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Selling, general and administrative

^[1]

$ 80,106

$ 90,127

Total cost of revenue

38,257

42,944

Total gross profit

41,849

47,183

Operating expenses:

Research and development

21,401

23,457

28,011

31,163

Amortization of intangibles

788

804

Restructuring and related charges

1,086

Total operating expenses

50,257

56,510

Loss from operations

(8,408)

(9,327)

Interest expense, net

(2,906)

(2,757)

Other expense, net

(311)

(532)

Loss before income taxes

(11,625)

(12,616)

Provision for (benefit from) income taxes

(319)

1,078

Net loss

$ (11,306)

$ (13,694)

Net loss per share:

Basic and diluted

$ (0.13)

$ (0.16)

Shares used in per share calculation:

Basic and diluted

88,165

83,912

Appliance & Integration [Member]

$ 52,365

$ 63,986

Total cost of revenue

27,054

30,576

SaaS & Service [Member]

27,741

26,141

Total cost of revenue

$ 11,203

$ 12,368

[1]	Revenue is attributed to countries based on the location of the customer.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Net loss	$ (11,306)	$ (13,694)
Other comprehensive income (loss) before tax:
Loss reclassified into earnings	157	0
Change in foreign currency translation adjustments:	(1,300)	1,734
Other comprehensive income (loss) before tax	(1,143)	1,734
Less: Provision for (benefit from) income taxes	106	0
Other comprehensive income (loss), net of tax	(1,249)	1,734
Total comprehensive loss	$ (12,555)	$ (11,960)

Common Stock, Beginning at Dec. 31, 2017

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

AOCI Attributable to Parent [Member]

82,554

Balance at Dec. 31, 2017

$ 218,343

$ 83

$ 2,272,690

$ (2,057,812)

$ 3,382

Cumulative effect to retained earnings related to adoption of Topic 718 | Accounting Standards Update 2014-09 [Member]

11,431

Cumulative effect to retained earnings related to adoption of Topic 718 | Accounting Standards Update 2016-09 [Member]

11,431

Common Stock, Ending at Jan. 01, 2018

82,554

Balance at Jan. 01, 2018

229,774

$ 83

2,272,690

(2,046,381)

3,382

Common Stock, Beginning at Dec. 31, 2017

82,554

Balance at Dec. 31, 2017

218,343

$ 83

2,272,690

(2,057,812)

3,382

Net loss

(13,694)

Other comprehensive loss, net of tax

1,734

Issuance of common stock under option, stock award and purchase plans, Shares

2,640

Issuance of common stock under option, stock award and purchase plans, Value

2,347

$ 2

2,345

Additional Paid-in Capital, Stock-based compensation

5,812

Common Stock, Ending at Mar. 30, 2018

85,194

Balance at Mar. 30, 2018

225,973

$ 85

2,280,847

(2,060,075)

5,116

Common Stock, Beginning at Dec. 31, 2018

87,057

Balance at Dec. 31, 2018

228,250

$ 87

2,296,795

(2,067,416)

(1,216)

Cumulative effect to retained earnings related to adoption of Topic 718 | Accounting Standards Update 2016-09 [Member]

^[1]

1,400

Common Stock, Ending at Jan. 01, 2019

87,057

Balance at Jan. 01, 2019

229,650

$ 87

2,296,795

(2,066,016)

(1,216)

Common Stock, Beginning at Dec. 31, 2018

87,057

Balance at Dec. 31, 2018

228,250

$ 87

2,296,795

(2,067,416)

(1,216)

Net loss

(11,306)

Other comprehensive loss, net of tax

(1,249)

Issuance of common stock under option, stock award and purchase plans, Shares

1,727

Issuance of common stock under option, stock award and purchase plans, Value

1,355

$ 2

1,353

Additional Paid-in Capital, Stock-based compensation

2,111

Common Stock, Ending at Mar. 29, 2019

88,784

Balance at Mar. 29, 2019

$ 220,561

$ 89

$ 2,300,259

$ (2,077,322)

$ (2,465)

[1]	See Note 2, “Recent Accounting Pronouncements” for more information on the adoption of Accounting Standard Update (“ASU”) No. 2018-07, Compensation-Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting issued by the Financial Accounting Standards Board.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Cash flows from operating activities:
Net loss	$ (11,306)	$ (13,694)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of intangibles	2,083	2,099
Depreciation	2,846	3,456
Stock-based compensation	2,113	5,757
Amortization of discount on convertible debt and issuance cost	1,605	1,453
Amortization of non-cash warrant	25	111
Restructuring, asset impairment and loss on retirement of fixed assets	103	40
Deferred income taxes, net	(538)	0
Foreign currency adjustments	(638)	835
Provision for excess and obsolete inventories	254	458
Allowance for doubtful accounts and returns	417	1,122
Other non-cash adjustments, net	287	132
Changes in operating assets and liabilities:
Accounts receivable	22,351	(5,925)
Inventories	(4,157)	424
Prepaid expenses and other assets	1,417	(6,511)
Accounts payable	(8,177)	(5,710)
Deferred revenue	4,750	10,009
Income taxes payable	(192)	253
Accrued and other liabilities	(9,027)	(933)
Net cash provided by (used in) operating activities	4,216	(6,624)
Cash flows from investing activities:
Purchases of property and equipment	(1,674)	(1,775)
Net cash used in investing activities	(1,674)	(1,775)
Cash flows from financing activities:
Proceeds from other debts and finance leases	160	0
Repayment of other debts and finance leases	(97)	(448)
Proceeds from common stock issued to employees	2,012	2,347
Payment of tax withholding obligations related to net share settlements of restricted stock units	(657)	0
Net cash provided by financing activities	1,418	1,899
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(33)	73
Net increase (decrease) in cash, cash equivalents and restricted cash	3,927	(6,427)
Cash, cash equivalents and restricted cash at beginning of period	65,989	58,757
Cash, cash equivalents and restricted cash at end of period	69,916	52,330
Supplemental disclosures of cash flow information:
Income tax payments, net	490	586
Interest payments, net	92	148
Supplemental schedule of non-cash investing and financing activities:
Capital expenditures incurred but not yet paid	91	325
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Total cash, cash equivalents and restricted cash	$ 65,989	$ 58,757

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 29, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) which Harmonic Inc. (“Harmonic,” or the “Company”) considers necessary to present fairly the results of operations for the interim periods covered and the consolidated financial condition of the Company at the date of the balance sheets. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (“SEC”) on March 1, 2019 (the “2018 Form 10-K”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2019, or any other future period. The Company’s fiscal quarters are based on 13-week periods, except for the fourth quarter, which ends on December 31. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2018 was derived from audited financial statements, and the unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. As permitted under those requirements, certain footnotes or other financial information that are normally required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information. Reclassifications Certain prior period balances have been reclassified to conform to the current period’s presentation. These reclassifications did not have a material impact on previously reported financial statements. Beginning in the first quarter of fiscal 2019, the Company revised the classification of total revenue in the Condensed Consolidated Statements of Operations from the two previous categories, “Product” and “Service”, to two new categories, “Appliance and integration” and “SaaS and service”. The Company has also reclassified revenue into the two new categories for all prior periods to conform to the current period’s presentation. This reclassification within revenue did not have an impact on total revenue or any segment revenue for any periods presented. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2018 Form 10-K. There have been no significant changes to these policies during the three months ended March 29, 2019 other than those disclosed in Note 2, “Recent Accounting Pronouncements”.

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 29, 2019
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Accounting Standards Codification (ASC) Topic 842, “Leases” On January 1, 2019, the Company adopted ASC 842, Leases (“Topic 842”), using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. The Company elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. The Company elected certain practical expedients, which among other things, allowed the Company to carry forward prior conclusions about lease identification and classification. Adoption of the standard resulted in the balance sheet recognition of additional lease assets and liabilities of approximately $23.3 million; however, the adoption of the standard did not have an impact on the Company’s beginning retained earnings, results from operations or cash flows. See Note 4, “Leases” for additional information. ASU No. 2018-07, Compensation-Stock Compensation (Topic 718) In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The Company adopted this new standard in the first quarter of fiscal 2019, and the adoption resulted in an adjustment of $1.4 million as the cumulative effect adjustment to opening retained earnings relating to the accounting of warrants which were previously granted to Comcast. This represents the cumulative impact of the remeasurement of unvested Comcast warrants on the date of adoption. See Note 15, “Warrants” for additional information. ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs for implementation activities in the application development stage can be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement. The amendments in the new ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The Company early adopted this new standard in the third quarter of fiscal 2018 and applied it prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard did not have a significant impact on the Company’s Consolidated Financial Statements for the year ended December 31, 2018. During the three months period ended March 29, 2019, the Company incurred a total implementation cost of $0.1 million which were included in “Other long-term assets” on the Company’s Condensed Consolidated Balance Sheets. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, the Company will be required to use a new forward-looking “expected loss” model. Additionally, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 and early adoption is permitted. The adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new ASU removes Step 2 of the goodwill impairment test and requires the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will then be the amount by which a reporting unit's carrying value exceeds its fair value. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 on a prospective basis, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This guidance will become effective for the Company in fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted upon issuance of this updated guidance. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. The Company does not currently hold any level 3 assets or liabilities which require recurring measurements and the Company expects the impact to its disclosure will be relatively limited. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. The new ASU is effective for the Company for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

Revenue

3 Months Ended

Mar. 29, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

The Company’s principal sources of revenue are from the sale of hardware, software, hardware and software maintenance contracts, and end-to-end solutions, encompassing design, manufacture, test, integration and installation of products. The Company also derives recurring revenue from subscriptions, which are comprised of subscription fees from customers utilizing the Company’s cloud-based video processing solutions.

Beginning in the first quarter of fiscal 2019, the Company revised the classification of total revenue in the Condensed Consolidated Statement of Operations from the two previous categories, “Product” and “Service”, to two new categories, “Appliance and integration” and “SaaS and service”. The “Appliance and integration” revenue category includes hardware, licenses and professional services and is reflective of non-recurring revenue, while the “SaaS and service” category includes usage fees for the Company’s SaaS platform and support revenue stream from the Company’s appliance-based customers and reflects the Company’s recurring revenue stream.

Significant Judgments. The Company has revenue arrangements that include promises to transfer multiple products and services to a customer. The Company may exercise significant judgment when determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together.

The Company allocates the transaction price to all separate performance obligations based on the SSP of each obligation. The Company’s best evidence for SSP is the price the Company charges for that good or service when the Company sells it separately in similar circumstances to similar customers. If goods or services are not always sold separately, the Company uses the best estimate of SSP in the allocation of the transaction price. The objective of determining the best estimate of SSP is to estimate the price at which the Company would transact a sale if the product or service were sold on a standalone basis. The Company’s process for determining the best estimate of SSP involves management’s judgment, and considers multiple factors including, but not limited to, major product groupings, geographies, gross margin objectives and pricing practices. Pricing practices taken into consideration include contractually stated prices, discounts and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors considered change or should future facts and circumstances lead the Company to consider additional factors, the Company’s best estimate of SSP may also change.

Contract Balances. 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. The Company’s payment terms vary by the type and location of its customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, the Company requires payment before the products or services are delivered to the customer.

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).

Contract assets and deferred revenue consisted of the following:



	As of
	March 29, 2019		March 30, 2018
Contract assets	$	3,707	$	3,834
Deferred revenue	51,628		46,922

Contract assets and Deferred revenue (long-term) are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities”, respectively, on the Condensed Consolidated Balance Sheets. See Note 8, “Balance Sheet Components” for additional information.

During the three months ended March 29, 2019 and March 30, 2018, the Company recognized revenue of $21.2 million and $19.9 million, respectively, that was included in the deferred revenue balance at the beginning of the period.

The Company elected the practical expedient under Topic 606 to not disclose the transaction price allocated to remaining performance obligations, since the majority of the Company’s arrangements have original expected durations of one year or less, or the invoicing corresponds to the value of the Company’s performance completed to date.

See Note 16, “Segment Information” for disaggregated revenue information.

Lease

3 Months Ended

Mar. 29, 2019

Leases [Abstract]

Lessee, Operating Leases [Text Block]

LEASES

Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of one year to ten years. The lease term represents the non-cancelable period of the lease. For certain leases, the Company has an option to extend the lease term. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options.

Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company combines the lease and non-lease components in determining the lease liabilities and right-of-use assets. The Company also elected to carry forward prior conclusions about lease identification and classification.

The Company’s lease contracts do not provide an implicit borrowing rate, hence the Company determined the incremental borrowing rate based on information available at lease commencement to determine the present value of lease liability. The Company uses the parent entity’s incremental borrowing rates as the treasury operations are managed centrally by the parent entity and, consequently, the pricing of leases at a subsidiary level is typically significantly influenced by the credit risk evaluated at the parent or consolidated group level on the basis of guarantees or other payment mechanisms that allow the lessor to look beyond just the subsidiary for payment.

