Harmonic (HLIT) 21st Annual Needham Technology, Media, & Consumer Conference summary

Financial performance and guidance

• Q1 revenue growth reached 43% year-over-year, with 24% sequential growth from Q4 to Q1.

• Non-top two customer revenue grew 78% year-over-year, showing increased diversification.

• EPS increased about 140% year-over-year, reflecting strong operating leverage.

• Bookings remained strong, with a book-to-bill ratio above one and record backlog; 60% of backlog expected to convert in the next 12 months.

• Full-year guidance was raised by over 5% for revenue and 13% for EPS at the midpoint.

Strategic focus and business transformation

• Recently divested the video business, transitioning to a pure play broadband provider.

• Capital from the divestiture will be redeployed into broadband, fiber, and intelligence platform investments.

• Reporting now provides greater visibility into broadband operations and growth.

• Focused on organic and inorganic growth, especially in fiber and intelligent platform segments.

• Emphasis on recurring revenue streams through software licenses, support, and new product launches.

Product and market developments

• cOS orchestration software and hardware nodes maintain high market share, with over 95% in licenses and around 70% in hardware.

• New product launches include Beacon, Pathfinder, and Amply, expanding into intelligence and operational efficiency.

• Fiber business now represents over 14% of revenue, with recent wins in fiber and rural broadband markets.

• Solutions enable seamless migration from coax to fiber, supporting both DOCSIS and Fiber-to-the-Home.

• High-density, compact remote OLTs support rural and BEAD use cases, allowing flexible, scalable deployments.