Exhibit 99.1
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FOR IMMEDIATE RELEASE
Harmonic Announces Fourth Quarter and Fiscal 2023 Results
Record quarterly total revenue of $167.1 million, up 31% quarter over quarter
Broadband revenue up 20% and Video SaaS revenue up 26% year over year
SAN JOSE, California, January 29, 2024 - Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the fourth quarter and fiscal year ended December 31, 2023.
“Harmonic finished 2023 with another quarter of solid performance, including record total company and Broadband revenue, driven by strong demand for our market-leading technology solutions,” said Patrick Harshman, president and chief executive officer of Harmonic. “Our robust backlog at year-end reflects continued demand from our large Broadband customers and growing Video SaaS commitments, positioning us well for this year and beyond.”
Q4 Financial and Business Highlights
Financial
•Revenue: $167.1 million, compared to $164.3 million in the prior year period
◦Broadband segment revenue: $115.2 million, compared to $96.0 million in the prior year period
◦Video segment revenue: $51.9 million, compared to $68.3 million in the prior year period
•Gross margin: GAAP 49.0% and non-GAAP 49.3%, compared to GAAP 52.1% and non-GAAP 52.7% in the prior year period
◦Broadband segment non-GAAP gross margin: 42.4% compared to 47.6% in the prior year period
◦Video segment non-GAAP gross margin: 64.6% compared to 59.9% in the prior year period
•Operating income: GAAP income $9.6 million and non-GAAP income $18.9 million, compared to GAAP income $16.5 million and non-GAAP income $23.7 million in the prior year period
•Net income: GAAP net income $83.8 million and non-GAAP net income of $14.7 million, compared to GAAP net income $6.1 million and non-GAAP net income $19.9 million in the prior year period
•Non-GAAP adjusted EBITDA: $21.7 million income compared to $26.6 million income in the prior year period
•Net income per share: GAAP net income per share of $0.72 and non-GAAP net income per share of $0.13, compared to GAAP net income per share of $0.05 and non-GAAP net income per share of $0.17 in the prior year period
•Cash: $84.3 million, compared to $89.6 million in the prior year period
Business
•Commercially deployed our cOS™ solution with 108 customers, serving 26.3 million cable modems
•Initiated volume shipments to another Tier-1, enhancing broadband customer diversification
•Pioneering the market with the first volume shipments of DOCSIS 4.0
•Recently demonstrated SaaS leadership in live sports streaming with largest ever live streaming event in the U.S.






1

Video Business Review Update
In our Q3 2023 earnings press release we announced that we had initiated a formal strategic review process for our Video business to better position Harmonic for long-term shareholder value creation. As noted in that press release, we received indications of interest in our Video business from a number of parties. To date, that interest has not yet translated into a definitive agreement with any party. We are continuing the strategic review process, and no specific timetable has been established for the completion of the review. We do not intend to disclose further details with respect to the review process unless and until our board of directors approves a specific transaction or otherwise concludes its review. Since the strategic review may cause some disruption to the business, we are conservatively guiding our Video business for 2024.
Select Financial Information
GAAPNon-GAAP
Key Financial ResultsQ4 2023Q3 2023Q4 2022Q4 2023Q3 2023Q4 2022
(Unaudited, in millions, except per share data)
Net revenue$167.1 $127.2 $164.3 ***
Net income (loss)$83.8 $(6.5)$6.1 $14.7 $— $19.9 
Net income (loss) per share$0.72 $(0.06)$0.05 $0.13 $0.00 $0.17 
Other Financial InformationQ4 2023Q3 2023Q4 2022
(Unaudited, in millions)
Adjusted EBITDA for the quarter (1)
$21.7 $3.5 $26.6 
Bookings for the quarter$196.5 $96.3 $130.2 
Backlog and deferred revenue as of quarter end$653.2 $627.2 $457.1 
Cash and cash equivalents as of quarter end$84.3 $75.6 $89.6 
(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to "Preliminary Adjusted EBITDA Reconciliation" below for a reconciliation to net income (loss), the most comparable GAAP measure.
* Not applicable

