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: October 28, 2019 | HARMONIC INC. | |||||
By: | /s/ Sanjay Kalra | |||||
Sanjay Kalra | ||||||
Chief Financial Officer |
• | Revenue: $115.7 million, up 15.0% year over year. |
• | SaaS and service revenue: $32.6 million, up 13.9% year over year. |
• | Gross margin: GAAP 65.3% and non-GAAP 67.0%, compared to GAAP 49.8% and non-GAAP 52.1% in the year ago period. |
• | Cable Access gross margin: 77.1%, compared to 38.7% in the year ago period. |
• | Video gross margin: 57.7%, compared to 57.2% in the year ago period. |
• | Operating income: GAAP income $22.5 million and non-GAAP income $29.9 million, compared to GAAP loss $3.7 million and non-GAAP income $5.7 million in the year ago period. |
• | EPS: GAAP net income per share 12 cents and non-GAAP net income per share 25 cents, compared to GAAP net loss per share 9 cents and non-GAAP net income per share 4 cents in the year ago period. |
• | Cash: $66.7 million, up $8.6 million quarter over quarter and up $5.0 million year over year. |
• | Completed a new $115.5 million convertible debt issuance to refinance approximately 65% of existing convertible debt, reducing potential dilution by 5% and annual interest cost by 19%. |
• | CableOS deployments scaled to over 935,000 served cable modems, up 20% quarter over quarter. |
• | Extended Cable Access market leadership, announcing CableOS solution with expanded cloud-native and new fiber-to-the-home capabilities. |
• | Video SaaS offering now deployed with 36 customers, up 29% quarter over quarter and 140% year over year. |
• | Expanded addressed video market by launching new CDN optimization solution for high-demand live video streaming services. |
GAAP | Non-GAAP | |||||||||||||||||||||||
Key Financial Results | Q3 2019 | Q2 2019 | Q3 2018 | Q3 2019 | Q2 2019 | Q3 2018 | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||
Net revenue | $ | 115.7 | $ | 84.9 | $ | 100.6 | $ | 115.7 | $ | 84.9 | $ | 101.4 | ||||||||||||
Net income (loss) | $ | 11.7 | $ | (11.8 | ) | $ | (7.8 | ) | $ | 24.6 | $ | (4.0 | ) | $ | 3.4 | |||||||||
Diluted EPS | $ | 0.12 | $ | (0.13 | ) | $ | (0.09 | ) | $ | 0.25 | $ | (0.04 | ) | $ | 0.04 | |||||||||
Other Financial Information | Q3 2019 | Q2 2019 | Q3 2018 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recurring revenue* | $ | 32.6 | $ | 30.4 | $ | 28.7 | ||||||||||||||||||
Recurring revenue as % of total revenue | 28.2 | % | 35.9 | % | 28.3 | % | ||||||||||||||||||
Bookings for the quarter | $ | 126.5 | $ | 92.6 | $ | 79.5 | ||||||||||||||||||
Backlog and deferred revenue as of quarter end | $ | 192.5 | $ | 194.7 | $ | 207.6 | ||||||||||||||||||
Cash as of quarter end | $ | 66.7 | $ | 58.1 | $ | 61.7 |
GAAP Financial Guidance | Q4 2019 | 2019 | ||||||||||||||
Low | High | Low | High | |||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||
Net Revenue | $ | 108.0 | $ | 118.0 | $ | 389.0 | $ | 399.0 | ||||||||
Video | $ | 78.0 | $ | 83.0 | $ | 277.0 | $ | 282.0 | ||||||||
Cable Access | $ | 30.0 | $ | 35.0 | $ | 112.0 | $ | 117.0 | ||||||||
Gross Margin % | 49.5 | % | 51.0 | % | 55.0 | % | 55.5 | % | ||||||||
Operating Expenses | $ | 52.0 | $ | 54.0 | $ | 207.0 | $ | 209.0 | ||||||||
Operating Income (Loss) | $ | (0.5 | ) | $ | 8.5 | $ | 6.0 | $ | 15.0 | |||||||
Tax Expense | $ | 0.6 | $ | 0.6 | $ | 1.6 | $ | 1.6 | ||||||||
EPS | $ | (0.05 | ) | $ | 0.04 | $ | (0.18 | ) | $ | (0.08 | ) | |||||
Shares | 90.5 | 95.8 | 89.9 | 89.9 | ||||||||||||
Cash | $ | 90.0 | $ | 100.0 | $ | 90.0 | $ | 100.0 |
Non-GAAP Financial Guidance | Q4 2019 | 2019 | ||||||||||||||
Low | High | Low | High | |||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||
Net Revenue | $ | 108.0 | $ | 118.0 | $ | 389.0 | $ | 399.0 | ||||||||
Video | $ | 78.0 | $ | 83.0 | $ | 277.0 | $ | 282.0 | ||||||||
Cable Access | $ | 30.0 | $ | 35.0 | $ | 112.0 | $ | 117.0 | ||||||||
Gross Margin % | 51.0 | % | 52.5 | % | 57.0 | % | 57.5 | % | ||||||||
Operating Expenses | $ | 48.0 | $ | 50.0 | $ | 191.5 | $ | 193.5 | ||||||||
Operating Income | $ | 5.0 | $ | 14.0 | $ | 28.5 | $ | 37.5 | ||||||||
Tax Rate | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||
EPS | $ | 0.03 | $ | 0.11 | $ | 0.20 | $ | 0.29 | ||||||||
Shares | 95.8 | 95.8 | 93.8 | 93.8 | ||||||||||||
Cash | $ | 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 |
September 27, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 66,695 | $ | 65,989 | |||
Accounts receivable, net | 100,905 | 81,795 | |||||
Inventories | 28,970 | 25,638 | |||||
Prepaid expenses and other current assets | 40,317 | 23,280 | |||||
Total current assets | 236,887 | 196,702 | |||||
Property and equipment, net | 18,901 | 22,321 | |||||
Operating lease right-of-use assets | 27,694 | — | |||||
Goodwill | 238,734 | 240,618 | |||||
Intangibles, net | 6,518 | 12,817 | |||||
Other long-term assets | 39,472 | 38,377 | |||||
Total assets | $ | 568,206 | $ | 510,835 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 6,962 | $ | 7,175 | |||
Accounts payable | 31,227 | 33,778 | |||||
Income taxes payable | 1,128 | 1,099 | |||||
Deferred revenue | 47,873 | 41,592 | |||||
Accrued and other current liabilities | 59,260 | 52,761 | |||||
Total current liabilities | 146,450 | 136,405 | |||||
Convertible notes, long-term | 130,217 | 114,808 | |||||
Other debts and finance lease obligations, long-term | 10,384 | 12,684 | |||||
Income taxes payable, long-term | 269 | 460 | |||||
Other non-current liabilities | 39,836 | 18,228 | |||||
Total liabilities | 327,156 | 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; 90,315 and 87,057 shares issued and outstanding at September 27, 2019 and December 31, 2018, respectively | 90 | 87 | |||||
Additional paid-in capital | 2,323,839 | 2,296,795 | |||||
Accumulated deficit | (2,077,510 | ) | (2,067,416 | ) | |||
Accumulated other comprehensive loss | (5,369 | ) | (1,216 | ) | |||
Total stockholders' equity | 241,050 | 228,250 | |||||
Total liabilities and stockholders' equity | $ | 568,206 | $ | 510,835 |
Three months ended | Nine months ended | ||||||||||||||
September 27, 2019 | September 28, 2018 | September 27, 2019 | September 28, 2018 | ||||||||||||
Revenue: | |||||||||||||||
Appliance and integration | $ | 83,082 | $ | 71,965 | $ | 189,864 | $ | 204,385 | |||||||
SaaS and service | 32,643 | 28,651 | 90,832 | 85,518 | |||||||||||
Total net revenue | 115,725 | 100,616 | 280,696 | 289,903 | |||||||||||
Cost of revenue: | |||||||||||||||
Appliance and integration | 26,812 | 38,945 | 83,178 | 106,183 | |||||||||||
SaaS and service | 13,373 | 11,569 | 36,201 | 34,832 | |||||||||||
Total cost of revenue | 40,185 | 50,514 | 119,379 | 141,015 | |||||||||||
Gross profit | 75,540 | 50,102 | 161,317 | 148,888 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 20,197 | 22,251 | 62,911 | 67,250 | |||||||||||
Selling, general and administrative | 31,148 | 29,723 | 88,478 | 88,874 | |||||||||||
Amortization of intangibles | 785 | 792 | 2,357 | 2,396 | |||||||||||
Restructuring and related charges | 861 | 987 | 1,194 | 2,704 | |||||||||||
Total operating expenses | 52,991 | 53,753 | 154,940 | 161,224 | |||||||||||
Income (loss) from operations | 22,549 | (3,651 | ) | 6,377 | (12,336 | ) | |||||||||
Interest expense, net | (3,000 | ) | (2,872 | ) | (8,862 | ) | (8,492 | ) | |||||||
Loss on debt extinguishment | (5,695 | ) | — | (5,695 | ) | — | |||||||||
Other expense, net | (1,594 | ) | (365 | ) | (2,333 | ) | (698 | ) | |||||||
Income (loss) before income taxes | 12,260 | (6,888 | ) | (10,513 | ) | (21,526 | ) | ||||||||
Provision for income taxes | 603 | 870 | 981 | 2,839 | |||||||||||
Net income (loss) | $ | 11,657 | $ | (7,758 | ) | $ | (11,494 | ) | $ | (24,365 | ) | ||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | 0.13 | $ | (0.09 | ) | $ | (0.13 | ) | $ | (0.29 | ) | ||||
Diluted | $ | 0.12 | $ | (0.09 | ) | $ | (0.13 | ) | $ | (0.29 | ) | ||||
Shares used in per share calculation: | |||||||||||||||
Basic | 89,964 | 86,321 | 89,030 | 85,188 | |||||||||||
Diluted | 97,596 | 86,321 | 89,030 | 85,188 |
Nine months ended | |||||||
September 27, 2019 | September 28, 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (11,494 | ) | $ | (24,365 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Amortization of intangibles | 6,242 | 6,281 | |||||
Depreciation | 8,480 | 9,910 | |||||
Stock-based compensation | 8,719 | 14,202 | |||||
Amortization of discount on convertible debt | 4,960 | 4,482 | |||||
Amortization of non-cash warrant | 13,137 | 1,185 | |||||
Restructuring, asset impairment and loss on retirement of fixed assets | 85 | 1,105 | |||||
Loss on debt extinguishment | 5,695 | — | |||||
Deferred income taxes, net | 75 | 1,056 | |||||
Foreign currency adjustments | (1,719 | ) | (1,034 | ) | |||
Provision for excess and obsolete inventories | 704 | 1,259 | |||||
Allowance for doubtful accounts, returns and discounts | 988 | 1,357 | |||||
Other non-cash adjustments, net | 1,150 | 286 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (20,521 | ) | (9,585 | ) | |||
Inventories | (4,170 | ) | 997 | ||||
Prepaid expenses and other assets | (5,703 | ) | 2,507 | ||||
Accounts payable | (2,839 | ) | (4,032 | ) | |||
Deferred revenue | 8,002 | 1,783 | |||||
Income taxes payable | (114 | ) | 461 | ||||
Accrued and other liabilities | (10,536 | ) | (2,188 | ) | |||
Net cash provided by operating activities | 1,141 | 5,667 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sale of investments | — | 104 | |||||
Purchases of property and equipment | (4,973 | ) | (4,703 | ) | |||
Net cash used in investing activities | (4,973 | ) | (4,599 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from convertible debt | 115,500 | — | |||||
Payments of convertible debt | (109,603 | ) | — | ||||
Payment of convertible debt issuance costs | (3,465 | ) | — | ||||
Proceeds from other debts and finance leases | 4,684 | 5,066 | |||||
Repayment of other debts and finance leases | (6,387 | ) | (6,568 | ) | |||
Proceeds from common stock issued to employees | 5,573 | 4,299 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,278 | ) | (166 | ) | |||
Net cash provided by financing activities | 5,024 | 2,631 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (486 | ) | (580 | ) | |||
Net increase in cash, cash equivalents and restricted cash | 706 | 3,119 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 65,989 | 58,757 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 66,695 | $ | 61,876 | |||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 66,695 | $ | 61,654 | |||
Restricted cash included in prepaid expenses and other current assets | — | 222 | |||||
Total cash, cash equivalents and restricted cash | $ | 66,695 | $ | 61,876 |
Three months ended | ||||||||||||||||||||||||||||||||
September 27, 2019 | June 28, 2019 | September 28, 2018 | ||||||||||||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||||||||
Americas | $ | 78,699 | $ | — | $ | 78,699 | 68% | $ | 42,437 | $ | 23 | $ | 42,460 | 50% | $ | 54,119 | $ | 790 | $ | 54,909 | 54% | |||||||||||
EMEA | 24,322 | — | 24,322 | 21% | 25,203 | — | 25,203 | 30% | 26,316 | — | 26,316 | 26% | ||||||||||||||||||||
APAC | 12,704 | — | 12,704 | 11% | 17,225 | — | 17,225 | 20% | 20,181 | — | 20,181 | 20% | ||||||||||||||||||||
Total | $ | 115,725 | $ | — | $ | 115,725 | 100% | $ | 84,865 | $ | 23 | $ | 84,888 | 100% | $ | 100,616 | $ | 790 | $ | 101,406 | 100% | |||||||||||
Market | ||||||||||||||||||||||||||||||||
Service Provider | $ | 77,886 | $ | — | $ | 77,886 | 67% | $ | 43,438 | $ | 23 | $ | 43,461 | 51% | $ | 66,737 | $ | 790 | $ | 67,527 | 67% | |||||||||||
Broadcast and Media | 37,839 | — | 37,839 | 33% | 41,427 | — | 41,427 | 49% | 33,879 | — | 33,879 | 33% | ||||||||||||||||||||
Total | $ | 115,725 | $ | — | $ | 115,725 | 100% | $ | 84,865 | $ | 23 | $ | 84,888 | 100% | $ | 100,616 | $ | 790 | $ | 101,406 | 100% |
Nine months ended | |||||||||||||||||||||
September 27, 2019 | September 28, 2018 | ||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||||
Geography | |||||||||||||||||||||
Americas | $ | 155,324 | $ | 48 | $ | 155,372 | 54% | $ | 155,893 | $ | 1,185 | $ | 157,078 | 54% | |||||||
EMEA | 77,603 | — | 77,603 | 28% | 81,194 | — | 81,194 | 28% | |||||||||||||
APAC | 47,769 | — | 47,769 | 18% | 52,816 | — | 52,816 | 18% | |||||||||||||
Total | $ | 280,696 | $ | 48 | $ | 280,744 | 100% | $ | 289,903 | $ | 1,185 | $ | 291,088 | 100% | |||||||
Market | |||||||||||||||||||||
Service Provider | $ | 165,536 | $ | 48 | $ | 165,584 | 59% | $ | 173,096 | $ | 1,185 | $ | 174,281 | 60% | |||||||
Broadcast and Media | 115,160 | — | 115,160 | 41% | 116,807 | — | 116,807 | 40% | |||||||||||||
Total | $ | 280,696 | $ | 48 | $ | 280,744 | 100% | $ | 289,903 | $ | 1,185 | $ | 291,088 | 100% |
Three months ended September 27, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 60,055 | $ | 55,670 | $ | 115,725 | $ | — | * | $ | 115,725 | ||||||||
Gross profit | 34,646 | 42,925 | 77,571 | (2,031 | ) | 75,540 | |||||||||||||
Gross margin% | 57.7 | % | 77.1 | % | 67.0 | % | 65.3 | % | |||||||||||
Operating income (loss) | (1,696 | ) | 31,611 | 29,915 | (7,366 | ) | 22,549 | ||||||||||||
Operating margin% | (2.8 | )% | 56.8 | % | 25.9 | % | 19.5 | % | |||||||||||
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 September 28, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 73,344 | $ | 28,062 | $ | 101,406 | $ | (790 | ) | * | $ | 100,616 | |||||||
Gross profit | 41,937 | 10,871 | 52,808 | (2,706 | ) | 50,102 | |||||||||||||
Gross margin% | 57.2 | % | 38.7 | % | 52.1 | % | 49.8 | % | |||||||||||
Operating income | 5,258 | 395 | 5,653 | (9,304 | ) | (3,651 | ) | ||||||||||||
Operating margin% | 7.2 | % | 1.4 | % | 5.6 | % | (3.6 | )% | |||||||||||
Nine months ended September 27, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 198,856 | $ | 81,888 | $ | 280,744 | $ | (48 | ) | * | $ | 280,696 | |||||||
Gross profit | 114,692 | 52,104 | 166,796 | (5,479 | ) | 161,317 | |||||||||||||
Gross margin% | 57.7 | % | 63.6 | % | 59.4 | % | 57.5 | % | |||||||||||
Operating income (loss) | 4,731 | 18,571 | 23,302 | (16,925 | ) | 6,377 | |||||||||||||
Operating margin% | 2.4 | % | 22.7 | % | 8.3 | % | 2.3 | % | |||||||||||
Nine months ended September 28, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 224,300 | $ | 66,788 | $ | 291,088 | $ | (1,185 | ) | * | $ | 289,903 | |||||||
Gross profit | 126,721 | 29,698 | 156,419 | (7,531 | ) | 148,888 | |||||||||||||
Gross margin% | 56.5 | % | 44.5 | % | 53.7 | % | 51.4 | % | |||||||||||
Operating income (loss) | 13,492 | (578 | ) | 12,914 | (25,250 | ) | (12,336 | ) | |||||||||||
Operating margin% | 6.0 | % | (0.9 | )% | 4.4 | % | (4.3 | )% |
Three months ended September 27, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income | |||||||||||||
GAAP | $ | 115,725 | $ | 75,540 | $ | 52,991 | $ | 22,549 | $ | (10,289 | ) | $ | 11,657 | |||||
Stock-based compensation | — | 405 | (3,689 | ) | 4,094 | — | 4,094 | |||||||||||
Amortization of intangibles | — | 1,295 | (785 | ) | 2,080 | — | 2,080 | |||||||||||
Restructuring and related charges | — | 331 | (861 | ) | 1,192 | — | 1,192 | |||||||||||
Loss on convertible debt extinguishment | — | — | — | — | 5,695 | 5,695 | ||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 2,625 | 2,625 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (2,751 | ) | |||||||||||
Total adjustments | $ | — | $ | 2,031 | $ | (5,335 | ) | $ | 7,366 | $ | 8,320 | $ | 12,935 | |||||
Non-GAAP | $ | 115,725 | $ | 77,571 | $ | 47,656 | $ | 29,915 | $ | (1,969 | ) | $ | 24,592 | |||||
As a % of revenue (GAAP) | 65.3 | % | 45.8 | % | 19.5 | % | (8.9 | )% | 10.1 | % | ||||||||
As a % of revenue (Non-GAAP) | 67.0 | % | 41.2 | % | 25.9 | % | (1.7 | )% | 21.3 | % | ||||||||
Diluted net income per share: | ||||||||||||||||||
Diluted net income per share-GAAP | $ | 0.12 | ||||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.25 | ||||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 97,596 | |||||||||||||||||
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 and other 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 September 28, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |||||||||||||
GAAP | $ | 100,616 | $ | 50,102 | $ | 53,753 | $ | (3,651 | ) | $ | (3,237 | ) | $ | (7,758 | ) | |||
Accounting impact related to warrant amortization | 790 | 790 | — | 790 | — | 790 | ||||||||||||
Stock-based compensation | — | 614 | (4,819 | ) | 5,433 | — | 5,433 | |||||||||||
Amortization of intangibles | — | 1,295 | (792 | ) | 2,087 | — | 2,087 | |||||||||||
Restructuring and related charges | — | 7 | (987 | ) | 994 | — | 994 | |||||||||||
Loss on equity investments | — | — | — | — | 72 | 72 | ||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 1,528 | 1,528 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 227 | ||||||||||||
Total adjustments | $ | 790 | $ | 2,706 | $ | (6,598 | ) | $ | 9,304 | $ | 1,600 | $ | 11,131 | |||||
Non-GAAP | $ | 101,406 | $ | 52,808 | $ | 47,155 | $ | 5,653 | $ | (1,637 | ) | $ | 3,373 | |||||
As a % of revenue (GAAP) | 49.8 | % | 53.4 | % | (3.6 | )% | (3.2 | )% | (7.7 | )% | ||||||||
As a % of revenue (Non-GAAP) | 52.1 | % | 46.5 | % | 5.6 | % | (1.6 | )% | 3.3 | % | ||||||||
Diluted net income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.09 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.04 | ||||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP | 86,321 | |||||||||||||||||
Non-GAAP | 87,770 | |||||||||||||||||
Nine months ended September 27, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense | Net Income (Loss) | |||||||||||||
GAAP | $ | 280,696 | $ | 161,317 | $ | 154,940 | $ | 6,377 | $ | (16,890 | ) | $ | (11,494 | ) | ||||
Accounting impact related to warrant amortization | 48 | 48 | — | 48 | — | 48 | ||||||||||||
Stock-based compensation | — | 823 | (7,894 | ) | 8,717 | — | 8,717 | |||||||||||
Amortization of intangibles | — | 3,885 | (2,357 | ) | 6,242 | — | 6,242 | |||||||||||
Restructuring and related charges | — | 723 | (1,195 | ) | 1,918 | — | 1,918 | |||||||||||
Loss on debt extinguishment | — | — | — | — | 5,695 | 5,695 | ||||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 5,887 | 5,887 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (1,179 | ) | |||||||||||
Total adjustments | $ | 48 | $ | 5,479 | $ | (11,446 | ) | $ | 16,925 | $ | 11,582 | $ | 27,328 | |||||
Non-GAAP | $ | 280,744 | $ | 166,796 | $ | 143,494 | $ | 23,302 | $ | (5,308 | ) | $ | 15,834 | |||||
As a % of revenue (GAAP) | 57.5 | % | 55.2 | % | 2.3 | % | (6.0 | )% | (4.1 | )% | ||||||||
As a % of revenue (Non-GAAP) | 59.4 | % | 51.1 | % | 8.3 | % | (1.9 | )% | 5.6 | % | ||||||||
Diluted net income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.13 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.17 | ||||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP | 89,030 | |||||||||||||||||
Non-GAAP | 92,579 | |||||||||||||||||
Nine months ended September 28, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense | Net Income (Loss) | |||||||||||||
GAAP | $ | 289,903 | $ | 148,888 | $ | 161,224 | $ | (12,336 | ) | $ | (9,190 | ) | $ | (24,365 | ) | |||
Accounting impact related to warrant amortization | 1,185 | 1,185 | — | 1,185 | — | 1,185 | ||||||||||||
Stock-based compensation | — | 1,577 | (12,625 | ) | 14,202 | — | 14,202 | |||||||||||
Amortization of intangibles | — | 3,885 | (2,396 | ) | 6,281 | — | 6,281 | |||||||||||
Restructuring and related charges | — | 884 | (2,704 | ) | 3,588 | — | 3,588 | |||||||||||
Gain on equity investments | — | — | — | — | (111 | ) | (111 | ) | ||||||||||
