Delaware | 000-25826 | 77-0201147 |
(State or other jurisdiction of incorporation or organization) | Commission File Number | (I.R.S. Employer Identification Number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Description | ||
99.1 | Press release of Harmonic Inc., issued on February 28, 2017 |
Date: February 28, 2017 | HARMONIC INC. | |||||
By: | /s/ Harold Covert | |||||
Harold Covert | ||||||
Chief Financial Officer |
Exhibit Number | Description | ||
99.1 | Press release of Harmonic Inc., issued on February 28, 2017. |
• | Near record backlog and deferred revenue of $188.4 million |
• | Record video segment revenue and operating margin driven by continued momentum in our software transition, aided by order timing |
• | VOS software-as-a-service (SaaS) win with a leading North American media company |
• | Global demand for our legacy EdgeQAM technology continued to decline and consequently the Cable Edge segment experienced its lowest revenue quarter on record |
• | Declared general commercial availability for CableOS, the industry’s first software-based CMTS core |
• | First CableOS revenue shipments into live commercial deployments with a tier 1 service provider in Europe |
• | Expanded CableOS field trial activity and pipeline |
• | Completed the integration of Thomson Video Networks, realized annualized cost savings above our $20 million target |
• | Net revenue to be $86.5 million to $94.5 million, which includes Video revenue of $79.8 million to $85.8 million and Cable Edge revenue of $6.7 million to $8.7 million |
• | Gross margin to be 49.0% to 50.0% |
• | Operating expense to be $58.7 million to $59.7 million |
• | Operating loss to be $(16.0) million to $(12.0) million |
• | EPS to be $(0.24) to $(0.19) |
• | Tax expense to be approximately $0.5 million |
• | Share count for EPS calculation to be approximately 80 million shares of Harmonic common stock |
• | Cash and short-term investments at quarter-end to be $60 million to $65 million |
• | Net revenue to be $87.0 million to $95.0 million, which includes Video revenue of $80.0 million to $86.0 million and Cable Edge revenue of $7.0 million to $9.0 million |
• | Gross margin to be 53.0% to 54.0% |
• | Operating expense to be $52.0 million to $53.0 million |
• | Operating loss to be $(6.0) million to $(2.0) million |
• | EPS to be $(0.08) to $(0.04) |
• | Tax rate to be approximately 15% |
• | Share count for EPS calculation to be approximately 81 million shares of Harmonic common stock |
• | Cash and short-term investments at quarter-end to be $60 million to $65 million |
Harold Covert | Blair King |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | +1.408.490.6172 |
+1.408.542.2500 |
December 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 55,635 | $ | 126,190 | |||
Short-term investments | 6,923 | 26,604 | |||||
Accounts receivable | 86,765 | 69,515 | |||||
Inventories | 41,193 | 38,819 | |||||
Prepaid expenses and other current assets | 26,319 | 25,003 | |||||
Total current assets | 216,835 | 286,131 | |||||
Property and equipment, net | 32,164 | 27,012 | |||||
Goodwill | 237,279 | 197,781 | |||||
Intangibles, net | 29,231 | 4,097 | |||||
Other long-term assets | 38,560 | 9,936 | |||||
Total assets | $ | 554,069 | $ | 524,957 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 7,275 | $ | — | |||
Accounts payable | 28,892 | 19,364 | |||||
Income taxes payable | 1,166 | 307 | |||||
Deferred revenues | 52,414 | 33,856 | |||||
Accrued and other current liabilities | 55,150 | 31,354 | |||||
Total current liabilities | 144,897 | 84,881 | |||||
Convertible notes, long-term | 103,259 | 98,295 | |||||
Other debts and capital lease obligations, long-term | 13,915 | — | |||||