Explanations regarding our use of non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations”.
Financial Guidance
 Q1 2024 GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)LowHigh
VideoBroadbandTotalVideoBroadbandTotal
Net revenue$40 $70 $110 $50 $80 $130 
Gross margin %50.2 %51.6 %
Gross profit$55 $68 
Net loss$(13)$(5)
Tax rate19 %19 %
Net loss per share$(0.12)$(0.04)
Shares (2)
111.7 111.7 
(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below.
(2) The guidance assumes estimated impact of redeeming the 2024 Convertible Notes and repurchases during 2024 under the Company's stock repurchase program. Diluted shares assumes stock price at $10.68 (Q4 2023 average price).
2

 2024 GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)LowHigh
VideoBroadbandTotalVideoBroadbandTotal
Net revenue$195 $460 $655 $210 $500 $710 
Gross margin %50.2 %52.2 %
Gross profit$329 $371 
Net income$31 $57 
Tax rate19 %19 %
Net income per share$0.27 $0.50 
Shares (2)
114.6 114.6 
(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below.
(2) The guidance assumes estimated impact of redeeming the 2024 Convertible Notes and repurchases during 2024 under the Company's stock repurchase program. Diluted shares assumes stock price at $10.68 (Q4 2023 average price).
Q1 2024 Non-GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)LowHigh
VideoBroadbandTotal VideoBroadbandTotal
Gross margin %60.0 %46.0 %51.1 %61.0 %47.0 %52.4 %
Gross profit$24 $32 $56 $31 $38 $69 
Adjusted EBITDA(2)
$(8)$4 $(4)$(2)$8 $6 
Tax rate19 %19 %
Net income (loss) per share$(0.06)$0.02 
Shares (3)
111.7115.2
(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below.
(2) Refer to “Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income (loss), the most comparable GAAP measure.
(3) The guidance assumes estimated impact of redeeming the 2024 Convertible Notes and repurchases during 2024 under the Company's stock repurchase program. Diluted shares assumes stock price at $10.68 (Q4 2023 average price).
 2024 Non-GAAP Financial Guidance (1)
(Unaudited, in millions, except percentages and per share data)LowHigh
VideoBroadbandTotal VideoBroadbandTotal
Gross margin %60.0 %46.5 %50.5 %62.0 %48.5 %52.5 %
Gross profit$117 $214 $331 $130 $243 $373 
Adjusted EBITDA(2)
$(7)$95 $88 $2 $119 $121 
Tax rate19 %19 %
Net income per share$0.49 $0.72 
Shares (3)
114.6114.6
(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below.
(2) Refer to "Adjusted EBITDA Reconciliation on Financial Guidance" below for a reconciliation to net income, the most comparable GAAP measure.
(3) The guidance assumes estimated impact of redeeming the 2024 Convertible Notes and repurchases during 2024 under the Company's stock repurchase program. Diluted shares assumes stock price at $10.68 (Q4 2023 average price).
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Conference Call Information
Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, January 29, 2024. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register.vevent.com/register/BI52aab14160c44ed3aaa1715d3e4dea8e. A replay will be available after 5:00 p.m. PT on the same web site.
About Harmonic Inc.
Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry’s first virtualized broadband solution, enabling cable operators to more flexibly deploy gigabit internet service to consumers’ homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet cable services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share, as well as our plans for our strategic review of the Video business. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, in no particular order, the following: the market and technology trends underlying our Video and Broadband businesses will not continue to develop in their current direction or pace; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the impact of general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; delays or decreases in capital spending in the cable, satellite, telco, broadcast and media industries; customer concentration and consolidation; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; losses of one or more key customers; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOS™ and VOS product solutions; dependence on various video and broadband industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the effect on our business of natural disasters. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic's filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2022, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic's results of operations in conjunction with the corresponding GAAP measures.
4

The Company believes that the presentation of non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.
The non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to non-GAAP results published by other companies. A reconciliation of the historical non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.
Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:
Stock-based compensation - Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies.
Restructuring and related charges - Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, lease exit costs, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.
Non-cash interest expense and other expenses related to convertible notes and other debt - We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors’ ability to view the Company’s results from management’s perspective. In addition, we believe excluding these costs from the non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.
Gain and losses on equity investments - We exclude the gain and losses from the sale of our equity investments in calculating our non-GAAP financial measures. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.
Discrete tax items and tax effect of non-GAAP adjustments - The income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures in order to provide a more meaningful measure of non-GAAP net income.
Depreciation - Depreciation expense, along with interest, tax and stock-based compensation expense, and restructuring charges, is excluded from Adjusted EBITDA because we do not believe depreciation and the other items relate to the ordinary course of our business or are reflective of our underlying business performance.
Non-recurring advisory fees - There were non-recurring costs that we excluded from non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives, including assessing corporate structure and organization, as we seek to optimize value for our business.
CONTACTS:
Walter JankovicDavid Hanover
Chief Financial OfficerInvestor Relations
Harmonic Inc.Harmonic Inc.
+1.408.490.6152+1.212.896.1220
5

