Harmonic (HLIT) 30 Jan 232022 Q4 Earnings call transcript

Welcome to the Q4 and Full Year 2022 Harmonic Earnings Conference Call. My name is Latif and I will be your operator for today’s call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to David Hanover, Investor Relations. David, you may begin.

operator. you, Thank thank fourth and conference joining today us Hello, and you full Harmonic’s quarter results year for everyone for XXXX call. financial Executive Chief today President me Patrick Officer; Chief and With Sanjay Officer. Financial are Kalra, and Harshman,

webcast Before website. you in to we going may webcast, have view the that for slides our the addition also of by begin, provided to on portion this out Relations like we I’d our point Investor audio webcast, to which

going to Now X. Slide

will and and statements differ of actual other we current regarding provide documents events or performance results statements materially. and call, section financial statements. future you our to the forward-looking and Harmonic from release. this differ During XX-Q may projections XX-K refer events or those which expectations are results filed risk forward-looking We press future to in with SEC, reports Such of company. or documents only preliminary cause our the including statements forward-looking identify important can materially contained These factors, most the today’s results our actual recent projections

reconciliation corresponding financial numbers posted that a on which on basis. the call filed the with X-K. otherwise and metrics, indicated, with are provide have GAAP, to non-GAAP SEC in Form we contained today’s please note press together on And determined you a unless on and are we metrics These this GAAP release, our website

of business or and information the a some our We will this version and press our the remainder also discuss other operation The on available will of regarding historical financial this call on website. information included release. information and recorded of be is in statistical

CEO, the Patrick? call now, Harshman. And Patrick will over to turn our I

a was solidly the Harmonic business $XXX margin to segments again million, David was was profitable. call. quarter were and out with of $X.XX over EPS Revenue excellent fourth and both XX% welcome XXXX our EBITDA fourth Well, period another adjusted thanks, record quarter, results. closed everyone In as

and EBITDA and the This year-over-year fourth success segment fourth and over market carrying XX%. momentum are grew contributed year-over-year Video EBITDA with margin revenue demonstrates SaaS transformation quarter year Our segment XX% XXXX. X%. continues margin into we results tremendous XX% broadband segment quarter of full of and execution impressive revenue

are the competitive and with differentiation unique We the continuing outlined ability September on demand, in XXXX strong growth our Analyst deliver year entering plan to technology Day. in confidence and multiyear our we

step leadership demonstrating a was closer expanding market chain reflect was quarter Now first supply with and that broadband and at near-record we segment $XX broadband delivered over as healthy revenue. XX%, disruption some depth both worst Sensing customers taking Segment look our breadth advanced towards up the segment, and we us, again excellent and exited lead X% year-over-year. purchase consistently million, backlog revenue slowed normalizing EBITDA XX% adjusted financial position. a Segment times. margin Nonetheless, our orders technology of risks sequentially operating leverage. and deferred margin a behind of are again was results the improving the gross XX%

up expect Tier robust end X the we and several XX% number to Asia-Pacific new an added quarter, first modem XXXX. project to to wins again The end customers during up the these we in growth Our execution. market our deploying million, quarter both scale bringing And sustained grew begin solution new our to year-over-year. the go-to-market a is $XX.X XX, broadband XXX% strong of Among is result operator and served year-over-year. account

both multiyear our XXXX about Looking and are growth ahead, prospects. confident we

supporting ESD area, DOCSIS variants and customers on both advanced standard, DOCSIS to execution with in made leadership. highlight rapidly Two these new of leadership trials global technologies. relationships and are pipeline Our the growing and of of actively of of expanding strides Fiber-on-Demand. X.X is great and excellent, our demonstrations X.X technology are we aided recognition account we have by the industry areas FDX In deployment and

fiber the area, customers advantage. plus both DOCSIS a is powerful as converged from PON and In competitive gaining solution our existing prospective unique increasing recognition and

recorded are entering revenue we fiber in XXXX good design is in target. trajectory line growth our and new we only a with backlog Although fiber with XXXX, XXXX that modest wins, several order

we only Regarding existing drive will end these winning now, contribution assuming we from accounts and assumed new XXXX, revenue very XXXX, for beyond, targets. is wins and that new And growth accounts. are plans year in about XXXX customers our growth clear, To confident Sanjay of growth revenue and momentarily supporting be by and will significant year new more small. conservatively our generally, the our deferred outlook the full backlog, are share current in supported both with starting large modest multiyear