Income taxes payable, long-term | 2,926 | 3,886 | |||||
Other non-current liabilities | 18,431 | 9,727 | |||||
Total liabilities | 283,428 | 196,789 | |||||
Stockholders’ equity: | |||||||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 150,000 shares authorized; 78,456 and 76,015 shares issued and outstanding at December 31, 2016 and 2015, respectively | 78 | 76 | |||||
Additional paid-in capital | 2,254,055 | 2,236,418 | |||||
Accumulated deficit | (1,976,222 | ) | (1,903,908 | ) | |||
Accumulated other comprehensive loss | (7,270 | ) | (4,418 | ) | |||
Total stockholders’ equity | 270,641 | 328,168 | |||||
Total liabilities and stockholders’ equity | $ | 554,069 | $ | 524,957 |
Three months ended | Year ended | ||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Product | $ | 79,918 | $ | 61,711 | $ | 285,260 | $ | 276,876 | |||||||
Service | 33,184 | 24,892 | 120,651 | 100,151 | |||||||||||
Total net revenue | 113,102 | 86,603 | 405,911 | 377,027 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 40,016 | 26,967 | 145,714 | 121,988 | |||||||||||
Service | 15,393 | 12,568 | 59,447 | 52,327 | |||||||||||
Total cost of revenue | 55,409 | 39,535 | 205,161 | 174,315 | |||||||||||
Total gross profit | 57,693 | 47,068 | 200,750 | 202,712 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 24,129 | 21,721 | 98,401 | 87,545 | |||||||||||
Selling, general and administrative | 38,883 | 29,517 | 144,381 | 120,960 | |||||||||||
Amortization of intangibles | 796 | 1,445 | 10,402 | 5,783 | |||||||||||
Restructuring and related charges | 10,114 | 746 | 14,602 | 1,372 | |||||||||||
Total operating expenses | 73,922 | 53,429 | 267,786 | 215,660 | |||||||||||
Loss from operations | (16,229 | ) | (6,361 | ) | (67,036 | ) | (12,948 | ) | |||||||
Interest and other expense, net | (2,822 | ) | (435 | ) | (10,628 | ) | (333 | ) | |||||||
Other income (expense), net | (26 | ) | 17 | (31 | ) | (282 | ) | ||||||||
Loss on impairment of long-term investment | — | — | (2,735 | ) | (2,505 | ) | |||||||||
Loss before income taxes | (19,077 | ) | (6,779 | ) | (80,430 | ) | (16,068 | ) | |||||||
Provision for (benefit from) income taxes | (8,634 | ) | 420 | (8,116 | ) | (407 | ) | ||||||||
Net loss | $ | (10,443 | ) | $ | (7,199 | ) | $ | (72,314 | ) | $ | (15,661 | ) | |||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.13 | ) | $ | (0.08 | ) | $ | (0.93 | ) | $ | (0.18 | ) | |||
Shares used in per share calculations: | |||||||||||||||
Basic and diluted | 78,389 | 84,932 | 77,705 | 87,514 |
Year ended | |||||||
December 31, 2016 | December 31, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (72,314 | ) | $ | (15,661 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Amortization of intangibles | 14,836 | 6,502 | |||||
Depreciation | 18,819 | 13,241 | |||||
Stock-based compensation | 13,060 | 15,582 | |||||
Amortization of discount on convertible debt | 4,964 | 216 | |||||
Provision for non-cash warrant | 434 | — | |||||
Restructuring, asset impairment and (gain) loss on retirement of fixed assets | 2,305 | 641 | |||||
Loss on impairment of long-term investment | 2,735 | 2,505 | |||||
Gain on pension curtailment | (1,955 | ) | — | ||||
Deferred income taxes, net | (10,085 | ) | (512 | ) | |||
Provision for doubtful accounts, returns and discounts | 2,589 | 2,034 | |||||
Provision for excess and obsolete inventories | 6,871 | 1,585 | |||||
Other non-cash adjustments, net | 408 | — | |||||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||||
Accounts receivable | (2,563 | ) | 2,595 | ||||
Inventories | (4,107 | ) | (5,954 | ) | |||
Prepaid expenses and other assets | (1,892 | ) | (8,206 | ) | |||