Harmonic Inc.
Preliminary Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)
 December 31, 2023December 31, 2022
ASSETS
Current assets:
   Cash and cash equivalents$84,269 $89,586 
   Accounts receivable, net141,531 108,427 
   Inventories83,982 120,949 
   Prepaid expenses and other current assets20,950 26,337 
Total current assets330,732 345,299 
Property and equipment, net36,683 39,814 
Operating lease right-of-use assets, net20,817 25,469 
Goodwill239,150 237,739 
Deferred income taxes104,707 11,776 
Other non-current assets36,117 49,921 
Total assets$768,206 $710,018 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Convertible debt, current$114,880 $113,981 
Other debts, current4,918 4,756 
Accounts payable38,562 67,455 
Deferred revenue46,217 62,383 
Operating lease liabilities, current6,793 6,773 
Other current liabilities61,024 66,724 
Total current liabilities272,394 322,072 
Other debts, non-current10,495 11,161 
Operating lease liabilities, non-current18,965 24,110 
Other non-current liabilities29,478 28,169 
Total liabilities331,332 385,512 
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding— — 
Common stock, $0.001 par value, 150,000 shares authorized; 112,407 and 109,871 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively112 110 
Additional paid-in capital2,405,043 2,380,651 
Accumulated deficit(1,962,575)(2,046,569)
Accumulated other comprehensive loss(5,706)(9,686)
Total stockholders’ equity436,874 324,506 
Total liabilities and stockholders’ equity$768,206 $710,018 

6

Harmonic Inc.
Preliminary Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
 Three Months EndedYear Ended
 December 31, 2023December 31, 2022December 31, 2023December 31, 2022
Revenue:
Appliance and integration$125,197 $122,513 $435,878 $473,806 
SaaS and service41,895 41,821 172,029 151,151 
Total net revenue167,092 164,334 607,907 624,957 
Cost of revenue:
Appliance and integration70,596 65,372 236,773 259,027 
SaaS and service14,629 13,265 58,589 50,046 
Total cost of revenue85,225 78,637 295,362 309,073 
Total gross profit81,867 85,697 312,545 315,884 
Operating expenses:
Research and development30,252 31,088 126,282 120,307 
Selling, general and administrative41,982 36,927 163,282 146,717 
Restructuring and related charges— 1,205 809 3,341 
Total operating expenses72,234 69,220 290,373 270,365 
Income from operations9,633 16,477 22,172 45,519 
Interest expense, net(571)(929)(2,696)(5,040)
Other income (expense), net(249)(212)(335)4,006 
Income before income taxes8,813 15,336 19,141 44,485 
Provision for (benefit from) income taxes(75,028)9,205 (64,853)16,303 
Net income$83,841 $6,131 $83,994 $28,182 
Net income per share:
Basic$0.75 $0.06 $0.75 $0.27 
Diluted$0.72 $0.05 $0.72 $0.25 
Weighted average shares outstanding:
Basic112,294 106,988 111,651 105,080 
Diluted115,691 117,301 117,359 112,378 

