Cover
Cover - shares | 3 Months Ended | |
Mar. 29, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 29, 2024 | |
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, $0.001 par value | |
Trading Symbol | HLIT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,542,186 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000851310 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 84,305 | $ 84,269 |
Accounts receivable, net | 105,854 | 141,531 |
Inventories | 86,631 | 83,982 |
Prepaid expenses and other current assets | 24,019 | 20,950 |
Total current assets | 300,809 | 330,732 |
Property and equipment, net | 35,239 | 36,683 |
Operating lease right-of-use assets | 19,420 | 20,817 |
Goodwill | 238,287 | 239,150 |
Deferred income taxes | 108,418 | 104,707 |
Other non-current assets | 38,497 | 36,117 |
Total assets | 740,670 | 768,206 |
Current liabilities: | ||
Convertible debt, current | 115,109 | 114,880 |
Other debts, current | 4,813 | 4,918 |
Accounts payable | 43,844 | 38,562 |
Deferred revenue | 51,500 | 46,217 |
Operating lease liabilities, current | 6,507 | 6,793 |
Other current liabilities | 53,045 | 61,024 |
Total current liabilities | 274,818 | 272,394 |
Other debts, non-current | 10,271 | 10,495 |
Operating lease liabilities, non-current | 17,711 | 18,965 |
Other non-current liabilities | 28,716 | 29,478 |
Total liabilities | 331,516 | 331,332 |
Commitments and contingencies (Note 13) | ||
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; 111,946 and 112,407 shares issued and outstanding at March 29, 2024 and December 31, 2023, respectively | 112 | 112 |
Additional paid-in capital | 2,410,094 | 2,405,043 |
Accumulated deficit | (1,992,339) | (1,962,575) |
Accumulated other comprehensive loss | (8,713) | (5,706) |
Total stockholders’ equity | 409,154 | 436,874 |
Total liabilities and stockholders’ equity | $ 740,670 | $ 768,206 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 29, 2024 | Dec. 31, 2023 |
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) | 111,946,000 | 112,407,000 |
Common stock, shares outstanding (in shares) | 111,946,000 | 112,407,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Revenue: | ||
Total net revenue | $ 122,060 | $ 157,649 |
Cost of revenue: | ||
Total cost of revenue | 58,979 | 73,595 |
Total gross profit | 63,081 | 84,054 |
Operating expenses: | ||
Research and development | 30,705 | 33,509 |
Selling, general and administrative | 38,865 | 39,282 |
Restructuring and related charges | 3,037 | 83 |
Total operating expenses | 72,607 | 72,874 |
Income (loss) from operations | (9,526) | 11,180 |
Interest expense, net | (723) | (706) |
Other expense, net | (289) | (293) |
Income (loss) before income taxes | (10,538) | 10,181 |
Provision for (benefit from) income taxes | (2,449) | 5,088 |
Net income (loss) | $ (8,089) | $ 5,093 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ (0.07) | $ 0.05 |
Diluted (in dollars per share) | $ (0.07) | $ 0.04 |
Weighted average shares outstanding: | ||
Basic (in shares) | 112,350 | 110,794 |
Diluted (in shares) | 112,350 | 117,758 |
Appliance and integration | ||
Revenue: | ||
Total net revenue | $ 81,595 | $ 114,794 |
Cost of revenue: | ||
Total cost of revenue | 43,074 | 59,748 |
SaaS and service | ||
Revenue: | ||
Total net revenue | 40,465 | 42,855 |
Cost of revenue: | ||
Total cost of revenue | $ 15,905 | $ 13,847 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (8,089) | $ 5,093 |
Foreign currency translation adjustments | (2,914) | 1,959 |
Other comprehensive income (loss) before tax | (2,914) | 1,959 |
Provision for (benefit from) income taxes | 93 | (72) |
Other comprehensive income (loss), net of tax | (3,007) | 2,031 |
Total comprehensive income (loss) | $ (11,096) | $ 7,124 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2022 | 109,871 | ||||
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 | ||||
Issuance of common stock under award and purchase plans, net | (3,268) | $ 1 | (3,269) | ||
Stock-based compensation | 7,424 | 7,424 | |||
Ending balance (in shares) at Mar. 31, 2023 | 111,332 | ||||
Ending balance at Mar. 31, 2023 | $ 335,786 | $ 111 | 2,384,806 | (2,041,476) | (7,655) |
Beginning balance (in shares) at Dec. 31, 2023 | 112,407 | 112,407 | |||
Beginning balance at Dec. 31, 2023 | $ 436,874 | $ 112 | 2,405,043 | (1,962,575) | (5,706) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (8,089) | (8,089) | |||
Other comprehensive income (loss), net of tax | (3,007) | (3,007) | |||
Issuance of common stock under stock option, award and purchase plans, net (in shares) | 1,197 | ||||
Issuance of common stock under award and purchase plans, net | $ (1,871) | $ 1 | (1,872) | ||
Repurchase of common stock (in shares) | (1,700) | (1,658) | |||
Repurchase of common stock | $ (21,676) | $ (1) | (21,675) | ||
Stock-based compensation | $ 6,923 | 6,923 | |||
Ending balance (in shares) at Mar. 29, 2024 | 111,946 | 111,946 | |||
Ending balance at Mar. 29, 2024 | $ 409,154 | $ 112 | $ 2,410,094 | $ (1,992,339) | $ (8,713) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (8,089) | $ 5,093 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 3,085 | 3,030 |
