Delaware | 000-25826 | 77-0201147 |
(State or other jurisdiction of incorporation) | Commission File Number | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.001 per share | HLIT | The NASDAQ Stock Market LLC |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Date: July 29, 2019 | HARMONIC INC. | |||||
By: | /s/ Sanjay Kalra | |||||
Sanjay Kalra | ||||||
Chief Financial Officer |
• | Revenue: GAAP $84.9 million, down 14.4% year over year; non-GAAP $84.9 million, down 14.6% year over year. |
• | Gross margin: GAAP 51.8%, compared to 52.0% in the year ago period; non-GAAP 53.6%, compared to 54.0% in the year ago period. |
• | SaaS and service revenue: $30.4 million, 35.9% of total revenue, compared to 30.9% in the year ago period. |
• | SaaS and service gross margin: GAAP 61.8% and non-GAAP 62.6%, a decrease of 272 and 298 basis points, respectively, year over year. |
• | Operating expenses: GAAP $51.7 million, compared to $51.0 million in the year ago period; non-GAAP $48.3 million, compared to $47.0 million in the year ago period. |
• | Cash: ended Q2 with $58.1 million, down $11.9 million quarter over quarter. |
• | CableOS deployments continued to scale, over 780,000 served cable modems, up 16% quarter over quarter. |
• | $175 million CableOS software license agreement signed with Comcast in July. |
• | CableOS supply agreement with estimated total value greater than $55 million signed with international cable operator in July. |
• | Video SaaS deployed by 28 customers, up 65% year over year. |
• | Video segment operating income: $4.4 million, eighth consecutive quarter of positive segment operating income. |
• | Book to Bill ratio of 1.1 in Q2, compared to 1.0 in prior quarter. |
GAAP | Non-GAAP | |||||||||||||||||||||||
Key Financial Results | Q2 2019 | Q1 2019 | Q2 2018 | Q2 2019 | Q1 2019 | Q2 2018 | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||
Net revenue | $ | 84.9 | $ | 80.1 | $ | 99.2 | $ | 84.9 | $ | 80.1 | $ | 99.4 | ||||||||||||
Net income (loss) | $ | (11.8 | ) | $ | (11.3 | ) | $ | (2.9 | ) | $ | (4.0 | ) | $ | (4.8 | ) | $ | 4.6 | |||||||
Diluted EPS | $ | (0.13 | ) | $ | (0.13 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | 0.05 | |||||||
Other Financial Information | Q2 2019 | Q1 2019 | Q2 2018 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recurring revenue* | $ | 30.4 | $ | 27.7 | $ | 30.7 | ||||||||||||||||||
Recurring revenue as % of total revenue | 35.9 | % | 34.6 | % | 30.9 | % | ||||||||||||||||||
Bookings for the quarter | $ | 92.6 | $ | 81.0 | $ | 107.9 | ||||||||||||||||||
Backlog and deferred revenue as of quarter end | $ | 194.7 | $ | 187.2 | $ | 230.4 | ||||||||||||||||||
Cash as of quarter end | $ | 58.1 | $ | 69.9 | $ | 54.1 |
GAAP Financial Guidance | Q3 2019 | Q4 2019 | 2019 | |||||||||||||||||||||
Low | High | Low | High | Low | High | |||||||||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||||||||||
Net Revenue | $ | 110.0 | $ | 120.0 | $ | 100.0 | $ | 110.0 | $ | 375.0 | $ | 395.0 | ||||||||||||
Video | $ | 63.0 | $ | 68.0 | $ | 70.0 | $ | 75.0 | $ | 272.0 | $ | 282.0 | ||||||||||||
Cable Access | $ | 47.0 | $ | 52.0 | $ | 30.0 | $ | 35.0 | $ | 103.0 | $ | 113.0 | ||||||||||||