we head our and Day, a As in Analyst for calls closed successful $XXX very reminder, over aggressive revenue in laid that and out an plan into as X-year mid-September XX% we XXXX EBITDA a margin of growth XXXX. XXXX million

continued pleased are our We financial execution. with

We leadership continue our are plan. to confident to about increasingly excited strong and ability in we our market execute the technology are in and our strategic position overall

to now segment. Turning video our

an revenue delivered quarter. Fourth in XXXX. quarter execution up although extraordinarily transformation strong continues million, the highlight, an $XX.X excellent segment sequentially, of XX% X% we be revenue XX% quarterly when down record million, year-over-year up also, SaaS year-over-year. fourth with compared was Here $XX.X to to quarter

loss a over up of an finished despite the result. and margin As beginning business margin encouraging segment and quarterly result, profit EBITDA we in segment year year-over-year was guidance Ukraine, gross and the X%. EBITDA the provided Full ahead year adjusted was gross the margin Russia of also at adjusted of XX.X%,

Day, maximizing a profit September streaming pillars: taking growing Analyst appliance has live leading recall video in position you sports the As video two on a from market, for and our profit EBITDA. focus business traditional our particularly market the financial will SaaS with gross from strategy and

confidence in Our the execution continued in our are longer-range fully full year XXXX plan. support with projections of our results this line and

accounts and and notable live footprints on in our Cup excellent. was fourth service consumer quality growth larger rights expanding we the sports usage principally SaaS the feedback expectations of and exceeded their SaaS World Our delivered success content servers. our of expanding streaming quarter international consumption was again by and correspondingly was media driven The a

During for contracts, America the Blue Chip new quarter, SaaS will several also including Services North later we year. again that Sports secured launch this

technology with the continue and live brand broadcast movement in to the We see sports recent our to and workflows streaming growing is streaming is successes, opportunities. our of strengthened. and attractive high-quality legacy leadership cloud And

impact headline, where to seeing pleased we continues macroeconomic the While in SaaS Europe, our solid, say transformation from including headwinds. video sales are are to not an remains be pipeline client we

confident you to video are SaaS we streaming remain working our we Analyst Day. altogether, our achieve that out for is on it to in transformation laid September in targets Putting track the consumption-driven we and

reminder, EBITDA calls return plan segment and a margin. profitability to than As greater XX% for compounded this consistent mid-teens XXXX, SaaS annual through growth

video segment the our year all services we XXXX we on are the full demonstrate recently and XXXX Our we secured these results, full streaming remain guidance, and now powering wins year track high-profile objectives. achieve have new to

let of and further And me discussion it outlook. for to over you turn our our results with that, Sanjay

you thank joining all and Patrick Thanks, us today. for

results I’d our discuss annual are as on to non-GAAP like and I’ll provided a financial results Before be that outlook, the quarterly to our referring well basis. remind everyone I as

this to earnings reconciliations As press our Both GAAP David are of mentioned discussed measures on of are earlier, non-GAAP available presentation financial website. and that call. includes our the release QX on these

our the XXXX. continued delivering finished in We sheet and positions growth of us quarter financial for strong at year another results strong year-end balance well

X. I’ll briefly more detail, Before quarterly key reviewing XXXX year full review on in Slide financials here our QX and the highlights

quarter, the reported $XXX.X we of with gross XX.X%. strong million, revenue For fourth margins of record

We strong $X.XX. of EPS generated adjusted and XX.X% also EBITDA of

reducing $XX.X debt balance by Our $XX.X a million. balance while sheet ending with convertible million remains solid, XXXX cash of

total increased the million. revenue For a up the our $XXX Diluted XX% increased million, video as year-over-year. increased XX% year $XXX.X record XX% of SaaS EBITDA $XX.X record deferred XX% to revenue with revenue exited near We full backlog Adjusted million, year over revenue EPS increased of and XXXX, year-over-year. over and XX% $X.XX. broadband was

let’s in quarter our Now, fourth review detail. financials

QX was both million, revenue total X.X% basis. basis on again, $XXX.X sequential and X, Slide up to year-over-year Turning a

was customer reflecting XX.X% Looking first including during segment, newer launches, generated customer $XX at up broadband sequentially QX current revenue and year-over-year, revenue quarter. the up and million, fiber our continued ramp modest business X.X%

we the comp segment, with revenue XX.X% of a strong video being reported our QX million, In $XX.X XXXX. year-over-year, down and up QX sequentially very X%