Stock-based compensation | 6,923 | 7,424 |
Foreign currency remeasurement | (1,108) | 1,290 |
Deferred income taxes, net | (3,806) | 547 |
Provision for excess and obsolete inventories | 757 | 2,027 |
Other adjustments | 240 | 703 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 35,187 | 20,530 |
Inventories | (4,571) | (10,547) |
Other assets | (5,041) | (2,566) |
Accounts payable | 5,988 | (12,507) |
Deferred revenues | 5,071 | 1,721 |
Other liabilities | (7,816) | (10,475) |
Net cash provided by operating activities | 26,820 | 6,270 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,911) | (2,331) |
Net cash used in investing activities | (1,911) | (2,331) |
Cash flows from financing activities: | ||
Payments for debt issuance costs | (327) | 0 |
Repurchase of common stock | (21,675) | 0 |
Repayment of other debts | 0 | (152) |
Proceeds from common stock issued to employees | 3,542 | 3,085 |
Taxes paid related to net share settlement of equity awards | (5,413) | (6,353) |
Net cash used in financing activities | (23,873) | (3,420) |
Effect of exchange rate changes on cash and cash equivalents | (1,000) | 772 |
Net increase in cash and cash equivalents | 36 | 1,291 |
Cash and cash equivalents at beginning of period | 84,269 | 89,586 |
Cash and cash equivalents at end of period | 84,305 | 90,877 |
Supplemental schedule of non-cash investing activities: | ||
Capital expenditures incurred but not yet paid | $ 396 | $ 881 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 29, 2024 | |
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, 2023 (“2023 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 interim periods are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2024. 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 2023 Form 10-K. There have been no significant changes to these policies during the three months ended March 29, 2024. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 29, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for our annual periods beginning in fiscal 2024 and interim periods beginning in the first quarter of fiscal 2025. Early adoption is permitted. The Company is currently evaluating the impact the new accounting standard will have on its segment reporting disclosures in the notes to the consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. |
INVESTMENTS IN EQUITY SECURITIE
INVESTMENTS IN EQUITY SECURITIES | 3 Months Ended |
Mar. 29, 2024 | |
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 is subject to certain conditions and indemnity obligations, and will be recorded upon receipt by the Company. As of March 29, 2024, the Company has not received any of the balance of the consideration. |
CONTRACT ASSETS AND DEFERRED RE
CONTRACT ASSETS AND DEFERRED REVENUE | 3 Months Ended |
Mar. 29, 2024 | |
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 29, 2024 December 31, 2023 Contract assets $ 4,380 $ 4,772 Deferred revenue $ 64,694 $ 59,705 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. The amount of revenues recognized during the three months ended March 29, 2024 and March 31, 2023 that were included in the opening deferred revenue balance as of January 1, 2024 and 2023, respectively, were $16.3 million and $21.2 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 29, 2024 was $677.8 million, 54% of which 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 | 3 Months Ended |
Mar. 29, 2024 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease expense are as follows: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Operating lease cost $ 1,729 $ 1,764 Variable lease cost 390 425 Total lease cost $ 2,119 $ 2,189 Supplemental information related to leases are as follows: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Cash paid for operating lease liabilities $ 1,795 $ 1,828 |
OTHER FINANCIAL STATEMENT INFOR
OTHER FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Mar. 29, 2024 | |
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 29, 2024 December 31, 2023 Accounts receivable $ 108,969 $ 144,731 Less: allowances for expected credit losses and sales returns (3,115) (3,200) Total $ 105,854 $ 141,531 Inventories: As of (in thousands) March 29, 2024 December 31, 2023 Finished goods $ 36,931 $ 43,987 Raw materials 36,442 27,806 Work-in-process 5,820 5,056 Service-related spares 7,438 7,133 Total $ 86,631 $ 83,982 Prepaid expenses and other current assets: As of (in thousands) March 29, 2024 December 31, 2023 Prepaid expenses $ 3,869 $ 3,789 Contract assets 4,380 4,772 Other current assets 15,770 12,389 Total $ 24,019 $ 20,950 Property and equipment, net: As of (in thousands) March 29, 2024 December 31, 2023 Machinery and equipment $ 74,964 $ 74,659 Capitalized software 27,036 27,129 Leasehold improvements 40,873 40,931 Furniture and fixtures 2,557 2,547 Construction-in-progress 2,094 1,789 Property and equipment, gross 147,524 147,055 Less: accumulated depreciation and amortization (112,285) (110,372) Total $ 35,239 $ 36,683 Other current liabilities: As of (in thousands) March 29, 2024 December 31, 2023 Accrued employee compensation and related expenses $ 20,360 $ 22,779 Other 32,685 38,245 Total $ 53,045 $ 61,024 |