The components of lease expense are as follows:



	Three months ended
	March 29, 2019
Operating lease cost	$	1,996
Variable lease cost	779
Total lease cost	$	2,775

Other information related to leases are as follows:



	Three months ended
	March 29, 2019
Supplemental cash flow information
Operating cash flows from operating leases	$	2,130
Operating leases
Weighted-average remaining lease term (years)	6.9 years
Weighted-average discount rate	5.5		%

Future minimum lease payments under non-cancelable operating leases as of March 29, 2019 are as follows (in thousands):



Years ending December 31,
2019 (remaining nine months)	$	8,329
2020	8,494
2021	3,914
2022	2,487
2023	2,189
Thereafter	6,614
Total future minimum lease payments	$	32,027
Less: imputed interest	(5,044		)
Total	$	26,983

Future minimum lease payments under non-cancelable operating leases as of December 31, 2018, as disclosed in our 2018 Annual Report on Form 10-K filed with SEC, were as follows (in thousands):



Years ending December 31,
2019	$	13,515
2020	10,139
2021	4,088
2022	2,523
2023	2,220
Thereafter	6,694
Total future minimum lease payments	$	39,179

Investments in Equity Securities	3 Months Ended
Investments in Equity Securities	Mar. 29, 2019
Investments, All Other Investments [Abstract]
Investments in Equity Securities	INVESTMENTS IN EQUITY SECURITIES EDC In 2014, the Company acquired an 18.4% interest in Encoding.com, Inc. (“EDC”), a privately held video transcoding service company headquartered in San Francisco, California, for $3.5 million by purchasing EDC’s Series B preferred stock. EDC is considered a VIE but the Company determined that it is not the primary beneficiary of EDC. As a result, EDC is measured at its cost minus impairment, if any. The Company determined that there were no indicators at March 29, 2019 that the EDC investment was impaired. The Company’s maximum exposure to loss from the EDC’s investment at March 29, 2019 was limited to its investment cost of $3.6 million, including $0.1 million of transaction costs.

Derivative and Hedging Activities

3 Months Ended

Mar. 29, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

DERIVATIVES AND HEDGING ACTIVITIES

The Company uses forward contracts to manage exposures to foreign currency exchange rates. The Company’s primary objective in holding derivative instruments is to reduce the volatility of earnings and cash flows associated with fluctuations in foreign currency exchange rates and the Company does not use derivative instruments for trading purposes. The use of derivative instruments exposes the Company to credit risk to the extent that the counterparties may be unable to meet their contractual obligations. As such, the potential risk of loss with any one counterparty is closely monitored by the Company.

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

The Company’s balance sheet hedges consist of foreign currency forward contracts that generally mature within three months, are carried at fair value, and are used to minimize the short-term impact of foreign currency exchange rate fluctuation on cash and certain trade and inter-company receivables and payables. Changes in the fair value of these foreign currency forward contracts are recognized in “Other expense, net” in the Condensed Consolidated Statement of Operations and are largely offset by the changes in the fair value of the assets or liabilities being hedged.

Losses on the non-designated derivative instruments recognized during the periods presented were as follows (in thousands):



		Three months ended
	Financial Statement Location	March 29, 2019			March 30, 2018
Derivatives not designated as hedging instruments:
Losses recognized in income	Other expense, net	$	(565	)	$	(113	)

The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands):



	March 29, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Purchase	$	26,617	$	28,975

The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets are as follows (in thousands):



		Asset Derivatives					Derivative Liabilities
	Balance Sheet Location	March 29, 2019		December 31, 2018		Balance Sheet Location	March 29, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	22	$	—	Accrued and other current liabilities	$	181	$	333
Total derivatives		$	22	$	—		$	181	$	333

Offsetting of Derivative Assets and Liabilities

The Company recognizes all derivative instruments on a gross basis in the Condensed Consolidated Balance Sheets. However, the arrangements with its counterparties allows for net settlement, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of March 29, 2019, information related to the offsetting arrangements was as follows (in thousands):



	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets	Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets
Derivative assets	$	22	—	$	22
Derivative liabilities	$	181	—	$	181

In connection with foreign currency derivatives entered in Israel, the Company’s subsidiaries in Israel are required to maintain a compensating balance with their bank at the end of each month. The compensating balance arrangements do not legally restrict the use of cash. As of March 29, 2019, the total compensating balance maintained was $1.0 million.

Fair Value Measurements

3 Months Ended

Mar. 29, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The authoritative accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. Fair value is defined 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. 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 described below.

Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value:


•	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. The forward exchange contracts are classified as Level 2 because they are valued using quoted market prices and other observable data for similar instruments in an active market.


•	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 following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):



	Level 1		Level 2		Level 3		Total
As of March 29, 2019
Prepaid expenses and other current assets
Derivative assets	$	—	$	22	$	—	$	22
Total assets measured and recorded at fair value	$	—	$	22	$	—	$	22
Accrued and other current liabilities
Derivative liabilities	$	—	$	181	$	—	$	181
Total liabilities measured and recorded at fair value	$	—	$	181	$	—	$	181
	Level 1		Level 2		Level 3		Total
As of December 31, 2018
Accrued and other current liabilities
Derivative liabilities	$	—	$	333	$	—	$	333
Total liabilities measured and recorded at fair value	$	—	$	333	$	—	$	333

The Company’s liability for the TVN VDP (as defined below) was $1.8 million and $2.4 million as of March 29, 2019 and December 31, 2018, respectively. This amount is not included in the table above because its fair value at inception, based on Level 3 inputs, was determined during the fourth quarter of fiscal 2016. The fair value of this liability has not been subsequently remeasured based on the applicable accounting guidance. See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

The carrying value of the Company’s financial instruments, including cash equivalents, restricted cash, accounts receivable, accounts payable and accrued and other current liabilities, approximate fair value due to their short maturities.

The Company uses the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of the Company’s convertible notes is influenced by interest rates, the Company’s stock price and stock market volatility. The fair value of the Company’s convertible notes was approximately $147.8 million and $136.5 million as of March 29, 2019 and December 31, 2018, respectively, and represents a Level 2 valuation. The Company’s other debts assumed from the Thomson Video Networks (“TVN”) acquisition are classified within Level 2 because these borrowings are not actively traded and the majority of them have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities, therefore, the carrying value of these debts approximate its fair value. The other debts, excluding finance leases, outstanding as of March 29, 2019 and December 31, 2018 were in the aggregate of $19.4 million and $19.7 million, respectively. (See Note 11, “Convertible Notes, Other debts and Finance Leases” for additional information).

During the three months ended March 29, 2019, there were no nonrecurring fair value measurements of assets and liabilities subsequent to initial recognition.

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Balance Sheet Components

3 Months Ended

Mar. 29, 2019

Balance Sheet Components

BALANCE SHEET COMPONENTS

The following tables provide details of selected balance sheet components (in thousands):



	March 29, 2019			December 31, 2018
Accounts receivable, net:
Accounts receivable	$	61,345		$	85,292
Less: allowances for doubtful accounts and sales returns	(2,415		)	(3,497		)
Total	$	58,930		$	81,795



	March 29, 2019		December 31, 2018
Inventories:
Raw materials	$	2,536	$	1,705
Work-in-process	833		991
Finished goods	15,769		12,267
Service-related spares	10,187		10,675
Total	$	29,325	$	25,638



	March 29, 2019		December 31, 2018
Prepaid expenses and other current assets:
French R&D tax credits receivable⁽¹⁾	$	7,159	$	7,305
Prepaid expenses	6,219		4,834
Contract assets⁽²⁾	3,707		3,834
Deferred cost of revenue	1,318		3,671
Capitalized commission	933		1,098
Other	3,564		2,538
Total	$	22,900	$	23,280

(1) The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government. The R&D tax credits receivable at March 29, 2019 were approximately $27.4 million and are expected to be recoverable from 2019 through 2022 with $7.2 million reported as a component of “Prepaid expenses and other current assets” and $20.2 million reported as a component of “Other long-term assets” on the Company’s Condensed Consolidated Balance Sheets.

(2) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration.



	March 29, 2019			December 31, 2018
Property and equipment, net:
Machinery and equipment	$	74,956		$	75,094
Capitalized software	32,861			32,696
Leasehold improvements	14,953			14,951
Furniture and fixtures	6,031			6,049
Property and equipment, gross	128,801			128,790
Less: accumulated depreciation and amortization	(107,825		)	(106,469		)
Total	$	20,976		$	22,321



	March 29, 2019		December 31, 2018
Other long-term assets:
French R&D tax credits receivable	$	20,200	$	19,249
Deferred tax assets	9,198		8,695
Equity investment	3,593		3,593
Other	6,971		6,840
Total	$	39,962	$	38,377



	March 29, 2019		December 31, 2018
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	15,483	$	21,451
Operating lease liability (short-term)	10,660		—
Accrued warranty	4,587		4,869
Contingent inventory reserves	2,259		2,500
Accrued TVN VDP, current ⁽¹⁾	1,515		1,585
Accrued Avid litigation settlement, current	1,500		1,500
Others	17,234		20,856
Total	$	53,238	$	52,761

(1) See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.



	March 29, 2019		December 31, 2018
Other non-current liabilities:
Operating lease liability (long-term)	$	16,323	$	—
Deferred revenue (long-term)	4,206		5,330
Others	9,702		12,898
Total	$	30,231	$	18,228

Goodwill and Identified Intangible Assets

3 Months Ended

Mar. 29, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identified Intangible Assets

GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has two reporting units, Video and Cable Access.

The Company tests for goodwill impairment at the reporting unit level on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company’s annual goodwill impairment test is performed in the fiscal fourth quarter, with a testing date at the end of October. In evaluating goodwill for impairment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value (including goodwill). If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then no further testing is required. However, if the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the two-step goodwill impairment test is performed to identify a potential goodwill impairment and measure the amount of impairment to be recognized, if any. The two-step impairment test involves estimating the fair value of all assets and liabilities of the reporting unit, including the implied fair value of goodwill, through either estimated discounted future cash flows or market-based methodologies. No impairment indicators were identified as of March 29, 2019.

The changes in the carrying amount of goodwill for the three months ended March 29, 2019 were as follows (in thousands):



	Video			Cable Access		Total
Balance as of December 31, 2018	$	179,839		$	60,779	$	240,618
Foreign currency translation adjustment	(786		)	16		(770		)
Balance as of March 29, 2019	$	179,053		$	60,795	$	239,848

Intangible Assets, Net

The following is a summary of intangible assets, net (in thousands):



		March 29, 2019							December 31, 2018
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	0.9	$	31,707	$	(26,871	)	$	4,836	$	31,707	$	(25,576	)	$	6,131
Customer relationships/contracts	1.9	44,583		(38,855		)	5,728		44,650		(38,146		)	6,504
Trademarks and trade names	0.9	610		(470		)	140		623		(441		)	182
Maintenance agreements and related relationships	n/a	5,500		(5,500		)	—		5,500		(5,500		)	—
Order backlog	n/a	3,087		(3,087		)	—		3,112		(3,112		)	—
Total identifiable intangibles		$	85,487	$	(74,783	)	$	10,704	$	85,592	$	(72,775	)	$	12,817

Amortization expense for the identifiable purchased intangible assets for the three months ended March 29, 2019 and March 30, 2018 was allocated as follows (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Included in cost of revenue	$	1,295	$	1,295
Included in operating expenses	788		804
Total amortization expense	$	2,083	$	2,099

The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019 (remaining nine months)	$	3,885	$	2,356	$	6,241
2020	951		3,014		3,965
2021	—		498		498
Total future amortization expense	$	4,836	$	5,868	$	10,704

Restructuring and Related Charges

3 Months Ended

Mar. 29, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Charges

RESTRUCTURING AND RELATED CHARGES

The Company has implemented several restructuring plans in an effort to better align its resources with its business strategy. The goal of these plans was to bring operational expenses to appropriate levels relative to its net revenues, while simultaneously implementing extensive company-wide expense control programs. These restructuring plans have primarily been comprised of excess facilities, severance payments and termination benefits related to headcount reductions.

In the three months ended March 29, 2019, the Company recorded an aggregate amount of $0.3 million of restructuring and related charges for severance and employee benefits for certain employees, primarily in one specific function within the Video segment. The activities associated with the charges were substantially completed in the first quarter of fiscal 2019. The Company made $0.1 million in payments in the first quarter of 2019, with the remaining $0.2 million liability outstanding as of March 29, 2019.