XX% prior of the Our revenue. included total from contributed video had than during revenue SaaS customer ahead XX% $XX.X revenue We up year, total one once revenue million, Comcast our greater of representing expectations. Corporation Total quarter. of XX.X% of again

high several XX.X% both improvement and margin strategic for points factors, Total XXX margin XX.X% XXX business was freight company basis segments. year-over-year. QX in of non-recurring products services up XXX gross basis points increased XXXX, which basis pricing. ‘XX, and gross including favorable to a basis in improved included services, up rates inventory Broadband gross margin XXX and in for modest investments improvement was sequentially points points year-over-year, sequentially our and QX, our This reflecting was due mix, margins

was Video QX ‘XX, up year-over-year. XX.X% basis and sequentially segment points XXX points in gross margin XX basis

the video We due years basis SaaS have as points and points from primarily gross margin overall improvement over seen X from scale. XXX to continuing have past XXXX QX XXXX basis gross strong respectively margins a XXX risen to

revenue. year-over-year. and were X.X% The Adjusted or our $XX segment video, $X.X per $XX.X to ‘XX EPS million $X.XX QX comprised QX XX.X% million, was of income all were broadband, million SaaS. of increases revenue share the primarily support of statement increased to of $X.XX the segment QX This share representing compared and due $X.XX points transition video strategic for QX down translated X.X% broadband and $XX.X representing up of operating ‘XX, XX X.X% ‘XX. per research to from Moving from business for development of X, and million basis growth the per in and ‘XX QX on to EBITDA QX ongoing to revenue, up share of into sequentially versus segment expenses XX% Slide

average QX weighted XXX.X million resulting increase for quarter ‘XX. increase for of The price million quarter. in ended share shares debt and our dilution average sequential calculated compared effect the the convertible QX convertible with the and stock count of options the the during primarily conversions in XXX.X We RSUs increase issuance million XXX.X and an due is to upon the and diluted in dilutive outstanding outstanding to of of in in December ‘XX premium settlement debt from maturity

line of Turning was our now new we in reported $XXX.X fourth the order book, book-to-bill ratio which was bookings expectations. with million. The quarter, the for December to X.X%

landscape. is what past the in were we few our For QX chain affected which ‘XX patterns book-to-bill the higher and and some That’s QX quarters, have X.X% ratios ordering because X.X%, historically. were challenging ‘XX, than respectively, by seen supply customers

conditions normalize expected to chain the historical benchmark. our was that, Consistent we supply this ratio improved, approach As with year X.XX%. ratio book-to-bill the for and full

Turning the a balance with $XX.X QX to primarily payment million compared to $XX.X net due million last sequential QX maturing of million QX million sheet to cash on million ‘XX for was end the we the and in debt. convertible $XX.X The XX, Slide $XXX.X principal year. $XXX.X of decrease at of ended cash of

earnings we may mentioned December maturities last call. recall, debt You ‘XX on our

resulting $XX.X proactively product to from than net and chain, a manage inventory. our ocean investing inventory meet with margins. enhance us strong to freight, million We us in of rather higher Increased use generated mix enabled cash gross freight and design, supply demand air improved of has, flexibility $XX.X operations, for provide to our in by availability million products

we quarter. noted for drive helped As these expansion gross reported the margin earlier, investments the

used a in of $X.X impact of exchange purchase also favorable foreign fixed million. saw and of rate cash $X.X We million assets

over QX, of days the inventory was for Turning to we XX% sales XX% shipments investment our ‘XX the QX previous ‘XX. reflects prepare increase end end was period. in to year Days end at of The quarter compared up growth inventory as strong the and continued of comparable to to proactive hand QX XXXX. QX, compared and during of days XXX DSO end XX previous outstanding at up on

Regarding top future capital our our is driving growth. allocation, priority

improve invest into takes strategy strategically highly lower regulatory proven our by to-date additional situation timing levels. our XXXX. for in $XX.X anticipated allocation million has the as in price also the we account to results factors, shareholders This chain to revenue This optionality such, and keeping and strategy well allocation capital and The gross capital we inventory capital differently through manage current corporate strategy strong said depend to capital QX. on lines, we repayment Harmonic’s meet supply are requirements. of our and considers conditions, generate margin repurchases. have Having that, seeing. the December amount repurchases Along any inventory of As demonstrated needs balanced by market building to cash variety continue will demand should our as future successful those also working stock, debt returning debt as will of obligations including share common of considerably, the

total large growing approximately and This and and end backlog our our revenue backlog and demand that has XX% strong revenue video of reflects for and $XXX.X within deferred deferred commitments. Note the XX months. of backlog days shipments request QX, the At customers of million. broadband customer SaaS next was deferred revenue large services products providing from