Gross Margin % | 62.5 | % | 65.0 | % | 49.5 | % | 51.0 | % | 54.5 | % | 55.5 | % | ||||||||||||
Operating Expenses | $ | 53.0 | $ | 55.0 | $ | 52.0 | $ | 54.0 | $ | 207.5 | $ | 211.5 | ||||||||||||
Operating Income (Loss) | $ | 13.0 | $ | 25.0 | $ | (4.5 | ) | $ | 4.0 | $ | (7.5 | ) | $ | 12.5 | ||||||||||
Tax Expense | $ | (0.8 | ) | $ | (0.8 | ) | $ | (0.8 | ) | $ | (0.8 | ) | $ | (2.0 | ) | $ | (2.0 | ) | ||||||
EPS | $ | 0.09 | $ | 0.20 | $ | (0.10 | ) | $ | 0.00 | $ | (0.26 | ) | $ | (0.03 | ) | |||||||||
Shares | 101.5 | 101.5 | 90.3 | 90.3 | 89.8 | 89.8 | ||||||||||||||||||
Cash | $ | 65.0 | $ | 75.0 | $ | 90.0 | $ | 100.0 | $ | 90.0 | $ | 100.0 |
Non-GAAP Financial Guidance | Q3 2019 | Q4 2019 | 2019 | |||||||||||||||||||||
Low | High | Low | High | Low | High | |||||||||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||||||||||
Net Revenue | $ | 110.0 | $ | 120.0 | $ | 100.0 | $ | 110.0 | $ | 375.0 | $ | 395.0 | ||||||||||||
Video | $ | 63.0 | $ | 68.0 | $ | 70.0 | $ | 75.0 | $ | 272.0 | $ | 282.0 | ||||||||||||
Cable Access | $ | 47.0 | $ | 52.0 | $ | 30.0 | $ | 35.0 | $ | 103.0 | $ | 113.0 | ||||||||||||
Gross Margin % | 64.0 | % | 66.5 | % | 51.0 | % | 52.5 | % | 56.0 | % | 57.5 | % | ||||||||||||
Operating Expenses | $ | 48.0 | $ | 50.0 | $ | 48.0 | $ | 50.0 | $ | 192.0 | $ | 196.0 | ||||||||||||
Operating Income | $ | 20.0 | $ | 32.0 | $ | 1.0 | $ | 10.0 | $ | 15.0 | $ | 35.0 | ||||||||||||
Tax Rate | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||
EPS | $ | 0.16 | $ | 0.26 | $ | (0.01 | ) | $ | 0.07 | $ | 0.07 | $ | 0.26 | |||||||||||
Shares | 101.5 | 101.5 | 90.3 | 102.3 | 96.5 | 96.5 | ||||||||||||||||||
Cash | $ | 65.0 | $ | 75.0 | $ | 90.0 | $ | 100.0 | $ | 90.0 | $ | 100.0 |
Sanjay Kalra | Nicole Noutsios |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | Harmonic Inc. |
+1.408.490.6031 | +1.510.315.1003 |
June 28, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 58,064 | $ | 65,989 | |||
Accounts receivable, net | 70,571 | 81,795 | |||||
Inventories | 27,659 | 25,638 | |||||
Prepaid expenses and other current assets | 29,209 | 23,280 | |||||
Total current assets | 185,503 | 196,702 | |||||
Property and equipment, net | 19,312 | 22,321 | |||||
Operating lease right-of-use assets | 30,386 | — | |||||
Goodwill | 240,335 | 240,618 | |||||
Intangibles, net | 8,640 | 12,817 | |||||
Other long-term assets | 42,545 | 38,377 | |||||
Total assets | $ | 526,721 | $ | 510,835 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 1,379 | $ | 7,175 | |||
Accounts payable | 31,849 | 33,778 | |||||
Income taxes payable | 989 | 1,099 | |||||
Deferred revenue | 47,330 | 41,592 | |||||
Accrued and other current liabilities | 56,764 | 52,761 | |||||
Total current liabilities | 138,311 | 136,405 | |||||
Convertible notes, long-term | 118,070 | 114,808 | |||||
Other debts and finance lease obligations, long-term | 16,697 | 12,684 | |||||
Income taxes payable, long-term | 266 | 460 | |||||
Other non-current liabilities | 41,311 | 18,228 | |||||
Total liabilities | 314,655 | 282,585 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 150,000 shares authorized; 89,074 and 87,057 shares issued and outstanding at June 28, 2019 and December 31, 2018, respectively | 89 | 87 | |||||
