View Filing Data

Selling, general and administrative

^[1]

$ 73,994

$ 84,865

$ 152,411

$ 164,971

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

27,005

29,319

58,223

57,330

Amortization of intangibles

742

784

1,512

1,572

Restructuring and related charges

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)

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

Shares used in per share calculation:

$ (15,401)

$ (11,845)

$ (37,355)

$ (23,151)

Net loss per share:

Basic and Diluted

$ (0.16)

$ (0.13)

$ (0.39)

$ (0.26)

Basic and Diluted

96,727

88,931

96,255

88,554

Appliance & Integration [Member]

$ 42,224

$ 54,417

$ 89,976

$ 106,782

Total cost of revenue

22,784

29,312

49,071

56,366

SaaS & Service [Member]

31,770

30,448

62,435

58,189

Total cost of revenue

$ 13,437

$ 11,625

$ 28,829

$ 22,828

[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		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Net loss	$ (15,401)	$ (11,845)	$ (37,355)	$ (23,151)
Other comprehensive income (loss) before tax:
Losses (gains) reclassified into earnings	0	(101)	0	56
Change in foreign currency translation adjustments	2,839	857	(280)	(443)
Other comprehensive income (loss) before tax	2,839	756	(280)	(387)
Provision for (benefit from) income taxes	(125)	(55)	31	51
Other comprehensive income (loss), net of tax	2,964	811	(311)	(438)
Total comprehensive loss	$ (12,437)	$ (11,034)	$ (37,666)	$ (23,589)

Common Stock, Beginning at Dec. 31, 2018

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]

Convertible Note due 2020

Convertible Note due 2022

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 2018-07

^[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)

(23,151)

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

(438)

2,017

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

1,319

$ 2

1,317

Common Stock, Ending at Jun. 28, 2019

4,686

89,074

Balance at Jun. 28, 2019

212,066

$ 89

2,302,798

(2,089,167)

(1,654)

Common Stock, Beginning at Mar. 29, 2019

88,784

Balance at Mar. 29, 2019

220,561

$ 89

2,300,259

(2,077,322)

(2,465)

(11,845)

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

811

290

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

$ 0

Restricted Stock, Value, Shares Issued Net of Tax Withholdings

(36)

Common Stock, Ending at Jun. 28, 2019

2,575

89,074

Balance at Jun. 28, 2019

212,066

$ 89

2,302,798

(2,089,167)

(1,654)

Common Stock, Beginning at Dec. 31, 2019

91,875

Balance at Dec. 31, 2019

252,446

$ 92

2,327,359

(2,071,940)

(3,065)

(37,355)

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

(311)

2,575

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

1,951

$ 3

1,948

Conversion feature of 4.375% Convertible Senior Notes due 2022

9,796

8,254

Portion of conversion feature of 4.00% Convertible Senior Notes due 2020 exchanged

(6,909)

Issuance of warrant, shares

2,413

Issuance of warrant, amount

$ 2

Adjustments to Additional Paid in Capital, Warrant Issued

(2)

Reclassification from mezzanine equity to equity for 4.00% Convertible Senior Notes due in 2020

2,410

Common Stock, Ending at Jun. 26, 2020

96,863

Balance at Jun. 26, 2020

230,282

$ 97

2,342,856

(2,109,295)

(3,376)

Common Stock, Beginning at Mar. 27, 2020

96,566

Balance at Mar. 27, 2020

236,322

$ 97

2,336,459

(2,093,894)

(6,340)

(15,401)

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

2,964

297

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

$ 0

Restricted Stock, Value, Shares Issued Net of Tax Withholdings

(220)

Conversion feature of 4.375% Convertible Senior Notes due 2022

3,495

8,254

Portion of conversion feature of 4.00% Convertible Senior Notes due 2020 exchanged

(6,909)

Reclassification from mezzanine equity to equity for 4.00% Convertible Senior Notes due in 2020

1,777

Common Stock, Ending at Jun. 26, 2020

96,863

Balance at Jun. 26, 2020

$ 230,282

$ 97

$ 2,342,856

$ (2,109,295)

$ (3,376)

Revenue from Contract with Customer [Abstract]

4.00%

4.375%

[1]

See Note 2, “Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements” on Form 10-K for the year ended December 31, 2019 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	6 Months Ended
	Jun. 26, 2020	Jun. 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	0
Deferred income taxes, net	1,116	(145)
Provision for excess and obsolete inventories	723	384
Provision for doubtful accounts, returns and discounts	662	500
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 revenue	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)	0
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)	0
Net decrease in cash and cash equivalents	(15,314)	(7,925)
Cash, cash equivalents and restricted cash at beginning of period	93,058	65,989
Cash, cash equivalents and restricted cash at end of period	77,744	58,064
Supplemental disclosures of cash flow information:
Income tax payments, net	809	860
Interest payments, net	2,037	2,495
Supplemental schedule of non-cash investing and financing activities:
Capital expenditures incurred but not yet paid	5,000	$ 78
Fair value of Convertible Senior Notes due 2022 used to settle Convertible Senior Notes due 2020	$ 44,357

Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 26, 2020
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 2, 2020 (the “2019 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, 2020, 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, 2019 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. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of August 4, 2020, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. 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. Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2019 Form 10-K. There have been no significant changes to these policies during the six months ended June 26, 2020 other than those disclosed in Note 2, “Recent Accounting Pronouncements”.

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Jun. 26, 2020
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) 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. The Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have a material impact on its condensed consolidated financial statements. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350) 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 Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have an impact on its condensed consolidated financial statements. ASU 2018-13, Fair Value Measurement (Topic 820) 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. The Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have a material impact on its condensed consolidated financial statements. ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer In November 2019, the FASB issued ASU 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements - Share-Based Consideration Payable to a Customer, which clarifies guidance on measurement and classification of share-based payments to customers. The Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have a material impact on its condensed consolidated financial statements. Recently Issued Accounting Pronouncements 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 expects the impact to its disclosure to be relatively limited. In January 2020, the FASB issued ASU No. 2020-01, to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new ASU clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The new ASU is effective for the Company for fiscal years ending after December 15, 2021, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

Revenue

6 Months Ended

Jun. 26, 2020

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.

The Company’s revenue is classified into two categories in the Condensed Consolidated Statement of Operations, which are “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 has revenue arrangements that include multiple performance obligations. The Company allocates the transaction price to all separate performance obligations based on the relative standalone selling prices (“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.

If the Company has not yet established a price because the good or service has not previously been sold on a standalone basis, SSP for such good and service in a contract with multiple performance obligations is determined by applying a residual approach whereby all other performance obligations within a contract are first allocated a portion of the transaction price based upon their respective SSP, using observable prices, with any residual amount of the transaction price allocated to the good or service for which the price has not yet been established.

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 (in thousands):



	As of
	June 26, 2020		December 31, 2019
Contract assets	$	4,289	$	13,969
Deferred revenue	54,694		43,450

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 June 26, 2020 and June 28, 2019, the Company recognized revenue of $8.7 million and $10.1 million, respectively, that was included in the deferred revenue balance at the beginning of each fiscal year. During the six months ended June 26, 2020 and June 28, 2019, the Company recognized revenue of $26.7 million and $31.3 million, respectively, that was included in the deferred revenue balance at the beginning of each fiscal year.

Practical Expedients and Exemptions. 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. These performance obligations primarily relate to the Company’s support and maintenance contracts which have a duration of one year or less and subscriptions services for which invoicing corresponds to the value of the Company’s performance completed to date.

In July 2019, Comcast elected enterprise license pricing for the Company’s CableOS software under certain existing commercial agreements between the Company and Comcast (the “CableOS software license agreement”), which also includes maintenance and support services, and material rights. As of June 26, 2020, the aggregate amount of the transaction price under this agreement allocated to the remaining performance obligations is $92.6 million, and the Company will recognize this revenue as the related performance obligations are delivered over the next three years.

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

Leases

6 Months Ended

Jun. 26, 2020

Leases [Abstract]

Lessee, Operating Leases

LEASES

The components of lease expense are as follows (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Operating lease cost	$	2,015	$	2,231	$	4,683	$	4,227
Variable lease cost	710		744		1,502		1,523
Total lease cost	$	2,725	$	2,975	$	6,185	$	5,750

Supplemental cash flow information related to leases are as follows (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,217	$	2,494	$	4,638	$	4,624
Right-of-use assets obtained in exchange for operating lease obligations	$	—	$	10,305	$	1,671	$	10,305

Investments in Equity Securities	6 Months Ended
Investments in Equity Securities	Jun. 26, 2020
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 June 26, 2020 that the EDC investment was impaired. The Company’s maximum exposure to loss from the EDC’s investment at June 26, 2020 and December 31, 2019 was limited to its investment cost of $3.6 million, including $0.1 million of transaction costs.

Derivative and Hedging Activities

6 Months Ended

Jun. 26, 2020

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					Six months ended
	Financial Statement Location	June 26, 2020		June 28, 2019			June 26, 2020			June 28, 2019
Derivatives not designated as hedging instruments:
Gains (losses) recognized in operations	Other expense, net	$	579	$	(44	)	$	(333	)	$	(609	)

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



	June 26, 2020		December 31, 2019
Derivatives not designated as hedging instruments:
Purchase	$	24,415	$	14,806
Sell	$	1,451	$	2,629

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	June 26, 2020		December 31, 2019		Balance Sheet Location	June 26, 2020		December 31, 2019
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	48	$	43	Accrued and other current liabilities	$	153	$	112
Total derivatives		$	48	$	43		$	153	$	112

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 June 26, 2020, 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	$	48	—	$	48
Derivative liabilities	$	153	—	$	153

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 June 26, 2020, the total compensating balance maintained was $1.0 million.

Fair Value Measurements

6 Months Ended

Jun. 26, 2020

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 June 26, 2020
Prepaid and other current assets
Derivative assets	$	—	$	48	$	—	$	48
Total assets measured and recorded at fair value	$	—	$	48	$	—	$	48
Accrued and other current liabilities
Derivative liabilities	$	—	$	153	$	—	$	153
Total liabilities measured and recorded at fair value	$	—	$	153	$	—	$	153
	Level 1		Level 2		Level 3		Total
As of December 31, 2019
Prepaid and other current assets
Derivative assets	$	—	$	43	$	—	$	43
Total assets measured and recorded at fair value	$	—	$	43	$	—	$	43
Accrued and other current liabilities
Derivative liabilities	$	—	$	112	$	—	$	112
Total liabilities measured and recorded at fair value	$	—	$	112	$	—	$	112

The Company’s liability for the acquired employee voluntary departure plan in France (the “French VDP”) was $0.2 million and $0.8 million as of June 26, 2020 and December 31, 2019, 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. Subsequently there is no recurring fair value remeasurement for this liability based on the applicable accounting guidance.

The carrying value of the Company’s financial instruments, including cash equivalents, 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 4.375% Convertible Senior Notes due 2022, which were issued in June 2020 (the “2022 Notes”), was approximately $40.1 million as of June 26, 2020. The fair value of the Company’s 4.00% Convertible Senior Notes due 2020 (the “2020 Notes”) was approximately $8.0 million and $66.8 million as of June 26, 2020 and December 31, 2019, respectively. The fair value of Company’s 2.00% Convertible Senior Notes due 2024 (the “2024 Notes”) was approximately $102.9 million and $131.9 million as of June 26, 2020 and December 31, 2019, respectively. The 2020 Notes, 2022 Notes and 2024 Notes are classified as Level 2 valuations. The Company’s other debts, including debt 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 June 26, 2020 and December 31, 2019 were in the aggregate of $20.3 million and $17.2 million, respectively. (See Note 11, “Convertible Notes, Other debts and Finance Leases” for additional information).