7

Harmonic Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 Year Ended
 December 31, 2023December 31, 2022
Cash flows from operating activities:
Net income$83,994 $28,182 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation12,255 12,260 
Stock-based compensation27,329 25,212 
Amortization of convertible debt discount899 1,171 
Amortization of warrant870 1,734 
Foreign currency remeasurement1,453 (2,685)
Deferred income taxes, net(92,856)4,894 
Provision for expected credit losses and returns2,778 1,954 
Provision for excess and obsolete inventories7,396 5,988 
Gain on sale of investment in equity securities— (4,370)
Other adjustments151 513 
Changes in operating assets and liabilities:
Accounts receivable(35,473)(23,136)
Inventories35,403 (54,431)
Other assets25,483 (8,402)
Accounts payable(29,358)5,837 
Deferred revenues(20,823)2,610 
Other liabilities(12,442)8,145 
Net cash provided by operating activities7,059 5,476 
Cash flows from investing activities:
Purchases of investments(6,305)— 
Proceeds from maturities of investments6,305 — 
Proceeds from sale of investment— 7,962 
Purchases of property and equipment(8,475)(9,250)
Net cash used in investing activities(8,475)(1,288)
Cash flows from financing activities:
Payment of convertible debt— (37,707)
Payments for debt issuance costs(1,025)— 
Repurchase of common stock3,835 3,499 
Proceeds from other debts(4,865)(4,583)
Repayment of other debts— (5,133)
Proceeds from common stock issued to employees6,558 7,092 
Taxes paid related to net share settlement of equity awards(9,493)(6,301)
Net cash used in financing activities(4,990)(43,133)
Effect of exchange rate changes on cash and cash equivalents 1,089 (4,900)
Net decrease in cash and cash equivalents (5,317)(43,845)
Cash and cash equivalents at beginning of period89,586 133,431 
Cash and cash equivalents at end of period$84,269 $89,586 

8

Harmonic Inc.
Preliminary GAAP Revenue Information
(Unaudited, in thousands, except percentages)
Three Months Ended
December 31, 2023September 29, 2023December 31, 2022
Geography
Americas$129,406 77 %$91,221 72 %$125,638 76 %
EMEA30,041 18 %28,465 22 %29,250 18 %
APAC7,645 5 %7,517 6 %9,446 6 %
Total$167,092 100 %$127,203 100 %$164,334 100 %
Market
Service Provider$128,566 77 %$87,747 69 %$110,092 67 %
Broadcast and Media38,526 23 %39,456 31 %54,242 33 %
Total$167,092 100 %$127,203 100 %$164,334 100 %
Twelve Months Ended
December 31, 2023December 31, 2022
Geography
Americas$447,700 74 %$452,869 73 %
EMEA127,689 21 %133,095 21 %
APAC32,518 5 %38,993 6 %
Total$607,907 100 %$624,957 100 %
Market
Service Provider$443,005 73 %$408,138 65 %
Broadcast and Media164,902 27 %216,819 35 %
Total$607,907 100 %$624,957 100 %

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Harmonic Inc.
Preliminary Segment Information
(Unaudited, in thousands, except percentages)
Three Months Ended December 31, 2023
VideoBroadbandTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$51,863 $115,229 $167,092 $— $167,092 
Gross profit33,491 
(1)
48,803 
(1)
82,294 
(1)
(427)81,867 
Gross margin %64.6 %
(1)
42.4 %
(1)
49.3 %
(1)
49.0 %
Three Months Ended September 29, 2023
VideoBroadbandTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$51,397 $75,806 $127,203 $— $127,203 
Gross profit29,241 
(1)
33,763 
(1)
63,004 
(1)
(1,320)61,684 
Gross margin %56.9 %
(1)
44.5 %
(1)
49.5 %
(1)
48.5 %
Three Months Ended December 31, 2022
VideoBroadbandTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$68,308 $96,026 $164,334 $— $164,334 
Gross profit40,939 
(1)
45,741 
(1)
86,680 
(1)
(983)85,697 
Gross margin %59.9 %
(1)
47.6 %
(1)
52.7 %
(1)
52.1 %
Twelve Months Ended December 31, 2023
VideoBroadbandTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$219,425 $388,482 $607,907 $— $607,907 
Gross profit133,649 
(1)
181,932 
(1)
315,581 
(1)
(3,036)312,545 
Gross margin %60.9 %
(1)
46.8 %
(1)
51.9 %
(1)
51.4 %
Twelve Months Ended December 31, 2022
VideoBroadbandTotal Segment Measures
Adjustments (1)
Consolidated GAAP Measures
Net revenue$274,189 $350,768 $624,957 $— $624,957 
Gross profit165,618 
(1)
153,031 
(1)
318,649 
(1)
(2,765)315,884 
Gross margin %60.4 %
(1)
43.6 %
(1)
51.0 %
(1)
50.5 %
(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” above and “GAAP to Non-GAAP Reconciliations".
10