The Company initiated restructuring plans during fiscal 2018 and prior years. During fiscal 2018, the Company revised certain estimates made in connection with the prior restructuring plans and recorded credits of $0.2 million. As of March 29, 2019, total liabilities related to the prior restructuring plans were $4.2 million.

The Company accounts for its restructuring plans under the authoritative guidance for exit or disposal activities. The restructuring and related charges are included in “Cost of revenue” and “Operating expenses - Restructuring and related charges” in the Condensed Consolidated Statements of Operations. The following table summarizes the restructuring and related charges (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Restructuring and related charges in:
Cost of revenue	$	301	$	762
Operating expenses - Restructuring and related charges	57		1,086
Total restructuring and related charges	$	358	$	1,848

As of March 29, 2019 and December 31, 2018, the Company’s total restructuring liability was $4.4 million and $5.3 million, respectively, of which $3.2 million and $3.3 million, respectively, were reported as a component of “Accrued and other current liabilities”, and the remaining $1.2 million and $2.0 million, respectively, were reported as a component of “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets.

The following table summarizes the activities related to the Company’s restructuring plans during the three months ended March 29, 2019 (in thousands):



	Excess facilities			Severance and benefits			TVN VDP ⁽¹⁾			Total
Balance at December 31, 2018	$	2,926		$	—		$	2,409		$	5,335
Charges for current period	—			346			—			346
Adjustments to restructuring provisions	37			—			(25		)	12
Cash payments	(506		)	(144		)	(579		)	(1,229		)
Foreign exchange effect	—			—			(44		)	(44		)
Balance at March 29, 2019	$	2,457		$	202		$	1,761		$	4,420

(1) “TVN VDP” consists of restructuring-related costs in connection with the TVN acquisition that included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France.

Excess Facility in San Jose, California

In August 2018, the Company exited an additional excess facility at its U.S. headquarters in San Jose, California and recorded $0.9 million in facility exit costs. As of March 29, 2019, the remaining liability for the additional excess facility exited in August 2018 was $0.9 million, which will be paid out over the remainder of the leased properties’ term through August 2020.

TVN VDP

The amount recorded for the three months ended March 29, 2019 and March 30, 2018 was immaterial. The TVN VDP liability balance as of March 29, 2019 was $1.8 million, payable through 2020.

Convertible Notes, Other Debts And Finance Lease

3 Months Ended

Mar. 29, 2019

Debt Disclosure [Abstract]

Convertible Notes, Other Debts And Capital Leases

CONVERTIBLE NOTES, OTHER DEBTS AND FINANCE LEASES

4.00% Convertible Senior Notes

In December 2015, the Company issued $128.25 million in aggregate principal amount of 4.00% Senior Convertible Notes due 2020 (the “offering” or “Notes”, as applicable) pursuant to an indenture (the “Indenture”), dated December 14, 2015, by and between the Company and U.S. Bank National Association, as trustee. The Notes bear interest at a rate of 4.00% per year, payable in cash on June 1 and December 1 of each year and the Notes will mature on December 1, 2020 unless earlier repurchased or converted. The Notes will be convertible into cash, shares of the Company’s common stock, par value $0.001 (“Common Stock”), or a combination thereof, at the Company’s election, at an initial conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $5.75 per share). The conversion rate, and thus the effective conversion price, may be adjusted under certain circumstances, including in connection with conversions made following certain fundamental changes and under other circumstances, in each case, as set forth in the Indenture.

Prior to the close of business on the business day immediately preceding September 1, 2020, the Notes will be convertible only under the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day; (2) during the five business day period after any 5 consecutive trading day period (the “measurement period ”) in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Commencing on September 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, the Notes will be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances.

If a fundamental change occurs, holders of the Notes may require the Company to purchase all or any portion of their Notes for cash at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

Concurrent with the closing of the offering, the Company used $49.9 million of the net proceeds to repurchase 11.1 million shares of the Company’s common stock from purchasers of Notes in the offering in privately negotiated transactions. In addition, the Company incurred approximately $4.1 million of debt issuance cost, resulting in net proceeds to the Company of approximately $74.2 million, which was used to fund the TVN acquisition.

In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the Notes was valued at $26.1 million and bifurcated from the host debt instrument and recorded in stockholders’ equity. The resulting debt discount on the Notes is being amortized to interest expense at the effective interest rate over the contractual term of the Notes. The following table presents the components of the Notes as of March 29, 2019 and December 31, 2018 (in thousands, except for years and percentages):



	March 29, 2019			December 31, 2018
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(10,563		)	(11,996		)
Less: Debt issuance costs, net of amortization	(1,274		)	(1,446		)
Carrying amount	$	116,413		$	114,808
Remaining amortization period (years)	1.7			1.9
Effective interest rate on liability component	9.94		%	9.94		%
Carrying amount of equity component	$	26,062		$	26,062

The following table presents interest expense recognized for the Notes (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Contractual interest expense	$	1,283	$	1,283
Amortization of debt discount	1,433		1,297
Amortization of debt issuance costs	172		156
Total interest expense recognized	$	2,888	$	2,736

Other Debts and Finance Leases

The Company has a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands):



	March 29, 2019			December 31, 2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	18,566		$	18,783
Term loans	819			914
Obligations under finance leases	141			162
Total debt obligations	19,526			19,859
Less: current portion	(7,124		)	(7,175		)
Long-term portion	$	12,402		$	12,684

(1) As of March 29, 2019 and December 31, 2018, loans backed by French R&D tax credit receivables were $16.4 million and $16.7 million, respectively. As of March 29, 2019, the TVN French Subsidiary had an aggregate of $27.4 million of R&D tax credit receivables from the French government from 2019 through 2022. See Note 8, “Balance Sheet Components” for additional information. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and mature between 2019 through 2021. The remaining loans of $2.2 million at March 29, 2019, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2019 through 2025.

Future minimum repayments

The table below presents the future minimum repayments of debts and finance lease obligations for TVN as of March 29, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2019 (remaining nine months)	$	106	$	6,866
2020	35		6,475
2021	—		5,226
2022	—		443
2023	—		151
Thereafter	—		224
Total	$	141	$	19,385

Line of Credit

On September 27, 2017, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (the “Bank”). The Loan Agreement provides for a secured revolving credit facility in an aggregate principal amount of up to $15.0 million. Under the terms of the Loan Agreement, the principal amount of loans, plus the face amount of any outstanding letters of credit, at any time cannot exceed up to 85% of the Company’s eligible receivables. Under the terms of the Loan Agreement, the Company may also request letters of credit from the Bank. The proceeds of any loans under the Loan Agreement will be used for working capital and general corporate purposes.

Loans under the Loan Agreement will bear interest, at the Company’s option, and subject to certain conditions, at an annual rate of either a prime rate or a LIBOR rate plus an applicable margin of 2.25%. There will be no applicable margin for prime rate advances when the Company is in compliance with the liquidity requirement of at least $20.0 million in the aggregate of consolidated cash plus availability under the Loan Agreement (the “Liquidity Requirement”) and a 0.25% margin for prime rate advances when the Company is not in compliance with the Liquidity Requirement. The Company may not request LIBOR advances when it is not in compliance with the Liquidity Requirement. Interest on each advance is due and payable monthly and the principal balance is due at maturity. The Company’s obligations under the revolving credit facility are secured by a security interest on substantially all of its assets, excluding intellectual property.

The Loan Agreement contains customary affirmative and negative covenants. The Company must comply with financial covenants requiring it to maintain (i) a short-term asset to short-term liabilities ratio of at least 1.10 to 1.00 and (ii) a minimum adjusted EBITDA, in the amounts and for the periods as set forth in the Loan Agreement. The Company must also maintain a minimum liquidity amount, comprised of unrestricted cash held at accounts with the Bank plus proceeds available to be drawn under the Loan Agreement, equal to at least $10.0 million at all times. As of March 29, 2019, the Company was in compliance with the covenants under the Loan Agreement.

As of March 29, 2019, the Company committed $1.8 million towards security for letters of credit issued under the Loan Agreement. There were no other borrowings under the Loan Agreement as of March 29, 2019.

Employee Benefit Plans and Stock-based Compensation

3 Months Ended

Mar. 29, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Benefit Plans and Stock-based compensation

EMPLOYEE BENEFIT PLANS AND STOCK-BASED COMPENSATION

Equity Award Plans

The Company’s stock benefit plans include the 2002 Employee Stock Purchase Plan (“ESPP”) and current active stock plans adopted in 1995 and 2002. See Note 12, “Employee Benefit Plans and Stock-based Compensation” of Notes to Consolidated Financial Statements in the 2018 Form 10-K for details pertaining to each plan.

As of March 29, 2019, there were 0.8 million and 4.8 million shares of common stock reserved for future grants under the Company’s ESPP and active stock plans, respectively.

Stock Option Activities

The following table summarizes the Company’s stock option activities and related information during the three months ended March 29, 2019 (in thousands, except per share amounts and terms):



	Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Balance at December 31, 2018	3,068		$	5.76
Exercised	(6	)	2.25
Canceled or expired	(379	)	6.14
Balance at March 29, 2019	2,683		5.71		2.4	$	1,646.6
As of March 29, 2019
Vested and expected to vest	2,683		5.71		2.4	$	1,646.3
Exercisable	2,673		5.72		2.4	$	1,633.5

The aggregate intrinsic value disclosed above represents the difference between the exercise price of the options and the fair value of the Company’s common stock. There were no employee stock options granted in the three months ended March 29, 2019.

There were no realized tax benefits attributable to stock options exercised in jurisdictions where this expense is deductible for tax purposes for the three months ended March 29, 2019 and March 30, 2018, respectively.

Restricted Stock Units (“RSUs”) Activities

The following table summarizes the Company’s RSUs activities and related information during the three months ended March 29, 2019 (in thousands, except per share amounts):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2018	3,403		$	3.99
Granted	35		5.49
Vested	(1,313	)	3.91
Forfeited	(20	)	4.01
Balance at March 29, 2019	2,105		4.10

French Retirement Benefit Plan

The Company assumed obligations under a defined benefit pension plan in connection with the acquisition of TVN in 2016. The plan is unfunded and there are no contributions required by laws or funding regulations, discretionary contributions or non-cash contributions expected to be made. The table below presents the components of net periodic benefit costs (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Service cost	$	57	$	63
Interest cost	20		19
Net periodic benefit cost	$	77	$	82

The present value of the Company’s pension obligation as of March 29, 2019 was $4.9 million, of which $0.1 million was reported as a component of “Accrued and other current liabilities” and $4.8 million was reported as a component of “Other non-current liabilities” on the Company’s Condensed Consolidated Balance Sheets. The present value of the Company’s pension obligation as of December 31, 2018 was $4.9 million.

401(k) Plan

The Company has a retirement/savings plan for its U.S. employees, which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. This plan allows participants to contribute up to the applicable Internal Revenue Code limitations under the plan. The Company has made discretionary contributions to the plan of 25% of the first 4% contributed by eligible participants, up to a maximum contribution per participant of $1,000 per year. The contributions for the three months ended March 29, 2019 and March 30, 2018 were $122,000 and $112,000, respectively.

Stock-based Compensation

The following table summarizes stock-based compensation for all plans (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Stock-based compensation in:
Cost of revenue	$	225	$	515
Research and development expense	616		1,804
Selling, general and administrative expense	1,272		3,438
Total stock-based compensation in operating expense	1,888		5,242
Total stock-based compensation	$	2,113	$	5,757

As of March 29, 2019, total unrecognized stock-based compensation cost related to unvested RSUs was $6.9 million and is expected to be recognized over a weighted-average period of approximately 1.44 years.

Valuation Assumptions

The Company estimates the fair value of employee stock options and stock purchase rights under the ESPP using a Black-Scholes option valuation model. The value of the stock purchase rights under the ESPP consists of: (1) the 15% discount on the purchase of the stock; (2) 85% of the fair value of the call option; and (3) 15% of the fair value of the put option. The call option and put option were valued using the Black-Scholes option pricing model.



	ESPP Purchase Period Ending
	July 1, 2019		July 2, 2018
Expected term (years)	0.5		0.5
Volatility	43	%	60	%
Risk-free interest rate	2.5	%	1.7	%
Expected dividends	0.0	%	0.0	%
Estimated weighted average fair value per share at purchase date	$1.31		$1.34

The expected term of the stock purchase rights under the ESPP represents the period of time from the beginning of the offering period to the purchase date. The Company uses its historical volatility for a period equivalent to the expected term of the options to estimate the expected volatility. The risk-free interest rate assumption is based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term. The Company has not paid and does not plan to pay any cash dividends in the foreseeable future.

