NASDAQ$HLIT

Harmonic Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Harmonic executed well, exceeding expectations despite challenging market conditions

Harmonic reported a revenue of $74.0 million, a decrease of 12.8% year over year, but Cable Access segment revenue was up over 100% year over year. The company's SaaS and service revenue grew by 4.3% year over year, and the Video SaaS customer base increased to 66 customers, up 136% year over year.

  • Revenue was $74.0 million, down 12.8% year over year.
  • SaaS and service revenue was $31.8 million, up 4.3% year over year.
  • Cable Access segment revenue was $26.5 million, up 100% year over year.
  • GAAP net loss per share was $0.16 cents and non-GAAP net loss per share was $0.06 cents.

Headline financials

Total Revenue

$74M

Previous: $84.9M-12.8%
EPS (adj)

-$0.06

Previous: -$0.04-50.0%
Capital Expenditures

-$20.8M

Previous: -$2.94M-606.1%
Free Cash Flow

-$36.2M

Previous: -$14.8M-144.5%
Net Income

-$15.4M

Previous: -$11.8M-30.0%
Operating Income

-$9.55M

Previous: -$7.76M-23.1%
Gross Profit

$37.8M

Previous: $43.9M-14.0%
Cash & Equivalents

$77.7M

Previous: $58.1M+33.9%
Total Assets

$558M

Previous: $527M+5.8%

Revenue & EPS history

Harmonic · Revenue · Quarterly

$74M

Q2 2020-12.8%vs Q2 2019
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

Harmonic provided financial guidance for Q3 2020 and Q4 2020, including GAAP net revenue, gross margins, operating expenses, operating income (loss), tax expense, EPS, non-GAAP revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, non-GAAP tax rate and non-GAAP EPS and cash.

Tailwinds

  • Q3 2020 Net Revenue: $75.0 to $87.0 million
  • Q3 2020 Gross Margin %: 50.0% to 51.5%
  • Q4 2020 Net Revenue: $122.0 to $142.0 million
  • Q4 2020 Gross Margin %: 50.0% to 53.0%
  • 2020 Net Revenue: $349.5 to $381.5 million

Headwinds

  • Q3 2020 Operating Income (Loss): $(14.5) to $(5.5) million
  • Q3 2020 EPS: $(0.19) to $(0.10)
  • Q4 2020 Operating Income (Loss): $11.0 to $21.0 million
  • Q4 2020 EPS: $0.07 to $0.17
  • 2020 Operating Income (Loss): $(31.5) to $(12.5) million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.0%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+5.5%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+29.8%

Q3 2017

Best reaction

-24.9%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.8%-2.4%+13.1%
Q4 2025+1.7%-3.6%-16.1%
Q3 2025-2.1%-6.2%-10.2%
Q2 2025+4.1%+2.5%+15.7%
Q1 2025+1.3%-3.3%-1.3%
Q4 2024-15.3%-9.5%-7.4%
Q3 2024-24.9%-25.8%-15.0%
Q2 2024+18.3%+15.6%+18.4%
Q1 2024+16.7%+19.1%+28.6%
Q4 2023+5.3%+16.8%+14.7%
Q3 2023+9.1%+9.9%+12.5%
Q2 2023-22.2%-26.0%-28.4%
Q1 2023+20.1%+20.5%+34.0%
Q4 2022-10.7%-3.1%-11.5%
Q3 2022-11.3%-10.9%-2.0%
Q2 2022-0.4%+3.8%+3.1%
Q1 2022+17.0%+10.4%+19.8%
Q4 2021-10.7%-9.1%-10.4%
Q3 2021+15.8%+18.4%+16.1%
Q2 2021+20.1%+13.0%+4.0%
Q1 2021-9.8%-7.3%-10.0%
Q4 2020+1.7%-1.5%+4.6%
Q3 2020-8.6%-16.0%-4.7%
Q2 2020+25.8%+19.2%+7.3%
Q1 2020-15.4%-14.5%-12.4%
Q4 2019+1.2%-3.7%-9.7%
Q3 2019+22.1%+25.6%+27.3%
Q2 2019-5.8%-5.5%-14.4%
Q1 2019+0.4%+1.8%-6.4%
Q4 2018-6.4%+0.9%+4.9%
Q3 2018+1.1%+13.2%+7.5%
Q2 2018+2.2%+14.4%+23.3%
Q1 2018+11.3%-4.2%+9.9%
Q4 2017+17.6%+20.8%+27.5%
Q3 2017+29.8%+33.3%+52.6%
Q2 2017+2.5%+0.0%-17.5%
Q1 2017-8.2%-12.9%-12.9%
Q4 2016+7.3%+6.4%+7.3%
Q3 2016-9.1%+2.0%+4.0%
Q2 2016+21.2%+27.9%+54.6%
Q1 2016-6.3%
Q4 2015-1.9%
Q3 2015-0.7%
Q2 2015-8.5%
Q1 2015-4.8%
Q4 2014+8.7%
Q3 2014-0.3%
Q2 2014-9.0%
Q1 2014+8.1%
Q4 2013+0.3%
Q3 2013-3.1%
Q2 2013+8.5%
Q1 2013-1.7%
Q4 2012-5.3%
Q3 2012-1.0%
Q2 2012-0.9%
Q1 2012+3.6%
Q4 2008-4.7%
Q4 2011-4.7%
Q3 2011-4.5%
Q2 2011+2.1%
Q1 2011-1.9%
Q1 2010-0.3%
Q4 2010-0.3%
Q3 2010+0.4%
Q3 2009+0.4%
Q2 2010-8.1%
Q2 2009-8.1%

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