During the six months ended June 26, 2020, 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

6 Months Ended

Jun. 26, 2020

Balance Sheet Components

BALANCE SHEET COMPONENTS

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



	June 26, 2020			December 31, 2019
Accounts receivable, net:
Accounts receivable	$	77,163		$	91,513
Less: allowances for doubtful accounts and sales returns	(2,382		)	(3,013		)
Total	$	74,781		$	88,500



	June 26, 2020		December 31, 2019
Inventories, net:
Raw materials	$	3,776	$	4,179
Work-in-process	1,458		1,633
Finished goods	18,546		14,080
Service-related spares	8,317		9,150
Total	$	32,097	$	29,042



	June 26, 2020		December 31, 2019
Prepaid expenses and other current assets:
French R&D tax credits receivable⁽¹⁾	$	—	$	7,343
Contract assets⁽²⁾	4,289		13,969
Deferred cost of revenue	5,072		2,631
Prepaid maintenance, royalty, rent, and property taxes	3,153		1,594
Capitalized sales commissions	1,529		1,309
Other	9,212		13,916
Total	$	23,255	$	40,762

(1) The Company’s 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 June 26, 2020 were approximately $17.8 million and are expected to be recoverable from 2021 through 2023. See “Other long-term assets”.

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



	June 26, 2020			December 31, 2019
Property and equipment, net:
Machinery and equipment	$	73,508		$	75,229
Capitalized software	35,027			34,190
Construction in progress*	25,549			5,506
Leasehold improvements	15,674			15,170
Furniture and fixtures	8,939			6,036
Property and equipment, gross	158,697			136,131
Less: accumulated depreciation and amortization	(117,356		)	(113,203		)
Total	$	41,341		$	22,928

*During fiscal 2019, the Company entered into a lease for a new facility which will become the Company’s new headquarters in 2020. The new lease commenced in May 2019, as the facility was made available to the Company for constructing leasehold improvements. Construction in progress includes $22.9 million for constructing leasehold improvements in the new headquarters facility.



	June 26, 2020		December 31, 2019
Other long-term assets:
French R&D tax credits receivable	$	17,843	$	15,899
Deferred tax assets	9,958		10,575
Equity investment	3,593		3,593
Other	9,808		11,238
Total	$	41,202	$	41,305



	June 26, 2020		December 31, 2019
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	16,163	$	19,454
Operating lease liability (short-term)	7,995		8,881
Customer deposits	4,767		3,557
Accrued warranty	3,818		4,308
Accrued royalty payments	2,657		2,642
Accrued Avid litigation settlement, current	2,000		2,000
Contingent inventory reserves	1,453		2,208
Others	16,513		19,485
Total	$	55,366	$	62,535



	June 26, 2020		December 31, 2019
Other non-current liabilities:
Operating lease liability (long-term)	$	24,604	$	25,766
Deferred revenue (long-term)	7,089		6,333
Others	9,415		9,155
Total	$	41,108	$	41,254

Goodwill and Identified Intangible Assets

6 Months Ended

Jun. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Identified Intangible Assets

GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill

Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company determined that there was no impairment identified as of June 26, 2020.

The changes in the carrying amount of goodwill for the six months ended June 26, 2020 were as follows (in thousands):



	Video		Cable Access			Total
Balance as of December 31, 2019	$	178,982	$	60,798		$	239,780
Foreign currency translation adjustment, net	67		(31		)	36
Balance as of June 26, 2020	$	179,049	$	60,767		$	239,816

Intangible Assets, Net

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



		June 26, 2020							December 31, 2019
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	n/a	$	31,707	$	(31,707	)	$	—	$	31,707	$	(30,757	)	$	950
Customer relationships/contracts	0.7	44,588		(42,595		)	1,993		44,577		(41,092		)	3,485
Trademarks and trade names	n/a	611		(611		)	—		609		(583		)	26
Maintenance agreements and related relationships	n/a	5,500		(5,500		)	—		5,500		(5,500		)	—
Order backlog	n/a	3,089		(3,089		)	—		3,085		(3,085		)	—
Total identifiable intangibles, net		$	85,495	$	(83,502	)	$	1,993	$	85,478	$	(81,017	)	$	4,461

Amortization expense for the identifiable purchased intangible assets for the three and six months ended June 26, 2020 and June 28, 2019 was allocated as follows (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Included in cost of revenue	$	65	$	1,295	$	950	$	2,590
Included in operating expenses	742		784		1,512		1,572
Total amortization expense	$	807	$	2,079	$	2,462	$	4,162

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,
2020 (remaining six months)	$	—	$	1,495	$	1,495
2021	—		498		498
Total future amortization expense	$	—	$	1,993	$	1,993

Restructuring and Related Charges

6 Months Ended

Jun. 26, 2020

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 the Company’s net revenues, while simultaneously implementing extensive company-wide expense control programs. The restructuring plans have primarily been comprised of excess facilities, severance payments and termination benefits related to headcount reductions.

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				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020			June 28, 2019
Restructuring and related charges in:
Cost of revenue	$	2	$	91	$	(71	)	$	392
Operating expenses - Restructuring and related charges	82		276		758			333
Total restructuring and related charges	$	84	$	367	$	687		$	725

As of June 26, 2020 and December 31, 2019, the Company’s total restructuring liability was $2.4 million and $4.9 million, respectively, of which $1.6 million and $1.5 million, respectively, were reported as a component of “Accrued and other current liabilities”, and the remaining $0.8 million and $3.4 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 six months ended June 26, 2020 (in thousands):



	Excess facilities			Severance and benefits			French VDP			Others			Total
Balance at December 31, 2019	$	720		$	3,294		$	806		$	30		$	4,850
Charges for current period	—			591			49			47			687
Cash payments	(642		)	(1,653		)	(650		)	(30		)	(2,975		)
Others	—			(164		)	(41		)	—			(205		)
Balance at June 26, 2020	$	78		$	2,068		$	164		$	47		$	2,357

Convertible Notes, Other Debts And Finance Lease

6 Months Ended

Jun. 26, 2020

Debt Disclosure [Abstract]

Convertible Notes, Other Debts And Capital Leases

CONVERTIBLE NOTES, OTHER DEBTS AND FINANCE LEASES

4.375% Convertible Senior Notes due 2022

In June 2020, the Company issued the 2022 Notes with an aggregate principal amount of $37.7 million in a non-cash exchange for its 2020 Notes with an equal principal amount pursuant to an indenture, dated June 2, 2020 (the “2022 Notes Indenture”), by and between the Company and U.S. Bank National Association, as trustee. The 2022 Notes bear interest at a rate of 4.375% per year, payable in cash on June 1 and December 1 of each year, commencing December 1, 2020. The 2022 Notes will mature on December 1, 2022, unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms.

The 2022 Notes are 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 2020 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 as set forth in the 2022 Notes Indenture.

Prior to the close of business on the business day immediately preceding September 1, 2022, the 2022 Notes will be convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on June 26, 2020 (and only during such fiscal quarter), if the last reported sale price of 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 on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2022 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Common Stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. Commencing on September 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2022 Notes will be convertible in multiples of $1,000 principal amount regardless of the foregoing circumstances.

As the 2022 Notes were issued in exchange for the 2020 Notes, which was accounted for as an extinguishment, the 2022 Notes were initially accounted for at fair value, which was estimated to be $44.4 million. In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2022 Notes was initially valued at $8.3 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital”. The remaining amount of $36.0 million, which represents the fair value of the liability component of the 2022 Notes, was recorded as the initial carrying value of the 2022 Notes. The initial debt discount on the 2022 Notes is $1.7 million, calculated as the difference between the stated principal amount of $37.7 million and the initial carrying value of the liability component of $36.0 million. The debt discount is being amortized to interest expense at the effective interest rate over the contractual terms of the 2022 Notes. The following table presents the components of the 2022 Notes as of June 26, 2020 (in thousands, except for years and percentages):



	June 26, 2020
Liability:
Principal amount	$	37,707
Less: Debt discount, net of amortization	(1,681		)
Less: Debt issuance costs, net of amortization	(527		)
Carrying amount	$	35,499
Remaining amortization period (years)	2.4
Effective interest rate on liability component	6.95		%

2.00% Convertible Senior Notes due 2024

In September 2019, the Company issued $115.5 million of the 2024 Notes pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank National Association, as trustee. The 2024 Notes bear interest at a rate of 2.00% per year, payable semiannually on March 1 and September 1 of each year. The 2024 Notes will mature on September 1, 2024, unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms.

The 2024 Notes are 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 115.5001 shares of Common Stock per $1,000 principal amount of 2024 Notes (which is equivalent to an initial conversion price of approximately $8.66 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 or a notice of redemption and under other circumstances, in each case, as set forth in the 2024 Notes Indenture.

The 2024 Notes will be convertible at certain times and upon the occurrence of certain events in the future, in each case, specified in the 2024 Notes Indenture. Further, on or after June 1, 2024, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2024 Notes may convert all or a portion of their 2024 Notes regardless of these conditions.

In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the 2024 Notes was valued at $24.9 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital”. The resulting debt discount on the 2024 Notes is being amortized to interest expense at the effective interest rate over the contractual term of the 2024 Notes. The following table presents the components of the 2024 Notes as of June 26, 2020 and December 31, 2019 (in thousands, except for years and percentages):



	June 26, 2020			December 31, 2019
Liability:
Principal amount	$	115,500		$	115,500
Less: Debt discount, net of amortization	(21,517		)	(23,652		)
Less: Debt issuance costs, net of amortization	(2,928		)	(3,219		)
Carrying amount	$	91,055		$	88,629
Remaining amortization period (years)	4.2			4.7
Effective interest rate on liability component	7.95		%	7.95		%

4.00% Convertible Senior Notes due 2020

In December 2015, the Company issued $128.25 million in aggregate principal amount of the 2020 Notes pursuant to an indenture (the “2020 Notes Indenture”), dated December 14, 2015, by and between the Company and U.S. Bank National Association, as trustee. The 2020 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 2020 Notes will mature on December 1, 2020 unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms.

In September 2019, the Company used approximately $109.6 million of the net proceeds from the issuance of the 2024 Notes to repurchase $82.5 million aggregate principal of the 2020 Notes in privately negotiated transactions. The repurchase of the 2020 Notes was accounted for as a debt extinguishment, and the consideration transferred was allocated between the equity and liability components by determining the fair value of the conversion option immediately prior to the debt extinguishment and allocating that portion of the repurchase price to additional paid-in capital for $27.1 million, with the residual repurchase price allocated to the liability component, respectively. The partial repurchase of the 2020 Notes resulted in the recognition of a $5.7 million loss on debt extinguishment for the year ended December 31, 2019.

In June 2020, the Company exchanged $37.7 million in aggregate principal amount of the 2020 Notes for $37.7 million in aggregate principal amount of its 2022 Notes. Following the exchange, there is a total of $8.1 million aggregate principal amount of the 2020 Notes remaining outstanding. The exchange of the 2020 Notes was accounted for as a debt extinguishment. The fair value of the consideration transferred in the form of the 2022 Notes of $44.4 million was allocated between the equity and liability components of the 2020 Notes by determining the fair value of the liability component immediately prior to the extinguishment, which was $37.4 million. The remaining amount of $7.0 million was allocated to additional paid-in capital.