$XX amount mentioned broadband therefore, from agreed purchase approximately of million with went included CableOS customers. last into business bookings. contractually not initial QX as and this $XX million, the is of incremental As $XX additional calls, in At end million down moved on approximately previous backlog X Tier process through quarter order our was two our ‘XX,

So in strategy consistent was in summary, our strong capital cash with discussed I operating flow earlier. ‘XX, QX allocation

cash in invested free XXXX, Slide demand Our beginning inventory support now guidance was for growth debt I’ll non-GAAP well on repayment. as our for and review as meet XX. to

$XXX to basis adjusted from on our point seen from the we of full the between XXXX typical broadband XX not expect to to over EBITDA mix, continue to existing a what based months, over in on million wins This demand and we hardware our based the $XX date, million, $XXX have is the see. assumed improvement XX% and does million. XXXX customer revenue achieve Tier between on $XXX XX%, million to software gross X XXX $XXX expenses to significant between margins Tier operating at to year that strong we million, trends customers For revenue pipeline: $XX past between increase guidance revenue midpoint, a based X includes potential include XX% progress million

$XXX For range full of EBITDA, range $XXX year ‘XX, adjusted margins to $XX million, segment in operating to the we XX.X%, to million to million XX.X% million. $XXX of results million video expect expenses $XX revenue gross million, $XXX

for in effective the in company margins diluted the from million; revenue $XXX expenses XX.X% million adjusted ‘XX, year full million the XX.X%, $XXX of of total For $XXX range gross the to expect range to the in range to exhausted our share $XXX EBITDA we approximately million, last tax of in range of the XX%, million. average we up weighted of year rate $XXX $XX count A as to An year. have XXX.X XX% of in past million NOLs million. operating

our average note dilution last Please in count for which uses price debt-related that days, the approximately $XX. the stock included was convertible the share XX

the calculation the count price As on change figure our dilution reminder, in stock a depending utilized will movement. share

$X mentioned the million dilution end decrease by to $XXX an For example dilution our $XX XXX,XXX ‘XX as per currently, the to just increase is by increase that those dilution modeling price expected between XXX,XXX approximately from EPS an stock Cash consider in price subject calculation. Inversely, of by $X would a $X.XX approximately our stock $X.XX shares. by would this, only come decrease to to shares, million. range share, at in

the I’ll for XX, Slide first of the on guidance quarter review XXXX. Now non-GAAP

QX, For $XX expect $XX million. operating the range million million of of to Broadband million XX%; XX% adjusted $XXX segment million, revenue $XX to margins, $XX in EBITDA to million; to expenses, we gross $XX in

expect gross profit million $XX range adjusted we million of operating $X margins, revenue loss QX, in of in of segment $XX million; video to XX%; to a our the expenses, $XX to million from $XX million, For million. a range in $X EBITDA to the XX%

revenue to million operating range XX.X%; quarter gross $XX adjusted $XXX of million first range $XX expense to XX%; $X.XX; EBITDA, effective $XX million; of $XX $XXX.X average to million; to from from and million; ‘XX, of tax million rate $X.XX million. to approximately for $XX to we XX.X% million, company the total margins, is in $XXX expect of weighted share count to to range cash a $XX For diluted million EPS

fourth fourth revenue during segment. We from existing and summary, advancing drive to the a strategic growth with strong and our plan. deferred long-term our in believe quarter this strong for broadband new execute we XXXX transformation the us strong well while ended on demand to video continued of the backlog position. quarter, execute In We both segment our we our and see we continue as business and positions continue to customers the

everyone, you, call for I’ll Thank for final to turn we up open remarks Patrick your today. now And before the it attention back questions. for

Sanjay. thanks, Well,

XXXX, our of we customer of extraordinary opportunities to creation, extraordinarily relationships summary, pointing working all are full in we’re record continued value plan, determined and execution take of. our strategic a initial delivered our and our well focused our targets of compelling together, technology, So ahead people to through advantage

and we continued support. XXXX the excited We’re appreciate our and business, and future about confident your longer-range of

for now up let’s that, With the questions. open call

Instructions] [Operator James. first from Simon comes of question Raymond Our line the Leopold of

open, is Simon. line Your

two, Great. segment, for the I’ve sales. Thanks gave outlook recall, a question. each to I about growth. you as XXXX some on is asking than for I segment. out video lower taking which the start And bit want little for the modest the us the outlook XXXX reflected XXXX one got

then XXXX or would specifically so has what to outlook broadband. XXXX like to I’ve XXXX, factors video the changed And that the understanding long-term are decline an of follow-up versus get on leading whether I or to got segment? not a And