Accounts payable | 5,793 | 4,683 | |||||
Deferred revenues | 18,106 | (4,541 | ) | ||||
Income taxes payable | (133 | ) | (1,637 | ) | |||
Accrued and other liabilities | 2,567 | (6,722 | ) | ||||
Net cash provided by operating activities | 438 | 6,351 | |||||
Cash flows from investing activities: | |||||||
Acquisition of business, net of cash acquired | (75,669 | ) | — | ||||
Purchases of investments | — | (25,261 | ) | ||||
Proceeds from maturities of investments | 19,707 | 30,379 | |||||
Purchases of property and equipment | (15,107 | ) | (14,356 | ) | |||
Purchases of long-term investments | — | (85 | ) | ||||
Restricted cash | 591 | (1,091 | ) | ||||
Net cash used in investing activities | (70,478 | ) | (10,414 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from convertible debt | — | 128,250 | |||||
Payment of convertible debt issuance cost | (582 | ) | (3,527 | ) | |||
Proceeds from other debts and capital leases | 5,968 | — | |||||
Repayment of other debts and capital leases | (8,338 | ) | — | ||||
Proceeds from common stock issued to employees | 4,444 | 9,222 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,644 | ) | (3,549 | ) | |||
Payments for repurchases of common stock | — | (72,863 | ) | ||||
Net cash (used in) provided by financing activities | (152 | ) | 57,533 | ||||
Effect of exchange rate changes on cash and cash equivalents | (363 | ) | (312 | ) | |||
Net (decrease) increase in cash and cash equivalents | (70,555 | ) | 53,158 | ||||
Cash and cash equivalents at beginning of period | 126,190 | 73,032 | |||||
Cash and cash equivalents at end of period | $ | 55,635 | $ | 126,190 |
Three months ended | |||||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||
GAAP | Adjustment(1) | Non-GAAP | GAAP | Adjustment(1) | Non-GAAP | GAAP and Non-GAAP(2) | |||||||||||||||||||||||||
Product | |||||||||||||||||||||||||||||||
Video Products | $ | 75,151 | $ | — | $ | 75,151 | 67% | $ | 63,288 | $ | — | $ | 63,288 | 62% | $ | 50,293 | 58% | ||||||||||||||
Cable Edge | 4,767 | 295 | 5,062 | 4% | 6,997 | — | 6,997 | 7% | 11,418 | 13% | |||||||||||||||||||||
Services and Support | 33,184 | 378 | 33,562 | 29% | 31,121 | 325 | 31,446 | 31% | 24,892 | 29% | |||||||||||||||||||||
Total | $ | 113,102 | $ | 673 | $ | 113,775 | 100% | $ | 101,406 | $ | 325 | $ | 101,731 | 100% | $ | 86,603 | 100% | ||||||||||||||
Geography | |||||||||||||||||||||||||||||||
Americas | $ | 52,736 | $ | 474 | $ | 53,210 | 47% | $ | 47,856 | $ | 166 | $ | 48,022 | 47% | $ | 46,782 | 54% | ||||||||||||||
EMEA | 41,036 | 77 | 41,113 | 36% | 32,405 | 106 | 32,511 | 32% | 21,120 | 24% | |||||||||||||||||||||
APAC | 19,330 | 122 | 19,452 | 17% | 21,145 | 53 | 21,198 | 21% | 18,701 | 22% | |||||||||||||||||||||
Total | $ | 113,102 | $ | 673 | $ | 113,775 | 100% | $ | 101,406 | $ | 325 | $ | 101,731 | 100% | $ | 86,603 | 100% | ||||||||||||||
Market | |||||||||||||||||||||||||||||||
Service Provider | $ | 69,426 | $ | 568 | $ | 69,994 | 62% | $ | 53,459 | $ | 97 | $ | 53,556 | 53% | $ | 52,057 | 60% | ||||||||||||||
Broadcast and Media | 43,676 | 105 | 43,781 | 38% | 47,947 | 228 | 48,175 | 47% | 34,546 | 40% | |||||||||||||||||||||
Total | $ | 113,102 | $ | 673 | $ | 113,775 | 100% | $ | 101,406 | $ | 325 | $ | 101,731 | 100% | $ | 86,603 | 100% |
Twelve months ended | ||||||||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||||||||
GAAP | Adjustment(1) | Non-GAAP | GAAP and Non-GAAP(2) | |||||||||||||||
Product | ||||||||||||||||||
Video Products | $ | 244,313 | $ | 560 | $ | 244,873 | 60% | $ | 203,732 | 54% | ||||||||
Cable Edge | 40,947 | 295 | 41,242 | 10% | 73,144 | 19% | ||||||||||||