CONVERTIBLE DEBT
CONVERTIBLE DEBT | 3 Months Ended |
Mar. 29, 2024 | |
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 bore 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 would have matured 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, could 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 are recorded at face value less unamortized debt issuance costs. Amortization costs are reported as a component of interest expenses and are computed using the effective interest method. On January 30, 2024, the Company issued a notice to redeem the outstanding 2024 Notes in full pursuant to the terms of the 2024 Notes Indenture, which gave holders the right to convert their 2024 Notes prior to the redemption date. On April 18, 2024, the Company settled the conversions of the entire $115.5 million in aggregate principal amount of the 2024 Notes. In accordance with the provisions of the 2024 Notes Indenture, the Company settled such conversions of the 2024 Notes by paying and delivering, as applicable, in a combination of $115.5 million in cash and 4.6 million shares of the Company’s common stock. Refer to Note 14, “Subsequent Event”, of the Notes to the condensed consolidated financial statements for details regarding the 2024 Notes redemption. The following table presents the components of the 2024 Notes: As of (in thousands, except for years and percentages) March 29, 2024 December 31, 2023 Liability: Principal amount $ 115,500 $ 115,500 Less: Debt issuance costs, net of amortization (391) (620) Carrying amount $ 115,109 $ 114,880 The following table presents interest expense recognized for the 2024 Notes: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Contractual interest expense $ 578 $ 578 Amortization of debt issuance costs 229 223 Total interest expense recognized $ 807 $ 801 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 29, 2024 | |
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 29, 2024 March 31, 2023 Cost of revenue $ 523 $ 850 Research and development expense 1,955 2,099 Selling, general and administrative expense 4,445 4,475 Total $ 6,923 $ 7,424 Restricted Stock Units: (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2023 3,242 $ 12.42 Granted 1,412 13.78 Vested (1,278) 11.58 Forfeited (91) 12.36 Balance at March 29, 2024 3,285 $ 13.34 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 2023 Form 10-K for details pertaining to each plan. As of March 29, 2024, an aggregate of 7,301,248 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 4,223,142 shares remained available for future grants. As of March 29, 2024, an aggregate of 595,887 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 388,881 shares remained available for future grants. Share Repurchase Program In February 2022, the Board of Directors of the Company (“Board”) 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 three months ended March 29, 2024, the company repurchased and retired approximately 1.7 million shares of the Company’s common stock for an aggregate amount of $21.7 million. As of March 29, 2024, approximately $73.2 million of the share repurchase authorization remained available for repurchases under this program. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as follows: • Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying value of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short maturities. The following table sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): March 29, 2024 December 31, 2023 ( in thousands ) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 32,835 $ — $ — $ 32,835 $ 23,683 $ — $ — $ 23,683 The Company’s financial instruments not recorded at fair value on a recurring basis were as follows: March 29, 2024 December 31, 2023 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2024 Notes $ 115,109 $ — $ 181,855 $ — $ 114,880 $ — $ 177,405 $ — 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. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 29, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the Company’s stock options, restricted stock units, and shares issuable under the ESPP, and the if-converted method for the 2024 Notes. As noted in Note 7, “Convertible Debt,” the principal amount of the 2024 Notes was required to be settled in cash. Therefore, for the purpose of calculating diluted net income (loss) per share, it is assumed that the conversion spread value will be settled in shares. The following table sets forth the computation of the basic and diluted net income per share: Three Months Ended (in thousands, except per share amounts) March 29, 2024 March 31, 2023 Numerator: Net income (loss) $ (8,089) $ 5,093 Denominator: Weighted average number of shares outstanding: Basic 112,350 110,794 2024 Notes — 4,964 Restricted stock units — 2,000 Diluted 112,350 117,758 Net income (loss) per share: Basic $ (0.07) $ 0.05 Diluted $ (0.07) $ 0.04 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 29, 2024 March 31, 2023 2024 Notes 4,287 — Restricted stock units 3,197 72 Stock purchase rights under the ESPP 316 300 Total 7,800 372 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 29, 2024 | |