The exchange of the 2020 Notes resulted in the recognition of a $0.8 million loss on debt extinguishment for the three and six months ended June 26, 2020 which is recorded in “loss on debt extinguishment” in the Condensed Consolidated Statement of Operations.

The remaining 2020 Notes are convertible into cash, shares of the Common Stock, or a combination thereof, at the Company’s election, at a conversion rate of 173.9978 shares of Common Stock per $1,000 principal amount of 2020 Notes (which is equivalent to a 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 2020 Notes Indenture.

The 2020 Notes will be convertible at certain times and upon the occurrence of certain events in the future, in each case, specified in the 2020 Notes Indenture. Further, on or after September 1, 2020, until the close of business on the scheduled trading day immediately preceding the maturity date, holders of the 2020 Notes may convert all or a portion of their 2020 Notes regardless of these conditions.

In accordance with the accounting guidance on embedded conversion features, the conversion feature associated with the issuance of the 2020 Notes was initially valued at $26.1 million and bifurcated from the host debt instrument and recorded in “Additional paid-in capital”. The resulting debt discount on the 2020 Notes is being amortized to interest expense at the effective interest rate over the contractual terms of the 2020 Notes. The following table presents the components of the 2020 Notes as of June 26, 2020 and December 31, 2019 (in thousands, except for years and percentages):



	June 26, 2020			December 31, 2019
Liability:
Principal amount	$	8,053		$	45,785
Less: Debt discount, net of amortization	(177		)	(2,151		)
Less: Debt issuance costs, net of amortization	(21		)	(259		)
Carrying amount	$	7,855		$	43,375
Remaining amortization period (years)	0.4			0.9
Effective interest rate on liability component	9.94		%	9.94		%

The 2020 Notes, the 2022 Notes or the 2024 Notes become convertible during a fiscal quarter when the last reported sale price of the Common stock for at least 20 trading days 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 respective notes on each applicable trading day. When this occurs, the Company reclassifies the unamortized debt discount for the applicable notes from “Additional paid-in-capital” to convertible debt in the mezzanine equity section in the Condensed Consolidated Balance Sheet as of that period end. The 2020 Notes were convertible during the fiscal quarter ended March 27, 2020, as this condition had been met. As of June 26, 2020, the 2020 Notes were no longer convertible as neither this condition nor any of the other circumstances which would make the 2020 Notes convertible had been satisfied. The 2022 Notes and the 2024 Notes were not convertible as of June 26, 2020 or during any prior fiscal quarters.

The following table presents interest expense recognized for the 2020 Notes, 2022 Notes and the 2024 Notes (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Contractual interest expense	$	1,036	$	1,282	$	2,071	$	2,565
Amortization of debt discount	1,560		1,479		3,183		2,912
Amortization of debt issuance costs	214		178		426		350
Total interest expense recognized	$	2,810	$	2,939	$	5,680	$	5,827

Other Debts and Finance Leases

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



	June 26, 2020			December 31, 2019
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	13,991		$	16,566
Relief loans ⁽²⁾	6,131			—
Term loans	173			587
Obligations under finance leases	22			71
Total debt obligations	20,317			17,224
Less: current portion	(6,323		)	(6,713		)
Long-term portion	$	13,994		$	10,511

(1) As of June 26, 2020 and December 31, 2019, loans backed by French R&D tax credit receivables were $12.5 million and $15.1 million, respectively. As of June 26, 2020, the French Subsidiary had an aggregate of $17.8 million of R&D tax credit receivables from the French government from 2021 through 2023. 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 2021 through 2023. The remaining loans of $1.5 million at June 26, 2020, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2020 through 2025.

(2) Refer to the below section “Relief Loans” for the description of these loans.

Future minimum repayments

The table below presents the future minimum repayments of debts and finance lease obligations in France as of June 26, 2020 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2020 (remaining six months)	$	—	$	488
2021	22		10,768
2022	—		4,885
2023	—		3,416
2024	—		112
Thereafter	—		626
Total	$	22	$	20,295

Line of Credit

On December 19, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as lender. The Credit Agreement provides for a secured revolving loan facility in an aggregate principal amount of up to $25.0 million, based on a borrowing base of eligible accounts receivable and inventory, with a maturity date of October 31, 2020. The Company may use availability under the revolving loan facility for the issuance of letters of credit. The proceeds of the revolving loans may be used for general corporate purposes.

The revolving loans bear interest, at the Company’s election, at a floating rate per annum equal to either (1) 1.25% plus the greater of (i) 1 month LIBOR on any day plus 2.50% and (ii) the prime rate as reported in the Wall Street Journal from time to time or (2) 2.25% plus LIBOR for an interest period of one, two or three months. Interest on the revolving loans is payable monthly in arrears, in the case of prime rate loans, and at the end of the applicable interest period, in the case of LIBOR loans.

The Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments, make certain restricted payments, dispose of assets, enter into transactions with affiliates, and enter into burdensome agreements, in each case, subject to limitations and exceptions set forth in the Credit Agreement. The Company is also required to maintain compliance with an adjusted quick ratio, a minimum EBITDA covenant (tested quarterly) and a minimum liquidity covenant, in each case, determined in accordance with the terms of the Credit Agreement. As of June 26, 2020, the Company was in compliance with the covenants under the Credit Agreement.

As of June 26, 2020, there was $0.3 million of outstanding letters of credit issued under the Credit Agreement. There were no revolving borrowings under the Credit Agreement as of June 26, 2020.

As of June 26, 2020, the Company has security for letters of credit which are unsecured in the amount of $2.3 million.

Relief Loans

In June 2020, Harmonic France was granted a loan from Société Générale S.A. (the “SG Loan”) in the aggregate amount of 5,000,000 Euros, pursuant to a state guarantee program introduced in March 2020 to provide relief to companies from the financial consequences of the COVID-19 pandemic. The SG Loan initially matures in 12 months (with an option to extend for up to five years) and bears an effective interest rate of 0.51% per annum payable annually. The SG Loan may be repaid at any time prior to maturity with no repayment penalties. There are no restrictions on the use of funds from the SG Loan. The purpose of the funds from the SG Loan is to allow the preservation of activity and employment in France. As of June 26, 2020, there was $5.6 million outstanding under the loan, which is recorded in “Other debts and finance lease obligations, current” in the Condensed Consolidated Balance Sheets.

In April 2020, Harmonic International GmbH was granted a loan of CHF 500,000 from UBS Switzerland AG (the “UBS Loan”) in accordance with Article 3 of the COVID-19 joint security regulation with an initial maturity of five years. The exclusive purpose of the UBS Loan is to guarantee the Company’s current liability requirements. The UBS Loan does not bear any interest. The UBS Loan is to be repaid in full no later than April 8, 2025. As of June 26, 2020, there was $0.5 million outstanding under the loan, which is recorded in “Other debts and finance lease obligations, long-term” in the Condensed Consolidated Balance Sheets.

Employee Benefit Plans and Stock-based Compensation

6 Months Ended

Jun. 26, 2020

Share-based Payment Arrangement [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 13, “Employee Benefit Plans and Stock-based Compensation” of Notes to Consolidated Financial Statements in the 2019 Form 10-K for details pertaining to each plan.

As of June 26, 2020, there were 0.8 million and 2.8 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 six months ended June 26, 2020 (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, 2019	1,888		$	5.83
Exercised	(127	)	5.78
Canceled or expired	(203	)	5.78
Balance at June 26, 2020	1,558		5.84		1.68	$	655.80

Vested and exercisable	1,558		5.84		1.68	$	655.80

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 six months ended June 26, 2020.

There were no realized tax benefits attributable to stock options exercised in jurisdictions where this expense is deductible for tax purposes for the six months ended June 26, 2020 and June 28, 2019, respectively.

Restricted Stock Units (“RSUs”) Activities

The following table summarizes the Company’s RSUs activities and related information during the six months ended June 26, 2020 (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, 2019	3,601		$	5.18
Granted	2,797		5.85
Vested	(2,128	)	5.42
Forfeited	(257	)	3.89
Balance at June 26, 2020	4,013		5.60

Performance- and Market-based awards

The Company settled a portion of its incentive bonus payments to eligible employees by issuing performance-based RSU awards (“PRSUs”) from the 1995 Stock Plan. The Company granted 472,247 shares of PRSUs to certain employees for the six months ended June 26, 2020, all of which were fully vested at the time of grant for the purpose of settling amounts earned under the Company’s 2019 incentive bonus plans. The stock-based compensation recognized for these PRSUs was $3.0 million

for the six months ended June 26, 2020. There were no PRSUs issued for purposes of settling amounts earned under the Company's incentive plans in the six months ended June 28, 2019.

In the first quarter of 2020, the Company granted 67,910 PRSUs to certain key executives that are expected to vest by the end of fiscal 2020. The vesting condition for these PRSUs include achievement of certain financial operating goals. The stock-based compensation recognized for all PRSUs which vest according to achievement of certain financial operating goals for the three and six months ended June 26, 2020 was $0.1 million and $0.4 million. The unrecognized stock-based compensation of the PRSUs as of June 26, 2020 was $0.2 million which includes $0.1 million of unrecognized expense from PRSUs granted in 2019. A total of 85,000 PRSUs were granted in 2019, out of which 40,000 shares have vested as of June 26, 2020.

In the first quarter of 2020, the Company granted 182,830 market-based RSUs (“MRSUs”) under the 1995 Stock Plan to a key executive that is expected to vest during a three-year period. The vesting condition for the MRSUs include performance of the Company’s total shareholder return (“TSR”) relative to the TSR of the NASDAQ Telecommunication Index. The aggregate grant-date fair value of these shares was estimated to be $1.1 million using a Monte-Carlo simulation valuation method. The stock-based compensation recognized for all MRSUs for the three and six months ended June 26, 2020 was $0.2 million and $0.3 million. The unrecognized stock-based compensation of the MRSUs as of June 26, 2020 was $1.6 million which includes $0.6 million of unrecognized expense from MRSUs granted in 2019. None of these MRSUs had vested as of June 26, 2020. The stock-based compensation recognized for the MRSUs for the three and six months ended June 28, 2019 was $0.1 million. The unrecognized stock-based compensation of the MRSUs as of June 28, 2019 was $1.0 million.

French Retirement Benefit Plan

The Company assumed obligations under a defined benefit pension plan in connection with the acquisition of its French subsidiary 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				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Service cost	$	61	$	57	$	122	$	114
Interest cost	9		19		18		39
Net periodic benefit cost	$	70	$	76	$	140	$	153

The present value of the Company’s pension obligation as of June 26, 2020 was $5.4 million, of which $0.1 million was reported as a component of “Accrued and other current liabilities” and $5.3 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, 2019 was $5.3 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 six months ended June 26, 2020 and June 28, 2019 were $203,000 and $208,000, respectively.

Stock-based Compensation

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



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Stock-based compensation in:
Cost of revenue	$	312	$	195	$	1,082	$	420
Research and development expense	872		582		2,610		1,198
Selling, general and administrative expense	2,364		1,733		6,115		3,005
Total stock-based compensation in operating expense	3,236		2,315		8,725		4,203
Total stock-based compensation	$	3,548	$	2,510	$	9,807	$	4,623

As of June 26, 2020, total unrecognized stock-based compensation cost related to unvested RSUs was $19.9 million and is expected to be recognized over a weighted-average period of approximately 1.93 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, 2020		July 1, 2019
Expected term (years)	0.5		0.5
Volatility	50	%	43	%
Risk-free interest rate	1.6	%	2.5	%
Expected dividends	0.0	%	0.0	%
Estimated weighted average fair value per share at purchase date	$2.26		$1.31

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

6 Months Ended

Jun. 26, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

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



	Three months ended						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Loss before income taxes	$	(13,823	)	$	(11,148	)	$	(35,048	)	$	(22,773	)
Provision for income taxes	1,578			697			2,307			378
Effective income tax rate	(11.4		)%	(6.3		)%	(6.6		)%	(1.7		)%

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 one-time, discrete items that benefited or decremented the tax rates in the previous years.