Simon. Okay. absolutely outlook take changed Well, I’ll has the The first thank for XXXX not all. one. you, at

the upon recognized with have the very works. appliances. that wins. and new the later materialize And sports had I we wins traditional faster to a some SaaS business, in somewhat year. until kind significant not would as SaaS. way couple mentioned transition in revenue remarks, appliance new was of We’re of prepared this will seeing particular, as immediately revenue of shipping we of booking it But If

We will recognizing the launch start consumption the happens. natural or as services that only themselves revenue

So in target. the is on plan short, fully

plan. little In anything, we moving bit of a fact, if ahead see sands

evolution margin review SaaS little You’ll gross a And than as quicker of the even the note movement is months success slight reflects it would plan. we actually to that favorable actually bit movement X ago. in ahead revenue around anticipated

maybe I’m I your terms to understand for segment. built Tier Broadband contributions from with operators in I’m the I’m yet numbers with you incremental baked guess and you that. I into how envision And how to Thank to your of about the understand But have what for you what’s bit of versus into into that struggling and assumptions Great. extent and ask of drill hopefully, struggling evolving? then concentration what’s can guess, customer secure sort the cable little us? the timing that you X a trying maybe

Tier Yes. on in of imagine of The to bring premature cut us optimistic have guidance too orders, new our fact so we’re the issue well, visibility decision just to black to put bringing might until little board being initial given excludes a board. timing white. it’s is impact it’s about Xs you Well, them as tricky led and and the for for we’ve we you quite it at kind conservative the of as us the risk that The we on of to and the until it kind guidance. and in

that with that feel we’ve and our bring almost confidence and that X together is guidance think is, targets. exclusively customers, in our I our the news on existing therefore, really being underlines the high new customer able around to confidence given and we XXXX our that put base based activity XXXX on good you Tier

confirm us if they’ll look, we that XXXX. confirm impact Tier can incremental meaningful position for we get additional Xs, a and in have further in Now where we a

as the Indeed, diversifying nearly accordingly. base big But number you number further perspective We looking them consequential in guidance is, that’s will kind two, and to, as one, XXXX accounts; in our frankly, customer our and from of back XXXX firmly as and stepping pipeline. those XXXX. picture, winning not having at update the the allude

the for much taking very questions. you Thank

you. Thank

Thank you.

of from line comes Frankel next Steve Our of the question Rosenblatt.

question Steve. Your please,

the at growth me way. you. different Thank broadband Patrick, a go in let slightly

do already accelerate We’re is, their acceleration. give deployment, expect have a the to flavor other is you with out of Xs early of anticipating for been the Tier maybe when in that Comcast that kind we’ve pace or clearly to I which at you steady you the at it, cut seeing something you us another many is think, point way Can some think what are current customers ramp? state still how of, versus kind of

a Well, things. of look, couple

I conference We’re Comcast. their are listened they fortunate They out last think front of hard for with relationship week aggressive, in who the are can that. and they all are to test call anyone, pushing to

seven, so date. middle other along see are I that. the them and feel and about to to following four indeed, the is far and I we those, And been toward really That disclose are think XX haven’t And the way another as impacted really of materially getting think of of Steve, you’ve all right able process been said, in are would to with out is of Xs things. None – Comcast there that And to fortunate accelerating I just pleased date, if be of we And date. say, XX they able to the rolling. those going the pace them for and of are And has that in support be paving them. us, Tier the we’ve being we’ve industry. to to parts

Tier right? see So rest the currently of picking – their Xs, on proportionate with pace, up course, the of pack the the we size, the just to

comes Day, point expect of And very back over over our to a market couple is headed way from We very there the the the in yet. next rest big much well target kind coming clear sights. not rest the that rest have XXXX, a of the is the investment we of the reason the see our and view. corresponding And loud numbers XX-month well community. do and we’ve I in out not aggressive to on platform And of really on growth going growth of with our And conviction architecture only Analyst the our speak delivering laid we to XXXX only that’s deployment. that about articulating hope September And as it our and for board consistent positioned here of you but XX-month chunk across the for been also that why market the market. for we’re aggressive we market, all our outlook of And is well. think does also in our of an years, target not then two-thirds

the Great. And booking chain So deliveries easing how those you the be supply over the anticipate of should pressures seem around next to orders lining given now think node? are comment couple a times bit. for quarters? What do lead and we typical the up

maybe mean a conditions. improvement. be what environment couple is – indicated, I I pre shortage has it’s clear, customers the news or of returned we a down not little semiconductor normal, to Well, still not consider anticipating – are Sanjay good of would our pandemic or slowing ahead an bit think which to

the see of number has the more normal. decisions have before a We’ve – challenges. to improved. think certainly to And context execution declare made to we in or, quarters want say, let’s a return situation to we a So couple victory continuing of our optimize we I