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”), 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: Broadband and Video. The operating segments were determined based on the nature of the products offered. 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 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 following table provides summary financial information by reportable segment: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Broadband Revenue $ 78,897 $ 100,351 Operating income 8,594 20,113 Video Revenue $ 43,163 $ 57,298 Operating loss (7,351) (1,426) Total Revenue $ 122,060 $ 157,649 Operating income 1,243 18,687 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 29, 2024 March 31, 2023 Total consolidated segment operating income $ 1,243 $ 18,687 Unallocated corporate expenses (1) (3,846) (83) Stock-based compensation (6,923) (7,424) Consolidated income (loss) from operations (9,526) 11,180 Non-operating expense, net (1,012) (999) Income (loss) before income taxes $ (10,538) $ 10,181 (1) Together with stock-based compensation, the Company does not allocate restructuring and related charges and other non-recurring expenses 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 . Disaggregation of Revenues The following table provides a summary of total revenues disaggregated by type: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Product sales $ 73,916 $ 107,824 Professional services 7,679 6,970 Total Appliance and integration 81,595 114,794 SaaS 12,864 11,583 Support services 27,601 31,272 Total SaaS and services 40,465 42,855 Total revenue $ 122,060 $ 157,649 The following table provides a summary of total revenues by geographic region: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 United States (1) $ 81,992 $ 105,741 Other countries (1) 40,068 51,908 Total revenue $ 122,060 $ 157,649 (1) Revenue is attributed to countries based on the location of the customer. No single country, other than the United States, accounted for 10% or more of the Company’s net revenues for the three months ended March 29, 2024 and March 31, 2023, respectively. |
RESTRUCTURING AND RELATED CHARG
RESTRUCTURING AND RELATED CHARGES | 3 Months Ended |
Mar. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND RELATED CHARGES | RESTRUCTURING AND RELATED CHARGES The Company has implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to the Company’s net revenue, while simultaneously implementing extensive company-wide expense control programs. The restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions. During the first quarter of 2024, management initiated restructuring plans to further improve Video business efficiencies in order to drive long-term growth and profitability. The total restructuring cost associated with these 2024 restructuring activities is currently estimated to be $17 million and will primarily be recorded to the restructuring expense line item within our condensed consolidated statements of operations. We recorded $3.5 million of restructuring expense in the first quarter of fiscal 2024 and we expect to incur substantially all of the remaining restructuring expense through the end of fiscal 2024. The following table summarizes the activities related to the Company’s restructuring plans accrual, reported as components of “Other current liabilities” on the Consolidated Balance Sheets: (in thousands) Severance and Benefits Balance at December 31, 2023 $ 313 Charges for current period 3,497 Cash payments (2,841) Other (119) Balance at March 29, 2024 $ 850 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 29, 2024 | |
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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 29, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Redemption of the 2024 Notes On January 30, 2024, the Company issued a notice to redeem the outstanding 2024 Notes in full pursuant to the terms of the 2024 Notes Indenture, which gave holders the right to convert their 2024 Notes prior to the redemption date. On April 18, 2024, the Company settled the conversions of the entire $115.5 million in aggregate principal amount of the 2024 Notes. In accordance with the provisions of the 2024 Notes Indenture, the Company settled such conversions of the 2024 Notes by paying and delivering, as applicable, a combination of $115.5 million in cash and 4.6 million shares of the Company’s common stock. To finance the conversion of the 2024 Notes, the Company borrowed $75 million under the Revolving Facility and $40 million on the Term Facility, in each case, under its Credit Agreement (each as defined below). As of April 18, 2024, the Company has $45.0 million remaining available for borrowing under the Revolving Facility and no remaining amounts available for borrowing under the Term Facility. Lease In April, 2024, the Company announced a decision to reduce the use of leased space for its headquarters in San Jose, California. The Company plans to consolidate its operations and market the excess space for sublease. Depending on the outcome of marketing the sublease, the Company believes this decision could result in an impairment of the right-of-use assets and the associated leasehold improvement assets for the leased property. The estimated impairment loss is expected to be between $5.5 million and $6.5 million for the quarter ending June 28, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ (8,089) | $ 5,093 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 29, 2024 | |
