Harmonic Inc (HLIT) Announces Q3 2023 Results: Video SaaS Revenue Up 42% YoY
Harmonic Inc (NASDAQ:HLIT) reported Q3 2023 revenue of $127.2 million, compared to $155.7 million in the prior year period.
Video SaaS revenue saw a significant increase of 42% year over year.
The company reported a GAAP net loss of $6.5 million and non-GAAP net income of $0.0 million.
Harmonic Inc (NASDAQ:HLIT) has initiated a formal strategic review process for its Video business.
Harmonic Inc (NASDAQ:HLIT) announced its unaudited results for the third quarter of 2023 on October 30, 2023. Despite the challenging macro-economic and carrier spending environment, the company reported results within its guidance range. The company's Video SaaS revenue saw a significant increase of 42% year over year.
Financial Highlights
Harmonic Inc (NASDAQ:HLIT) reported a Q3 2023 revenue of $127.2 million, compared to $155.7 million in the prior year period. The Broadband segment revenue was $75.8 million, compared to $91.9 million in the prior year period, while the Video segment revenue was $51.4 million, compared to $63.8 million in the prior year period.
The company reported a GAAP gross margin of 48.5% and non-GAAP gross margin of 49.5%, compared to GAAP 50.5% and non-GAAP 50.9% in the prior year period. The GAAP net loss was $6.5 million and non-GAAP net income was $0.0 million, compared to GAAP net income of $8.7 million and non-GAAP net income of $14.9 million in the prior year period.
Business Highlights
Harmonic Inc (NASDAQ:HLIT) has commercially deployed its cOS solution with 104 customers, serving 23.5 million cable modems. The company has extended its cOS leadership to DOCSIS 4.0 through the unification of full duplex, extended spectrum, and 10G fiber, and has recently launched the Pier optical line terminal (OLT) shelf to expand its addressable fiber to the home market.
Furthermore, the company has initiated a formal strategic review process for its Video business to better position Harmonic for long-term shareholder value creation. The company has received indications of interest in its Video business from a number of parties over the past several months.
Financial Guidance
For Q4 2023, Harmonic Inc (NASDAQ:HLIT) expects GAAP net revenue to be between $150 million and $175 million, with a gross margin of between 48.0% and 49.3%. The company expects GAAP net loss per share to be $0.02. For the full year 2023, the company expects GAAP net revenue to be between $591 million and $616 million, with a gross margin of between 51.2% and 51.5%. The company expects GAAP net loss per share to be between $0.02 and $0.03.
Explore the complete 8-K earnings release (here) from Harmonic Inc for further details.
This article first appeared on GuruFocus.