The Company's effective income tax rate of (6.6)% for the six months ended June 26, 2020 was different from the U.S. federal statutory rate of 21%, primarily due to the 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.

The Company's effective income tax rate of (1.7)% for the six months ended June 28, 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 six months ended June 28, 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 period.

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 2016 through 2019 tax years generally remain subject to examination by U.S. federal and most state tax authorities. In significant foreign jurisdictions, the 2014 through 2019 tax years generally remain subject to examination by their respective tax authorities. 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), concluding that parties in an intercompany cost-sharing arrangement are not required to share stock-based compensation expenses. On June 7, 2019, the Ninth Circuit overturned the earlier Tax Court decision and ruled to include share-based compensation in the cost sharing pool. On July 22, 2019, Altera Corp. filed a petition for an en banc rehearing before the U.S. Court of Appeals for the Ninth Circuit, which was denied on November 12, 2019. Altera filed a petition for a writ of certiorari on February 10, 2020 asking the Supreme Court to review the Ninth Circuit Court of Appeals' decision which was denied on June 22, 2020. The Company has not changed its historical position of including share-based compensation in the cost base consistent with the Ninth Circuit’s ruling.

As of June 26, 2020, the total amount of gross unrecognized tax benefits, including interest and penalties, was approximately $17.0 million, of which $15.7 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 on the Condensed Consolidated Statements of Operations. The net interest and penalty charges recorded as of June 26, 2020 were not material.

On March 27, 2020, the “Coronavirus Aid, Relief, and Economic Security Act” was signed into law. The new legislation includes a number of income tax provisions applicable to individuals and businesses. The Company recognized the effect of the tax law changes in the period of enactment for the three months ended March 27, 2020, such as the reclassification of the long-term receivable of $0.5 million for the alternative minimum tax credit refund to short term receivable.

Net Income (Loss) Per Share

6 Months Ended

Jun. 26, 2020

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						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Numerator:
Net loss	$	(15,401	)	$	(11,845	)	$	(37,355	)	$	(23,151	)
Denominator:
Weighted average number of common shares outstanding
Basic and diluted	96,727			88,931			96,255			88,554
Net loss per share:
Basic and diluted	$	(0.16	)	$	(0.13	)	$	(0.39	)	$	(0.26	)

Basic net loss per share was the same as diluted net loss per share for the three and six months ended June 26, 2020 and June 28, 2019, 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 and the anti-dilutive weighted shares that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	Three months ended		Six months ended
	June 26, 2020	June 28, 2019	June 26, 2020	June 28, 2019
Stock options	1,558	2,664	1,677	2,803
RSUs	2,963	2,668	2,931	2,534
Stock purchase rights under the ESPP	581	509	512	499
Convertible Debt	—	—	584	—
Warrants ⁽¹⁾	—	1,954	—	1,954
Total	5,102	7,795	5,704	7,790

(1) See Note 15, “Warrants” for additional information.

The Company’s intent is to settle the principal amount of the 2020 Notes, the 2022 Notes and the 2024 Notes in cash. The treasury stock method is used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable.


•	The conversion spread of 1,400,522 shares 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 for the 2020 Notes.


•	The conversion spread of 6,557,739 shares 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 for the 2022 Notes.


•	The conversion spread of 13,337,182 shares 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 $8.66 per share for the 2024 Notes.

See Note 11, “Convertible Notes, Other Debts and Finance Leases” for additional information on the 2020 Notes, the 2022 Notes and the 2024 Notes.

Warrants	6 Months Ended
Warrants	Jun. 26, 2020
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. The Warrant shares were fully vested and exercisable as of July 1, 2019. On December 17, 2019, Comcast exercised the Warrant in its entirety, resulting in a net issuance of 3,217,547 shares. The Company delivered 804,387 shares to Comcast on December 20, 2019, with the remaining 2,413,160 shares delivered on January 10, 2020. During the three and six months ended June 26, 2020, the Company recorded $0.4 million and $0.8 million, respectively, as a reduction to net revenues in connection with amortization of the Warrant. During the three and six months ended June 28, 2019, the Company recorded $23 thousand and $48 thousand, respectively, as a reduction to net revenues in connection with amortization of the Warrant.

Segment Information

6 Months Ended

Jun. 26, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated by the Company’s Chief Operating Decision Maker (the “CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the Company’s 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 provides 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 Pay-TV service providers. The Cable Access segment provides 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						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Video
Revenue	$	47,453		$	71,625		$	101,825		$	138,801
Gross profit	26,024			41,444			53,931			80,046
Operating income (loss)	(4,237		)	4,459			(10,504		)	6,427
Cable Access
Revenue	$	26,541		$	13,240		$	50,586		$	26,170
Gross profit	12,128			4,063			22,542			9,131
Operating loss	(878		)	(7,266		)	(4,143		)	(13,088		)
Total
Revenue	$	73,994		$	84,865		$	152,411		$	164,971
Gross profit	38,152			45,507			76,473			89,177
Operating loss	$	(5,115	)	$	(2,807	)	$	(14,647	)	$	(6,661	)

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



	Three months ended						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Total segment operating loss	$	(5,115	)	$	(2,807	)	$	(14,647	)	$	(6,661	)
Unallocated corporate expenses	(84		)	(368		)	(687		)	(726		)
Stock-based compensation	(3,548		)	(2,510		)	(9,807		)	(4,623		)
Amortization of intangibles	(807		)	(2,079		)	(2,462		)	(4,162		)
Loss from operations	(9,554		)	(7,764		)	(27,603		)	(16,172		)
Non-operating expense, net	(4,269		)	(3,384		)	(7,445		)	(6,601		)
Loss before income taxes	$	(13,823	)	$	(11,148	)	$	(35,048	)	$	(22,773	)

Unallocated Corporate Expenses

Together with amortization of intangibles and stock-based compensation, the Company does not allocate restructuring and related charges to the operating 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				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Net Revenue (in thousands) ⁽¹⁾
United States	$	35,223	$	35,710	$	69,626	$	65,825
Other Countries	38,771		49,155		82,785		99,146
Total	$	73,994	$	84,865	$	152,411	$	164,971

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

Market Information



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Market (in thousands)
Service Provider	$	42,169	$	43,438	$	85,928	$	87,650
Broadcast and Media	31,825		41,427		66,483		77,321
Total	$	73,994	$	84,865	$	152,411	$	164,971

Commitments and Contingencies

6 Months Ended

Jun. 26, 2020

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						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Balance at beginning of period	$	3,744		$	4,587		$	4,314		$	4,869
Accrual for current period warranties	1,013			1,570			1,669			2,973
Warranty costs incurred	(939		)	(1,355		)	(2,165		)	(3,040		)
Balance at end of period	$	3,818		$	4,802		$	3,818		$	4,802

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 $52.5 million of non-cancelable commitments to purchase inventories and other commitments as of June 26, 2020.

Standby Letters of Credit and Guarantees

As of June 26, 2020 and December 31, 2019, the Company has outstanding bank guarantees and standby letters of credit in aggregate of $2.7 million, consisting of building leases and performance bonds issued to customers.

As of June 26, 2020 and December 31, 2019, there were $0.3 million of outstanding letters of credit issued under the Credit Agreement. There were no revolving borrowings under the Credit Agreement as of June 26, 2020 and December 31, 2019.

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 $2.3 million guarantee issued by the Company. There were no amounts outstanding under this credit facility as of June 26, 2020 and December 31, 2019, respectively.

Indemnification

Harmonic is obligated to indemnify its officers and the members of its Board of Directors 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 June 26, 2020.

Legal proceedings

From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, audits of royalty payments for licensed technology 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)

6 Months Ended

Jun. 26, 2020

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.

Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of August 4, 2020, the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.

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.

Significant Accounting Policies

The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2019 Form 10-K. There have been no significant changes to these policies during the six months ended June 26, 2020 other than those disclosed in Note 2, “Recent Accounting Pronouncements”.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326)

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.

The Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have a material impact on its condensed consolidated financial statements.

ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350)

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 Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have an impact on its condensed consolidated financial statements.

ASU 2018-13, Fair Value Measurement (Topic 820)

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.

The Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have a material impact on its condensed consolidated financial statements.

ASU 2019-08, Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements—Share-Based Consideration Payable to a Customer

In November 2019, the FASB issued ASU 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Codification Improvements - Share-Based Consideration Payable to a Customer, which clarifies guidance on measurement and classification of share-based payments to customers.

The Company adopted this new standard in the first quarter of fiscal 2020, and the adoption did not have a material impact on its condensed consolidated financial statements.

Recently Issued Accounting Pronouncements

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 expects the impact to its disclosure to be relatively limited.

In January 2020, the FASB issued ASU No. 2020-01, to clarify certain interactions between the guidance to account for equity securities, the guidance to account for investments under the equity method of accounting, and the guidance to account for derivatives and hedging. The new ASU clarifies the application of measurement alternatives and the accounting for certain forward contracts and purchased options to acquire investments. The new ASU is effective for the Company for fiscal years ending after December 15, 2021, and early adoption is permitted. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements.

Revenue

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

Harmonic is obligated to indemnify its officers and the members of its Board of Directors 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). 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.

Revenue (Tables)

6 Months Ended

Jun. 26, 2020

Revenue from Contract with Customer [Abstract]

Contract assets and Deferred Revenue

Contract assets and deferred revenue consisted of the following (in thousands):



	As of
	June 26, 2020		December 31, 2019
Contract assets	$	4,289	$	13,969
Deferred revenue	54,694		43,450

Lease (Tables)

6 Months Ended

Jun. 26, 2020

Leases [Abstract]

Components of Lease Expenses

The components of lease expense are as follows (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Operating lease cost	$	2,015	$	2,231	$	4,683	$	4,227
Variable lease cost	710		744		1,502		1,523
Total lease cost	$	2,725	$	2,975	$	6,185	$	5,750

Supplemental cash flow information related to leases are as follows (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,217	$	2,494	$	4,638	$	4,624
Right-of-use assets obtained in exchange for operating lease obligations	$	—	$	10,305	$	1,671	$	10,305

Derivative and Hedging Activities (Tables)

6 Months Ended

Jun. 26, 2020

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					Six months ended
	Financial Statement Location	June 26, 2020		June 28, 2019			June 26, 2020			June 28, 2019
Derivatives not designated as hedging instruments:
Gains (losses) recognized in operations	Other expense, net	$	579	$	(44	)	$	(333	)	$	(609	)

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):



	June 26, 2020		December 31, 2019
Derivatives not designated as hedging instruments:
Purchase	$	24,415	$	14,806
Sell	$	1,451	$	2,629

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	June 26, 2020		December 31, 2019		Balance Sheet Location	June 26, 2020		December 31, 2019
Derivatives not designated as hedging instruments:
Foreign currency contracts	Prepaid expenses and other current assets	$	48	$	43	Accrued and other current liabilities	$	153	$	112
Total derivatives		$	48	$	43		$	153	$	112

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

As of June 26, 2020, 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	$	48	—	$	48
Derivative liabilities	$	153	—	$	153

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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 815
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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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
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Fair Value Measurements (Tables)

6 Months Ended

Jun. 26, 2020

Fair Value Disclosures [Abstract]