Additional paid-in capital | 2,302,798 | 2,296,795 | |||||
Accumulated deficit | (2,089,167 | ) | (2,067,416 | ) | |||
Accumulated other comprehensive loss | (1,654 | ) | (1,216 | ) | |||
Total stockholders' equity | 212,066 | 228,250 | |||||
Total liabilities and stockholders' equity | $ | 526,721 | $ | 510,835 |
Three months ended | Six months ended | ||||||||||||||
June 28, 2019 | June 29, 2018 | June 28, 2019 | June 29, 2018 | ||||||||||||
Revenue: | |||||||||||||||
Appliance and integration | $ | 54,417 | $ | 68,434 | $ | 106,782 | $ | 132,420 | |||||||
SaaS and service | 30,448 | 30,726 | 58,189 | 56,867 | |||||||||||
Total net revenue | 84,865 | 99,160 | 164,971 | 189,287 | |||||||||||
Cost of revenue: | |||||||||||||||
Appliance and integration | 29,312 | 36,662 | 56,366 | 67,238 | |||||||||||
SaaS and service | 11,625 | 10,895 | 22,828 | 23,263 | |||||||||||
Total cost of revenue | 40,937 | 47,557 | 79,194 | 90,501 | |||||||||||
Gross profit | 43,928 | 51,603 | 85,777 | 98,786 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 21,313 | 21,542 | 42,714 | 44,999 | |||||||||||
Selling, general and administrative | 29,319 | 27,988 | 57,330 | 59,151 | |||||||||||
Amortization of intangibles | 784 | 800 | 1,572 | 1,604 | |||||||||||
Restructuring and related charges | 276 | 631 | 333 | 1,717 | |||||||||||
Total operating expenses | 51,692 | 50,961 | 101,949 | 107,471 | |||||||||||
Income (loss) from operations | (7,764 | ) | 642 | (16,172 | ) | (8,685 | ) | ||||||||
Interest expense, net | (2,956 | ) | (2,863 | ) | (5,862 | ) | (5,620 | ) | |||||||
Other income (expense), net | (428 | ) | 199 | (739 | ) | (333 | ) | ||||||||
Loss before income taxes | (11,148 | ) | (2,022 | ) | (22,773 | ) | (14,638 | ) | |||||||
Provision for income taxes | 697 | 891 | 378 | 1,969 | |||||||||||
Net loss | $ | (11,845 | ) | $ | (2,913 | ) | $ | (23,151 | ) | $ | (16,607 | ) | |||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.13 | ) | $ | (0.03 | ) | $ | (0.26 | ) | $ | (0.20 | ) | |||
Shares used in per share calculation: | |||||||||||||||
Basic and diluted | 88,931 | 85,304 | 88,554 | 84,616 |
Six months ended | |||||||
June 28, 2019 | June 29, 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (23,151 | ) | $ | (16,607 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Amortization of intangibles | 4,162 | 4,194 | |||||
Depreciation | 5,716 | 6,771 | |||||
Stock-based compensation | 4,623 | 8,769 | |||||
Amortization of discount on convertible debt | 3,262 | 2,954 | |||||
Amortization of non-cash warrant | 48 | 395 | |||||
Restructuring, asset impairment and loss on retirement of fixed assets | 101 | 93 | |||||
Deferred income taxes, net | (145 | ) | 530 | ||||
Foreign currency adjustments | (325 | ) | (1,042 | ) | |||
Provision for excess and obsolete inventories | 384 | 822 | |||||
Allowance for doubtful accounts, returns and discounts | 500 | 623 | |||||
Other non-cash adjustments, net | 303 | 64 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 10,699 | (13,572 | ) | ||||
Inventories | (2,440 | ) | 2,000 | ||||
Prepaid expenses and other assets | (1,526 | ) | 1,897 | ||||
