Harmonic (HLIT) 8 May 232023 Q1 Earnings call transcript

Welcome to the Q1 2023 Harmonic Earnings Conference Call. My name is Latif [ph] and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded.

the to turn Relations. [Indiscernible], now will call Scott over Investor I you begin. Scott, may

operator. thank Chief results Thank us everyone and Harshman, Hello you, and Executive Chief Harmonic’s me are Officer; quarter President With and today Rosenberg, you first XXXX Officer. call. financial Interim conference Jeremy today Patrick Financial for joining for

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

actual two, this company. or other the or materially. differ slide to turning results projections future financial provide future we Such and statements Now, may statements events events regarding during and call, are of will only performance forward-looking expectations current

to risk which We forward-looking the reports XX-K filed those results press statements. documents Harmonic XX-Q materially projections differ SEC, release. of preliminary contained with actual and recent most from in including or today’s factors, documents our These refer can important you cause our results and to forward-looking section statements the identify

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

regarding other and information financial our and historical discuss statistical also will operation. business We

on our will Some this or version available recorded press The on of of release. remainder of this information be the information included is the in call website. a

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

margin results, the delivered of call. our another first Scott EBITDA million, $X.XX, was thanks, everyone excellent and $XXX.X quarter, XX%. Harmonic Well, was was adjusted In EPS first and period quarter welcome revenue to

Our than XX% year-over-year, segments book-to-bill the SaaS revenue up greater had grew and X. And for was segment period. XX% Video revenue our same both Broadband

evidenced trends, previously overall by confidence gives for on strategic and Video services year success the contracts, seeing was competitive CableOS in for the and during products our multi-year further SaaS ability demand both signed and full XXXX multi-year growth continued our our new objectives. stated to deliver demand Strong and us we're contracts These quarter.

a at it another strong excellent our first and closer leadership. next Taking technology look segment, financial characterized was by market promising Broadband quarter growth, expanding development,

$XXX.X up EBITDA million, was margin improving year-over-year. consistently revenue segment demonstrating Segment was Adjusted XX% operating leverage. XX.X%,

of million expanded New approximately quarter XX% customer XX, broadband modem cable number XX.X up the wins The brought solution global worldwide, to the year-over-year. serve still modems deployments footprint. cable our CableOS our total to of only deploying operators end, XX%

expansions. we network associated the ahead, see expanding and this for with remaining global DOCSIS DOCSIS X.X associated XX% X.X cable both Fiber-to-the-Home and with follow-on Looking footprint waves investment opportunity of distributed

expectations centered Breaking execute this DOCSIS down and distributed XXXX our networks. a growth X.X their our around little advanced their existing continue remain access customers who further, plans across reaffirm deployment and to

the encouraging, of customers further unique accelerating little industry market with ahead, new success aided increasingly a of visible benefits by accounts current solution. are Looking recognition our prospective our and of leading the engagements

announced and expansion, our We're operational contribute the efficiency network partnership during we Charter. to evolution, their Notably, excited quarter, new footprint very initiatives. to with

the to also in is our to make and new technology growth our out trials. contributors X.X excited the we're we multiyear and our supporting with actively advanced progress about continue DOCSIS demonstrations fiber X.X important front We're In solutions, with DOCSIS and area, customers our plan.

with and Fiber growing [ph] PON unique native cloud our existing our in are sales And Growth solution customers. XXXX gain the and continues BBNG fiber line array, and both with to orders traction In remote new new target. pipeline

The million XXXX. by we this update revenue scaling new of combination targets, in existing $XXX to XXXX our programs, overall expect multi-year already deployment EBITDA over customers of margin. begun our conclude financial have begin customers XX% you reminding Broadband and I'll over

strong and business, growth building will cable on come. even all both delivering competitive for an stronger And confidence targets are profitable position it and increasingly across years drive fiber give broadband XXXX high to these us in

Turning now segments, we solid delivered Video to our quarter. here a also

First million. revenue $XX.X was quarter segment

low gross Although especially, software, a sales, XX.X%, the and growth. shift SaaS margin points topline continued was and up down, XXX to continued basis was year-over-year, transformation reflecting server reduced margin

the strong up driven by XX% SaaS was growing resulting year-over-year, consumption growth our reach, streaming segment was sports media first total content over for XX% rights existing accounts services. The revenue exceeding SaaS consumer of and their in of live revenue primarily time. expanding