Okay.

you’ve one given XXXX think last flow paying how quick the me convertible the projections out XXXX? in Let way the about end year here should sneak cash strategy for Sanjay, for one for we laid off

we the debt, principal in for So our Steve, allocation out is pay as the would we policy laid cash. earlier, capital

and that. will We for million do debt, exactly committed the million our $XXX to we same recently in the $XX.X did net are We XXXX. for do

that’s time diluted share paid accounting our to As presume that that relates far to down. But as premium and it on will purposes, in conservatively conversion, the make least premium we decision. the into for be have shares, baked at

great. you. Thank Okay,

Thank you.

Our of next Long of line Tim from question the comes Barclays.

Your question please, Tim.

Two you. questions, if I Thank could.

here, belabor come First, situations ask and emerges contracts I not players maybe changing to this into about place. and to kind technology wanted of as other but point

are more available Number I’m So even curious have start customer your or as are one, Tier matured? some any you I are kind rollout timing of the of And larger current different the of in for two, to talking then networks? another base. some of these you that newer of seeing seeing just Xs appetite number follow-up. technologies has types multi-vendor an within arrangements And you when

the company, while the on we, having have first that any – rollout us is of tremendous complex rollout all benefits deployment any see, – a work is consider. that think network virtualization I larger different factors And with really pioneered one let’s DAA of Well, and have operators, expertise. they part, in to as inherently the the idiosyncrasies particularly

established. our rollout at rollout to targets talk I think of think to pace certainly, possible relative we was contemplated about And ability the bring we’ve certainly I and mean, customers the plans what being is outlook our improving or kind multiyear and bear couple in still I that expertise rollout That to plans. experience our multiyear said, look years. to multi it plan all of a is or of is think what

software question with multi-vendor, the competitor specifically we of architecture, horizon virtualized on a continue the On cable any frankly, core. around not to see the competitive

the about the arena. we’ve On the other in talked acknowledged hand, beginning, and hardware from competitors

to back recent model going the us contemplated of initial we’re wrong. continue get But hasn’t a That always area. don’t said to me raised piece expect that market multiyear be success multi-competitor months expected changed. to XX% about be please ago, having strong and share. really, DAA clear, just that the Tim, or only that September being seeing recall, And reflecting in situation. in somewhat XX We hardware is so our may hardware we the ‘XX You our DAA outlook more of

split I overwhelming I’d say while are we play in While hardware. And a have in lead advantage fully that of kind we still software, lead competitive have have a a we in strong business, think hardware we pretty an hardware we expect out. strong seeing to

that some on of to wins seeing fiber-to-the-home of looks arc you good bit like what there. are that detail years? maybe how on qualify Can sounded maybe success just piece, little kind Okay, the bit great, And there, customers? where great. few little just you the next type a it And over more a or

our with with it’s customers. increasing that new we in currently what brownfield demand something that the footprint. funding a predominantly U.S., worked of together putting on we still smaller for opportunities. to proposals been fiber beam several customers on greenfield filling call exposure for. And in A the is combination It’s with is an in would cable piece, but example, But

those we So, two combination of see a applications.

you. Thank Okay.

Thank you.

you. Thank

Our of Needham of next from the ahead, question Please go comes Koontz & Ryan. Ryan line Company.

Thanks Okay. for question. the

seen your eyebrows color customers. X.X, any there there from of you that and you that’s your composition in about of and of backlog the next support On normalization of have out about the backlog more little, months the patterns backlog raising lowest times there there? previous am lead talked being some might you it’s we book-to-bill down, I Are prints? ordering six specifics now the versus on the Can comprised share sure seeing

will that. Well, I say Ryan,

million. backlog That’s we close book-to-bill not of is knew levels we back by all, we historical And the the the we of segments. them levels in next revenue the And both That convert share they we for backlog good are quarters, that’s position seen the which deferred is were during and segments how and that expected We And feel the and our that’s always consistent. is and we the and revenue last metric levels. not to however. of the both total expected of. still our We we book surprised quarter. elevated comprised entering quarter. both the bill revenue the of have our something since months. First as fourth in backlog in deferred anticipated very two for in segments the would to have One persists very revenue composition. strong record exit XX past, pandemic, terms deferred that team persist to in And come XX% were in $XXX are to looking the