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. |
Recent Accounting Pronouncements | In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for our annual periods beginning in fiscal 2024 and interim periods beginning in the first quarter of fiscal 2025. Early adoption is permitted. The Company is currently evaluating the impact the new accounting standard will have on its segment reporting disclosures in the notes to the consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. |
Fair Value Measurements | The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as follows: • Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
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: Broadband and Video. The operating segments were determined based on the nature of the products offered. 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 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. |
CONTRACT ASSETS AND DEFERRED _2
CONTRACT ASSETS AND DEFERRED REVENUE (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
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 29, 2024 December 31, 2023 Contract assets $ 4,380 $ 4,772 Deferred revenue $ 64,694 $ 59,705 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Operating lease cost $ 1,729 $ 1,764 Variable lease cost 390 425 Total lease cost $ 2,119 $ 2,189 Supplemental information related to leases are as follows: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Cash paid for operating lease liabilities $ 1,795 $ 1,828 |
OTHER FINANCIAL STATEMENT INF_2
OTHER FINANCIAL STATEMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
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 29, 2024 December 31, 2023 Accounts receivable $ 108,969 $ 144,731 Less: allowances for expected credit losses and sales returns (3,115) (3,200) Total $ 105,854 $ 141,531 |
Schedule of Inventories | Inventories: As of (in thousands) March 29, 2024 December 31, 2023 Finished goods $ 36,931 $ 43,987 Raw materials 36,442 27,806 Work-in-process 5,820 5,056 Service-related spares 7,438 7,133 Total $ 86,631 $ 83,982 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets: As of (in thousands) March 29, 2024 December 31, 2023 Prepaid expenses $ 3,869 $ 3,789 Contract assets 4,380 4,772 Other current assets 15,770 12,389 Total $ 24,019 $ 20,950 |
Schedule of Property and Equipment, Net | Property and equipment, net: As of (in thousands) March 29, 2024 December 31, 2023 Machinery and equipment $ 74,964 $ 74,659 Capitalized software 27,036 27,129 Leasehold improvements 40,873 40,931 Furniture and fixtures 2,557 2,547 Construction-in-progress 2,094 1,789 Property and equipment, gross 147,524 147,055 Less: accumulated depreciation and amortization (112,285) (110,372) Total $ 35,239 $ 36,683 |
Schedule of Other Current Liabilities | Other current liabilities: As of (in thousands) March 29, 2024 December 31, 2023 Accrued employee compensation and related expenses $ 20,360 $ 22,779 Other 32,685 38,245 Total $ 53,045 $ 61,024 |
CONVERTIBLE DEBT (Tables)
CONVERTIBLE DEBT (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Convertible Notes | The following table presents the components of the 2024 Notes: As of (in thousands, except for years and percentages) March 29, 2024 December 31, 2023 Liability: Principal amount $ 115,500 $ 115,500 Less: Debt issuance costs, net of amortization (391) (620) Carrying amount $ 115,109 $ 114,880 |
Schedule of Interest Expense | The following table presents interest expense recognized for the 2024 Notes: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Contractual interest expense $ 578 $ 578 Amortization of debt issuance costs 229 223 Total interest expense recognized $ 807 $ 801 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Equity [Abstract] | |
Schedule of Allocation of Share-Based Compensation Expense | 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 29, 2024 March 31, 2023 Cost of revenue $ 523 $ 850 Research and development expense 1,955 2,099 Selling, general and administrative expense 4,445 4,475 Total $ 6,923 $ 7,424 |
Schedule of Restricted Stock Units | (in thousands, except per share amounts) Number Weighted Average Balance at December 31, 2023 3,242 $ 12.42 Granted 1,412 13.78 Vested (1,278) 11.58 Forfeited (91) 12.36 Balance at March 29, 2024 3,285 $ 13.34 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): March 29, 2024 December 31, 2023 ( in thousands ) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 32,835 $ — $ — $ 32,835 $ 23,683 $ — $ — $ 23,683 |