Accounts payable | (1,752 | ) | (4,187 | ) | |||
Deferred revenue | 4,989 | 9,378 | |||||
Income taxes payable | (292 | ) | 503 | ||||
Accrued and other liabilities | (9,802 | ) | (337 | ) | |||
Net cash provided by (used in) operating activities | (4,646 | ) | 3,248 | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (2,939 | ) | (3,181 | ) | |||
Net cash used in investing activities | (2,939 | ) | (3,181 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from other debts and finance leases | 4,503 | — | |||||
Repayment of other debts and finance leases | (6,162 | ) | (6,176 | ) | |||
Proceeds from common stock issued to employees | 2,147 | 2,366 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (828 | ) | (54 | ) | |||
Net cash used in financing activities | (340 | ) | (3,864 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | (588 | ) | ||||
Net decrease in cash, cash equivalents and restricted cash | (7,925 | ) | (4,385 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 65,989 | 58,757 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 58,064 | $ | 54,372 | |||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 58,064 | $ | 54,098 | |||
Restricted cash included in prepaid expenses and other current assets | — | 274 | |||||
Total cash, cash equivalents and restricted cash | $ | 58,064 | $ | 54,372 |
Three months ended | ||||||||||||||||||||||||||||||||
June 28, 2019 | March 29, 2019 | June 29, 2018 | ||||||||||||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||||||||
Americas | $ | 42,437 | $ | 23 | $ | 42,460 | 50% | $ | 34,188 | $ | 25 | $ | 34,213 | 43% | $ | 52,918 | $ | 284 | $ | 53,202 | 53% | |||||||||||
EMEA | 25,203 | — | 25,203 | 30% | 28,078 | — | 28,078 | 35% | 31,676 | — | 31,676 | 32% | ||||||||||||||||||||
APAC | 17,225 | — | 17,225 | 20% | 17,840 | — | 17,840 | 22% | 14,566 | — | 14,566 | 15% | ||||||||||||||||||||
Total | $ | 84,865 | $ | 23 | $ | 84,888 | 100% | $ | 80,106 | $ | 25 | $ | 80,131 | 100% | $ | 99,160 | $ | 284 | $ | 99,444 | 100% | |||||||||||
Market | ||||||||||||||||||||||||||||||||
Service Provider | $ | 43,438 | $ | 23 | $ | 43,461 | 51% | $ | 44,212 | $ | 25 | $ | 44,237 | 55% | $ | 54,142 | $ | 284 | $ | 54,426 | 55% | |||||||||||
Broadcast and Media | 41,427 | — | 41,427 | 49% | 35,894 | — | 35,894 | 45% | 45,018 | — | 45,018 | 45% | ||||||||||||||||||||
Total | $ | 84,865 | $ | 23 | $ | 84,888 | 100% | $ | 80,106 | $ | 25 | $ | 80,131 | 100% | $ | 99,160 | $ | 284 | $ | 99,444 | 100% |
Six months ended | |||||||||||||||||||||
June 28, 2019 | June 29, 2018 | ||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||||
Geography | |||||||||||||||||||||
Americas | $ | 76,625 | $ | 48 | $ | 76,673 | 46% | $ | 101,774 | $ | 395 | $ | 102,169 | 54% | |||||||
EMEA | 53,281 | — | 53,281 | 32% | 54,878 | — | 54,878 | 29% | |||||||||||||
APAC | 35,065 | — | 35,065 | 22% | 32,635 | — | 32,635 | 17% | |||||||||||||
Total | $ | 164,971 | $ | 48 | $ | 165,019 | 100% | $ | 189,287 | $ | 395 | $ | 189,682 | 100% | |||||||
Market | |||||||||||||||||||||
Service Provider | $ | 87,650 | $ | 48 | $ | 87,698 | 53% | $ | 106,359 | $ | 395 | $ | 106,754 | 56% | |||||||