Harmonic Inc.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)
Three Months Ended December 31, 2023
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsTotal Non-operating Expense, netNet Income
GAAP$167,092 $81,867 $72,234 $9,633 $(820)$83,841 
Stock-based compensation— 454 (6,151)6,605 — 6,605 
Restructuring and related charges— (27)— (27)— (27)
Non-recurring advisory fees— — (2,702)2,702 — 2,702 
Non-cash interest and other expenses related to convertible notes— — — — 233 233 
Discrete tax items and tax effect of non-GAAP adjustments— — — — — (78,693)
Total adjustments— 427 (8,853)9,280 233 (69,180)
Non-GAAP $167,092 $82,294 $63,381 $18,913 $(587)$14,661 
As a % of revenue (GAAP)49.0 %43.2 %5.8 %(0.5)%50.2 %
As a % of revenue (Non-GAAP)49.3 %37.9 %11.3 %(0.4)%8.8 %
Diluted net income per share:
GAAP$0.72 
Non-GAAP$0.13 
Shares used in per share calculation:
GAAP and Non-GAAP115,691 
Three Months Ended September 29, 2023
RevenueGross ProfitTotal Operating ExpenseIncome (Loss) from OperationsTotal Non-operating Expense, netNet Income (Loss)
GAAP$127,203 $61,684 $70,287 $(8,603)$(276)$(6,495)
Stock-based compensation— 606 (6,635)7,241 — 7,241 
Restructuring and related charges— 714 (362)1,076 — 1,076 
Non-recurring advisory fees— — (364)364 — 364 
Non-cash interest and other expenses related to convertible notes— — — — 226 226 
Discrete tax items and tax effect of non-GAAP adjustments— — — — — (2,390)
Total adjustments— 1,320 (7,361)8,681 226 6,517 
Non-GAAP $127,203 $63,004 $62,926 $78 $(50)$22 
As a % of revenue (GAAP)48.5 %55.3 %(6.8)%(0.2)%(5.1)%
As a % of revenue (Non-GAAP)49.5 %49.5 %0.1 %— %— %
Diluted net income (loss) per share:
GAAP$(0.06)
Non-GAAP$0.00 
Shares used in per share calculation:
GAAP112,031 
Non-GAAP116,710 
11

Three Months Ended December 31, 2022
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsTotal Non-operating Expense, netNet Income
GAAP$164,334 $85,697 $69,220 $16,477 $(1,141)$6,131 
Stock-based compensation— 541 (5,050)5,591 — 5,591 
Restructuring and related charges— 442 (1,205)1,647 17 1,664 
Non-cash interest and other expenses related to convertible notes— — — — 274 274 
Discrete tax items and tax effect of non-GAAP adjustments— — — — — 6,233 
Total adjustments— 983 (6,255)7,238 291 13,762 
Non-GAAP $164,334 $86,680 $62,965 $23,715 $(850)$19,893 
As a % of revenue (GAAP)52.1 %42.1 %10.0 %(0.7)%3.7 %
As a % of revenue (Non-GAAP)52.7 %38.3 %14.4 %(0.5)%12.1 %
Diluted net income per share:
GAAP$0.05 
Non-GAAP$0.17 
Shares used in per share calculation:
GAAP and Non-GAAP117,301 

Twelve Months Ended December 31, 2023
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsTotal Non-operating Expense, netNet Income
GAAP$607,907 $312,545 $290,373 $22,172 $(3,031)$83,994 
Stock-based compensation— 2,349 (24,980)27,329 — 27,329 
Restructuring and related charges— 687 (445)1,132 — 1,132 
Non-recurring advisory fees— — (5,201)5,201 — 5,201 
Non-cash interest and other expenses related to convertible notes— — — — 905 905 
Discrete tax items and tax effect of non-GAAP adjustments— — — — — (75,595)
Total adjustments— 3,036 (30,626)33,662 905 (41,028)
Non-GAAP $607,907 $315,581 $259,747 $55,834 $(2,126)$42,966 
As a % of revenue (GAAP)51.4 %47.8 %3.6 %(0.5)%13.8 %
As a % of revenue (Non-GAAP)51.9 %42.7 %9.2 %(0.3)%7.1 %
Diluted net income per share:
GAAP$0.72 
Non-GAAP$0.37 
Shares used in per share calculation:
GAAP and Non-GAAP117,359 