Alright. And follow I just to could. if

the Europe the may that weakness pretty you and number is an QX in much some segment like and would there historically it or How talked was from to FX, On by in about it be Video the attribute you segment impact Europe? coming Video look soft. impacted

looking but would experienced $X We million at or that around revenue, our dollars, total million not do so. was impact as a impact, FX few it FX The wasn’t significant. much. say, some maybe I

Got it. all it. Alright. I Thanks. Appreciate had. That’s

you. Thank

Our [Operator Instructions] Tim line Northland. of comes the Savageaux from next of question

Tim. open, is line Your

Okay.

think question particular, really there quarter. on which I a I get and an am that, getting I of been Comcast I because lines for And is was quite specifically, you are is guess at I afternoon. have contribution characterize me. or question or sort on thing a of in a we that year-end Comcast stair to overall uptick the would here, along question good several have that peak near perspectives that have in – on up to your want that on you type stepping the guess basis. spending I kind a as I quarterly

them So, would have overall terms And where the next-gen I how And in you PHY that? a you of on their kind of that. describe put would follow-up deployment of technology? remote

their discussing look, and have think modems excuse is Comcast’s really total It’s what there our to which there say area. Tim, then, my etcetera, want million the I about that in would – quarter. It – me, said passed, XX crossing variability now XX-plus on I coming a business intentions their our They quarter-to-quarter. this we is strong that’s But go. customers. they is try and somewhere intentions, plans we understanding, where was shouldn’t across statements appreciate answer public without we and I of some always as recent that the is line is – to can’t explicit and question to as understanding difficult from. be

of whole piece certainly that, the of piece So, by Comcast that. no means the but is biggest

we ahead do some bit have they relationship math which and quite a of we of long-term us, a continue partner think any to within they in – can network. evolve that rough the are you Comcast, scenario runway very to approach I even go develop still looking our forward. be saying And to So, their as is and in

much we specifically Beyond that, say. there is more can not

expectations of and that’s should call what $XXX don’t any I expect really follow-up. think a there, you new follow-up, you And towards that high the growth as obviously, customers, you meaningful growth Let be by obviously, year. did those is to Comcast or majority my beginning and of we just guess to which lot last your for state focus be there. my of ‘XX, look particular, ‘XX? going broadband these trying or access. vast seen we to steady focus get of said me that in driven for XXX expect a guys level to I being growth And a a Do cable of plus it, to to Comcast, not this from you in in the about on you source more at but million something on two get I – com on one. about with try do have Well, quarters, am that,

expectations around Xs go where from, really is say to-date, specific of of only Well, those announced customer. appreciate seven any we can forecast is I again, by along. there. but I simply are the far the is one we coming question can’t that Tier XX ramping. cannot and Comcast furthest What seven

who ‘XX, and look this XXXX, or late think, we an early ‘XX, of engaged have XX won, play we of business, multi-gigabit are zoom role. increasingly expect over the services. on in beyond then we others, similarly the rolling into who forward large in as the if number you that to customers, increasingly be, see XXXX ever-growing out So, other list adding will an And aggressively we we we year course out confident to

we the with you terms so it’s was all any been providing. you should how seen to – architecture of deployment, you we or the think at And in a over been I headed. maybe least X the on assume of think mean of years. kind relative of us I my that And that’s we it’s are particular Can about Obviously, ramps? give metrics? that just and the mean there contributions relative Comcast? to where Should same last quarterly who in opportunity last maybe about another should X have Tier probably size, million type to $XXX like bigger? where I quicker a publicly what over question same the there same footprint, my last is have we of that’s Comcast question yes. right think committed is sort

about Yes. I I of explicit. XXXX can’t tell sorry What be a am allude our to you is people top. to think not over any target, lot thought the other able again I more expectations I to was which specific be customer. can’t until recently,

Our expect would we the we a as on it’s and from will a, number that’s and as the that large give indication pool of what of $XXX contributions delivering we that prospective combination you million of operators say, And small line, wide participating. U.S. I the international. domestic number. number plans on a customer best of the that be trajectory are confident on to for in comprised based I a top well And And business have our customers’ intentions current of statistical the confidence be. can around

captures our is and Xs XXXX. with million our will the model it’s new I exactly we Tier XXXX have that just very $XXX piece get. long-term guidance only you conservative. line the the of But add model, in Patrick It long-term Tier though mentioned Xs guidance might even of in in have given we line small with is