Services and Support | 120,651 | 1,546 | 122,197 | 30% | 100,151 | 27% | ||||||||||||
Total | $ | 405,911 | $ | 2,401 | $ | 408,312 | 100% | $ | 377,027 | 100% | ||||||||
Geography | ||||||||||||||||||
Americas | $ | 207,249 | $ | 864 | $ | 208,113 | 51% | $ | 212,568 | 56% | ||||||||
EMEA | 126,752 | 1,051 | 127,803 | 31% | 92,422 | 25% | ||||||||||||
APAC | 71,910 | 486 | 72,396 | 18% | 72,037 | 19% | ||||||||||||
Total | $ | 405,911 | $ | 2,401 | $ | 408,312 | 100% | $ | 377,027 | 100% | ||||||||
Market | ||||||||||||||||||
Service Provider | $ | 239,888 | $ | 1,143 | $ | 241,031 | 59% | $ | 230,523 | 61% | ||||||||
Broadcast and Media | 166,023 | 1,258 | 167,281 | 41% | 146,504 | 39% | ||||||||||||
Total | $ | 405,911 | $ | 2,401 | $ | 408,312 | 100% | $ | 377,027 | 100% |
Three months ended | |||||||||||||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | |||||||||||||||||||||
Net revenue: | |||||||||||||||||||||||||||||
Video | $ | 104,540 | $ | 239 | $ | 104,779 | $ | 91,353 | $ | 325 | $ | 91,678 | $ | 72,401 | $ | — | $ | 72,401 | |||||||||||
Cable Edge | 8,562 | 434 | 8,996 | 10,053 | — | 10,053 | 14,202 | — | 14,202 | ||||||||||||||||||||
Total consolidated net revenue | $ | 113,102 | $ | 673 | $ | 113,775 | $ | 101,406 | $ | 325 | $ | 101,731 | $ | 86,603 | $ | — | $ | 86,603 | |||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||
Video | $ | 13,906 | $ | 239 | $ | 14,145 | $ | 4,886 | $ | 325 | $ | 5,211 | $ | 5,143 | $ | — | $ | 5,143 | |||||||||||
Cable Edge | (5,013 | ) | 434 | (4,579 | ) | (4,767 | ) | — | (4,767 | ) | (4,181 | ) | — | (4,181 | ) | ||||||||||||||
Total segment operating income (loss) | 8,893 | 673 | 9,566 | 119 | 325 | 444 | 962 | — | 962 | ||||||||||||||||||||
Unallocated corporate expenses | (18,479 | ) | 18,479 | — | (4,983 | ) | 4,983 | — | (2,055 | ) | 2,055 | — | |||||||||||||||||
Stock-based compensation | (4,518 | ) | 4,518 | — | (2,680 | ) | 2,680 | — | (3,737 | ) | 3,737 | — | |||||||||||||||||
Amortization of intangibles | (2,125 | ) | 2,125 | — | (4,389 | ) | 4,389 | — | (1,531 | ) | 1,531 | — | |||||||||||||||||
Income (loss) from operations | (16,229 | ) | 25,795 | 9,566 | (11,933 | ) | 12,377 | 444 | (6,361 | ) | 7,323 | 962 | |||||||||||||||||
Non-operating (expense) income, net | (2,848 | ) | 1,197 | (1,651 | ) | (4,321 | ) | 2,609 | (1,712 | ) | (418 | ) | 184 | (234 | ) | ||||||||||||||
Income (loss) before income taxes | $ | (19,077 | ) | $ | 26,992 | $ | 7,915 | $ | (16,254 | ) | $ | 14,986 | $ | (1,268 | ) | $ | (6,779 | ) | $ | 7,507 | $ | 728 |
Twelve months ended | |||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||
Net revenue: | |||||||||||||||||||
Video | $ | 351,489 | $ | 1,967 | $ | 353,456 | $ | 291,779 | $ | — | $ | 291,779 | |||||||
Cable Edge | 54,422 | 434 | 54,856 | 85,248 | — | 85,248 | |||||||||||||
Total consolidated net revenue | $ | 405,911 | $ | 2,401 | $ | 408,312 | $ | 377,027 | $ | — | $ | 377,027 | |||||||
Operating income (loss): | |||||||||||||||||||
Video | $ | 11,963 | $ | 2,156 | $ | 14,119 | $ | 13,529 | $ | — | $ | 13,529 | |||||||
Cable Edge | (12,131 | ) | 434 | (11,697 | ) | (1,599 | ) | — | (1,599 | ) | |||||||||
Total segment operating income (loss) | (168 | ) | 2,590 | 2,422 | 11,930 | — | 11,930 | ||||||||||||
Unallocated corporate expenses | (38,972 | ) | 38,972 | — | (2,794 | ) | 2,794 | — | |||||||||||
Stock-based compensation | (13,060 | ) | 13,060 | — | (15,582 | ) | 15,582 | — | |||||||||||
Amortization of intangibles | (14,836 | ) | 14,836 | — | (6,502 | ) | 6,502 | — | |||||||||||
Income (loss) from operations | (67,036 | ) | 69,458 | 2,422 | (12,948 | ) | 24,878 | 11,930 | |||||||||||