Second significant highlight contribute that contracts of the will recurring SaaS players media periods. in major with the revenue to SaaS quarter with coming several new begin

these the million $XX than greater contract based operations to with customer $XX existing sports a a our greater of traditional who's flipping majority Among and million expansion an historically streaming a SaaS. were broadcaster with their than appliance

our in highlight that leadership success Vegas, monetization. made live recently service event streaming, Las dynamic the several with industry in Associated we NAV growing and sports, and April announcements

Garden, On Madison Vericast. exciting relationships Bally's the Square we very and customer announced Interactive, with front,

On ecosystem partnerships SaaS we dynamic advancements creation. technology insertion technology and services for and ad the channel front, announced new and significant fast

maximizing growing profit and live strategy, a revenue focus appliance video Recapping our Video a from streaming taking recurring focused sports financial traditional sales and gross leading business for position on market, profit the on with the we're market EBITDA. in particularly

strategic, towards that The first results we to demonstrate quarter these make progress objectives. continue both excellent financial and

with remain previously streaming in forecast increasing you. fact, targets business we're and internal SaaS XXXX confident highly SaaS the In we and for transformation, we growth XXXX EBITDA revenue our shared composite

turn With it outlook. that, of our now and discussion results over our further financial for Jeremy to you, I'll

thank joining and you today. for all Patrick us Thanks

everyone are quarterly non-GAAP that as as well our results referred remind a the our Before we outlook, results, basis. discussing on to financial being provided

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

quarter with XXXX. a as strong quarter in the and sheet We record balance and XXXX deferred as quarter operating backlog us well record another growth for solid financial positioning by first continued into profit. highlighted and well results, ended delivered revenue, solid of We revenue

reviewing Before let's here detail, financials key on review briefly XXXX slide our highlights the in seven. more QX

For the revenue of reported with record of of million Record of $XXX.X $XXX.X and and EPS record bookings revenue deferred backlog quarter, $XXX.X million $X.XX. we million.

Now, our let's review first in financials detail. quarter

slide revenue to on eight, X% was basis. total Turning million, QX X. again, up a $XXX.X year-over-year

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

XX% reported $XX.X of we segment, revenue sequentially million, Video our In QX and down XX.X% year-over-year.

XX% which was SaaS included prior of expectations. year, of our million, up from revenue the $XX.X revenue Video ahead Our

total than revenue, had of last during We was one with XX% the revenue customer XX% representing quarter. representing to similar Comcast which total greater quarter of

of margin gross Total year-over-year, XX.X% both margins points in QX reflecting basis business gross company XXXX, for up was XXX increased basis segments. and XXX sequentially our points

XX.X% mainly gross investments margin and to points a mix versus QX enable basis Broadband to was very freight a year-over-year. and sea inventory improvement up favorable to XXXX, XXX was product airfreight. for our due extent, basis This sequentially points strategic X,XXX services lesser and

points to margin year-over-year. gross continuing basis sequentially XXX XX due scale. SaaS This in primarily points was segment up Video basis QX XXXX, and to XX.X% was

XXXX statement, segment support and increased primarily The research of the of XX.X% year-over-year. $XX.X on due development SaaS. increases to down the were expenses to QX X.X% our ongoing the strategic and slide nine, and million, income Broadband transition were the Video Moving growth operating sequentially up business to

$XX.X $X.X comprised per up loss EBITDA XXXX of for Video. in versus $X.XX of of XX.X% This $X.XX XXXX million QX from segment was EPS of from a $X.XX XX.X% QX share million per revenue, and $XX.X for QX all XX.X% revenue Adjusted per into QX to QX share XXXX XXXX, million translated XXXX. Broadband, representing compared or of share and

compared share the ended calculated QX XXX.X quarter increase and to stock maturity to with due the of purchases, was units, compensation. The weighted average XXXX XXXX in QX for diluted We convertible XXX.X to XXX.X upon XXXX primarily the million in performance-based ESPP shares employees in conversions a first count of settlement and year-over-year XXXX. million million for of debt premium shares the issuance restricted vested December of of and issuance for

The bookings X.X million. we quarter. for the first the record ratio Turning $XXX.X reported now order was to book, of book-to-bill