Schedule of Financial Instruments Not Recorded at Fair Value on a Recurring Basis | The Company’s financial instruments not recorded at fair value on a recurring basis were as follows: March 29, 2024 December 31, 2023 Carrying Fair Value Carrying Fair Value ( in thousands ) Value Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 2024 Notes $ 115,109 $ — $ 181,855 $ — $ 114,880 $ — $ 177,405 $ — |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of the basic and diluted net income per share: Three Months Ended (in thousands, except per share amounts) March 29, 2024 March 31, 2023 Numerator: Net income (loss) $ (8,089) $ 5,093 Denominator: Weighted average number of shares outstanding: Basic 112,350 110,794 2024 Notes — 4,964 Restricted stock units — 2,000 Diluted 112,350 117,758 Net income (loss) per share: Basic $ (0.07) $ 0.05 Diluted $ (0.07) $ 0.04 |
Schedule of Antidilutive Securities | 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 29, 2024 March 31, 2023 2024 Notes 4,287 — Restricted stock units 3,197 72 Stock purchase rights under the ESPP 316 300 Total 7,800 372 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
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 29, 2024 March 31, 2023 Broadband Revenue $ 78,897 $ 100,351 Operating income 8,594 20,113 Video Revenue $ 43,163 $ 57,298 Operating loss (7,351) (1,426) Total Revenue $ 122,060 $ 157,649 Operating income 1,243 18,687 |
Schedule of Reconciliation of Operating Income 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 29, 2024 March 31, 2023 Total consolidated segment operating income $ 1,243 $ 18,687 Unallocated corporate expenses (1) (3,846) (83) Stock-based compensation (6,923) (7,424) Consolidated income (loss) from operations (9,526) 11,180 Non-operating expense, net (1,012) (999) Income (loss) before income taxes $ (10,538) $ 10,181 (1) Together with stock-based compensation, the Company does not allocate restructuring and related charges and other non-recurring expenses 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 Disaggregation of Revenue | The following table provides a summary of total revenues disaggregated by type: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 Product sales $ 73,916 $ 107,824 Professional services 7,679 6,970 Total Appliance and integration 81,595 114,794 SaaS 12,864 11,583 Support services 27,601 31,272 Total SaaS and services 40,465 42,855 Total revenue $ 122,060 $ 157,649 |
Schedule of Total Revenues by Geographic Region | The following table provides a summary of total revenues by geographic region: Three Months Ended (in thousands) March 29, 2024 March 31, 2023 United States (1) $ 81,992 $ 105,741 Other countries (1) 40,068 51,908 Total revenue $ 122,060 $ 157,649 (1) Revenue is attributed to countries based on the location of the customer. |
RESTRUCTURING AND RELATED CHA_2
RESTRUCTURING AND RELATED CHARGES (Tables) | 3 Months Ended |
Mar. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activities Related to Restructuring Plans Accrual | The following table summarizes the activities related to the Company’s restructuring plans accrual, reported as components of “Other current liabilities” on the Consolidated Balance Sheets: (in thousands) Severance and Benefits Balance at December 31, 2023 $ 313 Charges for current period 3,497 Cash payments (2,841) Other (119) Balance at March 29, 2024 $ 850 |
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 (up to) | $ 10.7 |
Purchases of short-term investments | 7.8 |
Gain on sale of investment | 4.2 |
Potential additional consideration on sale of equity securities | $ 2.9 |
CONTRACT ASSETS AND DEFERRED _3
CONTRACT ASSETS AND DEFERRED REVENUE - Schedule of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 4,380 | $ 4,772 |
Deferred revenue | $ 64,694 | $ 59,705 |
CONTRACT ASSETS AND DEFERRED _4
CONTRACT ASSETS AND DEFERRED REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized that was included within the deferred revenue balance | $ 16.3 | $ 21.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-30 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 677.8 | |
Revenue, remaining performance obligation, percentage to be recognized | 54% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-30 | ||
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. 29, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,729 | $ 1,764 |
Variable lease cost | 390 | 425 |
Total lease cost | 2,119 | 2,189 |
Supplemental information related to leases are as follows: | ||
Cash paid for operating lease liabilities | $ 1,795 | $ 1,828 |
OTHER FINANCIAL STATEMENT INF_3
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable | $ 108,969 | $ 144,731 |
Less: allowances for expected credit losses and sales returns | (3,115) | (3,200) |
Total | $ 105,854 | $ 141,531 |
OTHER FINANCIAL STATEMENT INF_4
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 36,931 | $ 43,987 |