12

Twelve Months Ended December 31, 2022
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsTotal Non-operating Expense, netNet Income
GAAP$624,957 $315,884 $270,365 $45,519 $(1,034)$28,182 
Stock-based compensation— 2,232 (22,980)25,212 — 25,212 
Restructuring and related charges— 533 (3,341)3,874 17 3,891 
Gain on sale of equity investment— — — — (4,349)(4,349)
Non-cash interest and other expenses related to convertible notes— — — — 1,173 1,173 
Discrete tax items and tax effect of non-GAAP adjustments— — — — — 7,149 
Total adjustments— 2,765 (26,321)29,086 (3,159)33,076 
Non-GAAP $624,957 $318,649 $244,044 $74,605 $(4,193)$61,258 
As a % of revenue (GAAP)50.5 %43.3 %7.3 %(0.2)%4.5 %
As a % of revenue (Non-GAAP)51.0 %39.0 %11.9 %(0.7)%9.8 %
Diluted net income per share:
GAAP$0.25 
Non-GAAP$0.55 
Shares used in per share calculation:
GAAP and Non-GAAP112,378 
13

Harmonic Inc.
Calculation of Adjusted EBITDA by Segment (Unaudited)
(In thousands)
Three Months Ended December 31, 2023
VideoBroadband
Income (loss) from operations (1)
$(1,355)$20,268 
Depreciation1,283 1,794 
Other non-operating expenses, net(89)(160)
Adjusted EBITDA(2)
$(161)$21,902 
Revenue$51,863 $115,229 
Adjusted EBITDA margin % (2)
(0.3)%19.0 %
Three Months Ended September 29, 2023
VideoBroadband
Income (loss) from operations (1)
$(6,050)$6,128 
Depreciation1,343 1,746 
Other non-operating expenses, net132 211 
Adjusted EBITDA(2)
$(4,575)$8,085 
Revenue$51,397 $75,806 
Adjusted EBITDA margin % (2)
(8.9)%10.7 %
Three Months Ended December 31, 2022
VideoBroadband
Income from operations (1)
$5,005 $18,710 
Depreciation1,431 1,604 
Other non-operating expenses, net(86)(109)
Adjusted EBITDA(2)
$6,350 $20,205 
Revenue$68,308 $96,026 
Adjusted EBITDA margin % (2)
9.3 %21.0 %
Twelve Months Ended December 31, 2023
VideoBroadband
Income (loss) from operations (1)
$(8,741)$64,575 
Depreciation5,400 6,855 
Other non-operating expenses, net(131)(204)
Adjusted EBITDA(2)
$(3,472)$71,226 
Revenue$219,425 $388,482 
Adjusted EBITDA margin % (2)
(1.6)%18.3 %
Twelve Months Ended December 31, 2022
VideoBroadband
Income from operations (1)
$22,322 $52,283 
Depreciation6,044 6,216 
Other non-operating expenses, net(148)(178)
Adjusted EBITDA(2)
$28,218 $58,321 
Revenue$274,189 $350,768 
Adjusted EBITDA margin % (2)
10.3 %16.6 %
(1) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations" above.
(2) Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. Refer below for the reconciliation of consolidated adjusted EBITDA to net income (loss), the most directly comparable GAAP measure.
14

Harmonic Inc.
Preliminary Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Unaudited)
(In thousands)
Three Months Ended
December 31, 2023September 29, 2023December 31, 2022
Net income (loss) (GAAP)$83,841 $(6,495)$6,131 
Provision for (benefit from) income taxes(75,028)(2,384)9,205 
Interest expense, net571 619 929 
Depreciation3,077 3,089 3,035 
EBITDA12,461 (5,171)19,300 
Adjustments
Stock-based compensation6,605 7,241 5,591 
Restructuring and related charges(27)1,076 1,664 
Non-recurring advisory fees2,702 364 — 
Total consolidated segment adjusted EBITDA (Non-GAAP)$21,741 $3,510 $26,555 
Revenue$167,092 $127,203 $164,334 
Net income (loss) margin (GAAP)50.2 %(5.1)%3.7 %
Consolidated segment adjusted EBITDA margin (Non-GAAP)13.0 %2.8 %16.2 %
Twelve Months Ended
December 31, 2023December 31, 2022
Net income (GAAP)$83,994 $28,182 
Provision for (benefit from) income taxes(64,853)16,303 
Interest expense, net2,696 5,040 
Depreciation12,255 12,260 
EBITDA34,092 61,785 
Adjustments
Stock-based compensation27,329 25,212 
Restructuring and related charges1,132 3,891 
Non-recurring advisory fees5,201 — 
Gain on sale of equity investment— (4,349)
Total consolidated segment adjusted EBITDA (Non-GAAP)$67,754 $86,539 
Revenue$607,907 $624,957 
Net income margin (GAAP)13.8 %4.5 %
Consolidated segment adjusted EBITDA margin (Non-GAAP)11.1 %13.8 %


