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SEGMENT INFORMATION
 9 Months Ended
Sep. 26, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 10: 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 internal reporting structure, the Company consists of two operating segments: Broadband and Video. The operating segments were determined based on the nature of the products offered. The Broadband segment provides broadband access solutions and related services to broadband operators globally. The Video segment provides video processing, production and playout solutions and services worldwide to broadcast and media companies, new streaming media companies, broadband operators, and satellite and telco Pay-TV service providers.

The Company’s CODM allocates resources to and assesses the performance of each operating segment using information about the operating segment’s revenue and income (loss) from operations. Our CODM does not evaluate operating segments using asset or liability information.

The following tables set forth our segment information of revenue, expense, and income (loss) from operations:

 

Three Months Ended September 26, 2025

(in thousands)

Broadband

 

Video

 

Total

Revenue

$

90,492

 

$

51,890

 

$

142,382

Less:

 

 

 

 

 

 

 

 

Cost of revenue

 

47,727

 

 

17,266

 

 

64,993

Research and development

 

15,195

 

 

12,599

 

 

27,794

Selling, general and administrative

 

15,475

 

 

15,141

 

 

30,616

Segment operating income

$

12,095

 

$

6,884

 

$

18,979

 

Three Months Ended September 27, 2024

(in thousands)

Broadband

 

Video

 

Total

Revenue

$

145,338

 

$

50,418

 

$

195,756

Less:

 

 

 

 

 

 

 

 

Cost of revenue

 

75,082

 

 

15,648

 

 

90,730

Research and development

 

15,399

 

 

12,870

 

 

28,269

Selling, general and administrative

 

16,665

 

 

15,574

 

 

32,239

Segment operating income

$

38,192

 

$

6,326

 

$

44,518

 

Nine Months Ended September 26, 2025

(in thousands)

Broadband

 

Video

 

Total

Revenue

$

262,288

 

$

151,256

 

$

413,544

Less:

 

 

 

 

 

 

 

 

Cost of revenue

 

132,031

 

 

50,328

 

 

182,359

Research and development

 

46,399

 

 

38,487

 

 

84,886

Selling, general and administrative

 

49,157

 

 

45,639

 

 

94,796

Segment operating income

$

34,701

 

$

16,802

 

$

51,503

 

Nine Months Ended September 27, 2024

(in thousands)

Broadband

 

Video

 

Total

Revenue

$

317,172

 

$

139,384

 

$

456,556

Less:

 

 

 

 

 

 

 

 

Cost of revenue

 

165,186

 

 

48,551

 

 

213,737

Research and development

 

42,343

 

 

41,938

 

 

84,281

Selling, general and administrative

 

49,076

 

 

51,489

 

 

100,565

Segment operating income (loss)

$

60,567

 

$

(2,594)

 

$

57,973

 

A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows:

 

Three Months Ended

 

Nine Months Ended

(in thousands)

September 26, 2025

 

September 27, 2024

 

September 26, 2025

 

September 27, 2024

Total consolidated segment operating income

$

18,979

 

$

44,518

 

$

51,503

 

$

57,973

Stock-based compensation (1)

 

(7,324)

 

 

(5,710)

 

 

(23,486)

 

 

(19,587)

Restructuring and related charges (1)

 

(1,087)

 

 

(281)

 

 

(1,737)

 

 

(15,260)

Lease-related asset impairment and other charges (1)

 

—

 

 

(1,279)

 

 

(1,637)

 

 

(10,279)

Asset impairment charges (1)

 

—

 

 

(1,824)

 

 

—

 

 

(1,824)

Non-recurring advisory fees (1)

 

(749)

 

 

—

 

 

(827)

 

 

(755)

Consolidated income from operations

 

9,819

 

 

35,424

 

 

23,816

 

 

10,268

Non-operating expense, net

 

(1,071)

 

 

(6,618)

 

 

(3,611)

 

 

(8,435)

Income before income taxes

$

8,748

 

$

28,806

 

$

20,205

 

$

1,833

 

(1) Together with stock-based compensation, the Company does not allocate restructuring and related charges, lease-related asset impairment and other non-recurring advisory fees to the operating income for each segment because management does not include this information in the measurement of the performance of the operating segments.

Disaggregation of Revenues

The following table provides a summary of total revenues disaggregated by type:

Three Months Ended

 

Nine Months Ended

(in thousands)

September 26, 2025

 

September 27, 2024

 

September 26, 2025

 

September 27, 2024

Product sales

$

85,048

 

$

150,285

 

$

257,588

 

$

311,642

Professional services

 

12,726

 

 

3,400

 

 

25,794

 

 

17,822

Total Appliance and integration

 

97,774

 

 

153,685

 

 

283,382

 

 

329,464

SaaS

 

16,108

 

 

14,182

 

 

46,320

 

 

41,069

Support services

 

28,500

 

 

27,889

 

 

83,842

 

 

86,023

Total SaaS and services

 

44,608

 

 

42,071

 

 

130,162

 

 

127,092

Total revenue

$

142,382

 

$

195,756

 

$

413,544

 

$

456,556

 

The following table provides a summary of total revenues by geographic region:

 

Three Months Ended

 

Nine Months Ended

(in thousands)

September 26, 2025

 

September 27, 2024

 

September 26, 2025

 

September 27, 2024

United States (1)

$

98,655

 

$

157,519

 

$

279,986

 

$

340,340

Other countries (1)

 

43,727

 

 

38,237

 

 

133,558

 

 

116,216

Total revenue

$

142,382

 

$

195,756

 

$

413,544

 

$

456,556

 

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

No single country, other than the United States, accounted for 10% or more of the Company’s net revenues for the three and nine months ended September 26, 2025 and September 27, 2024, respectively.