Raw materials | 36,442 | 27,806 |
Work-in-process | 5,820 | 5,056 |
Service-related spares | 7,438 | 7,133 |
Total | $ 86,631 | $ 83,982 |
OTHER FINANCIAL STATEMENT INF_5
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 3,869 | $ 3,789 |
Contract assets | 4,380 | 4,772 |
Other current assets | 15,770 | 12,389 |
Total | $ 24,019 | $ 20,950 |
OTHER FINANCIAL STATEMENT INF_6
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 147,524 | $ 147,055 |
Less: accumulated depreciation and amortization | (112,285) | (110,372) |
Total | 35,239 | 36,683 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 74,964 | 74,659 |
Capitalized software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 27,036 | 27,129 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 40,873 | 40,931 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,557 | 2,547 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,094 | $ 1,789 |
OTHER FINANCIAL STATEMENT INF_7
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued employee compensation and related expenses | $ 20,360 | $ 22,779 |
Other | 32,685 | 38,245 |
Total | $ 53,045 | $ 61,024 |
CONVERTIBLE DEBT - Narrative (D
CONVERTIBLE DEBT - Narrative (Details) - 2024 Notes $ / shares in Units, shares in Millions | Apr. 18, 2024 USD ($) shares | Sep. 13, 2019 USD ($) $ / shares | Mar. 29, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | ||||
Debt instrument principal amount | $ 115,500,000 | $ 115,500,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated percentage (as a percent) | 2% | |||
Debt instrument principal amount | $ 115,500,000 | |||
Debt instrument conversion ratio | 0.1155001 | |||
Debt instrument conversion price (in dollars per share) | $ / shares | $ 8.66 | |||
Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Debt instrument principal amount | $ 115,500,000 | |||
Settled in cash | $ 115,500,000 | |||
Debt conversion, converted instrument, shares issued (in shares) | shares | 4.6 |
CONVERTIBLE DEBT - Schedule of
CONVERTIBLE DEBT - Schedule of Components of Convertible Notes (Details) - 2024 Notes - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal amount | $ 115,500 | $ 115,500 |
Less: Debt issuance costs, net of amortization | (391) | (620) |
Carrying amount | $ 115,109 | $ 114,880 |
CONVERTIBLE DEBT - Schedule o_2
CONVERTIBLE DEBT - Schedule of Interest Expense (Details) - 2024 Notes - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 578 | $ 578 |
Amortization of debt issuance costs | 229 | 223 |
Total interest expense recognized | $ 807 | $ 801 |
STOCKHOLDERS_ EQUITY - Schedule
STOCKHOLDERS’ EQUITY - Schedule of Allocation of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 6,923 | $ 7,424 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 523 | 850 |
Research and development expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 1,955 | 2,099 |
Selling, general and administrative expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 4,445 | $ 4,475 |
STOCKHOLDERS_ EQUITY - Schedu_2
STOCKHOLDERS’ EQUITY - Schedule of Restricted Stock Units (Details) - Restricted stock units shares in Thousands | 3 Months Ended |
Mar. 29, 2024 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 3,242 |
Granted (in shares) | shares | 1,412 |
Vested (in shares) | shares | (1,278) |
Forfeited (in shares) | shares | (91) |
Ending balance (in shares) | shares | 3,285 |
Weighted Average Grant-Date Fair Value Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 12.42 |
Granted (in dollars per share) | $ / shares | 13.78 |
Vested (in dollars per share) | $ / shares | 11.58 |
Forfeited (in dollars per share) | $ / shares | 12.36 |
Ending balance (in dollars per share) | $ / shares | $ 13.34 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Feb. 28, 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) | 1,700,000 | |
Value of stock repurchased and retired during period | $ 21,676 | |
Remaining stock repurchase authorization amount | $ 73,200 | |
Stock Plan 1995 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 7,301,248 | |
Shares available for grant (in shares) | 4,223,142 | |
Director Option Plans 2002 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance (in shares) | 595,887 | |
Shares available for grant (in shares) | 388,881 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - Money market funds - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 32,835 | $ 23,683 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 32,835 | 23,683 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Financial Instruments Not Recorded at Fair Value on a Recurring Basis (Details) - 2024 Notes - USD ($) $ in Thousands | Mar. 29, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 115,109 | $ 114,880 |
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 | 181,855 | 177,405 |
Fair Value, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income (loss) | $ (8,089) | $ 5,093 |
Denominator: | ||
Basic (in shares) | 112,350 | 110,794 |
Diluted (in shares) | 112,350 | 117,758 |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ (0.07) | $ 0.05 |