Broadcast and Media | 77,321 | — | 77,321 | 47% | 82,928 | — | 82,928 | 44% | |||||||||||||
Total | $ | 164,971 | $ | 48 | $ | 165,019 | 100% | $ | 189,287 | $ | 395 | $ | 189,682 | 100% |
Three months ended June 28, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 71,625 | $ | 13,263 | $ | 84,888 | $ | (23 | ) | * | $ | 84,865 | |||||||
Gross profit | 41,444 | 4,086 | 45,530 | (1,602 | ) | 43,928 | |||||||||||||
Gross margin% | 57.9 | % | 30.8 | % | 53.6 | % | 51.8 | % | |||||||||||
Operating income (loss) | 4,459 | (7,243 | ) | (2,784 | ) | (4,980 | ) | (7,764 | ) | ||||||||||
Operating margin% | 6.2 | % | (54.6 | )% | (3.3 | )% | (9.1 | )% | |||||||||||
Three months ended March 29, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 67,176 | $ | 12,955 | $ | 80,131 | $ | (25 | ) | * | $ | 80,106 | |||||||
Gross profit | 38,602 | 5,093 | 43,695 | (1,846 | ) | 41,849 | |||||||||||||
Gross margin% | 57.5 | % | 39.3 | % | 54.5 | % | 52.2 | % | |||||||||||
Operating income (loss) | 1,968 | (5,797 | ) | (3,829 | ) | (4,579 | ) | (8,408 | ) | ||||||||||
Operating margin% | 2.9 | % | (44.7 | )% | (4.8 | )% | (10.5 | )% | |||||||||||
Three months ended June 29, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 79,208 | $ | 20,236 | $ | 99,444 | $ | (284 | ) | * | $ | 99,160 | |||||||
Gross profit | 43,558 | 10,187 | 53,745 | (2,142 | ) | 51,603 | |||||||||||||
Gross margin% | 55.0 | % | 50.3 | % | 54.0 | % | 52.0 | % | |||||||||||
Operating income | 6,239 | 540 | 6,779 | (6,137 | ) | 642 | |||||||||||||
Operating margin% | 7.9 | % | 2.7 | % | 6.8 | % | 0.6 | % | |||||||||||
Six months ended June 28, 2019 | |||||||||||||||||||
Video | Cable Edge | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 138,801 | $ | 26,218 | $ | 165,019 | $ | (48 | ) | * | $ | 164,971 | |||||||
Gross profit | 80,046 | 9,179 | 89,225 | (3,448 | ) | 85,777 | |||||||||||||
Gross margin% | 57.7 | % | 35.0 | % | 54.1 | % | 52.0 | % | |||||||||||
Operating income (loss) | 6,427 | (13,040 | ) | (6,613 | ) | (9,559 | ) | (16,172 | ) | ||||||||||
Operating margin% | 4.6 | % | (49.7 | )% | (4.0 | )% | (9.8 | )% | |||||||||||
Six months ended June 29, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 150,956 | $ | 38,726 | $ | 189,682 | $ | (395 | ) | * | $ | 189,287 | |||||||
Gross profit | 84,784 | 18,827 | 103,611 | (4,825 | ) | 98,786 | |||||||||||||
Gross margin% | 56.2 | % | 48.6 | % | 54.6 | % | 52.2 | % | |||||||||||
Operating income (loss) | 8,234 | (973 | ) | 7,261 | (15,946 | ) | (8,685 | ) | |||||||||||
Operating margin% | 5.5 | % | (2.5 | )% | 3.8 | % | (4.6 | )% |
Three months ended June 28, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 84,865 | $ | 43,928 | $ | 51,692 | $ | (7,764 | ) | $ | (3,384 | ) | $ | (11,845 | ) | |||
Accounting impact related to warrant amortization | 23 | 23 | — | 23 | — | 23 | ||||||||||||
Stock-based compensation | — | 193 | (2,317 | ) | 2,510 | — | 2,510 | |||||||||||
Amortization of intangibles | — | 1,295 | (784 | ) | 2,079 | — | 2,079 | |||||||||||
Restructuring and related charges | — | 91 | (277 | ) | 368 | — | 368 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,656 | 1,656 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,238 | ||||||||||||