Got it. Thanks.

you. Thank

comes question George from next of the line Jefferies. Notter of Our

George. open, is line Your

that so of Thanks XXXX? Could Thanks. on repeat not just guys. the moving trying us side am revenue again you I the much. satellite guess video to business. assess I how the you parts generated video in business. I to much tell Hi the about ask will wanted in XXXX

fashion we not quarter in well. plan revenue the the broken to opportunity in as that in break have by don’t or year. George, any And out we revenues

it. Got

look I go Intelsat repeat assume at in that, I not XXXX, alone to that a that’s XXXX. think assumption? for XX% customer Is by fair I accounted million, your If information guess Okay. and in back I going quarter about $XX

Well, answer, that have with historic we we to do customer, expect don’t Intelsat, again, million I will. we relationship to XXXX, we revenue amount George. that Will business question of perhaps Will a yes, that in exact satellite-related customer. no, to difficult $XX do business a exact Intelsat. with

can while is the specific What amounts customers. revenues But So, I specific quite are as is don’t I you and anticipate reclamation that of level that we C-band before, regret that about can’t activity go. to acknowledged application. is from specific be we we that more unable the U.S. specific something down, tell we where in with have

well business. that guidance reclamation XXXX And the targets to activity service an is video be as have We expect into analogous that laid out. ongoing expectation satellite-related our feature as built XXXX we of our for

of the And thing, about have referencing referenced I CableOS. number CableOS you. that total you But past in now. am of other in have you guess deploying total are then Thank one past, number business Great. the modems in collection of for guys the guys Alright. – the the talked customers aggregate the I

think million September, quarter in I talked $XX last you a about number.

million it about update on up think that maybe I was was you that can number? was $XX X%. But us

into we appreciate this The number you million And will that year, tell can George and is the have going that between challenge effectively hypothetically, that we X subscribers I something $XX a by I also number win some. up around we tell start that customer, decided is agreement now. customer, sever we went $XX can Well, providing pre-announcing that going you without we is we million you to doing that more significant who got are announced avoid million if and to then which are has want that publicity. explicit that,

are research market. according us look one last QX market if to you we expect, third-party Denali research. to the one number in be in at number out If QX, the a not CMTS And in of I I coming year, nearly expect

we Of is a the us for And that, the $XX perspective, little XX%. $XXX salient total million million key the I is to the number as the that about it’s I forward, than leader, so our deployed, going market going becomes eyes about to be are addressable be less Certainly, after we current is So, think a worldwide. or number to from the appropriate that what which on. that’s think to total actually, addressable are also available market keep watch. going some figure that

very Got much. it. Thank you

Thank Alright. you.

Thank you.

ahead, question Ryan. Koontz & follow-up Company. of go Please Needham a line of have the We Ryan from

Thanks. Alright.

your investors think understanding ahead very that’s your in kind on for for correctly in expectations the expectations of frame year and I topic, backlog are would there I my on would much follow-up investors you expectation focused trend backlog we frame sure that, terms But the quarter-to-quarter will am that quick how backlog grow consternation. ‘XX? to up How a backlog you as your up Thanks. be to in setting general of in for lumpiness orders? Just

Sanjay, can weigh Let I there me that missed. you crack take and at is in it, a something if

explain it, to is historic return So, the way backlog to kind we revenue. Ryan, that and between ratios best to I gradually think expect us of

of Now, so ahead now. right that are that’s we –

continue. we to number the than in explained, of fourth yes, of got head as over secure on – next the really normalize. advance saw And quarters, much that have we to the books that and about get tried orders beginning quarter, have in will normalization the customers, out the a expect think they historically done. We process couple I in and further

the than and we the are implies ratio backlog the smaller less, revenue – levels And returning but greater ratio be in between be historic backlog one to that we you. XXXX. expect And to to giving book-to-bill total we short-term. clear, somewhat to So, expect forecast book-to-bill be support revenue in fully to –

It Yes. a Patrick. does. lot Alright. Thanks

closing remarks. you. back this Sir? turn Thank over would time, like Harshman for At I to the Patrick call to

pleased Alright. you the are Well, today. much that we us ‘XX. joining with that had all again, success the in we Again, we for thank very – business

going confident from a perspective. We and at XXXX are optimistic looking into as as multiyear well our business

We excited. are

strong. are are determined. We customer relationships The

we We you all, Thank market keeping forward And forward looking updated. we good you have got executing are a tremendous a great momentum looking are year. to have day. and in and the to

call. your time. at lines disconnect this today’s conference concludes This you. Thank Please