Income Taxes

3 Months Ended

Mar. 29, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company reported the following operating results for the periods presented (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Loss before income taxes	$	(11,625	)	$	(12,616	)
Provision for (benefit from) income taxes	(319		)	1,078
Effective income tax rate	2.7		%	(8.5		)%

The Company operates in multiple jurisdictions and its profits are taxed pursuant to the tax laws of these jurisdictions. The Company’s effective income tax rate may be affected by changes in, or interpretations of tax laws and tax agreements in any given jurisdiction, utilization of net operating loss and tax credit carry forwards, changes in geographical mix of income and expense, and changes in management’s assessment of matters such as the ability to realize deferred tax assets. The Company’s effective tax rate varies from year to year primarily due to the absence of several onetime, discrete items that benefited or decremented the tax rates in the previous years.

The Company's effective income tax rate of 2.7% for the three months ended March 29, 2019 was different from the U.S. federal statutory rate of 21%, primarily due to geographical mix of income and losses, full valuation allowance against U.S. federal, California and other states deferred tax assets, foreign withholding taxes and income taxes on earnings from operations in foreign tax jurisdictions. In addition, during the three months ended March 29, 2019, the Company recorded a one-time benefit of approximately $0.8 million due to a valuation allowance release for one of its foreign subsidiaries. This release of valuation allowance was due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during the quarter.

The Company's effective income tax rate of (8.5)% for the three months ended March 30, 2018 was different from the U.S. federal statutory rate of 21%, primarily due to the Company’s geographical income mix and favorable tax rates associated with certain earnings from operations in lower-tax jurisdictions, the increase in the valuation allowance against U.S. federal, California and other state deferred tax assets, detriment from non-deductible stock-based compensation, and the net of various discrete tax adjustments. For the three months ended March 30, 2018, the discrete adjustments to the Company's tax expense were primarily withholding taxes and the accrual of interest on uncertain tax positions.

The Company files U.S. federal and state, and foreign income tax returns in jurisdictions with varying statutes of limitations during which such tax returns may be audited and adjusted by the relevant tax authorities. The 2015 through 2018 tax years generally remain subject to examination by U.S. federal and most state tax authorities. In addition, a subsidiary of the Company is under audit from 2013 to 2017 tax years by the Swiss tax authority. If, upon the conclusion of an audit, the ultimate determination of taxes owed in the jurisdictions under audit is for an amount in excess of the tax provision the Company has recorded in the applicable period, the Company’s overall tax expense, effective tax rate, operating results and cash flow could be materially and adversely impacted in the period of adjustment.

On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner, 145 T.C. No.3 (2015) related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement. A final decision was entered by the U.S. Tax Court on December 1, 2015 (the “2015 Decision”). On February 19, 2016, the U.S. Internal Revenue Service filed a notice of appeal in Altera Corp. v. Commissioner, 145 T.C. No. 3 (2015), to the Ninth Circuit Court of Appeals. The Ninth Circuit was to decide whether a regulation that mandates that stock-based compensation costs related to the intangible development activity of a qualified cost sharing arrangement (a “QCSA”) must be included in the joint cost pool of the QCSA (the “all costs rule”) is consistent with the arm’s length standard as set forth in Section 482 of the Internal Revenue Code. On July 24, 2018, the Ninth Circuit Court of Appeals issued an opinion in Altera Corp. v. Commissioner (the “Altera Opinion”) requiring related parties in an intercompany cost-sharing arrangement to share expenses related to share-based compensation. This opinion reversed the 2015 Decision of the United States Tax Court. The Ninth Circuit subsequently withdrew the opinion on August 7, 2018. Due to uncertainties surrounding the ultimate resolution of the 2015 Decision, the Company continues to share expenses related to share-based compensation despite the 2015 Decision.

As of March 29, 2019, the total amount of gross unrecognized tax benefits, including interest and penalties, was approximately $17.5 million, of which $16.2 million would affect the Company’s effective tax rate if the benefits are eventually recognized, subject to valuation allowance considerations. The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. The Company had $30 thousand of gross interest and penalties accrued as of March 29, 2019. The Company will continue to review its tax positions and provide for, or reverse, unrecognized tax benefits as issues arise. For the three months ended March 29, 2019, the Company released $0.4 million unrecognized tax benefits and the Company anticipates that unrecognized tax benefits will decrease up to approximately $0.3 million over the next 12 months due to settlements with tax authorities.

Net Loss Per Share

3 Months Ended

Mar. 29, 2019

Earnings Per Share [Abstract]

Income (Loss) Per Share

NET LOSS PER SHARE

The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except per share amounts):



	Three months ended
	March 29, 2019			March 30, 2018
Numerator:
Net loss	$	(11,306	)	$	(13,694	)
Denominator:
Weighted average number of common shares outstanding
Basic and diluted	88,165			83,912
Net loss per share:
Basic and diluted	$	(0.13	)	$	(0.16	)

Basic net loss per share was the same as diluted net loss per share for the three months ended March 29, 2019 and March 30, 2018, as the inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for the periods presented. The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	Three months ended
	March 29, 2019	March 30, 2018
Stock options	2,941	3,705
RSUs	2,400	2,206
Stock purchase rights under the ESPP	489	836
Warrants ⁽¹⁾	1,954	782
Total ⁽²⁾	7,784	7,529

(1) On September 26, 2016, in connection with the execution of a product supply agreement pursuant to which an affiliate of Comcast Corporation (together with Comcast Corporation, “Comcast”) may, in its sole discretion, purchase from the Company licenses to certain of the Company’s software products, the Company granted Comcast a warrant to purchase shares of its common stock. (See Note 15, “Warrants” for additional information).

(2) Excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. (See Note 11, “Convertible Notes, Other Debts and Finance Leases” for additional information on the Notes). Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share.

Warrants	3 Months Ended
Warrants	Mar. 29, 2019
Equity [Abstract]
Warrants Disclosure	WARRANTS On September 26, 2016, the Company granted a warrant to purchase shares of common stock (the “Warrant”) to Comcast pursuant to which Comcast may, subject to certain vesting provisions, purchase up to 7,816,162 shares of the Company’s common stock subject to adjustment in accordance with the terms of the Warrant, for a per share exercise price of $4.76. Comcast may exercise the Warrant for cash or on a net share basis. The Warrant expires on September 26, 2023 or the prior consummation of a change of control of the Company. Comcast’s right to purchase 781,617 shares vested as of the Warrant issuance date as an incentive to enter into the software license product supply agreement. Comcast’s right to purchase 1,172,425 shares vested as of July 31, 2018 upon the acceptance and completion of field trials. Comcast’s right to purchase an additional 781,617 shares will vest upon Comcast’s election for enterprise license pricing for the Company’s CableOS software products. Such pricing would obligate Comcast to make certain total payments to the Company over the term of the product supply agreement. Comcast’s rights to purchase additional shares in specified tranches vest when Comcast exceeds specified cumulative purchase amounts from the Company under the product supply agreement and, for certain tranches, such purchases are made within specified time periods. The Warrant is considered an incentive for Comcast to purchase certain of the Company’s products. Therefore, the value of the vested Warrant is recorded as an asset, which is recognized as a reduction in the Company’s net revenues in proportion to the pertinent sales to Comcast. The Warrant is considered indexed to the Company’s common stock and classified as stockholders’ equity based on its terms. Accordingly, the vested Warrant amounts are included in “Additional paid-in capital”. Prior to adoption of new accounting guidance on January 1, 2019, changes in fair value of the warrant shares were being marked to market until final vesting, and any adjustment as such was being recorded in revenue. The change in fair value together with vested warrant shares was being amortized to revenue using a ratio of revenue recognized from the customer in the period compared to total revenue expected from the customer. The value of the Warrant was recorded as a reduction in the Company’s net revenues to the extent such value did not exceed net revenues from pertinent sales to Comcast. In the first quarter of fiscal 2019, due to the adoption of Topic 718 as disclosed in Note 2, “Recent Accounting Pronouncements”, the fair value of unvested warrant shares is no longer required to be marked to market. As a result, the charge to revenue for warrant shares no longer includes the change in fair value of the warrant shares. In fiscal 2018, the fair value of the Warrant was determined using the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model included the risk-free interest rate, expected volatility, and expected life in years. The risk-free interest rate was based on the U.S. Treasury yield curve rates with maturity terms similar to the expected life of the Warrant. Expected volatility was determined utilizing historical volatility over a period of time equal to the expected life of the Warrant. Expected life was equal to the remaining contractual term of the Warrant. The dividend yield was assumed to be zero since the Company had not historically declared dividends and did not have any plans to declare dividends in the future. During the three months ended March 29, 2019 and March 30, 2018, the Company recorded $25 thousand and $0.1 million, respectively, as a reduction to net revenues in connection with amortization of the Warrant.

Segment Information

3 Months Ended

Mar. 29, 2019

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engages in business activities for which separate financial information is available and evaluated by the Company’s Chief Operating Decision Maker (the “CODM”), which for Harmonic is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on our internal reporting structure, the Company consists of two operating segments: Video and Cable Access. The operating segments were determined based on the nature of the products offered. The Video segment sells video processing and production and playout solutions and services worldwide to broadcast and media companies, streaming new media companies, cable operators, and satellite and telecommunications (“telco”) Pay-TV service providers. The Cable Access segment sells cable access solutions and related services to cable operators globally.

The following table provides summary financial information by reportable segment (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Video
Revenue	$	67,176		$	71,748
Gross profit	38,602			41,226
Operating income	1,968			1,995
Cable Access
Revenue	$	12,930		$	18,379
Gross profit	5,068			8,529
Operating loss	(5,822		)	(1,624		)
Total
Revenue	$	80,106		$	90,127
Gross profit	43,670			49,755
Operating income (loss)	(3,854		)	371

A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Total segment operating income (loss)	(3,854		)	371
Unallocated corporate expenses	(358		)	(1,842		)
Stock-based compensation	(2,113		)	(5,757		)
Amortization of intangibles	(2,083		)	(2,099		)
Loss from operations	(8,408		)	(9,327		)
Non-operating expense, net	(3,217		)	(3,289		)
Loss before income taxes	$	(11,625	)	$	(12,616	)

Unallocated Corporate Expenses

Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges, TVN acquisition and integration-related costs, and certain other non-recurring charges to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM.

Geographic Information



	Three months ended
	March 29, 2019		March 30, 2018
Net Revenue ⁽¹⁾
United States	$	30,115	$	41,776
Other Countries	49,991		48,351
Total	$	80,106	$	90,127

(1) Revenue is attributed to countries based on the location of the customer.

Market Information



	Three months ended
	March 29, 2019		March 30, 2018
Market
Service Provider	$	44,212	$	52,217
Broadcast and Media	35,894		37,910
Total	$	80,106	$	90,127

Commitments and Contingencies

3 Months Ended

Mar. 29, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Warranties

The Company accrues for estimated warranty costs at the time of product shipment. Management periodically reviews the estimated fair value of its warranty liability and records adjustments based on the terms of warranties provided to customers, historical and anticipated warranty claims experience, and estimates of the timing and cost of warranty claims. Activity for the Company’s warranty accrual, which is included in “Accrued and other current liabilities”, is summarized below (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Balance at beginning of period	$	4,869		$	4,381
Accrual for current period warranties	1,403			1,736
Warranty costs incurred	(1,685		)	(1,595		)
Balance at end of period	$	4,587		$	4,522

Purchase Obligations

The Company relies on a limited number of contract manufacturers and suppliers to provide manufacturing services for a substantial majority of its products. The Company had approximately $45.0 million of non-cancelable commitments to purchase inventories and other commitments as of March 29, 2019.

Standby Letters of Credit and Guarantees

As of March 29, 2019 and December 31, 2018, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $2.2 million and $2.3 million, respectively, consisting of building leases and performance bonds issued to customers.

During 2017, one of the Company’s subsidiaries entered into a $2.0 million credit facility with a foreign bank for the purpose of issuing performance guarantees. The credit facility is secured by a $2.2 million guarantee issued by the Company. There were no amounts outstanding under this credit facility as of March 29, 2019 and December 31, 2018, respectively.

Indemnification

Harmonic is obligated to indemnify its officers and the members of its Board of Directors (the “Board”) pursuant to its bylaws and contractual indemnity agreements. Harmonic also indemnifies some of its suppliers and most of its customers for specified intellectual property matters pursuant to certain contractual arrangements, subject to certain limitations. The scope of these indemnities varies, but, in some instances, includes indemnification for damages and expenses (including reasonable attorneys’ fees). There have been no amounts accrued in respect of these indemnification provisions through March 29, 2019.

