, Nonrecurring | 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 | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Numerator: | ||
Net income (loss) | $ 5,093 | $ (1,529) |
Denominator: | ||
Basic (in shares) | 110,794 | 103,994 |
Diluted (in shares) | 117,758 | 103,994 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0.05 | $ (0.01) |
Diluted (in dollars per share) | $ 0.04 | $ (0.01) |
Restricted stock units | ||
Denominator: | ||
Weighted average number diluted shares outstanding adjustment (in shares) | 2,000 | 0 |
2024 Notes | ||
Denominator: | ||
Weighted average number diluted shares outstanding adjustment (in shares) | 4,964 | 0 |
EARNINGS PER SHARE - Antidiluti
EARNINGS PER SHARE - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
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) | 372 | 8,106 |
Convertible debt | ||
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 | 4,244 |
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 | 387 |
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) | 72 | 3,066 |
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) | 300 | 409 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 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 | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 157,649 | $ 147,439 |
Gross profit | 84,054 | 69,182 |
Operating income (loss) | 11,180 | 2,536 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 157,649 | 147,439 |
Gross profit | 84,904 | 69,695 |
Operating income (loss) | 18,687 | 11,278 |
Operating Segments | Video | ||
Segment Reporting Information [Line Items] | ||
Revenue | 57,298 | 65,842 |
Gross profit | 34,614 | 38,684 |
Operating income (loss) | (1,426) | 3,139 |
Operating Segments | Broadband | ||
Segment Reporting Information [Line Items] | ||
Revenue | 100,351 | 81,597 |
Gross profit | 50,290 | 31,011 |
Operating income (loss) | $ 20,113 | $ 8,139 |
SEGMENT INFORMATION - Segment I
SEGMENT INFORMATION - Segment Income or Loss Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Segment Reporting Information [Line Items] | ||
Total consolidated segment operating income | $ 11,180 | $ 2,536 |
Unallocated corporate expenses | (72,874) | (66,646) |
Stock-based compensation | (7,424) | (7,586) |
Non-operating expense, net | (999) | (1,371) |
Income before income taxes | 10,181 | 1,165 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated segment operating income | 18,687 | 11,278 |
Corporate, Non-segments | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate expenses | $ (83) | $ (1,156) |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 157,649 | $ 147,439 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 105,741 | 86,878 |
Other countries | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 51,908 | $ 60,561 |
Uncategorized Items - hlit-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |