(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 |
Item 2.02. | Results of Operations and Financial Condition. |
Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Description | ||
99.1 | |||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Date: August 3, 2020 | HARMONIC INC. | |||||
By: | /s/ Sanjay Kalra | |||||
Sanjay Kalra | ||||||
Chief Financial Officer |
• | Revenue: $74.0 million, down 12.8% year over year. |
• | SaaS and service revenue: $31.8 million, up 4.3% year over year. |
• | Gross margin: GAAP 51.0% and non-GAAP 51.6%, compared to GAAP 51.8% and non-GAAP 53.6% in the year ago period. |
• | Cable Access segment revenue: $26.5 million, up 100% year over year. |
• | Video segment gross margin: 54.8%, compared to 57.9% in the year ago period. |
• | Operating loss: GAAP loss $9.6 million and non-GAAP loss $5.1 million, compared to GAAP loss $7.8 million and non-GAAP loss $2.8 million in the year ago period. |
• | EPS: GAAP net loss per share $0.16 cents and non-GAAP net loss per share $0.06 cents, compared to GAAP net loss per share $0.13 cents and non-GAAP net loss per share $0.04 cents in the year ago period. |
• | Cash: $77.7 million, up $19.6 million year over year. |
• | CableOS solution commercially deployed with 29 customers, up 81% year over year. |
• | CableOS deployments scaled to 1.7 million served cable modems, up 116% year over year. |
• | Video SaaS customer base increased to 66 customers, up 136% year over year. |
• | Over 47,000 OTT channels deployed globally, up 19% year over year. |
• | Launched partnership with SES to enable 5G in the U.S. through an innovative bandwidth reclamation solution. |
GAAP | Non-GAAP | |||||||||||||||||||||||
Key Financial Results | Q2 2020 | Q1 2020 | Q2 2019 | Q2 2020 | Q1 2020 | Q2 2019 | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||
Net revenue | $ | 74.0 | $ | 78.4 | $ | 84.9 | $ | 74.0 | $ | 78.4 | $ | 84.9 | ||||||||||||
Net loss | $ | (15.4 | ) | $ | (22.0 | ) | $ | (11.8 | ) | $ | (5.9 | ) | $ | (9.8 | ) | $ | (4.0 | ) | ||||||
Diluted EPS | $ | (0.16 | ) | $ | (0.23 | ) | $ | (0.13 | ) | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.04 | ) | ||||||
Other Financial Information | Q2 2020 | Q1 2020 | Q2 2019 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Adjusted EBITDA | $ | (2.8 | ) | $ | (7.0 | ) | $ | (0.3 | ) | |||||||||||||||
Bookings for the quarter | $ | 77.0 | $ | 76.3 | $ | 92.6 | ||||||||||||||||||
Backlog and deferred revenue as of quarter end | $ | 210.2 | $ | 207.9 | $ | 194.7 | ||||||||||||||||||
Cash and cash equivalents as of quarter end | $ | 77.7 | $ | 71.7 | $ | 58.1 |
GAAP Financial Guidance | Q3 2020 | Q4 2020 | 2020 | ||||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||||||||||
Net Revenue | $ | 75.0 | $ | 87.0 | $ | 122.0 | $ | 142.0 | $ | 349.5 | $ | 381.5 | |||||||||||||
Video | $ | 40.0 | $ | 47.0 | $ | 87.0 | $ | 97.0 | $ | 229.0 | $ | 246.0 | |||||||||||||
Cable Access | $ | 35.0 | $ | 40.0 | $ | 35.0 | $ | 45.0 | $ | 120.5 | $ | 135.5 | |||||||||||||
Gross Margin % | 50.0 | % | 51.5 | % | 50.0 | % | 53.0 | % | 49.5 | % | 51.0 | % | |||||||||||||
Operating Expenses | $ | 50.0 | $ | 52.0 | $ | 50.0 | $ | 54.0 | $ | 202.5 | $ | 208.5 | |||||||||||||
Operating Income (Loss) | $ | (14.5 | ) | $ | (5.5 | ) | $ | 11.0 | $ | 21.0 | $ | (31.5 | ) | $ | (12.5 | ) | |||||||||
Tax Expense | $ | (0.6 | ) | $ | (0.6 | ) | $ | (0.6 | ) | $ | (0.6 | ) | $ | (3.4 | ) | $ | (3.4 | ) | |||||||
EPS | $ | (0.19 | ) | $ | (0.10 | ) | $ | 0.07 | $ | 0.17 | $ | (0.50 | ) | $ | (0.31 | ) | |||||||||
Shares | 97.6 | 97.6 | 98.5 | 98.5 | 97.0 | 97.0 | |||||||||||||||||||
Cash | $ | 80.0 | $ | 90.0 | $ | 80.0 | $ | 90.0 | $ | 80.0 | $ | 90.0 |
Non-GAAP Financial Guidance | Q3 2020 | Q4 2020 | 2020 | ||||||||||||||||||||||
Low | High | Low | High | Low | High | ||||||||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||||||||||
Net Revenue | $ | 75.0 | $ | 87.0 | $ | 122.0 | $ | 142.0 | $ | 349.5 | $ | 381.5 | |||||||||||||
Video | $ | 40.0 | $ | 47.0 | $ | 87.0 | $ | 97.0 | $ | 229.0 | $ | 246.0 | |||||||||||||
Cable Access | $ | 35.0 | $ | 40.0 | $ | 35.0 | $ | 45.0 | $ | 120.5 | $ | 135.5 | |||||||||||||
Gross Margin % | 50.5 | % | 52.0 | % | 50.0 | % | 53.0 | % | 50.0 | % | 51.5 | % | |||||||||||||
Operating Expenses | $ | 45.0 | $ | 47.0 | $ | 45.0 | $ | 49.5 | $ | 181.5 | $ | 187.5 | |||||||||||||
Operating Income (Loss) | $ | (9.0 | ) | $ | 0.0 | $ | 16.0 | $ | 26.0 | $ | (7.5 | ) | $ | 11.5 | |||||||||||
Adjusted EBITDA | $ | (6.0 | ) | $ | 3.0 | $ | 19.0 | $ | 29.0 | $ | 3.0 | $ | 22.0 | ||||||||||||
Tax rate | 10 | % | 10 | % | 10 | % | 10 | % | 10 | % | 10 | % | |||||||||||||
EPS | $ | (0.09 | ) | $ | (0.01 | ) | $ | 0.13 | $ | 0.22 | $ | (0.12 | ) | $ | 0.05 | ||||||||||
Shares | 97.6 | 97.6 | 98.5 | 98.5 | 97.0 | 98.1 | |||||||||||||||||||
Cash | $ | 80.0 | $ | 90.0 | $ | 80.0 | $ | 90.0 | $ | 80.0 | $ | 90.0 |
Sanjay Kalra | Michael Smiley |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | Harmonic Inc. |
+1.408.490.6031 | +1.408.490.6176 |
June 26, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 77,744 | $ | 93,058 | |||
Accounts receivable, net | 74,781 | 88,500 | |||||
Inventories, net | 32,097 | 29,042 | |||||
Prepaid expenses and other current assets | 23,255 | 40,762 | |||||
Total current assets | 207,877 | 251,362 | |||||
Property and equipment, net | 41,341 | 22,928 | |||||
Operating lease right-of-use assets | 25,292 | 27,491 | |||||
Goodwill | 239,816 | 239,780 | |||||
Intangibles, net | 1,993 | 4,461 | |||||
Other long-term assets | 41,202 | 41,305 | |||||
Total assets | $ | 557,521 | $ | 587,327 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and finance lease obligations, current | $ | 6,323 | $ | 6,713 | |||
Accounts payable | 27,235 | 40,933 | |||||
Income taxes payable | 1,017 | 1,226 | |||||
Deferred revenue | 47,605 | 37,117 | |||||
Accrued and other current liabilities | 55,366 | 62,535 | |||||
Convertible notes, short-term | 7,855 | 43,375 | |||||
Total current liabilities | 145,401 | 191,899 | |||||
Convertible notes, long-term | 126,554 | 88,629 | |||||
Other debts and finance lease obligations, long-term | 13,994 | 10,511 | |||||
Income taxes payable, long-term | 182 | 178 | |||||
Other non-current liabilities | 41,108 | 41,254 | |||||
Total liabilities | $ | 327,239 | $ | 332,471 | |||
Convertible notes | — | 2,410 | |||||
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; 96,863 and 91,875 shares issued and outstanding at June 26, 2020 and December 31, 2019, respectively | 97 | 92 | |||||
Additional paid-in capital | 2,342,856 | 2,327,359 | |||||
Accumulated deficit | (2,109,295 | ) | (2,071,940 | ) | |||
Accumulated other comprehensive loss | (3,376 | ) | (3,065 | ) | |||
Total stockholders’ equity | 230,282 | 252,446 | |||||
Total liabilities and stockholders’ equity | $ | 557,521 | $ | 587,327 |
Three months ended | Six months ended | ||||||||||||||
June 26, 2020 | June 28, 2019 | June 26, 2020 | June 28, 2019 | ||||||||||||
Revenue: | |||||||||||||||
Appliance and integration | $ | 42,224 | $ | 54,417 | $ | 89,976 | $ | 106,782 | |||||||
SaaS and service | 31,770 | 30,448 | 62,435 | 58,189 | |||||||||||
Total net revenue | 73,994 | 84,865 | 152,411 | 164,971 | |||||||||||
Cost of revenue: | |||||||||||||||
Appliance and integration | 22,784 | 29,312 | 49,071 | 56,366 | |||||||||||
SaaS and service | 13,437 | 11,625 | 28,829 | 22,828 | |||||||||||
Total cost of revenue | 36,221 | 40,937 | 77,900 | 79,194 | |||||||||||
Total gross profit | 37,773 | 43,928 | 74,511 | 85,777 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 19,498 | 21,313 | 41,621 | 42,714 | |||||||||||
Selling, general and administrative | 27,005 | 29,319 | 58,223 | 57,330 | |||||||||||
Amortization of intangibles | 742 | 784 | 1,512 | 1,572 | |||||||||||
Restructuring and related charges | 82 | 276 | 758 | 333 | |||||||||||
Total operating expenses | 47,327 | 51,692 | 102,114 | 101,949 | |||||||||||
Loss from operations | (9,554 | ) | (7,764 | ) | (27,603 | ) | (16,172 | ) | |||||||
Interest expense, net | (3,062 | ) | (2,956 | ) | (5,965 | ) | (5,862 | ) | |||||||
Loss on debt extinguishment | (834 | ) | — | (834 | ) | — | |||||||||
Other expense, net | (373 | ) | (428 | ) | (646 | ) | (739 | ) | |||||||
Loss before income taxes | (13,823 | ) | (11,148 | ) | (35,048 | ) | (22,773 | ) | |||||||
Provision for income taxes | 1,578 | 697 | 2,307 | 378 | |||||||||||
Net loss | $ | (15,401 | ) | $ | (11,845 | ) | $ | (37,355 | ) | $ | (23,151 | ) | |||
Net loss per share: | |||||||||||||||
Basic and diluted | $ | (0.16 | ) | $ | (0.13 | ) | $ | (0.39 | ) | $ | (0.26 | ) | |||
Shares used in per share calculations: | |||||||||||||||
Basic and diluted | 96,727 | 88,931 | 96,255 | 88,554 |
Six months ended | |||||||
June 26, 2020 | June 28, 2019 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (37,355 | ) | $ | (23,151 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Amortization of intangibles | 2,462 | 4,162 | |||||
Depreciation | 5,535 | 5,716 | |||||
Stock-based compensation | 9,807 | 4,623 | |||||
Amortization of discount on convertible and other debt | 3,785 | 3,262 | |||||
Amortization of non-cash warrant | 868 | 48 | |||||
Loss on debt extinguishment | 834 | — | |||||
Deferred income taxes, net | 1,116 | (145 | ) | ||||
Provision for doubtful accounts, returns and discounts | 662 | 500 | |||||
Provision for excess and obsolete inventories | 723 | 384 | |||||
Other non-cash adjustments, net | 118 | 79 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 13,024 | 10,699 | |||||
Inventories | (4,032 | ) | (2,440 | ) | |||
Prepaid expenses and other assets | 19,182 | (1,526 | ) | ||||
Accounts payable | (14,963 | ) | (1,752 | ) | |||
Deferred revenues | 11,241 | 4,989 | |||||
Income taxes payable | (181 | ) | (292 | ) | |||
Accrued and other liabilities | (11,936 | ) | (9,802 | ) | |||
Net cash provided by (used in) operating activities | 890 | (4,646 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (20,753 | ) | (2,939 | ) | |||
Net cash used in investing activities | (20,753 | ) | (2,939 | ) | |||
Cash flows from financing activities: | |||||||
Payments of convertible debt | (25 | ) | — | ||||
Payment of convertible debt issuance costs | (35 | ) | — | ||||
Proceeds from other debts and finance leases | 9,398 | 4,503 | |||||
Repayment of other debts and finance leases | (6,342 | ) | (6,162 | ) | |||
Proceeds from common stock issued to employees | 3,000 | 2,147 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,049 | ) | (828 | ) | |||
Net cash provided by (used in) financing activities | 4,947 | (340 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (398 | ) | — | ||||
Net decrease in cash and cash equivalents | (15,314 | ) | (7,925 | ) | |||
Cash and cash equivalents at beginning of the year | 93,058 | 65,989 | |||||
Cash and cash equivalents at end of the year | $ | 77,744 | $ | 58,064 |
Three months ended | ||||||||||||||||||||||||||||||||
June 26, 2020 | March 27, 2020 | June 28, 2019 | ||||||||||||||||||||||||||||||
GAAP | Adjustment(1) | Non-GAAP | GAAP | Adjustment(1) | Non-GAAP | GAAP | Adjustment(1) | Non-GAAP | ||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||||||||
Americas | $ | 42,307 | $ | — | $ | 42,307 | 58% | $ | 37,650 | $ | — | $ | 37,650 | 48% | $ | 42,437 | $ | 23 | $ | 42,460 | 50% | |||||||||||
EMEA | 24,714 | — | 24,714 | 33% | 27,816 | — | 27,816 | 35% | 25,203 | — | 25,203 | 30% | ||||||||||||||||||||
APAC | 6,973 | — | 6,973 | 9% | 12,951 | — | 12,951 | 17% | 17,225 | — | 17,225 | 20% | ||||||||||||||||||||
Total | $ | 73,994 | $ | — | $ | 73,994 | 100% | $ | 78,417 | $ | — | $ | 78,417 | 100% | $ | 84,865 | $ | 23 | $ | 84,888 | 100% | |||||||||||
Market | ||||||||||||||||||||||||||||||||
Service Provider | $ | 42,169 | $ | — | $ | 42,169 | 57% | $ | 43,759 | $ | — | $ | 43,759 | 56% | $ | 43,438 | $ | 23 | $ | 43,461 | 51% | |||||||||||
Broadcast and Media | 31,825 | — | 31,825 | 43% | 34,658 | — | 34,658 | 44% | 41,427 | — | 41,427 | 49% | ||||||||||||||||||||
Total | $ | 73,994 | $ | — | $ | 73,994 | 100% | $ | 78,417 | $ | — | $ | 78,417 | 100% | $ | 84,865 | $ | 23 | $ | 84,888 | 100% |
Six months ended | |||||||||||||||||||||
June 26, 2020 | June 28, 2019 | ||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||||
Geography | |||||||||||||||||||||
Americas | $ | 79,957 | $ | — | $ | 79,957 | 53% | $ | 76,625 | $ | 48 | $ | 76,673 | 46% | |||||||
EMEA | 52,530 | — | 52,530 | 34% | 53,281 | — | 53,281 | 32% | |||||||||||||
APAC | 19,924 | — | 19,924 | 13% | 35,065 | — | 35,065 | 22% | |||||||||||||
Total | $ | 152,411 | $ | — | $ | 152,411 | 100% | $ | 164,971 | $ | 48 | $ | 165,019 | 100% | |||||||
Market | |||||||||||||||||||||
Service Provider | $ | 85,928 | $ | — | $ | 85,928 | 56% | $ | 87,650 | $ | 48 | $ | 87,698 | 53% | |||||||
Broadcast and Media | 66,483 | — | 66,483 | 44% | 77,321 | — | 77,321 | 47% | |||||||||||||
Total | $ | 152,411 | $ | — | $ | 152,411 | 100% | $ | 164,971 | $ | 48 | $ | 165,019 | 100% |
Three months ended June 26, 2020 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 47,453 | $ | 26,541 | $ | 73,994 | $ | — | $ | 73,994 | |||||||||
Gross profit | 26,024 | 12,128 | 38,152 | (379 | ) | 37,773 | |||||||||||||
Gross margin% | 54.8 | % | 45.7 | % | 51.6 | % | 51.0 | % | |||||||||||
Operating loss | (4,237 | ) | (878 | ) | (5,115 | ) | (4,439 | ) | (9,554 | ) | |||||||||
Operating margin% | (8.9 | )% | (3.3 | )% | (6.9 | )% | (12.9 | )% | |||||||||||
Three months ended March 27, 2020 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 54,372 | $ | 24,045 | $ | 78,417 | $ | — | $ | 78,417 | |||||||||
Gross profit | 27,907 | 10,414 | 38,321 | (1,583 | ) | 36,738 | |||||||||||||
Gross margin% | 51.3 | % | 43.3 | % | 48.9 | % | 46.8 | % | |||||||||||
Operating loss | (6,267 | ) | (3,265 | ) | (9,532 | ) | (8,517 | ) | (18,049 | ) | |||||||||
Operating margin% | (11.5 | )% | (13.6 | )% | (12.2 | )% | (23.0 | )% | |||||||||||
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 | )% |
Six months ended June 26, 2020 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 101,825 | $ | 50,586 | $ | 152,411 | $ | — | $ | 152,411 | |||||||||
Gross profit | 53,931 | 22,542 | 76,473 | (1,962 | ) | 74,511 | |||||||||||||
Gross margin% | 53.0 | % | 44.6 | % | 50.2 | % | 48.9 | % | |||||||||||
Operating loss | (10,504 | ) | (4,143 | ) | (14,647 | ) | (12,956 | ) | (27,603 | ) | |||||||||
Operating margin% | (10.3 | )% | (8.2 | )% | (9.6 | )% | (18.1 | )% | |||||||||||
Six months ended June 28, 2019 | |||||||||||||||||||
Video | Cable Access | 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 | )% |
Three months ended June 26, 2020 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating expense, net | Net Loss | |||||||||||||
GAAP | $ | 73,994 | $ | 37,773 | $ | 47,327 | $ | (9,554 | ) | $ | (4,269 | ) | $ | (15,401 | ) | |||
Stock-based compensation | — | 312 | (3,236 | ) | 3,548 | — | 3,548 | |||||||||||
Amortization of intangibles | — | 65 | (742 | ) | 807 | — | 807 | |||||||||||
Restructuring and related charges | — | 2 | (82 | ) | 84 | — | 84 | |||||||||||
Loss on convertible debt extinguishment | — | — | — | — | 834 | 834 | ||||||||||||
Non-cash interest and other expenses related to convertible notes and other debt | — | — | — | — | 1,950 | 1,950 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 2,238 | ||||||||||||
Total adjustments | — | 379 | (4,060 | ) | 4,439 | 2,784 | 9,461 | |||||||||||
Non-GAAP | $ | 73,994 | $ | 38,152 | $ | 43,267 | $ | (5,115 | ) | $ | (1,485 | ) | $ | (5,940 | ) | |||
As a % of revenue (GAAP) | 51.0 | % | 64.0 | % | (12.9 | )% | (5.8 | )% | (20.8 | )% | ||||||||
As a % of revenue (Non-GAAP) | 51.6 | % | 58.5 | % | (6.9 | )% | (2.0 | )% | (8.0 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.16 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.06 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 96,727 | |||||||||||||||||
Three months ended March 27, 2020 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating expense, net | Net Loss | |||||||||||||
GAAP | $ | 78,417 | $ | 36,738 | $ | 54,787 | $ | (18,049 | ) | $ | (3,176 | ) | $ | (21,954 | ) | |||
Stock-based compensation | — | 771 | (5,488 | ) | 6,259 | — | 6,259 | |||||||||||
Amortization of intangibles | — | 885 | (770 | ) | 1,655 | — | 1,655 | |||||||||||
Restructuring and related charges | — | (73 | ) | (676 | ) | 603 | — | 603 | ||||||||||
Non-cash interest and other expenses related to convertible notes and other debt | — | — | — | — | 1,835 | 1,835 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,816 | ||||||||||||
Total adjustments | — | 1,583 | (6,934 | ) | 8,517 | 1,835 | 12,168 | |||||||||||
Non-GAAP | $ | 78,417 | $ | 38,321 | $ | 47,853 | $ | (9,532 | ) | $ | (1,341 | ) | $ | (9,786 | ) | |||
As a % of revenue (GAAP) | 46.8 | % | 69.9 | % | (23.0 | )% | (4.1 | )% | (28.0 | )% | ||||||||
As a % of revenue (Non-GAAP) | 48.9 | % | 61.0 | % | (12.2 | )% | (1.7 | )% | (12.5 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.23 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.10 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 95,575 | |||||||||||||||||
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 and other debt | — | — | — | — | 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 |
Six months ended June 26, 2020 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense | Net Loss | |||||||||||||
GAAP | $ | 152,411 | $ | 74,511 | $ | 102,114 | $ | (27,603 | ) | $ | (7,445 | ) | $ | (37,355 | ) | |||
Stock-based compensation | — | 1,083 | (8,724 | ) | 9,807 | — | 9,807 | |||||||||||
Amortization of intangibles | — | 950 | (1,512 | ) | 2,462 | — | 2,462 | |||||||||||
Restructuring and related charges | — | (71 | ) | (758 | ) | 687 | — | 687 | ||||||||||
Loss on convertible debt extinguishment | — | — | — | — | 834 | 834 | ||||||||||||
Non-cash interest and other expenses related to convertible notes and other debt | — | — | — | — | 3,785 | 3,785 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 4,054 | ||||||||||||
Total adjustments | — | 1,962 | (10,994 | ) | 12,956 | 4,619 | 21,629 | |||||||||||
Non-GAAP | $ | 152,411 | $ | 76,473 | $ | 91,120 | $ | (14,647 | ) | $ | (2,826 | ) | $ | (15,726 | ) | |||
As a % of revenue (GAAP) | 48.9 | % | 67.0 | % | (18.1 | )% | (4.9 | )% | (24.5 | )% | ||||||||
As a % of revenue (Non-GAAP) | 50.2 | % | 59.8 | % | (9.6 | )% | (1.9 | )% | (10.3 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.39 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.16 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 96,255 |
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 and other expenses related to convertible notes and other debt | — | — | — | — | 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 |
Three months ended | |||||||||
June 26, 2020 | March 27, 2020 | June 28, 2019 | |||||||
Net loss - GAAP | $ | (15,401 | ) | $ | (21,954 | ) | $ | (11,845 | ) |
Provision for income taxes | 1,578 | 729 | 697 | ||||||
Interest expense, net | 3,062 | 2,903 | 2,956 | ||||||
Depreciation | 2,692 | 2,843 | 2,870 | ||||||
Amortization of intangibles | 807 | 1,655 | 2,079 | ||||||
EBITDA | (7,262 | ) | (13,824 | ) | (3,243 | ) | |||
Adjustments | |||||||||
Accounting impact related to warrant amortization | — | — | 23 | ||||||
Stock-based compensation | 3,548 | 6,259 | 2,510 | ||||||
Loss on convertible debt extinguishment | 834 | — | — | ||||||
Restructuring and related charges | 84 | 603 | 368 | ||||||
Adjusted EBITDA | $ | (2,796 | ) | $ | (6,962 | ) | $ | (342 | ) |
Six months ended | ||||||
June 26, 2020 | June 28, 2019 | |||||
Net loss - GAAP | $ | (37,355 | ) | $ | (23,151 | ) |
Provision for income taxes | 2,307 | 378 | ||||
Interest expense, net | 5,965 | 5,862 | ||||
Depreciation | 5,535 | 5,716 | ||||
Amortization of intangibles | 2,462 | 4,162 | ||||
EBITDA | (21,086 | ) | (7,033 | ) | ||
Adjustments | ||||||
Accounting impact related to warrant amortization | — | 48 | ||||
Stock-based compensation | 9,807 | 4,623 | ||||
Loss on convertible debt extinguishment | 834 | — | ||||
Restructuring and related charges | 687 | 726 | ||||
Adjusted EBITDA | $ | (9,758 | ) | $ | (1,636 | ) |
Q3 2020 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Loss | |
GAAP | $75.0 to $87.0 | $37.4 to $44.7 | $50.0 to $52.0 | $(14.5) to $(5.5) | $(3.0) to $(3.2) | $(18.2) to $(9.4) |
Stock-based compensation | — | 0.3 | (3.8) | 4.1 | — | 4.1 |
Amortization of intangibles | — | — | (0.7) | 0.7 | — | 0.7 |
Restructuring and related charges | — | 0.2 | (0.6) | 0.8 | — | 0.8 |
Non-cash interest and other expenses related to convertible notes and other debt | — | — | — | — | 1.7 | 1.7 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $0.7 to $1.6 |
Total adjustments | — | 0.5 | (5.1) | 5.6 | 1.7 | $8.0 to $8.9 |
Non-GAAP | $75.0 to $87.0 | $37.9 to $45.2 | $45.0 to $47.0 | $(9.0) to $0.0 | $(1.3) to $(1.5) | $(9.3) to $(1.4) |
As a % of revenue (GAAP) | 50.0% to 51.5% | 57.8% to 69.3% | (19.5)% to (6.4)% | (3.4)% to (4.3)% | (24.2)% to (10.7)% | |
As a % of revenue (Non-GAAP) | 50.5% to 52.0% | 52.0% to 62.5% | (12.0)% to 0.0% | (1.5)% to (2.0)% | (12.4)% to (1.6)% | |
Diluted net loss per share: | ||||||
Diluted net loss per share-GAAP | $(0.19) to $(0.10) | |||||
Diluted net loss per share-Non-GAAP | $(0.09) to $(0.01) | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 97.6 |
Q4 2020 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income | |
GAAP | $122.0 to $142.0 | $60.7 to $75.1 | $50.0 to $54.0 | $11.0 to $21.0 | $(3.0) to $(3.3) | $7.3 to $17.1 |