Non-operating (expense) income, net | (13,394 | ) | 7,702 | (5,692 | ) | (3,120 | ) | 2,689 | (431 | ) | |||||||||
Income (loss) before income taxes | $ | (80,430 | ) | $ | 77,160 | $ | (3,270 | ) | $ | (16,068 | ) | $ | 27,567 | $ | 11,499 |
Three months ended | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Total Non-operating expense, net | Net Income(Loss) | |||||||||||||
GAAP | $ | 113,102 | $ | 57,693 | $ | 73,922 | $ | (16,229 | ) | $ | (2,848 | ) | $ | (10,443 | ) | |||
Cable Edge inventory charge | — | (327 | ) | — | (327 | ) | — | (327 | ) | |||||||||
Acquisition accounting impact related to TVN deferred revenue | 239 | 239 | — | 239 | — | 239 | ||||||||||||
Accounting impact related to warrant amortization | 434 | 434 | — | 434 | — | 434 | ||||||||||||
Stock-based compensation in cost of revenue | — | 543 | — | 543 | — | 543 | ||||||||||||
Stock-based compensation in research and development | — | — | (1,130 | ) | 1,130 | — | 1,130 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (2,845 | ) | 2,845 | — | 2,845 | |||||||||||
Amortization of intangibles | — | 1,328 | (797 | ) | 2,125 | — | 2,125 | |||||||||||
Restructuring and related charges | — | 3,975 | (11,519 | ) | 15,494 | — | 15,494 | |||||||||||
Gain on pension curtailment | — | (551 | ) | 1,404 | (1,955 | ) | — | (1,955 | ) | |||||||||
TVN acquisition-and integration-related costs | — | 439 | (4,828 | ) | 5,267 | (98 | ) | 5,169 | ||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,295 | 1,295 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (9,821 | ) | |||||||||||
Total adjustments | 673 | 6,080 | (19,715 | ) | 25,795 | 1,197 | 17,171 | |||||||||||
Non-GAAP | $ | 113,775 | $ | 63,773 | $ | 54,207 | $ | 9,566 | $ | (1,651 | ) | $ | 6,728 | |||||
As a % of revenue (GAAP) | 51.0 | % | 65.4 | % | (14.3 | )% | (2.5 | )% | (9.2 | )% | ||||||||
As a % of revenue (Non-GAAP) | 56.1 | % | 47.6 | % | 8.4 | % | (1.5 | )% | 5.9 | % | ||||||||
Diluted income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.13 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.08 | ||||||||||||||||
Shares used to compute net income (loss) per share: | ||||||||||||||||||
GAAP | 78,389 | |||||||||||||||||
Non-GAAP | 80,112 | |||||||||||||||||
Three months ended | ||||||||||||||||||
September 30, 2016 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Total Non-operating expense, net | Net loss | |||||||||||||
GAAP | $ | 101,406 | $ | 51,363 | $ | 63,296 | $ | (11,933 | ) | $ | (4,321 | ) | $ | (16,012 | ) | |||
Cable Edge inventory charge | — | (159 | ) | — | (159 | ) | — | (159 | ) | |||||||||
Acquisition accounting impact related to TVN deferred revenue | 325 | 325 | — | 325 | — | 325 | ||||||||||||
Stock-based compensation in cost of revenue | — | 360 | — | 360 | — | 360 | ||||||||||||
Stock-based compensation in research and development | — | — | (771 | ) | 771 | — | 771 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (1,549 | ) | 1,549 | — | 1,549 | |||||||||||
Amortization of intangibles | — | 1,380 | (3,009 | ) | 4,389 | — | 4,389 | |||||||||||
Restructuring and related charges | — | (1 | ) | 27 | (28 | ) | — | (28 | ) | |||||||||
TVN acquisition-and integration-related costs | — | 119 | (5,051 | ) | 5,170 | 98 | 5,268 | |||||||||||
Loss on impairment of long-term investment | — | — | — | — | 1,259 | 1,259 | ||||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,252 | 1,252 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (52 | ) | |||||||||||
Total adjustments | 325 | 2,024 | (10,353 | ) | 12,377 | 2,609 | 14,934 | |||||||||||
Non-GAAP | $ | 101,731 | $ | 53,387 | $ | 52,943 | $ | 444 | $ | (1,712 | ) | $ | (1,078 | ) | ||||
As a % of revenue (GAAP) | 50.7 | % | 62.4 | % | (11.8 | )% | (4.3 | )% | (15.8 | )% | ||||||||
