Harmonic Inc. · NASDAQ:HLIT

Harmonic — Q1 2021 Earnings Presentation

24 slides from Harmonic's earnings presentation, May 3, 2021

Slide 1: First Quarter 2021 Earnings Conference Call
FIRST QUARTER 2021 EARNINGS CONFERENCE CALL Patrick Harshman, President & CEO Sanjay Kalra, CFO May 3, 2021 ©2021 Harmonic Inc. All rights reserved worldwide. 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS During the course of this presentation, we will provide projections and other forward-looking statements regarding future events or the future financial performance of Harmonic, including expectations concerning our business strategy for 2021 and beyond, and our Q2 and ful
Slide 3: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS Corporate Cable Access Video Revenue up 42% yoy; Revenue up 72% yoy; Revenue up 29% yoy; Strong Cash, Bookings Deployment Momentum Streaming SaaS Wins Strong Market Momentum ©2021 Harmonic Inc. All rights reserved worldwide. 3
Slide 4: Cable Access Segment Update
CABLE ACCESS SEGMENT UPDATE STRONG Q1 EXECUTION • Commercially deployed with 53 operators, up 96% year over year • 3.0 million cable modems served, up 127% year over year • Revenue $41.3 million, up 72% year over year POSITIONED FOR CONTINUED GROWTH • New Tier 1 International customer win • Recogniz
Slide 5: Video Segment Update
VIDEO SEGMENT UPDATE SOLID Q1 EXECUTION • Revenue $70.3 million, up 29% year over year • Gross margin 55.1% • Operating margin 5.4% POSITIVE DEMAND TRENDS • 7 net additional Streaming SaaS customers, total up 72% year over year • New 5G bandwidth reclamation projects in H2 2021 and 2022 pipeline • R
Slide 7: Q1 2021 Revenue & Gross Margin Highlights
Q1 2021 REVENUE & GROSS MARGIN HIGHLIGHTS* Financial Metric Q1 Q4 Q1 Q1/Q4 Q1 Y/Y ($ Millions) 2021 2020 2020 Change Change Total Net Revenue $111.6 $131.5 $78.4 -15.1% 42.3% Cable Access Revenue $41.3 $45.5 $24.0 -9.2% 72.1% Video Revenue $70.3 $86.0 $54.4 -18.3% 29.2% Gross Margin % 50.4% 55.3% 48
Slide 8: Q1 2021 Financial Highlights
Q1 2021 FINANCIAL HIGHLIGHTS* Financial Metric Q1 Q4 Q1 Q1/Q4 Q1 Y/Y $ Millions (except EPS) 2021 2020 2020 Change Change Operating Expenses $51.1 $49.3 $47.9 3.7% 6.7% Operating Income $5.1 $23.4 $(9.5) -78.2% 153.7% Cable Access Operating Income (Loss) $1.3 $9.9 $(3.3) -86.9% 139.4% Video Operatin
Slide 9: Q1 2021 Balance Sheet & Cash Flow Highlights
Q1 2021 BALANCE SHEET & CASH FLOW HIGHLIGHTS Financial Metric Q1 Q4 Q1 ($ Millions) 2021 2020 2020 Cash $100.8 $98.6 $71.7 Cash Provided by (Used in) Operations $1.7 $41.6 $(11.0) Accounts Receivable $85.7 $66.2 $93.1 DSO 69 45 107 Inventories $35.5 $35.0 $34.9 Inventory Days 58 54 78 Backlog and De
Slide 10: Full Year 2021 Financial Guidance
FULL YEAR 2021 FINANCIAL GUIDANCE* Midpoint Financial Metric Guidance FY 2020 Actual Difference Total Revenue ($M) $435.0 - $480.0 $378.8 21% Gross Margin 50.6% - 52.0% 52.5% (120) bps Operating Expenses ($M) $209.0 - $218.0 $185.8 15% Adjusted EBITDA ($M) $25.1 - $45.7 $23.8 49% EPS $0.06 - $0.24 $
Slide 11: Q2 2021 Financial Guidance
Q2 2021 FINANCIAL GUIDANCE* Midpoint Financial Metric Guidance Q2 2020 Actual Difference Total Revenue ($M) $102.0 - $112.0 $74.0 45% Gross Margin 48.7% - 50.6% 51.6% (195) bps Operating Expenses ($M) $52.0 - $54.0 $43.3 22% Adjusted EBITDA ($M) $0.8 - $5.8 $(2.8) 218% EPS $(0.03) - $0.01 $(0.06) 83
Slide 12: 2021 Financial Guidance - Video Segment
2021 FINANCIAL GUIDANCE* - Video Segment FY2021 Financial Metric Guidance FY 2020 Actual Midpoint Difference Net Revenue ($M) $260.0 - $280.0 $242.5 11% Gross Margin % 55.0% - 57.0% 54.5% 150 bps Operating Expenses ($M) $138.0 - $143.0 130.8 7% Adjusted EBITDA ($M) $13.5 - $25.1 $8.2 135% Q2 FY2021
Slide 13: 2021 Financial Guidance - Cable Access Segment
2021 FINANCIAL GUIDANCE* - Cable Access Segment FY2021 Financial Metric Guidance FY 2020 Actual Midpoint Difference Net Revenue ($M) $175.0 - $200.0 $136.3 38% Gross Margin % 44.0% - 45.0% 48.9% (440) bps Operating Expenses ($M) $71.0 - $75.0 $55 33% Adjusted EBITDA ($M) $11.6 - $20.6 $15.6 3% Q2 FY
Slide 14: 2021 Strategic Priorities
2021 STRATEGIC PRIORITIES Cable Access Video Grow Tier 1 CableOS deployments Expand Streaming SaaS customer base Add new CableOS design wins Capitalize on broadcast transformations Expand addressed market through FTTH Grow revenue and operating profit Create value. Deliver industry-leading solutions
Slide 16: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES In establishing operating budgets, managing its business performance, and setting internal measurement targets, the Company excludes a number of items required by GAAP. Management believes that these accounting charges and credits, most of which are non-cash or non
Slide 21: Q2 2021 Guidance GAAP to Non-GAAP Reconciliation
Q2 2021 GUIDANCE GAAP TO NON-GAAP RECONCILIATION (IN MILLIONS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 21