Diluted (in dollars per share) | $ (0.07) | $ 0.04 |
Restricted stock units | ||
Denominator: | ||
Weighted average number diluted shares outstanding adjustment (in shares) | 0 | 2,000 |
2024 Notes | ||
Denominator: | ||
Weighted average number diluted shares outstanding adjustment (in shares) | 0 | 4,964 |
NET INCOME (LOSS) PER SHARE -_2
NET INCOME (LOSS) PER SHARE - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential weighted common shares outstanding excluded from diluted net income (loss) per share (in shares) | 7,800 | 372 |
2024 Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential weighted common shares outstanding excluded from diluted net income (loss) per share (in shares) | 4,287 | 0 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential weighted common shares outstanding excluded from diluted net income (loss) per share (in shares) | 3,197 | 72 |
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 income (loss) per share (in shares) | 316 | 300 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 29, 2024 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. 29, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 122,060 | $ 157,649 |
Operating income (loss) | (9,526) | 11,180 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 122,060 | 157,649 |
Operating income (loss) | 1,243 | 18,687 |
Operating Segments | Broadband | ||
Segment Reporting Information [Line Items] | ||
Revenue | 78,897 | 100,351 |
Operating income (loss) | 8,594 | 20,113 |
Operating Segments | Video | ||
Segment Reporting Information [Line Items] | ||
Revenue | 43,163 | 57,298 |
Operating income (loss) | $ (7,351) | $ (1,426) |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Reconciliation of Operating Income from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total consolidated segment operating income | $ (9,526) | $ 11,180 |
Unallocated corporate expenses | (72,607) | (72,874) |
Stock-based compensation | (6,923) | (7,424) |
Non-operating expense, net | (1,012) | (999) |
Income (loss) before income taxes | (10,538) | 10,181 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated segment operating income | 1,243 | 18,687 |
Corporate, Non-segments | ||
Segment Reporting Information [Line Items] | ||
Unallocated corporate expenses | $ (3,846) | $ (83) |
SEGMENT INFORMATION - Schedul_3
SEGMENT INFORMATION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 122,060 | $ 157,649 |
Appliance and integration | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 81,595 | 114,794 |
Product sales | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 73,916 | 107,824 |
Professional services | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 7,679 | 6,970 |
SaaS and service | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 40,465 | 42,855 |
SaaS | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 12,864 | 11,583 |
Support services | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 27,601 | $ 31,272 |
SEGMENT INFORMATION - Schedul_4
SEGMENT INFORMATION - Schedule of Total Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 122,060 | $ 157,649 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 81,992 | 105,741 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 40,068 | $ 51,908 |
RESTRUCTURING AND RELATED CHA_3
RESTRUCTURING AND RELATED CHARGES - Narrative (Details) - 2024 Restructuring Plan $ in Millions | 3 Months Ended |
Mar. 29, 2024 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Expected cost | $ 17 |
Restructuring expenses | $ 3.5 |
RESTRUCTURING AND RELATED CHA_4
RESTRUCTURING AND RELATED CHARGES - Schedule of Activities Related to Restructuring Plans Accrual (Details) - Severance and Benefits $ in Thousands | 3 Months Ended |
Mar. 29, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 313 |
Charges for current period | 3,497 |
Cash payments | (2,841) |
Other | (119) |
Ending balance | $ 850 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) shares in Millions | 3 Months Ended | ||||
Apr. 18, 2024 | Jun. 28, 2024 | Mar. 29, 2024 | Dec. 31, 2023 | Sep. 13, 2019 | |
Forecast | Minimum | |||||
Subsequent Event [Line Items] | |||||
Impairment loss | $ 5,500,000 | ||||
Forecast | Maximum | |||||
Subsequent Event [Line Items] | |||||
Impairment loss | $ 6,500,000 | ||||
2024 Notes | |||||
Subsequent Event [Line Items] | |||||
Principal amount | $ 115,500,000 | $ 115,500,000 | |||
2024 Notes | Senior Notes | |||||
Subsequent Event [Line Items] | |||||
Principal amount | $ 115,500,000 | ||||
2024 Notes | Senior Notes | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Principal amount | $ 115,500,000 | ||||
Settled in cash | $ 115,500,000 | ||||
Debt conversion, converted instrument, shares issued (in shares) | 4.6 | ||||
Credit Agreement | Subsequent Event | Revolving Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Proceeds from line of credit | $ 75,000,000 | ||||
Remaining borrowing capacity | 45,000,000 | ||||
Credit Agreement | Subsequent Event | Secured Debt | |||||
Subsequent Event [Line Items] | |||||
Proceeds from line of credit | $ 40,000,000 |