Legal proceedings

In October 2011, Avid Technology, Inc. (“Avid”) filed a complaint in the United States District Court for the District of Delaware alleging that the Company’s MediaGrid product infringes two patents held by Avid. A jury trial on this complaint commenced on January 23, 2014 and, on February 4, 2014, the jury returned a unanimous verdict in favor of the Company, rejecting Avid’s infringement allegations in their entirety. In January 2015, Avid filed an appeal with respect to the jury’s verdict with the Federal Circuit. In January 2016, the Federal Circuit issued an order vacating the verdict of noninfringement and remanding the case to the trial court for a new trial on infringement.

In June 2012, Avid served a subsequent complaint in the United States District Court for the District of Delaware alleging that the Company’s Spectrum product infringes one patent held by Avid. The complaint sought injunctive relief and unspecified damages. In September 2013, the U.S. Patent Trial and Appeal Board (“PTAB”) authorized an inter partes review to be instituted as to claims 1-16 of the patent asserted in this second complaint. In July 2014, the PTAB issued a decision finding claims 1-10 invalid and claims 11-16 not invalid. The Company filed an appeal with respect to the PTAB’s decision on claims 11-16 in September 2014, and the Federal Circuit affirmed the PTAB’s decision in April 2016.

In July 2017, the court issued a scheduling order consolidating both cases and setting the trial date for November 6, 2017.

On October 19, 2017, the parties agreed to settle the consolidated cases by entering into a settlement and patent portfolio cross-license agreement, and the cases were dismissed with prejudice. In connection with the agreement, the Company recorded a $6.0 million litigation settlement expense in “Selling, general and administrative expenses” in the Company’s 2017 Consolidated Statement of Operations. Of the associated $6.0 million liability, $2.5 million was paid in October 2017 and the remaining $1.5 million and $2.0 million will be paid in the second quarter of 2019 and the third quarter of 2020, respectively.

From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably probable losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated.

Basis of Presentation and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 29, 2019

Accounting Policies [Abstract]

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company’s reported financial positions or results of operations may be materially different under changed conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies. If estimates or assumptions differ from actual results, subsequent periods are adjusted to reflect more current information.

Reclassification

Reclassifications

Certain prior period balances have been reclassified to conform to the current period’s presentation. These reclassifications did not have a material impact on previously reported financial statements.

Beginning in the first quarter of fiscal 2019, the Company revised the classification of total revenue in the Condensed Consolidated Statements of Operations from the two previous categories, “Product” and “Service”, to two new categories, “Appliance and integration” and “SaaS and service”. The Company has also reclassified revenue into the two new categories for all prior periods to conform to the current period’s presentation. This reclassification within revenue did not have an impact on total revenue or any segment revenue for any periods presented.

Significant Accounting Policies

The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2018 Form 10-K. There have been no significant changes to these policies during the three months ended March 29, 2019 other than those disclosed in Note 2, “Recent Accounting Pronouncements”.

Recent Accounting Pronouncements

In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The Company adopted this new standard in the first quarter of fiscal 2019, and the adoption resulted in an adjustment of $1.4 million as the cumulative effect adjustment to opening retained earnings relating to the accounting of warrants which were previously granted to Comcast. This represents the cumulative impact of the remeasurement of unvested Comcast warrants on the date of adoption. See Note 15, “Warrants” for additional information.

ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40)

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs for implementation activities in the application development stage can be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement. The amendments in the new ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element.

The Company early adopted this new standard in the third quarter of fiscal 2018 and applied it prospectively to all implementation costs incurred after the date of adoption. The adoption of this standard did not have a significant impact on the Company’s Consolidated Financial Statements for the year ended December 31, 2018. During the three months period ended March 29, 2019, the Company incurred a total implementation cost of $0.1 million which were included in “Other long-term assets” on the Company’s Condensed Consolidated Balance Sheets.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets and certain other instruments. For trade receivables and other instruments, the Company will be required to use a new forward-looking “expected loss” model. Additionally, credit losses on available-for-sale debt securities should be recorded through an allowance for credit losses limited to the amount by which fair value is below amortized cost. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 and early adoption is permitted. The adoption of the new ASU is not expected to have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new ASU removes Step 2 of the goodwill impairment test and requires the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will then be the amount by which a reporting unit's carrying value exceeds its fair value. The new ASU will be effective for the Company beginning in the first quarter of fiscal 2020 on a prospective basis, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, which removes, modifies and adds to the disclosure requirements on fair value measurements in Topic 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. This guidance will become effective for the Company in fiscal years beginning after December 15, 2019, including interim periods within that reporting period. Early adoption is permitted upon issuance of this updated guidance. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this updated guidance and delay adoption of the additional disclosures until their effective date. The Company does not currently hold any level 3 assets or liabilities which require recurring measurements and the Company expects the impact to its disclosure will be relatively limited.

In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General Subtopic 715-20 - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which is designed to improve the effectiveness of disclosures by removing and adding disclosures related to defined benefit plans. The new ASU is effective for the Company for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

Derivatives and Hedging Activities

Derivatives Not Designated as Hedging Instruments (Balance Sheet Hedges)

Offsetting of Derivative Assets and Liabilities

Fair Value of Financial Instruments


•	Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

•


•	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.

Goodwill and Intangible Assets, Goodwill

Share-based Compensation Expense

Segment Information

Unallocated Corporate Expenses

Warranties and Indemnification

Revenue

Revenue Revenue (Tables)

3 Months Ended

Mar. 29, 2019

Revenue from Contract with Customer [Abstract]

Contract assets and Deferred Revenue

Contract assets and deferred revenue consisted of the following:



	As of
	March 29, 2019		March 30, 2018
Contract assets	$	3,707	$	3,834
Deferred revenue	51,628		46,922

Lease (Tables)

3 Months Ended

Mar. 29, 2019

Leases [Abstract]

Components of Lease Expenses

The components of lease expense are as follows:



	Three months ended
	March 29, 2019
Operating lease cost	$	1,996
Variable lease cost	779
Total lease cost	$	2,775

Other information related to leases are as follows:



	Three months ended
	March 29, 2019
Supplemental cash flow information
Operating cash flows from operating leases	$	2,130
Operating leases
Weighted-average remaining lease term (years)	6.9 years
Weighted-average discount rate	5.5		%

Future Minimum Lease Payments under non-cancellable Operating Leases

Future minimum lease payments under non-cancelable operating leases as of March 29, 2019 are as follows (in thousands):



Years ending December 31,
2019 (remaining nine months)	$	8,329
2020	8,494
2021	3,914
2022	2,487
2023	2,189
Thereafter	6,614
Total future minimum lease payments	$	32,027
Less: imputed interest	(5,044		)
Total	$	26,983

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum lease payments under non-cancelable operating leases as of December 31, 2018, as disclosed in our 2018 Annual Report on Form 10-K filed with SEC, were as follows (in thousands):



Years ending December 31,
2019	$	13,515
2020	10,139
2021	4,088
2022	2,523
2023	2,220
Thereafter	6,694
Total future minimum lease payments	$	39,179

Derivative and Hedging Activities (Tables)

3 Months Ended

Mar. 29, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments gain and losses by Statement of Operations locations

Losses on the non-designated derivative instruments recognized during the periods presented were as follows (in thousands):



		Three months ended
	Financial Statement Location	March 29, 2019			March 30, 2018
Derivatives not designated as hedging instruments:
Losses recognized in income	Other expense, net	$	(565	)	$	(113	)

Schedule of Notional Amounts of Outstanding Derivative Positions

The U.S. dollar equivalents of all outstanding notional amounts of foreign currency forward contracts are summarized as follows (in thousands):



	March 29, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Purchase	$	26,617	$	28,975

Schedule of Derivatives Instruments Balance Sheet Location

The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets are as follows (in thousands):



		Asset Derivatives					Derivative Liabilities
	Balance Sheet Location	March 29, 2019		December 31, 2018		Balance Sheet Location	March 29, 2019		December 31, 2018
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	22	$	—	Accrued and other current liabilities	$	181	$	333
Total derivatives		$	22	$	—		$	181	$	333

Changes in fair values of non-designated foreign currency forward contracts

As of March 29, 2019, information related to the offsetting arrangements was as follows (in thousands):



	Gross Amounts of Derivatives		Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets	Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets
Derivative assets	$	22	—	$	22
Derivative liabilities	$	181	—	$	181

Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Fair Value Measurements (Tables)

3 Months Ended

Mar. 29, 2019

Fair Value Disclosures [Abstract]



	Level 1		Level 2		Level 3		Total
As of March 29, 2019
Prepaid expenses and other current assets
Derivative assets	$	—	$	22	$	—	$	22
Total assets measured and recorded at fair value	$	—	$	22	$	—	$	22
Accrued and other current liabilities
Derivative liabilities	$	—	$	181	$	—	$	181
Total liabilities measured and recorded at fair value	$	—	$	181	$	—	$	181
	Level 1		Level 2		Level 3		Total
As of December 31, 2018
Accrued and other current liabilities
Derivative liabilities	$	—	$	333	$	—	$	333
Total liabilities measured and recorded at fair value	$	—	$	333	$	—	$	333

Balance Sheet Components (Tables)

3 Months Ended

Mar. 29, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, Net

The following tables provide details of selected balance sheet components (in thousands):



	March 29, 2019			December 31, 2018
Accounts receivable, net:
Accounts receivable	$	61,345		$	85,292
Less: allowances for doubtful accounts and sales returns	(2,415		)	(3,497		)
Total	$	58,930		$	81,795

Inventories



	March 29, 2019		December 31, 2018
Inventories:
Raw materials	$	2,536	$	1,705
Work-in-process	833		991
Finished goods	15,769		12,267
Service-related spares	10,187		10,675
Total	$	29,325	$	25,638

Prepaid, and Other Current Assets



	March 29, 2019		December 31, 2018
Prepaid expenses and other current assets:
French R&D tax credits receivable⁽¹⁾	$	7,159	$	7,305
Prepaid expenses	6,219		4,834
Contract assets⁽²⁾	3,707		3,834
Deferred cost of revenue	1,318		3,671
Capitalized commission	933		1,098
Other	3,564		2,538
Total	$	22,900	$	23,280

(2) Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration.

Property, Plant and Equipment



	March 29, 2019			December 31, 2018
Property and equipment, net:
Machinery and equipment	$	74,956		$	75,094
Capitalized software	32,861			32,696
Leasehold improvements	14,953			14,951
Furniture and fixtures	6,031			6,049
Property and equipment, gross	128,801			128,790
Less: accumulated depreciation and amortization	(107,825		)	(106,469		)
Total	$	20,976		$	22,321

Other Long Term Assets



	March 29, 2019		December 31, 2018
Other long-term assets:
French R&D tax credits receivable	$	20,200	$	19,249
Deferred tax assets	9,198		8,695
Equity investment	3,593		3,593
Other	6,971		6,840
Total	$	39,962	$	38,377

Accrued Liabilities



	March 29, 2019		December 31, 2018
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	15,483	$	21,451
Operating lease liability (short-term)	10,660		—
Accrued warranty	4,587		4,869
Contingent inventory reserves	2,259		2,500
Accrued TVN VDP, current ⁽¹⁾	1,515		1,585
Accrued Avid litigation settlement, current	1,500		1,500
Others	17,234		20,856
Total	$	53,238	$	52,761

(1) See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

Other Non-current Liabilities



	March 29, 2019		December 31, 2018
Other non-current liabilities:
Operating lease liability (long-term)	$	16,323	$	—
Deferred revenue (long-term)	4,206		5,330
Others	9,702		12,898
Total	$	30,231	$	18,228

Goodwill and Identified Intangible Assets (Tables)

3 Months Ended

Mar. 29, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the three months ended March 29, 2019 were as follows (in thousands):



	Video			Cable Access		Total
Balance as of December 31, 2018	$	179,839		$	60,779	$	240,618
Foreign currency translation adjustment	(786		)	16		(770		)
Balance as of March 29, 2019	$	179,053		$	60,795	$	239,848

Summary of Goodwill and Identified Intangible Assets

The following is a summary of intangible assets, net (in thousands):



		March 29, 2019							December 31, 2018
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	0.9	$	31,707	$	(26,871	)	$	4,836	$	31,707	$	(25,576	)	$	6,131
Customer relationships/contracts	1.9	44,583		(38,855		)	5,728		44,650		(38,146		)	6,504
Trademarks and trade names	0.9	610		(470		)	140		623		(441		)	182
Maintenance agreements and related relationships	n/a	5,500		(5,500		)	—		5,500		(5,500		)	—
Order backlog	n/a	3,087		(3,087		)	—		3,112		(3,112		)	—
Total identifiable intangibles		$	85,487	$	(74,783	)	$	10,704	$	85,592	$	(72,775	)	$	12,817