Total adjustments | $ | 23 | $ | 1,602 | $ | (3,378 | ) | $ | 4,980 | $ | 1,656 | $ | 7,874 | |||||
Non-GAAP | $ | 84,888 | $ | 45,530 | $ | 48,314 | $ | (2,784 | ) | $ | (1,728 | ) | $ | (3,971 | ) | |||
As a % of revenue (GAAP) | 51.8 | % | 60.9 | % | (9.1 | )% | (4.0 | )% | (14.0 | )% | ||||||||
As a % of revenue (Non-GAAP) | 53.6 | % | 56.9 | % | (3.3 | )% | (2.0 | )% | (4.7 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.13 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.04 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 88,931 | |||||||||||||||||
Three months ended March 29, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 80,106 | $ | 41,849 | $ | 50,257 | $ | (8,408 | ) | $ | (3,217 | ) | $ | (11,306 | ) | |||
Accounting impact related to warrant amortization | 25 | 25 | — | 25 | — | 25 | ||||||||||||
Stock-based compensation | — | 225 | (1,888 | ) | 2,113 | — | 2,113 | |||||||||||
Amortization of intangibles | — | 1,295 | (788 | ) | 2,083 | — | 2,083 | |||||||||||
Restructuring and related charges | — | 301 | (57 | ) | 358 | — | 358 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,606 | 1,606 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 334 | ||||||||||||
Total adjustments | $ | 25 | $ | 1,846 | $ | (2,733 | ) | $ | 4,579 | $ | 1,606 | $ | 6,519 | |||||
Non-GAAP | $ | 80,131 | $ | 43,695 | $ | 47,524 | $ | (3,829 | ) | $ | (1,611 | ) | $ | (4,787 | ) | |||
As a % of revenue (GAAP) | 52.2 | % | 62.7 | % | (10.5 | )% | (4.0 | )% | (14.1 | )% | ||||||||
As a % of revenue (Non-GAAP) | 54.5 | % | 59.3 | % | (4.8 | )% | (2.0 | )% | (6.0 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.13 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.05 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 88,165 | |||||||||||||||||
Three months ended June 29, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income (Loss) | |||||||||||||
GAAP | $ | 99,160 | $ | 51,603 | $ | 50,961 | $ | 642 | $ | (2,664 | ) | $ | (2,913 | ) | ||||
Accounting impact related to warrant amortization | 284 | 284 | — | 284 | — | 284 | ||||||||||||
Stock-based compensation | — | 448 | (2,564 | ) | 3,012 | — | 3,012 | |||||||||||
Amortization of intangibles | — | 1,295 | (800 | ) | 2,095 | — | 2,095 | |||||||||||
Restructuring and related charges | — | 115 | (631 | ) | 746 | — | 746 | |||||||||||
Gain on equity investments | — | — | — | — | (183 | ) | (183 | ) | ||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,501 | 1,501 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 22 | ||||||||||||
Total adjustments | $ | 284 | $ | 2,142 | $ | (3,995 | ) | $ | 6,137 | $ | 1,318 | $ | 7,477 | |||||
Non-GAAP | $ | 99,444 | $ | 53,745 | $ | 46,966 | $ | 6,779 | $ | (1,346 | ) | $ | 4,564 | |||||
As a % of revenue (GAAP) | 52.0 | % | 51.4 | % | 0.6 | % | (2.7 | )% | (2.9 | )% | ||||||||
As a % of revenue (Non-GAAP) | 54.0 | % | 47.2 | % | 6.8 | % | (1.4 | )% | 4.6 | % | ||||||||
Diluted net income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.03 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.05 | ||||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP | 85,304 | |||||||||||||||||
Non-GAAP | 85,758 | |||||||||||||||||