	Level 1		Level 2		Level 3		Total
As of June 26, 2020
Prepaid and other current assets
Derivative assets	$	—	$	48	$	—	$	48
Total assets measured and recorded at fair value	$	—	$	48	$	—	$	48
Accrued and other current liabilities
Derivative liabilities	$	—	$	153	$	—	$	153
Total liabilities measured and recorded at fair value	$	—	$	153	$	—	$	153
	Level 1		Level 2		Level 3		Total
As of December 31, 2019
Prepaid and other current assets
Derivative assets	$	—	$	43	$	—	$	43
Total assets measured and recorded at fair value	$	—	$	43	$	—	$	43
Accrued and other current liabilities
Derivative liabilities	$	—	$	112	$	—	$	112
Total liabilities measured and recorded at fair value	$	—	$	112	$	—	$	112

Balance Sheet Components (Tables)

6 Months Ended

Jun. 26, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, Net

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



	June 26, 2020			December 31, 2019
Accounts receivable, net:
Accounts receivable	$	77,163		$	91,513
Less: allowances for doubtful accounts and sales returns	(2,382		)	(3,013		)
Total	$	74,781		$	88,500

Inventories



	June 26, 2020		December 31, 2019
Inventories, net:
Raw materials	$	3,776	$	4,179
Work-in-process	1,458		1,633
Finished goods	18,546		14,080
Service-related spares	8,317		9,150
Total	$	32,097	$	29,042

Prepaid, and Other Current Assets



	June 26, 2020		December 31, 2019
Prepaid expenses and other current assets:
French R&D tax credits receivable⁽¹⁾	$	—	$	7,343
Contract assets⁽²⁾	4,289		13,969
Deferred cost of revenue	5,072		2,631
Prepaid maintenance, royalty, rent, and property taxes	3,153		1,594
Capitalized sales commissions	1,529		1,309
Other	9,212		13,916
Total	$	23,255	$	40,762

(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



	June 26, 2020			December 31, 2019
Property and equipment, net:
Machinery and equipment	$	73,508		$	75,229
Capitalized software	35,027			34,190
Construction in progress*	25,549			5,506
Leasehold improvements	15,674			15,170
Furniture and fixtures	8,939			6,036
Property and equipment, gross	158,697			136,131
Less: accumulated depreciation and amortization	(117,356		)	(113,203		)
Total	$	41,341		$	22,928

Other Long Term Assets



	June 26, 2020		December 31, 2019
Other long-term assets:
French R&D tax credits receivable	$	17,843	$	15,899
Deferred tax assets	9,958		10,575
Equity investment	3,593		3,593
Other	9,808		11,238
Total	$	41,202	$	41,305

Accrued Liabilities



	June 26, 2020		December 31, 2019
Accrued and other current liabilities:
Accrued employee compensation and related expenses	$	16,163	$	19,454
Operating lease liability (short-term)	7,995		8,881
Customer deposits	4,767		3,557
Accrued warranty	3,818		4,308
Accrued royalty payments	2,657		2,642
Accrued Avid litigation settlement, current	2,000		2,000
Contingent inventory reserves	1,453		2,208
Others	16,513		19,485
Total	$	55,366	$	62,535

Other Non-current Liabilities



	June 26, 2020		December 31, 2019
Other non-current liabilities:
Operating lease liability (long-term)	$	24,604	$	25,766
Deferred revenue (long-term)	7,089		6,333
Others	9,415		9,155
Total	$	41,108	$	41,254

Goodwill and Identified Intangible Assets (Tables)

6 Months Ended

Jun. 26, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months ended June 26, 2020 were as follows (in thousands):



	Video		Cable Access			Total
Balance as of December 31, 2019	$	178,982	$	60,798		$	239,780
Foreign currency translation adjustment, net	67		(31		)	36
Balance as of June 26, 2020	$	179,049	$	60,767		$	239,816

Summary of Goodwill and Identified Intangible Assets

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



		June 26, 2020							December 31, 2019
	Weighted Average Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed core technology	n/a	$	31,707	$	(31,707	)	$	—	$	31,707	$	(30,757	)	$	950
Customer relationships/contracts	0.7	44,588		(42,595		)	1,993		44,577		(41,092		)	3,485
Trademarks and trade names	n/a	611		(611		)	—		609		(583		)	26
Maintenance agreements and related relationships	n/a	5,500		(5,500		)	—		5,500		(5,500		)	—
Order backlog	n/a	3,089		(3,089		)	—		3,085		(3,085		)	—
Total identifiable intangibles, net		$	85,495	$	(83,502	)	$	1,993	$	85,478	$	(81,017	)	$	4,461

Amortization Expense for Identifiable Purchased Intangible Assets

Amortization expense for the identifiable purchased intangible assets for the three and six months ended June 26, 2020 and June 28, 2019 was allocated as follows (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Included in cost of revenue	$	65	$	1,295	$	950	$	2,590
Included in operating expenses	742		784		1,512		1,572
Total amortization expense	$	807	$	2,079	$	2,462	$	4,162

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,
2020 (remaining six months)	$	—	$	1,495	$	1,495
2021	—		498		498
Total future amortization expense	$	—	$	1,993	$	1,993

Restructuring and Related Charges (Tables)

6 Months Ended

Jun. 26, 2020

Restructuring and Related Activities [Abstract]

Summary of restructuring activities

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



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020			June 28, 2019
Restructuring and related charges in:
Cost of revenue	$	2	$	91	$	(71	)	$	392
Operating expenses - Restructuring and related charges	82		276		758			333
Total restructuring and related charges	$	84	$	367	$	687		$	725

Schedule of Restructuring Reserve by Type of Cost

The following table summarizes the activities related to the Company’s restructuring plans during the six months ended June 26, 2020 (in thousands):



	Excess facilities			Severance and benefits			French VDP			Others			Total
Balance at December 31, 2019	$	720		$	3,294		$	806		$	30		$	4,850
Charges for current period	—			591			49			47			687
Cash payments	(642		)	(1,653		)	(650		)	(30		)	(2,975		)
Others	—			(164		)	(41		)	—			(205		)
Balance at June 26, 2020	$	78		$	2,068		$	164		$	47		$	2,357

Convertible Notes, Other Debts And Finance Lease (Tables)

6 Months Ended

Jun. 26, 2020

Convertible Debt Interest

The following table presents interest expense recognized for the 2020 Notes, 2022 Notes and the 2024 Notes (in thousands):



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Contractual interest expense	$	1,036	$	1,282	$	2,071	$	2,565
Amortization of debt discount	1,560		1,479		3,183		2,912
Amortization of debt issuance costs	214		178		426		350
Total interest expense recognized	$	2,810	$	2,939	$	5,680	$	5,827

Schedule of Other Debt and Capital Leases



	June 26, 2020			December 31, 2019
Financing from French government agencies related to various government incentive programs ⁽¹⁾	$	13,991		$	16,566
Relief loans ⁽²⁾	6,131			—
Term loans	173			587
Obligations under finance leases	22			71
Total debt obligations	20,317			17,224
Less: current portion	(6,323		)	(6,713		)
Long-term portion	$	13,994		$	10,511

(2) Refer to the below section “Relief Loans” for the description of these loans.

Schedule of Maturities of Long-term Debt

The table below presents the future minimum repayments of debts and finance lease obligations in France as of June 26, 2020 (in thousands):



Years ending December 31,	Finance lease obligations		Other Debt obligations
2020 (remaining six months)	$	—	$	488
2021	22		10,768
2022	—		4,885
2023	—		3,416
2024	—		112
Thereafter	—		626
Total	$	22	$	20,295

Convertible Note due 2022

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2022 Notes as of June 26, 2020 (in thousands, except for years and percentages):



	June 26, 2020
Liability:
Principal amount	$	37,707
Less: Debt discount, net of amortization	(1,681		)
Less: Debt issuance costs, net of amortization	(527		)
Carrying amount	$	35,499
Remaining amortization period (years)	2.4
Effective interest rate on liability component	6.95		%

Convertible Note due 2024

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2024 Notes as of June 26, 2020 and December 31, 2019 (in thousands, except for years and percentages):



	June 26, 2020			December 31, 2019
Liability:
Principal amount	$	115,500		$	115,500
Less: Debt discount, net of amortization	(21,517		)	(23,652		)
Less: Debt issuance costs, net of amortization	(2,928		)	(3,219		)
Carrying amount	$	91,055		$	88,629
Remaining amortization period (years)	4.2			4.7
Effective interest rate on liability component	7.95		%	7.95		%

Convertible Note due 2020

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the components of the 2020 Notes as of June 26, 2020 and December 31, 2019 (in thousands, except for years and percentages):



	June 26, 2020			December 31, 2019
Liability:
Principal amount	$	8,053		$	45,785
Less: Debt discount, net of amortization	(177		)	(2,151		)
Less: Debt issuance costs, net of amortization	(21		)	(259		)
Carrying amount	$	7,855		$	43,375
Remaining amortization period (years)	0.4			0.9
Effective interest rate on liability component	9.94		%	9.94		%

Employee Benefit Plans and Stock-based Compensation (Tables)

6 Months Ended

Jun. 26, 2020

Share-based Payment Arrangement [Abstract]

Summary of Stock Options Outstanding

The following table summarizes the Company’s stock option activities and related information during the six months ended June 26, 2020 (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, 2019	1,888		$	5.83
Exercised	(127	)	5.78
Canceled or expired	(203	)	5.78
Balance at June 26, 2020	1,558		5.84		1.68	$	655.80

Vested and exercisable	1,558		5.84		1.68	$	655.80

Summary of Restricted Stock Units Outstanding

The following table summarizes the Company’s RSUs activities and related information during the six months ended June 26, 2020 (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, 2019	3,601		$	5.18
Granted	2,797		5.85
Vested	(2,128	)	5.42
Forfeited	(257	)	3.89
Balance at June 26, 2020	4,013		5.60

Schedule of Defined Benefit Plans Obligations

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



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Service cost	$	61	$	57	$	122	$	114
Interest cost	9		19		18		39
Net periodic benefit cost	$	70	$	76	$	140	$	153

Summary of Stock-Based Compensation Expense

Stock-based Compensation

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



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Stock-based compensation in:
Cost of revenue	$	312	$	195	$	1,082	$	420
Research and development expense	872		582		2,610		1,198
Selling, general and administrative expense	2,364		1,733		6,115		3,005
Total stock-based compensation in operating expense	3,236		2,315		8,725		4,203
Total stock-based compensation	$	3,548	$	2,510	$	9,807	$	4,623

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



	ESPP Purchase Period Ending
	July 1, 2020		July 1, 2019
Expected term (years)	0.5		0.5
Volatility	50	%	43	%
Risk-free interest rate	1.6	%	2.5	%
Expected dividends	0.0	%	0.0	%
Estimated weighted average fair value per share at purchase date	$2.26		$1.31

Income Taxes (Tables)

6 Months Ended

Jun. 26, 2020

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						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Loss before income taxes	$	(13,823	)	$	(11,148	)	$	(35,048	)	$	(22,773	)
Provision for income taxes	1,578			697			2,307			378
Effective income tax rate	(11.4		)%	(6.3		)%	(6.6		)%	(1.7		)%

Net Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 26, 2020

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						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Numerator:
Net loss	$	(15,401	)	$	(11,845	)	$	(37,355	)	$	(23,151	)
Denominator:
Weighted average number of common shares outstanding
Basic and diluted	96,727			88,931			96,255			88,554
Net loss per share:
Basic and diluted	$	(0.16	)	$	(0.13	)	$	(0.39	)	$	(0.26	)