Amortization Expense for Identifiable Purchased Intangible Assets

Amortization expense for the identifiable purchased intangible assets for the three months ended March 29, 2019 and March 30, 2018 was allocated as follows (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Included in cost of revenue	$	1,295	$	1,295
Included in operating expenses	788		804
Total amortization expense	$	2,083	$	2,099

Estimated Future Amortization Expense of Purchased Intangible Assets

The estimated future amortization expense of purchased intangible assets with definite lives is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total
Year ended December 31,
2019 (remaining nine months)	$	3,885	$	2,356	$	6,241
2020	951		3,014		3,965
2021	—		498		498
Total future amortization expense	$	4,836	$	5,868	$	10,704

Restructuring and Related Charges (Tables)

3 Months Ended

Mar. 29, 2019

Restructuring and Related Activities [Abstract]

Summary of restructuring activities

The following table summarizes the restructuring and related charges (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Restructuring and related charges in:
Cost of revenue	$	301	$	762
Operating expenses - Restructuring and related charges	57		1,086
Total restructuring and related charges	$	358	$	1,848

Schedule of Restructuring Reserve by Type of Cost

The following table summarizes the activities related to the Company’s restructuring plans during the three months ended March 29, 2019 (in thousands):



	Excess facilities			Severance and benefits			TVN VDP ⁽¹⁾			Total
Balance at December 31, 2018	$	2,926		$	—		$	2,409		$	5,335
Charges for current period	—			346			—			346
Adjustments to restructuring provisions	37			—			(25		)	12
Cash payments	(506		)	(144		)	(579		)	(1,229		)
Foreign exchange effect	—			—			(44		)	(44		)
Balance at March 29, 2019	$	2,457		$	202		$	1,761		$	4,420

Convertible Notes, Other Debts And Finance Lease (Tables)

3 Months Ended

Mar. 29, 2019

Debt Disclosure [Abstract]

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the Notes as of March 29, 2019 and December 31, 2018 (in thousands, except for years and percentages):



	March 29, 2019			December 31, 2018
Liability:
Principal amount	$	128,250		$	128,250
Less: Debt discount, net of amortization	(10,563		)	(11,996		)
Less: Debt issuance costs, net of amortization	(1,274		)	(1,446		)
Carrying amount	$	116,413		$	114,808
Remaining amortization period (years)	1.7			1.9
Effective interest rate on liability component	9.94		%	9.94		%
Carrying amount of equity component	$	26,062		$	26,062

Convertible Debt Interest

The following table presents interest expense recognized for the Notes (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Contractual interest expense	$	1,283	$	1,283
Amortization of debt discount	1,433		1,297
Amortization of debt issuance costs	172		156
Total interest expense recognized	$	2,888	$	2,736

Schedule of Other Debt and Capital Leases

The Company has a variety of debt and credit facilities in France to satisfy the financing requirements of TVN operations. These arrangements are summarized in the table below (in thousands):



	March 29, 2019			December 31, 2018
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	18,566		$	18,783
Term loans	819			914
Obligations under finance leases	141			162
Total debt obligations	19,526			19,859
Less: current portion	(7,124		)	(7,175		)
Long-term portion	$	12,402		$	12,684

Schedule of Maturities of Long-term Debt

The table below presents the future minimum repayments of debts and finance lease obligations for TVN as of March 29, 2019 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2019 (remaining nine months)	$	106	$	6,866
2020	35		6,475
2021	—		5,226
2022	—		443
2023	—		151
Thereafter	—		224
Total	$	141	$	19,385

Employee Benefit Plans and Stock-based Compensation (Tables)

3 Months Ended

Mar. 29, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Options Outstanding

The following table summarizes the Company’s stock option activities and related information during the three months ended March 29, 2019 (in thousands, except per share amounts and terms):



	Stock Options Outstanding
	Number of Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Balance at December 31, 2018	3,068		$	5.76
Exercised	(6	)	2.25
Canceled or expired	(379	)	6.14
Balance at March 29, 2019	2,683		5.71		2.4	$	1,646.6
As of March 29, 2019
Vested and expected to vest	2,683		5.71		2.4	$	1,646.3
Exercisable	2,673		5.72		2.4	$	1,633.5

Summary of Restricted Stock Units Outstanding

The following table summarizes the Company’s RSUs activities and related information during the three months ended March 29, 2019 (in thousands, except per share amounts):



	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2018	3,403		$	3.99
Granted	35		5.49
Vested	(1,313	)	3.91
Forfeited	(20	)	4.01
Balance at March 29, 2019	2,105		4.10

Schedule of Defined Benefit Plans Obligations

The table below presents the components of net periodic benefit costs (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Service cost	$	57	$	63
Interest cost	20		19
Net periodic benefit cost	$	77	$	82

Summary of Stock-Based Compensation Expense

Stock-based Compensation

The following table summarizes stock-based compensation for all plans (in thousands):



	Three months ended
	March 29, 2019		March 30, 2018
Stock-based compensation in:
Cost of revenue	$	225	$	515
Research and development expense	616		1,804
Selling, general and administrative expense	1,272		3,438
Total stock-based compensation in operating expense	1,888		5,242
Total stock-based compensation	$	2,113	$	5,757

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions



	ESPP Purchase Period Ending
	July 1, 2019		July 2, 2018
Expected term (years)	0.5		0.5
Volatility	43	%	60	%
Risk-free interest rate	2.5	%	1.7	%
Expected dividends	0.0	%	0.0	%
Estimated weighted average fair value per share at purchase date	$1.31		$1.34

Income Taxes (Tables)

3 Months Ended

Mar. 29, 2019

Income Tax Disclosure [Abstract]

Schedule of income before income tax

The Company reported the following operating results for the periods presented (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Loss before income taxes	$	(11,625	)	$	(12,616	)
Provision for (benefit from) income taxes	(319		)	1,078
Effective income tax rate	2.7		%	(8.5		)%

Net Loss Per Share (Tables)

3 Months Ended

Mar. 29, 2019

Earnings Per Share [Abstract]

Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations

The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except per share amounts):



	Three months ended
	March 29, 2019			March 30, 2018
Numerator:
Net loss	$	(11,306	)	$	(13,694	)
Denominator:
Weighted average number of common shares outstanding
Basic and diluted	88,165			83,912
Net loss per share:
Basic and diluted	$	(0.13	)	$	(0.16	)

Anti-dilutive Securities

The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	Three months ended
	March 29, 2019	March 30, 2018
Stock options	2,941	3,705
RSUs	2,400	2,206
Stock purchase rights under the ESPP	489	836
Warrants ⁽¹⁾	1,954	782
Total ⁽²⁾	7,784	7,529

Segment Information (Tables)

3 Months Ended

Mar. 29, 2019

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

The following table provides summary financial information by reportable segment (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Video
Revenue	$	67,176		$	71,748
Gross profit	38,602			41,226
Operating income	1,968			1,995
Cable Access
Revenue	$	12,930		$	18,379
Gross profit	5,068			8,529
Operating loss	(5,822		)	(1,624		)
Total
Revenue	$	80,106		$	90,127
Gross profit	43,670			49,755
Operating income (loss)	(3,854		)	371

A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Total segment operating income (loss)	(3,854		)	371
Unallocated corporate expenses	(358		)	(1,842		)
Stock-based compensation	(2,113		)	(5,757		)
Amortization of intangibles	(2,083		)	(2,099		)
Loss from operations	(8,408		)	(9,327		)
Non-operating expense, net	(3,217		)	(3,289		)
Loss before income taxes	$	(11,625	)	$	(12,616	)

Revenue from External Customers by Geographic Areas



	Three months ended
	March 29, 2019		March 30, 2018
Net Revenue ⁽¹⁾
United States	$	30,115	$	41,776
Other Countries	49,991		48,351
Total	$	80,106	$	90,127

(1) Revenue is attributed to countries based on the location of the customer.

Revenue from External Customers by Products and Services [Table Text Block]

Market Information



	Three months ended
	March 29, 2019		March 30, 2018
Market
Service Provider	$	44,212	$	52,217
Broadcast and Media	35,894		37,910
Total	$	80,106	$	90,127

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 29, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary of Warranty Accrual Included in Accrued Liabilities

Activity for the Company’s warranty accrual, which is included in “Accrued and other current liabilities”, is summarized below (in thousands):



	Three months ended
	March 29, 2019			March 30, 2018
Balance at beginning of period	$	4,869		$	4,381
Accrual for current period warranties	1,403			1,736
Warranty costs incurred	(1,685		)	(1,595		)
Balance at end of period	$	4,587		$	4,522

Recent Accounting Pronouncements - Narratives (Details) - USD ($) $ in Thousands		3 Months Ended
	Jan. 01, 2019	Mar. 29, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets		$ 21,616
Operating Lease, Liability		26,983
Impact of Topic 842 on Statement of Cash Flow		2,130
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets	$ 23,300
Operating Lease, Liability	23,300
Cumulative Effect on Retained Earnings, Net of Tax	0
Impact of Topic 842 on Statement of Cash Flow	0
Accounting Standards Update 2018-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect on Retained Earnings, Net of Tax	$ 1,400
Other long-term assets \| Accounting Standards Update 2018-15 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total implementation costs included in Other long-term assets		100
Level 3 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets measured and recorded at fair value		0
Financial Liabilities Fair Value Disclosure		$ 0

Revenue Narratives (Details) - USD ($) $ in Millions	3 Months Ended
Revenue Narratives (Details) - USD ($) $ in Millions	Mar. 29, 2019	Mar. 30, 2018
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contract with Customer, Liability, Revenue Recognized	$ 21.2	$ 19.9
Maximum [Member]
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration	1 year

Revenue Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Mar. 30, 2018
Prepaid Expenses and Other Current Assets [Member]
Capitalized Contract Cost [Line Items]
Contract assets	$ 3,707	$ 3,834
Other Noncurrent Liabilities [Member]
Capitalized Contract Cost [Line Items]
Deferred revenue	$ 51,628	$ 46,922

Lease - Narratives (Details) - Building [Member]	3 Months Ended
Lease - Narratives (Details) - Building [Member]	Mar. 29, 2019
Minimum [Member]
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	1 year
Maximum [Member]
Operating Leased Assets [Line Items]
Lessee, Operating Lease, Term of Contract	10 years
Lessee, Operating Lease, Initial Term Not Capitalized	12 months

Lease - Lease Information (Details) $ in Thousands	3 Months Ended
Lease - Lease Information (Details) $ in Thousands	Mar. 29, 2019 USD ($)
Leases [Abstract]
Operating lease cost	$ 1,996
Variable lease cost	779
Total lease cost	2,775
Operating cash flows from operating leases	$ 2,130
Weighted-average remaining lease term (years), Operating leases	6 years 10 months 24 days
Weighted-average discount rate, Operating leases	5.50%

Leases Lease - Future Minimum Lease Payments from non-cancellable Operating Leases as of March 29, 2019 (Details) $ in Thousands	Mar. 29, 2019 USD ($)
Leases [Abstract]
2019 (remaining nine months)	$ 8,329
2020	8,494
2021	3,914
2022	2,487
2023	2,189
Thereafter	6,614
Total future minimum lease payments	32,027
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(5,044)
Operating Lease, Liability	$ 26,983

Leases Future Mimimum Lease Payments under Non Cancellable Operating Lease as of December 31, 2018 (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 13,515
2020	10,139
2021	4,088
2022	2,523
2023	2,220
Thereafter	6,694
Total future minimum lease payments	$ 39,179

Investments in Equity Securities (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - EDC [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 29, 2019	Oct. 22, 2014
Schedule of Cost-method Investments [Line Items] (Deprecated 2018-01-31)
Noncontrolling Interest, Ownership Percentage by Parent		18.40%
Cost Method Investments Original Cost		$ 3.5
Cost-method Investments, Other than Temporary Impairment	$ 0.0
Maximum Exposure to Loss from Investment	3.6
Variable Interest Entity, Transaction Costs, Amount	$ 0.1

Derivatives and Hedging Activities - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 29, 2019 USD ($)
Not Designated as Hedging Instrument [Member] \| Forward Contracts [Member]
Derivative [Line Items]
Derivative, Term of Contract	3 months
Israel [Member]
Derivative [Line Items]
Compensating Balance, Amount	$ 1.0

Derivative and Hedging Activities gain losses in Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Other Nonoperating Income (Expense) [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Gains (losses) recognized in income	$ (565)	$ (113)

Derivatives and Hedging Activities Notional Amounts (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Long [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member] \| Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Purchase - Derivative Assets	$ 26,617	$ 28,975

Derivatives and Hedging Activities Assets Liabilities Balance Sheet Location (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	$ 22	$ 0
Derivative Liability, Current	181	333
Not Designated as Hedging Instrument [Member] \| Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	22	0
Not Designated as Hedging Instrument [Member] \| Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Current	$ 181	$ 333