As a % of revenue (non-GAAP) | 52.5 | % | 52.0 | % | 0.4 | % | (1.7 | )% | (1.1 | )% | ||||||||
Diluted loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.21 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.01 | ) | |||||||||||||||
Shares used to compute diluted loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 78,092 |
Three months ended | ||||||||||||||||||
December 31, 2015 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Total Non-operating expense, net | Net Income (loss) | |||||||||||||
GAAP | $ | 86,603 | $ | 47,068 | $ | 53,429 | $ | (6,361 | ) | $ | (418 | ) | $ | (7,199 | ) | |||
Stock-based compensation in cost of revenue | — | 479 | — | 479 | — | 479 | ||||||||||||
Stock-based compensation in research and development | — | — | (1,186 | ) | 1,186 | — | 1,186 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (2,072 | ) | 2,072 | — | 2,072 | |||||||||||
Amortization of intangibles | — | 86 | (1,445 | ) | 1,531 | — | 1,531 | |||||||||||
Restructuring and related charges | — | — | (746 | ) | 746 | — | 746 | |||||||||||
Loss on impairment of long-term investment | — | — | — | — | — | — | ||||||||||||
TVN acquisition costs | — | — | (1,309 | ) | 1,309 | — | 1,309 | |||||||||||
Non-cash interest expenses related to convertible note | — | — | — | — | 184 | 184 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 266 | ||||||||||||
Total adjustments | — | 565 | (6,758 | ) | 7,323 | 184 | 7,773 | |||||||||||
Non-GAAP | $ | 86,603 | $ | 47,633 | $ | 46,671 | $ | 962 | $ | (234 | ) | $ | 574 | |||||
As a % of revenue (GAAP) | 54.3 | % | 61.7 | % | (7.3 | )% | (0.5 | )% | (8.3 | )% | ||||||||
As a % of revenue (Non-GAAP) | 55.0 | % | 53.9 | % | 1.1 | % | (0.3 | )% | 0.7 | % | ||||||||
Diluted income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.08 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.01 | ||||||||||||||||
Shares used to compute diluted income (loss) per share: | ||||||||||||||||||
GAAP | 84,932 | |||||||||||||||||
Non-GAAP | 85,629 | |||||||||||||||||
Year ended | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Total Non-operating expense, net | Net loss | |||||||||||||
GAAP | $ | 405,911 | $ | 200,750 | $ | 267,786 | $ | (67,036 | ) | $ | (13,394 | ) | $ | (72,314 | ) | |||
Cable Edge inventory charge | — | 4,033 | — | 4,033 | — | 4,033 | ||||||||||||
Acquisition accounting impact related to TVN deferred revenue | 1,967 | 1,967 | — | 1,967 | — | 1,967 | ||||||||||||
Accounting impact related to warrant amortization | 434 | 434 | — | 434 | — | 434 | ||||||||||||
Acquisition accounting impacts related to TVN fair value of inventory | — | 189 | — | 189 | — | 189 | ||||||||||||
Stock-based compensation in cost of revenue | — | 1,554 | — | 1,554 | — | 1,554 | ||||||||||||
Stock-based compensation in research and development | — | — | (3,711 | ) | 3,711 | — | 3,711 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (7,795 | ) | 7,795 | — | 7,795 | |||||||||||
Amortization of intangibles | — | 4,433 | (10,403 | ) | 14,836 | — | 14,836 | |||||||||||
Restructuring and related charges | — | 3,951 | (16,007 | ) | 19,958 | — | 19,958 | |||||||||||
Gain on pension curtailment | — | (551 | ) | 1,404 | (1,955 | ) | — | (1,955 | ) | |||||||||
TVN acquisition-and integration-related costs | — | 1,049 | (15,887 | ) | 16,936 | — | 16,936 | |||||||||||
Loss on impairment of long-term investment | — | — | — | — | 2,735 | 2,735 | ||||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 4,967 | 4,967 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (7,624 | ) | |||||||||||
Total adjustments | 2,401 | 17,059 | (52,399 | ) | 69,458 | 7,702 | 69,536 | |||||||||||