Anti-dilutive Securities

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



	Three months ended		Six months ended
	June 26, 2020	June 28, 2019	June 26, 2020	June 28, 2019
Stock options	1,558	2,664	1,677	2,803
RSUs	2,963	2,668	2,931	2,534
Stock purchase rights under the ESPP	581	509	512	499
Convertible Debt	—	—	584	—
Warrants ⁽¹⁾	—	1,954	—	1,954
Total	5,102	7,795	5,704	7,790

Segment Information (Tables)

6 Months Ended

Jun. 26, 2020

Segment Reporting [Abstract]

Segment Reporting Information, by Segment

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



	Three months ended						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Video
Revenue	$	47,453		$	71,625		$	101,825		$	138,801
Gross profit	26,024			41,444			53,931			80,046
Operating income (loss)	(4,237		)	4,459			(10,504		)	6,427
Cable Access
Revenue	$	26,541		$	13,240		$	50,586		$	26,170
Gross profit	12,128			4,063			22,542			9,131
Operating loss	(878		)	(7,266		)	(4,143		)	(13,088		)
Total
Revenue	$	73,994		$	84,865		$	152,411		$	164,971
Gross profit	38,152			45,507			76,473			89,177
Operating loss	$	(5,115	)	$	(2,807	)	$	(14,647	)	$	(6,661	)

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

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



	Three months ended						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Total segment operating loss	$	(5,115	)	$	(2,807	)	$	(14,647	)	$	(6,661	)
Unallocated corporate expenses	(84		)	(368		)	(687		)	(726		)
Stock-based compensation	(3,548		)	(2,510		)	(9,807		)	(4,623		)
Amortization of intangibles	(807		)	(2,079		)	(2,462		)	(4,162		)
Loss from operations	(9,554		)	(7,764		)	(27,603		)	(16,172		)
Non-operating expense, net	(4,269		)	(3,384		)	(7,445		)	(6,601		)
Loss before income taxes	$	(13,823	)	$	(11,148	)	$	(35,048	)	$	(22,773	)

Revenue from External Customers by Geographic Areas



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Net Revenue (in thousands) ⁽¹⁾
United States	$	35,223	$	35,710	$	69,626	$	65,825
Other Countries	38,771		49,155		82,785		99,146
Total	$	73,994	$	84,865	$	152,411	$	164,971

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

Revenue from External Customers by Products and Services

Market Information



	Three months ended				Six months ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Market (in thousands)
Service Provider	$	42,169	$	43,438	$	85,928	$	87,650
Broadcast and Media	31,825		41,427		66,483		77,321
Total	$	73,994	$	84,865	$	152,411	$	164,971

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 26, 2020

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						Six months ended
	June 26, 2020			June 28, 2019			June 26, 2020			June 28, 2019
Balance at beginning of period	$	3,744		$	4,587		$	4,314		$	4,869
Accrual for current period warranties	1,013			1,570			1,669			2,973
Warranty costs incurred	(939		)	(1,355		)	(2,165		)	(3,040		)
Balance at end of period	$	3,818		$	4,802		$	3,818		$	4,802

Revenue Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Prepaid Expenses and Other Current Assets [Member]
Capitalized Contract Cost [Line Items]
Contract assets	$ 4,289	$ 13,969
Other Noncurrent Liabilities [Member]
Capitalized Contract Cost [Line Items]
Deferred revenue	$ 54,694	$ 43,450

Revenue Narratives (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-27 $ in Millions	6 Months Ended
	Jun. 26, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false]	true
Comcast CableOS Software License Agreement [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 92.6
Minimum [Member] \| Comcast CableOS Software License Agreement [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	3 years
Maximum [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration	1 year
Maximum [Member] \| Support and Maintenance Contracts [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration	1 year

Revenue - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognized Included in Beginning Deferred Revenue	$ 8.7	$ 10.1	$ 26.7	$ 31.3

Lease - Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Leases [Abstract]
Operating lease cost	$ 2,015	$ 2,231	$ 4,683	$ 4,227
Variable lease cost	710	744	1,502	1,523
Total lease cost	2,725	2,975	6,185	5,750
Cash paid for amounts included in the measurement of operating lease liabilities	2,217	2,494	4,638	4,624
Right-of-Use assets obtained in exchange for operating lease obligations	$ 0	$ 10,305	$ 1,671	$ 10,305

Investments in Equity Securities (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 26, 2020	Dec. 31, 2019	Oct. 22, 2014
EDC [Member]
Schedule of Cost-method Investments [Line Items] (Deprecated 2018-01-31)
Cost Method Investments Original Cost			$ 3.5
Cost-method Investments, Other than Temporary Impairment	$ 0.0
Maximum Exposure to Loss from Investment	3.6	$ 3.6
Variable Interest Entity, Transaction Costs, Amount	$ 0.1	$ 0.1
EDC [Member]
Schedule of Cost-method Investments [Line Items] (Deprecated 2018-01-31)
Noncontrolling Interest, Ownership Percentage by Parent			18.40%

Derivatives and Hedging Activities - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 26, 2020 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		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Other Nonoperating Income (Expense) [Member] \| Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Gains (losses) recognized in operations	$ 579	$ (44)	$ (333)	$ (609)

Derivatives and Hedging Activities Notional Amounts (Details) - Foreign Exchange Forward [Member] - Not Designated as Hedging Instrument [Member] - Fair Value Hedging [Member] - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Long [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Purchase	$ 24,415	$ 14,806
Short [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Sell	$ 1,451	$ 2,629

Derivatives and Hedging Activities Assets Liabilities Balance Sheet Location (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	$ 48	$ 43
Derivative Liability, Current	153	112
Not Designated as Hedging Instrument [Member] \| Prepaid Expenses and Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Current	48	43
Not Designated as Hedging Instrument [Member] \| Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Current	$ 153	$ 112

Derivatives and Hedging Activities Asset and Liability Offset (Details) $ in Thousands	Jun. 26, 2020 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Asset, Gross Amounts of Derivatives	$ 48
Derivative Asset, Gross Amounts of Derivatives Offset in the Condensed Balance Sheets	0
Derivative Asset, Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets	48
Derivative Liabilities, Gross Amounts of Derivatives	153
Derivative Liabilities, Gross Amounts of Derivatives Offset in the Condensed Balance Sheets	0
Derivatives Liability, Net Amounts of Derivatives Presented in the Condensed Consolidated Balance Sheets	$ 153

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value Based on Three-Tier Fair Value Hierarchy (Detail) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	$ 48	$ 43
Total liabilities measured and recorded at fair value	153	112
Foreign exchange forward contracts [Member] \| Prepaid Expenses and Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	48	43
Foreign exchange forward contracts [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	153	112
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	0	0
Total liabilities measured and recorded at fair value	0	0
Level 1 [Member] \| Foreign exchange forward contracts [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value		0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	48	43
Total liabilities measured and recorded at fair value	153	112
Level 2 [Member] \| Foreign exchange forward contracts [Member] \| Prepaid Expenses and Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	48	43
Level 2 [Member] \| Foreign exchange forward contracts [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value	153	112
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	0	0
Total liabilities measured and recorded at fair value	$ 0	0
Level 3 [Member] \| Foreign exchange forward contracts [Member] \| Accrued Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities measured and recorded at fair value		$ 0

Fair Value Measurements - Narratives (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019	Sep. 27, 2019	Dec. 31, 2015
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Long-term Debt	$ 20,300	$ 17,200
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets measured and recorded at fair value	0
Total liabilities 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	$ 200	800
Convertible Note due 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.375%		4.375%
Convertible Note due 2022 \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	$ 40,100
Convertible Note due 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.00%			4.00%
Convertible Note due 2020 \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	$ 8,000	66,800
Convertible Note due 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.00%		2.00%
Convertible Note due 2024 \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible Debt, Fair Value Disclosures	$ 102,900	$ 131,900

Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Receivables [Abstract]
Accounts receivable	$ 77,163	$ 91,513
Less: allowances for doubtful accounts and sales returns	(2,382)	(3,013)
Accounts Receivable, after Allowance for Credit Loss, Current	$ 74,781	$ 88,500

Balance Sheet Components - Inventories, net (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 3,776	$ 4,179
Work-in-process	1,458	1,633
Finished goods	18,546	14,080
Service-related spares	8,317	9,150
Inventory, Net	$ 32,097	$ 29,042

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

Jun. 26, 2020

Dec. 31, 2019

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

French R&D tax credits receivable(1)

^[1]

$ 0

$ 7,343

Contract assets(2)

^[2]

4,289

13,969

Deferred cost of revenue

5,072

2,631

Prepaid maintenance, royalty, rent, and property taxes

3,153

1,594

Capitalized sales commissions

1,529

1,309

Other

9,212

13,916

Prepaid Expense and Other Assets, Current

$ 23,255

$ 40,762

[1]

The Company’s 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 June 26, 2020 were approximately $17.8 million and are expected to be recoverable from 2021 through 2023. See “Other long-term assets”.

[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	6 Months Ended
	Jun. 26, 2020	Dec. 31, 2019
French R&D tax credits receivable, noncurrent	$ 17,843	$ 15,899
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
Other Noncurrent Assets [Member] \| TVN [Member] \| Research Tax Credit Carryforward [Member]
French R&D tax credits receivable, noncurrent	$ 17,800

Balance Sheet Components - Property and Equipment, Net (Details) - USD ($)
$ in Thousands

Jun. 26, 2020

Dec. 31, 2019

Less: accumulated depreciation and amortization

$ 158,697

$ 136,131

(117,356)

(113,203)

Property and Equipment, Net

41,341

22,928

Machinery and Equipment [Member]

Capitalized Software [Member]

73,508

75,229

Construction in Progress [Member]

35,027

34,190

Leasehold Improvements [Member]

25,549

^[1]

5,506

Furniture and Fixtures [Member]

15,674

15,170

Harmonic Headquarter Lease Commencing May 2019 [Member] | Construction in Progress [Member]

8,939

$ 6,036

$ 22,900

[1]

During fiscal 2019, the Company entered into a lease for a new facility which will become the Company’s new headquarters in 2020. The new lease commenced in May 2019, as the facility was made available to the Company for constructing leasehold improvements. Construction in progress includes $22.9 million for constructing leasehold improvements in the new headquarters facility.