Harmonic — Q1 2021 Earnings Presentation on 6ix

Harmonic — Q1 2021 Earnings Presentation

Slide 1: First Quarter 2021 Earnings Conference Call

Slide 2: Forward-Looking Statements

Slide 3: Q1 2021 Highlights

Slide 4: Cable Access Segment Update

Slide 5: Video Segment Update

Slide 6: Financial Results and Outlook

Slide 7: Q1 2021 Revenue & Gross Margin Highlights

Slide 8: Q1 2021 Financial Highlights

Slide 9: Q1 2021 Balance Sheet & Cash Flow Highlights

Slide 10: Full Year 2021 Financial Guidance

Slide 11: Q2 2021 Financial Guidance

Slide 12: 2021 Financial Guidance - Video Segment

Slide 13: 2021 Financial Guidance - Cable Access Segment

Slide 14: 2021 Strategic Priorities

Slide 15: Q&A

Slide 16: Use of Non-GAAP Financial Measures

Slide 17: Q1 2021 GAAP to Non-GAAP Reconciliations

Slide 18: Q4 2020 GAAP to Non-GAAP Reconciliations

Slide 19: Q1 2020 GAAP to Non-GAAP Reconciliations

Slide 20: Adjusted EBITDA Reconciliation

Slide 21: Q2 2021 Guidance GAAP to Non-GAAP Reconciliation

Slide 22: 2021 Guidance GAAP to Non-GAAP Reconciliation

Slide 23: Adjusted EBITDA Reconciliation on Financial Guidance

Slide 24: Thank You