Non-GAAP | $ | 408,312 | $ | 217,809 | $ | 215,387 | $ | 2,422 | $ | (5,692 | ) | $ | (2,778 | ) | ||||
As a % of revenue (GAAP) | 49.5 | % | 66.0 | % | (16.5 | )% | (3.3 | )% | (17.8 | )% | ||||||||
As a % of revenue (Non-GAAP) | 53.3 | % | 52.8 | % | 0.6 | % | (1.4 | )% | (0.7 | )% | ||||||||
Diluted loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.93 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.04 | ) | |||||||||||||||
Shares used to compute diluted loss per share: |
GAAP and Non-GAAP | 77,705 | |||||||||||||||||
Year ended | ||||||||||||||||||
December 31, 2015 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Total Non-operating expense, net | Net Income (loss) | |||||||||||||
GAAP | $ | 377,027 | $ | 202,712 | $ | 215,660 | $ | (12,948 | ) | $ | (3,120 | ) | $ | (15,661 | ) | |||
Stock-based compensation in cost of revenue | — | 1,862 | — | 1,862 | — | 1,862 | ||||||||||||
Stock-based compensation in research and development | — | — | (4,435 | ) | 4,435 | — | 4,435 | |||||||||||
Stock-based compensation in selling, general and administrative | — | — | (9,285 | ) | 9,285 | — | 9,285 | |||||||||||
Amortization of intangibles | — | 719 | (5,783 | ) | 6,502 | — | 6,502 | |||||||||||
Restructuring and related charges | — | 113 | (1,372 | ) | 1,485 | — | 1,485 | |||||||||||
Loss on impairment of long-term investment | — | — | — | — | 2,505 | 2,505 | ||||||||||||
TVN acquisition costs | — | — | (1,309 | ) | 1,309 | — | 1,309 | |||||||||||
Non-cash interest expenses related to convertible note | — | — | — | — | 184 | 184 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (2,823 | ) | |||||||||||
Total adjustments | — | 2,694 | (22,184 | ) | 24,878 | 2,689 | 24,744 | |||||||||||
Non-GAAP | $ | 377,027 | $ | 205,406 | $ | 193,476 | $ | 11,930 | $ | (431 | ) | $ | 9,083 | |||||
As a % of revenue (GAAP) | 53.8 | % | 57.2 | % | (3.4 | )% | (0.8 | )% | (4.2 | )% | ||||||||
As a % of revenue (Non-GAAP) | 54.5 | % | 51.3 | % | 3.2 | % | (0.1 | )% | 2.4 | % | ||||||||
Diluted income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.18 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.10 | ||||||||||||||||
Shares used to compute diluted income (loss) per share: | ||||||||||||||||||
GAAP | 87,514 | |||||||||||||||||
Non-GAAP | 88,476 |
Q1-2017 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating expense, net | Net Loss | |
GAAP | $86.5 to $94.5 | $42.7 to $47.7 | $58.7 to $59.7 | $(16.0) to $(12.0) | $(2.7) | $(19.1) to $(15.6) |
Acquisition accounting impact related to TVN deferred revenue | 0.2 | 0.2 | — | 0.2 | — | 0.2 |
Accounting impact related to warrant amortization | 0.3 | 0.3 | — | 0.3 | — | 0.3 |
Stock-based compensation expense | — | 0.5 | (3.6) | 4.1 | — | 4.1 |
Amortization of intangibles | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
Restructuring and related charges and TVN integration costs | — | 1.0 | (2.3) | 3.3 | — | 3.3 |
Non-cash interest expense related to convertible notes | — | — | — | — | 1.3 | 1.3 |
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1.3 |
Total adjustments | 0.5 | 3.3 | (6.7) | 10.0 | 1.3 | 12.6 |
Non-GAAP | $87.0 to $95.0 | $46.0 to $51.0 | $52.0 to $53.0 | $(6.0) to $(2.0) | $(1.4) | $(6.5) to $(3.0) |
As a % of revenue (GAAP) | 49% to 50% | 63% to 68% | (18)% to (14)% | (3%) | (22)% to (16)% | |
As a % of revenue (Non-GAAP) | 53% to 54% | 56% to 60% | (6)% to (3)% | (1%) | (7)% to (3)% | |
Diluted income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.24) to $(0.19) | |||||
Diluted net loss per share-Non-GAAP | $(0.08) to $(0.04) | |||||
Shares used to compute diluted income (loss) per share: | ||||||
GAAP | 80.0 | |||||
Non-GAAP | 81.0 |