Six months ended June 28, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense | Net Loss | |||||||||||||
GAAP | $ | 164,971 | $ | 85,777 | $ | 101,949 | $ | (16,172 | ) | $ | (6,601 | ) | $ | (23,151 | ) | |||
Accounting impact related to warrant amortization | 48 | 48 | — | 48 | — | 48 | ||||||||||||
Stock-based compensation | — | 418 | (4,205 | ) | 4,623 | — | 4,623 | |||||||||||
Amortization of intangibles | — | 2,590 | (1,572 | ) | 4,162 | — | 4,162 | |||||||||||
Restructuring and related charges | — | 392 | (334 | ) | 726 | — | 726 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 3,262 | 3,262 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,572 | ||||||||||||
Total adjustments | $ | 48 | $ | 3,448 | $ | (6,111 | ) | $ | 9,559 | $ | 3,262 | $ | 14,393 | |||||
Non-GAAP | $ | 165,019 | $ | 89,225 | $ | 95,838 | $ | (6,613 | ) | $ | (3,339 | ) | $ | (8,758 | ) | |||
As a % of revenue (GAAP) | 52.0 | % | 61.8 | % | (9.8 | )% | (4.0 | )% | (14.0 | )% | ||||||||
As a % of revenue (Non-GAAP) | 54.1 | % | 58.1 | % | (4.0 | )% | (2.0 | )% | (5.3 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.26 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.10 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 88,554 | |||||||||||||||||
Six months ended June 29, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense | Net Income (Loss) | |||||||||||||
GAAP | $ | 189,287 | $ | 98,786 | $ | 107,471 | $ | (8,685 | ) | $ | (5,953 | ) | $ | (16,607 | ) | |||
Accounting impact related to warrant amortization | 395 | 395 | — | 395 | — | 395 | ||||||||||||
Stock-based compensation | — | 963 | (7,806 | ) | 8,769 | — | 8,769 | |||||||||||
Amortization of intangibles | — | 2,590 | (1,604 | ) | 4,194 | — | 4,194 | |||||||||||
Restructuring and related charges | — | 877 | (1,717 | ) | 2,594 | — | 2,594 | |||||||||||
Gain on equity investments | — | — | — | — | (183 | ) | (183 | ) | ||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 2,955 | 2,955 | ||||||||||||
Avid litigation settlement and associated legal fees | — | — | 6 | (6 | ) | — | (6 | ) | ||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,316 | ||||||||||||
Total adjustments | $ | 395 | $ | 4,825 | $ | (11,121 | ) | $ | 15,946 | $ | 2,772 | $ | 20,034 | |||||
Non-GAAP | $ | 189,682 | $ | 103,611 | $ | 96,350 | $ | 7,261 | $ | (3,181 | ) | $ | 3,427 | |||||
As a % of revenue (GAAP) | 52.2 | % | 56.8 | % | (4.6 | )% | (3.1 | )% | (8.8 | )% | ||||||||
As a % of revenue (Non-GAAP) | 54.6 | % | 50.8 | % | 3.8 | % | (1.7 | )% | 1.8 | % | ||||||||
Diluted net income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.20 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.04 | ||||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP | 84,616 | |||||||||||||||||
GAAP and Non-GAAP | 85,052 |
Q3 2019 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income | |
GAAP | $110.0 to $120.0 | $68.7 to $78.1 | $53.3 to $55.3 | $13.4 to $24.8 | $(3.4) | $9.2 to $20.6 |
Stock-based compensation | — | 0.4 | (3.9) | 4.3 | — | 4.3 |
Amortization of intangibles | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
Restructuring and related charges | — | — | (0.6) | 0.6 | — | 0.6 |