Derivatives and Hedging Activities Asset and Liability Offset (Details) $ in Thousands	Mar. 29, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Gross Amounts of Derivatives	$ 22
Derivative Assets, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets	0
Net Amounts of Derivative Assets Presented in the Condensed Consolidated Balance Sheets	22
Derivative Liabilities, Gross Amounts of Derivatives	181
Derivative Liabilities, Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets	0
Net Amounts of Derivatives Liability Presented in the Condensed Consolidated Balance Sheets	$ 181

Fair Value Measurements - Narratives (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	$ 147,800	$ 136,500
Other Debts, Excluding Finance Leases	19,400	19,700
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	0
Total assets measured and recorded at fair value	0
TVN [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Postemployment Benefits Liability	1,800	$ 2,400
Other Debts, Excluding Finance Leases	$ 19,385

Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 61,345	$ 85,292
Less: allowances for doubtful accounts and sales returns	(2,415)	(3,497)
Accounts Receivable, Net, Current	$ 58,930	$ 81,795

Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 2,536	$ 1,705
Work-in-process	833	991
Finished goods	15,769	12,267
Service-related spares	10,187	10,675
Inventory, Net	$ 29,325	$ 25,638

Balance Sheet Components - Prepaid Expenses And Other Current Assets (Details) - USD ($)
$ in Thousands

Mar. 29, 2019

Dec. 31, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

French R&D tax credits receivable(1)

^[1]

$ 7,159

$ 7,305

Prepaid expenses

6,219

4,834

Contract assets(2)

^[2]

3,707

3,834

Deferred cost of revenue

1,318

3,671

Capitalized commission

933

1,098

Other

3,564

2,538

Prepaid Expense and Other Assets, Current

$ 22,900

$ 23,280

[1]

The Company’s TVN subsidiary in France (the “TVN French Subsidiary”) participates in the French Crédit d’Impôt Recherche program (the “R&D tax credits”) which allows companies to monetize eligible research expenses. The R&D tax credits can be used to offset against income tax payable to the French government in each of the four years after being incurred, or if not utilized, are recoverable in cash. The amount of R&D tax credits recoverable are subject to audit by the French government. The R&D tax credits receivable at March 29, 2019 were approximately $27.4 million and are expected to be recoverable from 2019 through 2022 with $7.2 million reported as a component of “Prepaid expenses and other current assets” and $20.2 million reported as a component of “Other long-term assets” on the Company’s Condensed Consolidated Balance Sheets.

[2]

Contract assets reflect the satisfied performance obligations for which the Company does not yet have an unconditional right to consideration.

Balance Sheet Components Additional Information (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 29, 2019

Dec. 31, 2018

French R&D tax credits receivable(1)

^[1]

$ 7,159

$ 7,305

French R&D tax credits receivable, noncurrent

20,200

$ 19,249

TVN [Member]

R&D tax credits receivable expected to be recoverable from 2019 through 2022

$ 27,400

TVN [Member] | Research Tax Credit Carryforward [Member]

The number of years R&D tax credits can be used to offset against income tax payable after incurred

4 years

R&D tax credits receivable expected to be recoverable from 2019 through 2022

$ 27,400

Prepaid Expenses and Other Current Assets [Member] | TVN [Member] | Research Tax Credit Carryforward [Member]

French R&D tax credits receivable(1)

7,200

Other Noncurrent Assets [Member] | TVN [Member] | Research Tax Credit Carryforward [Member]

French R&D tax credits receivable, noncurrent

$ 20,200

[1]

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 128,801	$ 128,790
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(107,825)	(106,469)
Property, Plant and Equipment, Net	20,976	22,321
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	74,956	75,094
Capitalized Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	32,861	32,696
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	14,953	14,951
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 6,031	$ 6,049

Balance Sheet Components - Other Long Term Assets (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
French R&D tax credits receivable	$ 20,200	$ 19,249
Deferred tax assets	9,198	8,695
Equity investment	3,593	3,593
Other	6,971	6,840
Other Assets, Noncurrent	$ 39,962	$ 38,377

Balance Sheet Components - Accrued and Other Current Liabilities (Details) - USD ($)
$ in Thousands

Mar. 29, 2019

Dec. 31, 2018

Payables and Accruals [Abstract]

Accrued employee compensation and related expenses

$ 15,483

$ 21,451

Operating lease liability (short-term)

10,660

Accrued warranty

4,587

4,869

Contingent inventory reserves

2,259

2,500

Accrued TVN VDP, current (1)

^[1]

1,515

1,585

Accrued Avid litigation settlement, current

1,500

Others

17,234

20,856

Accrued Liabilities, Current

$ 53,238

$ 52,761

[1]	See Note 10, “Restructuring and related charges-TVN VDP,” for additional information on the Company’s TVN VDP liabilities.

Balance Sheet Components - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Operating lease liability (long-term)	$ 16,323
Deferred revenue (long-term)	4,206	$ 5,330
Others	9,702	12,898
Other Liabilities, Noncurrent	$ 30,231	$ 18,228

Goodwill and Intangible Assets - Narratives (Details)	3 Months Ended
Goodwill and Intangible Assets - Narratives (Details)	Mar. 29, 2019 ReportingUnit
Goodwill [Line Items]
Number of Reporting Units	2

Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	3 Months Ended
	Mar. 29, 2019 USD ($)
Goodwill [Line Items]
Balance at beginning of period	$ 240,618
Foreign currency translation adjustment	(770)
Balance at end of period	239,848
Video [Member]
Goodwill [Line Items]
Balance at beginning of period	179,839
Foreign currency translation adjustment	(786)
Balance at end of period	179,053
Cable Access [Member]
Goodwill [Line Items]
Balance at beginning of period	60,779
Foreign currency translation adjustment	16
Balance at end of period	$ 60,795

Goodwill and Identified Intangible Assets - Summary of Goodwill and Identified Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 85,487	$ 85,592
Accumulated Amortization	(74,783)	(72,775)
Total future amortization expense	$ 10,704	12,817
Developed Core Technology
Finite-Lived Intangible Assets [Line Items]
Useful Life	10 months 24 days
Gross Carrying Amount	$ 31,707	31,707
Accumulated Amortization	(26,871)	(25,576)
Total future amortization expense	$ 4,836	6,131
Customer relationships/contracts
Finite-Lived Intangible Assets [Line Items]
Useful Life	1 year 10 months 24 days
Gross Carrying Amount	$ 44,583	44,650
Accumulated Amortization	(38,855)	(38,146)
Total future amortization expense	$ 5,728	6,504
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Useful Life	10 months 24 days
Gross Carrying Amount	$ 610	623
Accumulated Amortization	(470)	(441)
Total future amortization expense	140	182
Maintenance Agreements and Related Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,500	5,500
Accumulated Amortization	(5,500)	(5,500)
Total future amortization expense	0	0
Order Backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,087	3,112
Accumulated Amortization	(3,087)	(3,112)
Total future amortization expense	$ 0	$ 0

Goodwill and Identified Intangible Assets - Amortization Expense for Identifiable Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Included in cost of revenue	$ 1,295	$ 1,295
Included in operating expenses	788	804
Total amortization expense	$ 2,083	$ 2,099

Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
2019 (remaining nine months)	$ 6,241
2020	3,965
2021	498
Total future amortization expense	10,704	$ 12,817
Cost of Revenue [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2019 (remaining nine months)	3,885
2020	951
2021	0
Total future amortization expense	4,836
Operating Expense [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2019 (remaining nine months)	2,356
2020	3,014
2021	498
Total future amortization expense	$ 5,868

Restructuring and Related Charges - Additional Information (Detail) - USD ($)
$ in Thousands

1 Months Ended

3 Months Ended

12 Months Ended

Aug. 31, 2018

Mar. 29, 2019

Dec. 31, 2018

$ 346

1,229

4,420

$ 5,335

Restructuring Reserve, Current

(12)

3,200

3,300

Restructuring Reserve, Noncurrent

1,200

2,000

Facility Closing [Member]

506

2,457

2,926

Facility Closing [Member] | Harmonic 2017 Restructuring Plan [Member]

(37)

Facility Closing [Member] | Prior Restructuring Plans [Member]

200

Employee Severance [Member]

4,200

346

144

Employee Severance [Member] | Harmonic 2019 Restructuring Plan [Member]

202

300

100

TVN Voluntary Departure Plan [Member]

200

^[1]

579

^[1]

1,761

2,409

^[1]

TVN [Member]

Postemployment Benefits Liability

1,800

$ 2,400

San Jose CA Excess Facility [Member] | Facility Closing [Member] | Harmonic 2018 Restructuring Plan [Member]

$ 900

$ 900

[1]	“TVN VDP” consists of restructuring-related costs in connection with the TVN acquisition that included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France.

Restructuring and Related Charges Restructuring and Related Charges, COS & OPEX (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Restructuring and Related Activities [Abstract]
Cost of revenue - restructuring and related charges	$ 301	$ 762
Operating expenses - Restructuring and related charges	57	1,086
Restructuring Charges	$ 358	$ 1,848

Restructuring and Related Charges Schedule of Restructuring Cost by Types (Details)
$ in Thousands

3 Months Ended

Mar. 29, 2019

USD ($)

Charges for current period

$ 5,335

346

Adjustments to restructuring provisions

(1,229)

Foreign exchange effect

(44)

Facility Closing [Member]

4,420

Adjustments to restructuring provisions

2,926

(506)

Employee Severance [Member]

2,457

Charges for current period

346

(144)

TVN Voluntary Departure Plan [Member]

202

Adjustments to restructuring provisions

2,409

^[1]

(25)

^[1]

(579)

^[1]

Foreign exchange effect

(44)

^[1]

$ 1,761

^[1]

[1]	“TVN VDP” consists of restructuring-related costs in connection with the TVN acquisition that included global workforce reductions, exiting certain operating facilities and disposing of excess assets and an employee voluntary departure plan in France.

Convertible Notes, Other Debts And Finance Lease - Narratives (Details)
$ / shares in Units, shares in Millions

3 Months Ended

12 Months Ended

Dec. 14, 2015

Mar. 29, 2019

USD ($)

$ / shares

Dec. 31, 2015

USD ($)

day

$ / shares

Dec. 31, 2018

USD ($)

$ / shares

Sep. 27, 2017

USD ($)

Debt Instrument, Interest Rate, Stated Percentage

4.00%

Common stock, par value | $ / shares

$ 0.001

Debt Instrument, Face Amount

$ 128,250,000

Debt Instrument, Convertible, Conversion Ratio

173.9978

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 5.75

Debt Issuance Cost, Gross, Noncurrent

$ 4,100,000

Percentage Of Principal Amount Of Convertible Notes Is Equal To Repurchase Price

100.00%

Carrying amount of equity component

$ 26,062,000

26,062,000

Financing from French government agencies related to various government incentive programs (1)

^[1]

18,566,000

18,783,000

Letters of Credit Outstanding, Amount

2,200,000

2,300,000

Stock price greater or equal 130 percent of Note Conversion Price [Member]

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

130.00%

Note price less than 98 percent of stock price times conversion rate [Member]

Debt Instrument, Convertible, Threshold Trading Days | day

Debt Instrument, Convertible, Threshold Consecutive Trading Days | day

Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger

98.00%

Privately Negotiated Transactions [Member]

Proceeds from Convertible Debt

$ 49,900,000

Stock Repurchased and Retired During Period, Shares | shares

11.1

TVN [Member]

Proceeds from Convertible Debt

$ 74,200,000

Income Taxes Receivable

$ 27,400,000

Loans Backed By French Research And Development Tax Credit Receivables [Member] | TVN [Member]

Debt Instrument, Interest Rate, Stated Percentage

0.60%

Financing from French government agencies related to various government incentive programs (1)

^[1]

$ 16,400,000

$ 16,700,000

Loans From French Government For R&D Innovation Projects [Member]

1.30%

Financing from French government agencies related to various government incentive programs (1)

^[1]

$ 2,200,000

Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

Minimum Net Worth Required for Compliance

20,000,000

Minimum Liquidity Amount

10,000,000

Letters of Credit Outstanding, Amount

1,800,000

Line of Credit Facility, Fair Value of Amount Outstanding

$ 0

London Interbank Offered Rate (LIBOR) | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

Euribor | Loans Backed By French Research And Development Tax Credit Receivables [Member] | TVN [Member]

2.25%

Adjusted EURIBOR Rate, Term

1 month

Comply with Liquidity Requirement [Member] | Prime Rate | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

Not Comply with Liquidity Requirement [Member] | Prime Rate | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

0.00%

Maximum [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

0.25%

Line of Credit Facility, Current Borrowing Capacity

$ 15,000,000

Outstanding Borrowing Limit Based on Eligible Receivables, Percentage

85.00%

Minimum [Member] | Revolving Credit Facility [Member] | Silicon Valley Bank [Member]

Covenant Ratio of Short Term Asset to Short Term Liabilities

110.00%

[1]

As of March 29, 2019 and December 31, 2018, loans backed by French R&D tax credit receivables were $16.4 million and $16.7 million, respectively. As of March 29, 2019, the TVN French Subsidiary had an aggregate of $27.4 million of R&D tax credit receivables from the French government from 2019 through 2022. See Note 8, “Balance Sheet Components” for additional information. These tax loans have a fixed rate of 0.6%, plus EURIBOR 1 month + 1.3% and mature between 2019 through 2021. The remaining loans of $2.2 million at March 29, 2019, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2019 through 2025.