Balance Sheet Components - Other Long Term Assets (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
French R&D tax credits receivable	$ 17,843	$ 15,899
Deferred tax assets	9,958	10,575
Equity investment	3,593	3,593
Other	9,808	11,238
Other Assets, Noncurrent	$ 41,202	$ 41,305

Balance Sheet Components - Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Accrued employee compensation and related expenses	$ 16,163	$ 19,454
Operating lease liability (short-term)	7,995	8,881
Customer deposits	4,767	3,557
Accrued warranty	3,818	4,308
Accrued royalty payments	2,657	2,642
Accrued Avid litigation settlement, current	2,000	2,000
Contingent inventory reserves	1,453	2,208
Others	16,513	19,485
Accrued Liabilities, Current	$ 55,366	$ 62,535

Balance Sheet Components - Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Operating lease liability (long-term)	$ 24,604	$ 25,766
Deferred revenue (long-term)	7,089	6,333
Others	9,415	9,155
Other Liabilities, Noncurrent	$ 41,108	$ 41,254

Goodwill and Intangible Assets - Narratives (Details) $ in Millions	6 Months Ended
	Jun. 26, 2020 USD ($)
Goodwill [Line Items]
Goodwill, Impairment Loss	$ 0.0

Goodwill and Identified Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	6 Months Ended
	Jun. 26, 2020 USD ($)
Goodwill [Line Items]
Balance at beginning of period	$ 239,780
Foreign currency translation adjustment, net	36
Balance at end of period	239,816
Video [Member]
Goodwill [Line Items]
Balance at beginning of period	178,982
Foreign currency translation adjustment, net	67
Balance at end of period	179,049
Cable Access [Member]
Goodwill [Line Items]
Balance at beginning of period	60,798
Foreign currency translation adjustment, net	(31)
Balance at end of period	$ 60,767

Goodwill and Identified Intangible Assets - Summary of Goodwill and Identified Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 26, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 85,495	$ 85,478
Accumulated Amortization	(83,502)	(81,017)
Total future amortization expense	1,993	4,461
Developed Core Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,707	31,707
Accumulated Amortization	(31,707)	(30,757)
Total future amortization expense	$ 0	950
Customer relationships/contracts
Finite-Lived Intangible Assets [Line Items]
Useful Life	8 months 12 days
Gross Carrying Amount	$ 44,588	44,577
Accumulated Amortization	(42,595)	(41,092)
Total future amortization expense	1,993	3,485
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	611	609
Accumulated Amortization	(611)	(583)
Total future amortization expense	0	26
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	3,089	3,085
Accumulated Amortization	(3,089)	(3,085)
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		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Included in cost of revenue	$ 65	$ 1,295	$ 950	$ 2,590
Amortization of intangibles	742	784	1,512	1,572
Total amortization expense	$ 807	$ 2,079	$ 2,462	$ 4,162

Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense of Purchased Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
2020 (remaining six months)	$ 1,495
2021	498
Total future amortization expense	1,993	$ 4,461
Cost of Revenue [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2020 (remaining six months)	0
2021	0
Total future amortization expense	0
Operating Expense [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2020 (remaining six months)	1,495
2021	498
Total future amortization expense	$ 1,993

Restructuring and Related Charges Restructuring and Related Charges, COS & OPEX (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Restructuring and Related Activities [Abstract]
Cost of Revenue - restructuring adjustment			$ (71)
Cost of revenue - restructuring and related charges	$ 2	$ 91		$ 392
Operating expenses - Restructuring and related charges	82	276	758	333
Restructuring Charges	$ 84	$ 367	$ 687	$ 725

Restructuring and Related Charges - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 26, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 2,357	$ 4,850
Restructuring Reserve, Current	1,600	1,500
Restructuring Reserve, Noncurrent	$ 800	$ 3,400

Restructuring and Related Charges Schedule of Restructuring Cost by Types (Details) $ in Thousands	6 Months Ended
	Jun. 26, 2020 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 4,850
Charges for current period	687
Cash payments	(2,975)
Others	(205)
Restructuring Reserve	2,357
Excess facilities
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	720
Cash payments	(642)
Others	0
Restructuring Reserve	78
Severance and benefits
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	3,294
Charges for current period	591
Cash payments	(1,653)
Others	(164)
Restructuring Reserve	2,068
French VDP
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	806
Charges for current period	49
Cash payments	(650)
Others	(41)
Restructuring Reserve	164
Others
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	30
Charges for current period	47
Cash payments	(30)
Restructuring Reserve	$ 47

Convertible Notes, Other Debts And Finance Lease - Narratives (Details)

1 Months Ended

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 26, 2020

USD ($)

$ / shares

Jun. 26, 2020

EUR (€)

Apr. 30, 2020

CHF (SFr)

Jun. 26, 2020

USD ($)

day

$ / shares

Sep. 27, 2019

USD ($)

$ / shares

Jun. 26, 2020

USD ($)

$ / shares

Jun. 28, 2019

USD ($)

Dec. 31, 2019

USD ($)

day

$ / shares

Dec. 31, 2015

USD ($)

$ / shares

Common stock, par value | $ / shares

$ 0.001

Fair value of Convertible Senior Notes due 2022 used to settle Convertible Senior Notes due 2020

$ 44,357,000

Loss on debt extinguishment

$ 834,000

834,000

$ 0

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

^[1]

$ 13,991,000

13,991,000

$ 16,566,000

Letters of Credit Outstanding, Amount

2,700,000

Société Générale S.A. [Member]

^[2]

$ 6,131,000

0.51%

Proceeds from Loans | €

€ 5,000,000

Debt Instrument, Term

12 months

UBS Switzerland AG [Member]

$ 5,600,000

Proceeds from Loans | SFr

0.00%

SFr 500,000

Debt Instrument, Term

5 years

$ 500,000

TVN [Member]

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

Income Taxes Receivable

$ 17,800,000

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

0.60%

^[1]

$ 12,500,000

$ 15,100,000

Debt Instrument, Basis Spread on Variable Rate

1.30%

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

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

^[1]

1,500,000

$ 1,500,000

Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

Line of Credit Facility, Current Borrowing Capacity

1.25%

$ 0

Letters of Credit Outstanding, Amount

300,000

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

Letters of Credit Outstanding, Amount

$ 2,300,000

Convertible Note due 2022

4.375%

Common stock, par value | $ / shares

$ 37,707,000

$ 0.001

Debt Instrument, Convertible, Conversion Ratio

173.9978

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 5.75

Carrying amount of equity component

$ 8,300,000

Fair Value of Liability Component - Convertible Notes

36,000,000.0

Debt Instrument, Unamortized Discount

1,681,000

$ 1,681,000

Non-cash Exchange of Convertible Notes - Value of Consideration Received

$ 37,700,000

Convertible Note due 2022 | 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%

Convertible Note due 2022 | 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%

Convertible Note due 2024

2.00%

Common stock, par value | $ / shares

$ 115,500,000

115,500,000

$ 0.001

Debt Instrument, Convertible, Conversion Ratio

115.5001

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 8.66

Carrying amount of equity component

$ 24,900,000

Debt Instrument, Unamortized Discount

$ 21,517,000

23,652,000

Convertible Note due 2020

4.00%

Debt Instrument, Convertible, Conversion Ratio

$ 8,053,000

45,785,000

$ 128,250,000

173.9978

Debt Conversion, Converted Instrument, Amount

$ 1,000

Debt Instrument, Convertible, Conversion Price | $ / shares

$ 5.75

Carrying amount of equity component

$ 26,100,000

Debt Instrument, Unamortized Discount

177,000

$ 2,151,000

Debt Instrument, Repurchase Amount

109,600,000

Non-cash Exchange of Convertible Notes - Value of Consideration Given

$ 37,700,000

Convertible Note due 2020 | 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%

Maximum [Member] | Société Générale S.A. [Member]

Option to Extend, Debt Instrument Term

5 years

Maximum [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

Line of Credit Facility, Current Borrowing Capacity

$ 25,000,000.0

Convertible Debt | Convertible Note due 2022

Fair value of Convertible Senior Notes due 2022 used to settle Convertible Senior Notes due 2020

$ 44,400,000

Convertible Debt | Convertible Note due 2020

44,400,000

Loss on debt extinguishment

8,100,000

$ 8,100,000

5,700,000

Convertible Debt | Long-term Debt [Member] | Convertible Note due 2020 | Privately Negotiated Transactions [Member]

Convertible Debt | Additional Paid-in Capital [Member] | Convertible Note due 2020 | Privately Negotiated Transactions [Member]

82,500,000

Liability Component Immediately Prior To Extinguishment [Member] | Convertible Note due 2020

$ 27,100,000

Equity Component Allocated to Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Convertible Note due 2020

37,400,000

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

$ 7,000,000.0

One Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

1 month

London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

1 month

Debt Instrument, Basis Spread on Variable Rate

2.50%

LIBOR for interest period of one, two or three months [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

Debt Instrument, Basis Spread on Variable Rate

2.25%

Two Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

Three Month LIBOR [Member] | Revolving Credit Facility [Member] | JPMORGAN CHASE BANK N.A. [Member]

2 months

3 months

[1]

As of June 26, 2020 and December 31, 2019, loans backed by French R&D tax credit receivables were $12.5 million and $15.1 million, respectively. As of June 26, 2020, the French Subsidiary had an aggregate of $17.8 million of R&D tax credit receivables from the French government from 2021 through 2023. 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 2021 through 2023. The remaining loans of $1.5 million at June 26, 2020, primarily relate to financial support from French government agencies for R&D innovation projects at minimal interest rates, and these loans mature between 2020 through 2025.

[2]

Refer to the below section “Relief Loans” for the description of these loans.

Convertible Notes, Other Debts And Finance Leases - 2022 Convertible Notes Roll Forward (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 26, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Carrying amount	$ 126,554	$ 88,629
Convertible Note due 2022
Debt Instrument [Line Items]
Principal amount	37,707
Less: Debt discount, net of amortization	(1,681)
Less: Debt issuance costs, net of amortization	(527)
Carrying amount	$ 35,499
Remaining amortization period (years)	2 years 4 months 24 days
Effective interest rate on liability component	6.95%

Convertible Notes, Other Debts And Finance Leases - 2024 Convertible Notes Roll Forward (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 26, 2020	Dec. 31, 2019	Sep. 27, 2019
Debt Instrument [Line Items]
Carrying amount	$ 126,554	$ 88,629
Convertible Note due 2024
Debt Instrument [Line Items]
Principal amount	115,500	115,500	$ 115,500
Less: Debt discount, net of amortization	(21,517)	(23,652)
Less: Debt issuance costs, net of amortization	(2,928)	(3,219)
Carrying amount	$ 91,055	$ 88,629
Remaining amortization period (years)	4 years 2 months 12 days	4 years 8 months 12 days
Effective interest rate on liability component	7.95%	7.95%

Convertible Notes, Other Debts And Capital Leases - 2020 Convertible Note Roll Forward (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 26, 2020	Dec. 31, 2019	Dec. 31, 2015
Debt Instrument [Line Items]
Convertible Debt, Current	$ 7,855	$ 43,375
Convertible Note due 2020
Debt Instrument [Line Items]
Principal amount	8,053	45,785	$ 128,250
Less: Debt discount, net of amortization	(177)	(2,151)
Less: Debt issuance costs, net of amortization	(21)	(259)
Convertible Debt, Current	$ 7,855	$ 43,375
Remaining amortization period (years)	4 months 24 days	10 months 24 days
Effective interest rate on liability component	9.94%	9.94%

Convertible Notes, Other Debts And Finance Leases - Interest (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Debt Disclosure [Abstract]
Contractual interest expense	$ 1,036	$ 1,282	$ 2,071	$ 2,565
Amortization of debt discount	1,560	1,479	3,183	2,912
Amortization of debt issuance costs	214	178	426	350
Total interest expense recognized	$ 2,810	$ 2,939	$ 5,680	$ 5,827

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

Jun. 26, 2020

Dec. 31, 2019

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

^[1]

$ 13,991

$ 16,566

Obligations under finance leases

^[2]

6,131

Term loans

173

587

Total debt obligations

20,317

17,224

Less: current portion

(6,323)

(6,713)

Long-term portion

$ 13,994

$ 10,511

[1]

[2]

Refer to the below section “Relief Loans” for the description of these loans.