15

Harmonic Inc.
GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)
(In millions, except percentages and per share data)
Q1 2024 Financial Guidance (1)
RevenueGross ProfitTotal Operating ExpenseIncome (Loss) from OperationsNet Income (Loss)
GAAP$110 to$130 $55 to$68 $70 to$72 $(15)to$(5)$(13)to$(5)
Stock-based compensation expense—1(6)77
Non-recurring advisory fees——(1)11
Tax effect of non-GAAP adjustments————(1)to(1)
Total adjustments—1(7)87 to7 
Non-GAAP$110 to$130 $56 to$69 $63 to$65 $(7)to$3 $(6)to$2 
As a % of revenue (GAAP)50.2 %to51.6 %63.6 %to55.4 %(13.6)%to(3.8)%(11.8)%to(3.8)%
As a % of revenue (Non-GAAP)51.1 %to52.4 %57.3 %to50.0 %(6.2)%to2.4 %(5.6)%to1.4 %
Diluted net income (loss) per share:
GAAP$(0.12)to$(0.04)
Non-GAAP$(0.06)to$0.02 
Shares used in per share calculation:
GAAP111.7
Non-GAAP111.7to115.2
(1) Components may not sum to total due to rounding.


2024 Financial Guidance (1)
RevenueGross ProfitTotal Operating ExpenseIncome from OperationsNet Income
GAAP$655 to$710 $329 to$371 $283 to$292 $46 to$79 $31 to$57 
Stock-based compensation expense—2(26)2828
Non-recurring advisory fees——(2)22
Non-cash interest and other expenses related to convertible notes————1
Tax effect of non-GAAP adjustments————(6)to(6)
Total adjustments—2(28)3025 to25 
Non-GAAP$655 to$710 $331 to$373 $255 to$264 $76 to$109 $56 to$82 
As a % of revenue (GAAP)50.2 %to52.2 %43.2 %to41.1 %7.0 %to11.1 %4.7 %to8.0 %
As a % of revenue (Non-GAAP)50.5 %to52.5 %38.9 %to37.2 %11.6 %to15.3 %8.5 %to11.5 %
Diluted net income per share:
GAAP$0.27 to$0.50 
Non-GAAP$0.49 to$0.72 
Shares used in per share calculation:
GAAP and Non-GAAP114.6
(1) Components may not sum to total due to rounding.
16

Harmonic Inc.
Calculation of Adjusted EBITDA by Segment on Financial Guidance (Unaudited) (1)
(In millions)
Q1 2024 Financial Guidance
VideoBroadband
Income (loss) from operations (2)
$(9)to$(4)$2 to$7 
Depreciation1 1 2 2 
Other non-operating expenses— 1 — (1)
Segment adjusted EBITDA(3)
$(8)to$(2)$4 to$8 
2024 Financial Guidance
VideoBroadband
Income (loss) from operations (2)
$(12)to$(3)$88 to$112 
Depreciation6 6 8 8 
Other non-operating expenses(1)(1)(1)(1)
Segment adjusted EBITDA(3)
$(7)to$2 $95 to$119 
(1) Components may not sum to total due to rounding.
(2) Refer to "Use of Non-GAAP Financial Measures" and "GAAP to Non-GAAP Reconciliations on Financial Guidance" above.
(3) Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer below for the "Net income (loss) to Consolidated Segment Adjusted EBITDA reconciliation on Financial Guidance".


17

Harmonic Inc.
Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance (Unaudited) (1)
(In millions)
Q1 2024 Financial Guidance2024 Financial Guidance
Net income (loss) (GAAP)$(13)to$(5)31 to$57 
Provision for (benefit from) income taxes(3)(1)7 14 
Interest expense, net1 1 7 7 
Depreciation3 3 13 13 
EBITDA$(12)to$(2)$58 to$91 
Adjustments
Stock-based compensation7 7 28 28 
Non-recurring advisory fees1 1 2 2 
Total consolidated segment adjusted EBITDA (Non-GAAP) (2)
$(4)to$6 $88 to$121 
(1) Components may not sum to total due to rounding.
(2) Consolidated Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer to "Use of Non-GAAP Financial Measures" above.
18