Convertible Notes, Other Debts And Capital Leases - Convertible Note Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 29, 2019	Dec. 31, 2018	Dec. 31, 2015
Debt Instrument [Line Items]
Principal amount	$ 128,250	$ 128,250	$ 128,250
Less: Debt discount, net of amortization	(10,563)	(11,996)
Less: Debt issuance costs, net of amortization	(1,274)	(1,446)
Carrying amount	$ 116,413	$ 114,808
Remaining amortization period (years)	1 year 8 months 12 days	1 year 10 months 24 days
Effective interest rate on liability component	9.94%	9.94%
Carrying amount of equity component	$ 26,062	$ 26,062

Convertible Notes, Other Debts And Finance Leases - Interest (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Debt Disclosure [Abstract]
Contractual interest expense	$ 1,283	$ 1,283
Amortization of debt discount	1,433	1,297
Amortization of debt issuance costs	172	156
Total interest expense recognized	$ 2,888	$ 2,736

Convertible Notes , Other Debts And Finance Leases - Other Debt and Capital Lease Obligations (Details) - USD ($)
$ in Thousands

Mar. 29, 2019

Dec. 31, 2018

Financing from French government agencies related to various government incentive programs (1)

^[1]

$ 18,566

$ 18,783

Term loans

819

914

Obligations under finance leases

141

162

Total debt obligations

19,526

19,859

Less: current portion

(7,124)

(7,175)

Long-term portion

$ 12,402

$ 12,684

[1]

Convertible Notes, Other Debts And Finance Leases - Debt Maturities (Details) - TVN [Member] $ in Thousands	Mar. 29, 2019 USD ($)
Debt Instrument [Line Items]
Finance Leases, 2019 (remaining nine months)	$ 106
Finance Leases, 2020	35
Finance Leases, Total	141
Other debt obligations - 2019 (remaining nine months)	6,866
Other debt obligations - 2020	6,475
Other debt obligations - 2021	5,226
Other debt obligations - 2022	443
Other debt obligations - 2023	151
Other debt obligations - thereafter	224
Other debt obligations Total	$ 19,385

Employee Benefit Plans and Stock-based Compensation - Additional Information (Detail) - USD ($) shares in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options	$ 0	$ 0
Defined Benefit Plan, Benefit Obligation	4,900,000		$ 4,900,000
Liability, Defined Benefit Pension Plan, Current	100,000
Liability, Defined Benefit Pension Plan, Noncurrent	$ 4,800,000
Discretionary contributions of plan	25.00%
Percent of employees' gross pay eligible for matching	4.00%
Maximum contribution amount per participant	$ 1,000
Contributions in period	122,000	$ 112,000
Dividends, Share-based Compensation, Cash	$ 0
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	800
Discount Percentage On Purchase Of Stock	15.00%
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	4,800
Grants in Period, Number of Shares	0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 6,900,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 5 months 9 days
TVN [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payment for Pension and Other Postretirement Benefits	$ 0
Call Option [Member] \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value of Common Stock to purchase shares	85.00%
Put Option [Member] \| Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value of Common Stock to purchase shares	15.00%

Employee Benefit Plans and Stock-based Compensation - Summary of Stock Options Outstanding (Detail) - Employee Stock Option [Member] $ / shares in Units, shares in Thousands	3 Months Ended
	Mar. 29, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Beginning balance \| shares	3,068
Weighted Average Exercise Price, Beginning balance \| $ / shares	$ 5.76
Number of Shares, Options exercised \| shares	(6)
Weighted Average Exercise Price, Options exercised \| $ / shares	$ 2.25
Canceled or expired \| shares	(379)
Canceled or Expired, Weighted Average Exercise Price \| $ / shares	$ 6.14
Number of Shares, Ending balance \| shares	2,683
Weighted Average Exercise Price, Ending balance \| $ / shares	$ 5.71
Weighted Average Remaining Contractual Term	2 years 4 months 24 days
Aggregate Intrinsic Value \| $	$ 1,646,600
Number of Shares, Vested and expected to vest \| shares	2,683
Weighted Average Exercise Price, Vested and expected to vest \| $ / shares	$ 5.71
Weighted Average Remaining Contractual Term (Years), Vested and expected to vest	2 years 4 months 24 days
Aggregate Intrinsic Value, Vested and expected to vest \| $	$ 1,646,300
Number of Shares, Exercisable \| shares	2,673
Weighted Average Exercise Price, Exercisable \| $ / shares	$ 5.72
Weighted Average Remaining Contractual Term (Years), Exercisable	2 years 4 months 24 days
Aggregate Intrinsic Value, Exercisable \| $	$ 1,633,500

Employee Benefit Plans and Stock-based Compensation - Summary of Restricted Stock Units Outstanding (Detail) - Restricted Stock Units Outstanding [Member] shares in Thousands	3 Months Ended
	Mar. 29, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units, Beginning balance \| shares	3,403
Weighted Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 3.99
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period \| shares	35
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 5.49
Number of Units, Shares released \| shares	(1,313)
Vested in Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 3.91
Number of Units, Forfeited or cancelled \| shares	(20)
Weighted Average Grant Date Fair Value, Forfeited or cancelled \| $ / shares	$ 4.01
Number of Units, Ending balance \| shares	2,105
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 4.10

Employee Benefit Plans and Stock-based Compensation - Summary of Projected Benefit Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Employee Benefits and Share-based Compensation, Noncash [Abstract]
Service cost	$ 57	$ 63
Interest cost	20	19
Net periodic benefit cost included in operating loss	$ 77	$ 82

Employee Benefit Plans and Stock-based compensation - Stock-based Compensation in Opex (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 2,113	$ 5,757
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	225	515
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	616	1,804
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	1,272	3,438
Operating Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation	$ 1,888	$ 5,242

Employee Benefit Plans and Stock-based Compensation - Summary of Stock Awards Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	6 Months Ended
	Jul. 01, 2019	Jun. 29, 2018
Purchase Period July 2, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 months
Volatility		60.00%
Risk-free interest rate		1.70%
Expected dividends		0.00%
Estimated weighted average fair value per share at purchase date		$ 1.34
Scenario, Forecast [Member] \| Purchase Period July 1, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 months
Volatility	43.00%
Risk-free interest rate	2.50%
Expected dividends	0.00%
Estimated weighted average fair value per share at purchase date	$ 1.31

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Mar. 30, 2018
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (11,625)	$ (12,616)
Provision for (benefit from) income taxes	$ (319)	$ 1,078
Effective income tax rate	2.70%	(8.50%)

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 29, 2019	Mar. 30, 2018	Mar. 27, 2020
Income Tax Contingency [Line Items]
Effective income tax rate	2.70%	(8.50%)
Federal statutory income tax rate	21.00%	21.00%
Unrecognized Tax Benefits	$ 17,500
Unrecognized tax benefits that would impact the provision for income taxes	16,200
Interest and possible penalties related to uncertain tax positions	30
Unrecognized Tax Benefit Decrease	400
One foreign subsidiary
Income Tax Contingency [Line Items]
One-time benefit due to valuation allowance release	$ 800
Scenario, Forecast [Member]
Income Tax Contingency [Line Items]
Decrease in Unrecognized Tax Benefits Resulting From Settlements with Taxing Authorities			$ 300

Net Loss Per Share - Numerators and Denominators of Basic and Diluted Net Income (Loss) Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Numerator:
Net loss	$ (11,306)	$ (13,694)
Denominator:
Basic and diluted	88,165	83,912
Net loss per share:
Basic and diluted	$ (0.13)	$ (0.16)

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Loss Per Share - Anti-dilutive Securities (Detail) - $ / shares

3 Months Ended

Mar. 29, 2019

Mar. 30, 2018

Dec. 31, 2015

Debt Instrument, Convertible, Conversion Price

^[1]

7,784,000

7,529,000

$ 5.75

Stock Option

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Restricted Stock Units (RSUs)

2,941,000

3,705,000

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Employee Stock Purchase Plan

2,400,000

2,206,000

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

489,000

836,000

Warrant

Convertible Debt Securities

^[2]

1,954,000

782,000

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

22,304,348

[1]

Excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. (See Note 11, “Convertible Notes, Other Debts and Finance Leases” for additional information on the Notes). Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share.

[2]

On September 26, 2016, in connection with the execution of a product supply agreement pursuant to which an affiliate of Comcast Corporation (together with Comcast Corporation, “Comcast”) may, in its sole discretion, purchase from the Company licenses to certain of the Company’s software products, the Company granted Comcast a warrant to purchase shares of its common stock. (See Note 15, “Warrants” for additional information).

Warrants (Details) $ / shares in Units, $ in Thousands	3 Months Ended
Warrants (Details) $ / shares in Units, $ in Thousands	Mar. 29, 2019 USD ($) shares	Mar. 30, 2018 USD ($)	Dec. 31, 2018 Measurement_Input	Jul. 31, 2018 shares	Sep. 26, 2016 $ / shares shares
Class of Warrant or Right [Line Items]
Warrants, Exercise Price of Warrants \| $ / shares					$ 4.76
Reduction to net revenues - amortization of the Warrant \| $	$ 25	$ 111
Comcast Product Supply Agreement [Member]
Class of Warrant or Right [Line Items]
Right to purchase shares vested					781,617
Comcast Milestones Achievement [Member]
Class of Warrant or Right [Line Items]
Right to purchase shares vested				1,172,425
Comcast Milestone Acceptance Of Completion Of Field Trials [Member]
Class of Warrant or Right [Line Items]
Right to Purchase Additional Shares Subject to Vesting	781,617
Measurement Input, Expected Dividend Rate [Member] \| Comcast Warrant Vesting Tranche July 31, 2018 [Member]
Class of Warrant or Right [Line Items]
Warrants and Rights Outstanding, Measurement Input \| Measurement_Input			0
Maximum [Member] \| Comcast Warrant Expires September 26, 2023 [Member]
Class of Warrant or Right [Line Items]
Warrant Grant to Purchase Shares of Common Stock					7,816,162

Segment Information - Summary Financial Infomation by reportable segments (Details)
$ in Thousands

3 Months Ended

Mar. 29, 2019

USD ($)

segment

Mar. 30, 2018

USD ($)

^[1]

$ 80,106

$ 90,127

41,849

47,183

Number of Reportable Segments | segment

$ (8,408)

(9,327)

Operating Segments [Member]

$ 80,106

90,127

43,670

49,755

Operating Segments [Member] | Video [Member]

(3,854)

371

67,176

71,748

38,602

41,226

Operating Segments [Member] | Cable Access [Member]

1,968

1,995

12,930

18,379

5,068

8,529

$ (5,822)

$ (1,624)

[1]	Revenue is attributed to countries based on the location of the customer.

Segment Information Segment Income or Loss Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2019	Mar. 30, 2018
Segment Reporting Information [Line Items]
Operating Income (Loss)	$ (8,408)	$ (9,327)
Unallocated Corporate Expenses	(50,257)	(56,510)
Stock-based compensation	(2,113)	(5,757)
Amortization of intangibles	(2,083)	(2,099)
Nonoperating Income (Expense)	(3,217)	(3,289)
Loss before income taxes	(11,625)	(12,616)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating Income (Loss)	(3,854)	371
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Unallocated Corporate Expenses	$ (358)	$ (1,842)

Segment - Geographic Information (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 29, 2019

Mar. 30, 2018

^[1]

$ 80,106

$ 90,127

UNITED STATES

^[1]

30,115

41,776

Other countries

Revenue from External Customer [Line Items]

^[1]

$ 49,991

$ 48,351

[1]	Revenue is attributed to countries based on the location of the customer.

Segment Information Segment - Market Information (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 29, 2019

Mar. 30, 2018

Service Provider [Member]

^[1]

$ 80,106

$ 90,127

Revenue from External Customer [Line Items]

Broadcast and Media [Member]

44,212

52,217

Revenue from External Customer [Line Items]