Stock-based compensation | — | 0.3 | (3.8) | 4.1 | — | 4.1 |
Amortization of intangibles | — | — | (0.7) | 0.7 | — | 0.7 |
Restructuring and related charges | — | 0.2 | (0.2) | 0.4 | — | 0.4 |
Non-cash interest and other expenses related to convertible notes and other debt | — | — | — | — | 1.7 | 1.7 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $(1.9) to $(1.0) |
Total adjustments | — | 0.5 | (4.7) | 5.2 | 1.7 | $5.0 to $5.9 |
Non-GAAP | $122.0 to $142.0 | $61.2 to $75.6 | $45.0 to $49.5 | $16.0 to $26.0 | $(1.3) to $(1.6) | $13.2 to $22.1 |
As a % of revenue (GAAP) | 50.0% to 53.0% | 40.9% to 38.2% | 8.9% to 14.7% | (2.1)% to (2.6)% | 6.0% to 12.1% | |
As a % of revenue (Non-GAAP) | 50.0% to 53.0% | 37.0% to 34.9% | 13.1% to 18.4% | (0.9)% to (1.3)% | 10.8% to 15.6% | |
Diluted net income per share: | ||||||
Diluted net income per share-GAAP | $0.07 to $0.17 | |||||
Diluted net income per share-Non-GAAP | $0.13 to $0.22 | |||||
Shares used to compute diluted net income per share: | ||||||
GAAP and Non-GAAP | 98.5 |
2020 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $349.5 to $381.5 | $172.5 to $194.2 | $202.5 to $208.5 | $(31.5) to $(12.5) | $(13.4) to $(13.9) | $(48.5) to $(29.8) |
Stock-based compensation | — | 1.7 | (16.4) | 18.1 | — | 18.1 |
Amortization of intangibles | — | 1.0 | (3.0) | 4.0 | — | 4.0 |
Restructuring and related charges | — | 0.4 | (1.5) | 1.9 | — | 1.9 |
Non-cash interest and other expenses related to convertible notes and other debt | — | — | — | — | 7.2 | 7.2 |
Loss on debt extinguishment | — | — | — | — | 0.8 | 0.8 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $2.9 to $4.8 |
Total adjustments | — | 3.1 | (20.9) | 24.0 | 8.0 | $34.9 to $36.8 |
Non-GAAP | $349.5 to $381.5 | $175.6 to $197.3 | $181.5 to $187.5 | $(7.5) to $11.5 | $(5.4) to $(5.9) | $(11.7) to $5.1 |
As a % of revenue (GAAP) | 49.5% to 51.0% | 57.9% to 54.6% | (9.0)% to (3.3)% | (3.5)% to (4.0)% | (13.9)% to (7.8)% | |
As a % of revenue (Non-GAAP) | 50.0% to 51.5% | 51.9% to 49.2% | (2.2)% to 3.0% | (1.4)% to (1.7)% | (3.3)% to 1.3% | |
Diluted net income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.50) to $(0.31) | |||||
Diluted net income (loss) per share-Non-GAAP | $(0.12) to $0.05 | |||||
Shares used to compute diluted net income (loss) per share: | ||||||
GAAP and Non-GAAP | 97.0 | |||||
Non-GAAP | 98.1 |
Q3 2020 Financial Guidance | Q4 2020 Financial Guidance | 2020 Financial Guidance | ||||
Net income (loss) - GAAP | $(18.2) to $(9.4) | $7.3 to $17.1 | $(48.5) to $(29.8) | |||
Provision for income taxes | 0.6 | 0.6 | 3.4 | |||
Interest expense, net | 2.7 | 2.8 | 11.5 | |||
Depreciation | 3.4 | 3.3 | 12.2 | |||
Amortization of intangibles | 0.7 | 0.7 | 4.0 | |||
EBITDA | $(10.8) to $(2.0) | $14.7 to $24.5 | $(17.4) to $1.3 | |||
Adjustments | ||||||
Stock-based compensation | 4.1 | 4.1 | 18.1 | |||
Restructuring and related charges | 0.8 | 0.4 | 1.8 | |||
Loss on debt extinguishment | — | — | 0.8 | |||
Adjusted EBITDA | $(6.0) to $3.0 | $19.0 to $29.0 | $3.0 to $22.0 |