Non-cash interest expense related to convertible notes | — | — | — | — | 1.7 | 1.7 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $(2.8) to $(1.4) |
Total adjustments | — | 1.7 | (5.3) | 7.0 | 1.7 | $5.9 to $7.3 |
Non-GAAP | $110.0 to $120.0 | $70.4 to $79.8 | $48.0 to $50.0 | $20.4 to $31.8 | $(1.7) | $16.5 to $26.5 |
As a % of revenue (GAAP) | 62.5% to 65.1% | 44.4% to 50.3% | 12.2% to 20.7% | (3.0)% | 8.4% to 17.2% | |
As a % of revenue (Non-GAAP) | 64.0% to 66.5% | 40.0% to 45.5% | 18.5% to 26.5% | (1.5)% | 15.0% to 22.1% | |
Diluted net income per share: | ||||||
Diluted net income per share-GAAP | $0.09 to $0.20 | |||||
Diluted net income per share-Non-GAAP | $0.16 to $0.26 | |||||
Shares used to compute diluted net income per share: | ||||||
GAAP and Non-GAAP | 101.5 |
Q4 2019 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $100.0 to $110.0 | $49.4 to $56.2 | $52.1 to $54.1 | $(4.7) to $4.1 | $(3.4) | $(8.9) to $(0.2) |
Stock-based compensation | — | 0.3 | (3.2) | 3.5 | — | 3.5 |
Amortization of intangibles | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
Restructuring and related charges | — | — | (0.1) | 0.1 | — | 0.1 |
Non-cash interest expense related to convertible notes | — | — | — | — | 1.7 | 1.7 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $(0.2) to $0.9 |
Total adjustments | — | 1.6 | (4.1) | 5.7 | 1.7 | $7.2 to $8.3 |
Non-GAAP | $100.0 to $110.0 | $51.0 to $57.8 | $48.0 to $50.0 | $1.0 to $9.8 | $(1.7) | $(0.6) to $7.1 |
As a % of revenue (GAAP) | 49.4% to 51.0% | 47.4% to 54.1% | (4.7)% to 3.7% | (3.0)% | (8.9)% to (0.1)% | |
As a % of revenue (Non-GAAP) | 51.0% to 52.5% | 43.6% to 50.0% | 1.0% to 8.9% | (1.5)% | (0.6)% to 6.4% | |
Diluted net loss per share: | ||||||
Diluted net loss per share-GAAP | $(0.10) to $0.00 | |||||
Diluted net loss per share-Non-GAAP | $(0.01) to $0.07 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 90.3 | |||||
Shares used to compute diluted net income per share: | ||||||
Non-GAAP | 102.3 |
2019 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $375.0 to $395.0 | $203.9 to $220.1 | $207.5 to $211.5 | $(7.5) to $12.7 | $(13.4) | $(23.0) to $(2.8) |
Stock-based compensation | — | 1.1 | (11.4) | 12.5 | — | 12.5 |
Amortization of intangibles | — | 5.2 | (3.2) | 8.4 | — | 8.4 |
Restructuring and related charges | — | 0.4 | (1.0) | 1.4 | — | 1.4 |
Non-cash interest expense related to convertible notes | — | — | — | — | 6.7 | 6.7 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $(1.3) to $1.1 |
Total adjustments | — | 6.7 | (15.6) | 22.3 | 6.7 | $27.7 to $30.1 |
Non-GAAP | $375.0 to $395.0 | $210.6 to $226.8 | $191.8 to $195.9 | $14.8 to $35.0 | $(6.7) | $7.1 to $24.9 |
As a % of revenue (GAAP) | 54.4% to 55.7% | 52.5% to 56.4% | (2.0)% to 3.2% | (3.5)% | (6.1)% to (0.7)% | |
As a % of revenue (Non-GAAP) | 56.2% to 57.4% | 48.6% to 52.2% | 3.9% to 8.9% | (1.8)% | 1.9% to 6.3% | |
Diluted net income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.26) to $(0.03) | |||||
Diluted net income per share-Non-GAAP | $0.07 to $0.26 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP | 89.8 | |||||
Shares used to compute diluted net income per share: | ||||||
Non-GAAP | 96.5 |