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 4,483 | 4,483 | ||||||||||||
Avid litigation settlement and associated legal fees | — | — | 6 | (6 | ) | — | (6 | ) | ||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,543 | ||||||||||||
Total adjustments | $ | 1,185 | $ | 7,531 | $ | (17,719 | ) | $ | 25,250 | $ | 4,372 | $ | 31,165 | |||||
Non-GAAP | $ | 291,088 | $ | 156,419 | $ | 143,505 | $ | 12,914 | $ | (4,818 | ) | $ | 6,800 | |||||
As a % of revenue (GAAP) | 51.4 | % | 55.6 | % | (4.3 | )% | (3.2 | )% | (8.4 | )% | ||||||||
As a % of revenue (Non-GAAP) | 53.7 | % | 49.3 | % | 4.4 | % | (1.7 | )% | 2.3 | % | ||||||||
Diluted net income (loss) per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.29 | ) | |||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.08 | ||||||||||||||||
Shares used to compute diluted net income (loss) per share: | ||||||||||||||||||
GAAP | 85,188 | |||||||||||||||||
GAAP and Non-GAAP | 85,962 |
Q4 2019 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $108.0 to $118.0 | $53.5 to $60.4 | $52.2 to $54.2 | $(0.7) to $8.2 | $(3.3) | $(4.6) to $4.3 |
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 | — | — | (0.2) | 0.2 | — | 0.2 |
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 1.8 | 1.8 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $(0.9) to $0.2 |
Total adjustments | — | 1.6 | (4.2) | 5.8 | 1.8 | $6.7 to $7.8 |
Non-GAAP | $108.0 to $118.0 | $55.1 to $62.0 | $48.0 to $50.0 | $5.1 to $14.0 | $(1.5) | $3.2 to $11 |
As a % of revenue (GAAP) | 49.5% to 51.1% | 44.2% to 50.2% | (0.7)% to 6.9% | (2.8)% | (4.3)% to 3.6% | |
As a % of revenue (Non-GAAP) | 51.0% to 52.5% | 40.7% to 46.3% | 4.7% to 11.8% | (1.3)% | 2.9% to 9.3% | |
Diluted net income (loss) per share: | ||||||
Diluted net income (loss) per share-GAAP | $(0.05) to $0.04 | |||||
Diluted net income per share-Non-GAAP | $0.03 to $0.11 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP | 90.5 | |||||
Shares used to compute diluted net income per share: | ||||||
GAAP and Non-GAAP | 95.8 |
2019 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $388.7 to $398.7 | $214.9 to $221.8 | $207.0 to $209.0 | $5.9 to $14.8 | $(20.2) | $(16.0) to $(7.1) |
Stock-based compensation | — | 1.1 | (11.1) | 12.2 | — | 12.2 |
Amortization of intangibles | — | 5.2 | (3.1) | 8.3 | — | 8.3 |
Restructuring and related charges | — | 0.7 | (1.4) | 2.1 | — | 2.1 |
Non-cash interest and other expenses related to convertible notes | — | — | — | — | 13.4 | 13.4 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $(2.0) to $(0.9) |
Total adjustments | — | 7.0 | (15.6) | 22.6 | 13.4 | $34.0 to $35.1 |
Non-GAAP | $388.7 to $398.7 | $221.9 to $228.8 | $191.4 to $193.4 | $28.5 to $37.4 | $(6.8) | $19.1 to $26.9 |
As a % of revenue (GAAP) | 55.3% to 55.6% | 51.9% to 53.8% | 1.5% to 3.7% | (5.1)% | (4.1)% to (1.8)% | |
As a % of revenue (Non-GAAP) | 57.1% to 57.4% | 48.0% to 49.8% | 7.3% to 9.4% | (1.7)% | 4.9% to 6.7% | |
Diluted net income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.18) to $(0.08) | |||||
Diluted net income per share-Non-GAAP | $0.20 to $0.29 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP | 89.9 | |||||
Shares used to compute diluted net income per share: | ||||||
Non-GAAP | 93.8 |