Convertible Notes, Other Debts And Finance Leases - Debt Maturities (Details) - TVN [Member] $ in Thousands	Jun. 26, 2020 USD ($)
Debt Instrument [Line Items]
Finance Leases, 2020 (remaining six months)	$ 0
Finance Leases, 2021	22
Finance Leases, Total	22
Other debt obligations - 2020 (remaining six months)	488
Other debt obligations - 2021	10,768
Other debt obligations - 2022	4,885
Other debt obligations - 2023	3,416
Other debt obligations - 2024	112
Other debt obligations - thereafter	626
Other debt obligations Total	$ 20,295

Employee Benefit Plans and Stock-based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 26, 2020	Mar. 27, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Realized Tax Benefits, Stock Option Exercised				$ 0	$ 0
Total stock-based compensation	$ 3,548,000		$ 2,510,000	9,807,000	4,623,000
Defined Benefit Plan, Benefit Obligation	5,400,000			5,400,000		$ 5,300,000
Liability, Defined Benefit Pension Plan, Current	100,000			100,000
Liability, Defined Benefit Pension Plan, Noncurrent	$ 5,300,000			$ 5,300,000
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				203,000	$ 208,000
Dividend, Share-based Payment Arrangement, 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	800,000			800,000
Discount Percentage On Purchase Of Stock				15.00%
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	2,800,000			2,800,000
Grants in Period, Number of Shares				0
Performance-Based RSU Awards to Settle Incentive Bonus Payments [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Award, Grants in Period				472,247	0
Total stock-based compensation				$ 3,000,000.0
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Award, Grants in Period		67,910
Total stock-based compensation	$ 100,000			400,000	$ 100,000
Nonvested Award, Option, Unrecognized Stock-based Compensation, Amount	200,000			200,000
PerformanceBased RSU Awards 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Award, Grants in Period						85,000
Nonvested Award, Option, Unrecognized Stock-based Compensation, Amount	100,000			$ 100,000
Share-based Payment Award, Equity Instruments Other than Options, Vested in Period				40,000
Market-based awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Award, Grants in Period		182,830
Total stock-based compensation	200,000		100,000	$ 300,000	100,000
Nonvested Award, Option, Unrecognized Stock-based Compensation, Amount	1,600,000		$ 1,000,000.0	$ 1,600,000	$ 1,000,000.0
Share-based Payment Award, Equity Instruments Other than Options, Vested in Period				0
Share-based Payment Award, Award Vesting Period		3 years
Share-based Payment Award, Awards, Grants in Period, Fair Value		$ 1,100,000
Market Based Award 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested Award, Option, Unrecognized Stock-based Compensation, Amount	600,000			$ 600,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested RSUs Award, Total Unrecognized Stock-based Compensation, Amount	$ 19,900,000			$ 19,900,000
Nonvested Award, Cost Not yet Recognized, Weighted-average Period for Recognition				1 year 11 months 4 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) - Share-based Payment Arrangement, Option [Member] $ / shares in Units, shares in Thousands	6 Months Ended
	Jun. 26, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Beginning balance \| shares	1,888
Weighted Average Exercise Price, Beginning balance \| $ / shares	$ 5.83
Exercised \| shares	(127)
Weighted Average Exercise Price, Options exercised \| $ / shares	$ 5.78
Canceled or expired \| shares	(203)
Canceled or Expired, Weighted Average Exercise Price \| $ / shares	$ 5.78
Number of Shares, Ending balance \| shares	1,558
Weighted Average Exercise Price, Ending balance \| $ / shares	$ 5.84
Weighted Average Remaining Contractual Term	1 year 8 months 4 days
Aggregate Intrinsic Value \| $	$ 655,800
Number of Shares, Vested and Exercisable \| shares	1,558
Weighted Average Exercise Price, Vested and Exercisable \| $ / shares	$ 5.84
Weighted Average Remaining Contractual Term (Years), Vested and Exercisable	1 year 8 months 4 days
Aggregate Intrinsic Value, Vested and Exercisable \| $	$ 655,800

Employee Benefit Plans and Stock-based Compensation - Summary of Restricted Stock Units Outstanding (Detail) - Restricted Stock Units Outstanding [Member] shares in Thousands	6 Months Ended
	Jun. 26, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Units, Beginning balance \| shares	3,601
Weighted Average Grant Date Fair Value Per Share, Beginning balance \| $ / shares	$ 5.18
Granted \| shares	2,797
Weighted Average Grant Date Fair Value Per Share \| $ / shares	$ 5.85
Vested \| shares	(2,128)
Vested in Period, Weighted Average Grant Date Fair Value Per Share \| $ / shares	$ 5.42
Forfeited \| shares	(257)
Weighted Average Grant Date Fair Value Per Share, Forfeited or cancelled \| $ / shares	$ 3.89
Number of Units, Ending balance \| shares	4,013
Weighted Average Grant Date Fair Value Per Share, Ending balance \| $ / shares	$ 5.60

Employee Benefit Plans and Stock-based Compensation - Summary of Projected Benefit Obligation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract]
Service cost	$ 61	$ 57	$ 122	$ 114
Interest cost	9	19	18	39
Net periodic benefit cost	$ 70	$ 76	$ 140	$ 153

Employee Benefit Plans and Stock-based compensation - Stock-based Compensation in Opex (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 3,548	$ 2,510	$ 9,807	$ 4,623
Cost of Revenue [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	312	195	1,082	420
Research and Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	872	582	2,610	1,198
Selling, General and Administrative Expenses [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	2,364	1,733	6,115	3,005
Operating Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 3,236	$ 2,315	$ 8,725	$ 4,203

Employee Benefit Plans and Stock-based Compensation - Summary of Stock Awards Valuation Assumptions (Details) - Employee Stock Purchase Plan - $ / shares	6 Months Ended
	Jul. 01, 2020	Jul. 01, 2019
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
Forecast [Member] \| Purchase Period July 1 2020 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 months
Volatility	50.00%
Risk-free interest rate	1.60%
Expected dividends	0.00%
Estimated weighted average fair value per share at purchase date	$ 2.26

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (13,823)	$ (11,148)	$ (35,048)	$ (22,773)
Provision for income taxes	$ 1,578	$ 697	$ 2,307	$ 378
Effective income tax rate	(11.40%)	(6.30%)	(6.60%)	(1.70%)

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019	Mar. 27, 2020
Income Tax Contingency [Line Items]
Effective income tax rate	(11.40%)	(6.30%)	(6.60%)	(1.70%)
Federal statutory income tax rate			21.00%	21.00%
Unrecognized Tax Benefits	$ 17.0		$ 17.0
Unrecognized tax benefits that would impact the provision for income taxes	$ 15.7		$ 15.7
Alternative Minimum Tax Credit Refund					$ 0.5
One foreign subsidiary
Income Tax Contingency [Line Items]
One-time benefit due to valuation allowance release				$ 0.8

Net Income (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		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Numerator:
Net loss	$ (15,401)	$ (11,845)	$ (37,355)	$ (23,151)
Denominator:
Basic and diluted	96,727	88,931	96,255	88,554
Net loss per share:
Basic and diluted	$ (0.16)	$ (0.13)	$ (0.39)	$ (0.26)

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

3 Months Ended

6 Months Ended

Jun. 26, 2020

Jun. 28, 2019

Jun. 26, 2020

Jun. 28, 2019

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

5,102,000

7,795,000

5,704,000

7,790,000

Stock Option

Restricted Stock Units (RSUs)

1,558,000

2,664,000

1,677,000

2,803,000

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

Employee Stock Purchase Plan

2,963,000

2,668,000

2,931,000

2,534,000

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

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

581,000

509,000

512,000

499,000

Convertible Debt

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

584,000

Warrant

Company average common stock price for a given period exceeds conversion price $5.75 for 2020 Notes [Member] | Convertible Note due 2020

^[1]

1,954,000

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

Debt Instrument, Convertible, Conversion Price

$ 5.75

Effect of dilutive securities from convertible debt

1,400,522

Company average common stock price for a given period exceeds conversion price $5.75 for 2020 Notes [Member] | Convertible Note due 2022

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

Debt Instrument, Convertible, Conversion Price

$ 5.75

5.75

Effect of dilutive securities from convertible debt

6,557,739

Company average common stock price for a given period exceeds conversion price $8.66 for 2024 Notes [Member] | Convertible Note due 2024

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

Debt Instrument, Convertible, Conversion Price

$ 8.66

Effect of dilutive securities from convertible debt

13,337,182

[1]	See Note 15, “Warrants” for additional information.

Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019	Jan. 10, 2020	Dec. 20, 2019	Dec. 17, 2019	Sep. 26, 2016
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 4.76
Reduction to net revenues - amortization of the Warrant			$ 868	$ 48
Comcast Warrants Exercise in its Entirety [Member]
Class of Warrant or Right [Line Items]
Right to purchase shares vested							3,217,547
Comcast Warrants Exercise Shares Delivered [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right						804,387
Comcast Warrants Exercised Shares Remaining to be Issued [Member]
Class of Warrant or Right [Line Items]
Right to purchase shares vested					2,413,160
Maximum [Member] \| Comcast Warrant Expires September 26, 2023 [Member]
Class of Warrant or Right [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights								7,816,162
Revenue from Contract with Customer Benchmark [Member]
Class of Warrant or Right [Line Items]
Reduction to net revenues - amortization of the Warrant	$ 400	$ 23	$ 800	$ 48

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

3 Months Ended

6 Months Ended

Jun. 26, 2020

USD ($)

Jun. 28, 2019

USD ($)

Jun. 26, 2020

USD ($)

segment

Jun. 28, 2019

USD ($)

^[1]

$ 73,994

$ 84,865

$ 152,411

$ 164,971

37,773

43,928

74,511

85,777

Number of Reportable Segments | segment

(9,554)

(7,764)

$ (27,603)

(16,172)

Operating Segments [Member]

73,994

84,865

$ 152,411

164,971

38,152

45,507

76,473

89,177

Operating Segments [Member] | Video [Member]

(5,115)

(2,807)

(14,647)

(6,661)

47,453

71,625

101,825

138,801

26,024

41,444

53,931

80,046

Operating Segments [Member] | Cable Access [Member]

(4,237)

4,459

(10,504)

6,427

26,541

13,240

50,586

26,170

12,128

4,063

22,542

9,131

$ (878)

$ (7,266)

$ (4,143)

$ (13,088)

[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		6 Months Ended
	Jun. 26, 2020	Jun. 28, 2019	Jun. 26, 2020	Jun. 28, 2019
Segment Reporting Information [Line Items]
Operating income (loss)	$ (9,554)	$ (7,764)	$ (27,603)	$ (16,172)
Unallocated Corporate Expenses	(47,327)	(51,692)	(102,114)	(101,949)
Stock-based compensation	(3,548)	(2,510)	(9,807)	(4,623)
Amortization of intangibles	(807)	(2,079)	(2,462)	(4,162)
Nonoperating Income (Expense)	(4,269)	(3,384)	(7,445)	(6,601)
Loss before income taxes	(13,823)	(11,148)	(35,048)	(22,773)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	(5,115)	(2,807)	(14,647)	(6,661)
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Unallocated Corporate Expenses	$ (84)	$ (368)	$ (687)	$ (726)

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

3 Months Ended

6 Months Ended

Jun. 26, 2020

Jun. 28, 2019

Jun. 26, 2020

Jun. 28, 2019

^[1]

$ 73,994

$ 84,865

$ 152,411

$ 164,971

UNITED STATES

35,223

35,710

69,626

65,825

Other countries

Revenue from External Customer [Line Items]

$ 38,771

$ 49,155

$ 82,785

$ 99,146

[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

6 Months Ended

Jun. 26, 2020

Jun. 28, 2019

Jun. 26, 2020

Jun. 28, 2019

Service Provider [Member]

^[1]

$ 73,994

$ 84,865

$ 152,411

$ 164,971

Revenue from External Customer [Line Items]

Broadcast and Media [Member]

42,169

43,438

85,928

87,650

Revenue from External Customer [Line Items]