QX For book-to-bill were and respectively. ratios X.X X.X our QX XXXX, and XXXX

particularly improve, we include conditions SaaS supply bookings this modestly to in greater expect strong bookings multi-year new QX and and chain as time, approach CableOS than normalize Over benchmark ratio of commitments. X. historical the

compared million including sequential Turning to we The improved the increase on sheet of of with QX $XX.X QX variety DSO. a XX, million to was $XX.X at million end XXXX due XXXX. $X.X balance to factors net the of cash ended slide

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

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

of $X.X of cash purchase the in million We assets. also used fixed

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

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

the that we're continue to meet As we will invest such, demand in inventory seeing. strong building to strategically

success this We continue strategy. considerable to enjoy by employing

have cash situation the inventory previously, if maintaining somewhat capital stated flexibility and do we've as to differently substantially, generate working chain levels. manage the lower additional However, our improves supply by we

time, ability stock any variety Again, capital timing through as price of into shareholders the requirements. our and strategy and of factors, allocation of stated amount common market repurchases. account corporate will same depend the regulatory a capital to on our conditions, also to the Harmonic's previously, repurchases takes our needs, we stock, including At return

$XXX.X has of months. from record deferred for SaaS deferred The our products large backlog request strong commitments. Broadband customer At of providing XX the revenue our reflects demand the shipments and dates deferred revenue end growing and within QX, backlog Video and was customers This total of services revenue backlog and next million. and majority

guiding than our reflects now in than are scheduling also XX that of some within XX% XX commitments of rather months we months the historical change timing majority to process. guide. note This with Please greater

was consideration and and capital to managing invested our free into support we're freight. demand solid we cash In summary, from XXXX. customers inventory seeing persistent flow cash whereby into Taking the growth allocation in continued to meet strategy our operating QX our our stated

our XX. guidance Let's now on non-GAAP review slide revised XXXX beginning for

range the midpoint in company, $XXX $XXX guidance. total revenue million of For the we full at year XXXX, $X from the up million for prior to expect million,

in Gross $X increase from margin million, the expenses XX.X%, million the guidance. a $XXX $XXX versus million to range range increase to from previous up midpoint million versus to prior Adjusted XX.X% to million, prior EBITDA guidance. slight from guidance. an range at our of $XXX $XXX to Operating

XX%, end expected EPS of to midpoint note $XXX mentioned approximately the XXX.X effective last up share, range as per subject exhausted An and A QX from share calculation from debt million. to the to from in previous stock included $XX.XX. past the we diluted convertible the uses in cash year. average is price in year dilution million. XX% $X.XX of of count between $X.XX $XXX Please tax the million rate guidance come at count just at to weighted and $X.XX XXXX the NOLs of that average related up dilution our our share

slide cash from of to from range the in of for to million; to XX, adjusted to tax For EPS range we second $XXX million million to expect $XXX an and gross of million; from million total $XX range XXX.X to $XX XXXX, average $XX XX.X% XX.X%; XX%; to range revenue million operating diluted to range company to in $XXX from $X.XX the million; EBITDA $X.XX to on quarter the margin of expenses $XX of share a range weighted rate million. $XX approximately effective count and million;

Turning to slide XX.

between For $XXX XXXX, at year we midpoint. million our on the million, guidance and to expect above the latest customer achieve $XXX revenue the which progress Broadband is full prior based million to-date information, to $X

up XX% XXX between a expectations $XXX slightly guidance, customer adjusted to mix. Operating basis improvement million, between to guidance activity previous and million our EBITDA $XX given to our million Gross previous software/hardware supporting between expenses on based $XX for over million. $XXX increased point margins from XX%,

million Gross margin to range range to expenses $XX from the million of segment, $XX million to $XXX adjusted For to in the EBITDA $XX range revenue in Operating the we XX% in to expect our XX%. of Broadband QX, million. $XX million. and $XXX range in of million

guidance. XX, review year on Now, let's slide Video segment full XXXX

$XXX XX.X%. EBITDA Operating range expect $XX the of million previous midpoint in in $XXX $X.X range guidance. to of to range the We from in the XX.X% slightly at to the margins million, million, $XX Gross revenue million expenses adjusted million million $XXX to million. of $XXX and in the range of down up

million in For the our $XX million in QX, range Operating EBITDA $X the to $X to and XX%. of expenses million. million. Gross margin Video million to the segment, expect adjusted $XX of $XX in range we to revenue to million of from in range XX% range $XX

our plans while strategic of In strong and continue segment, segment. the advancing first our execute the growth drive our we in transformation Broadband summary, Video planned during quarter, to

first this and positions plan. new We and rest long-term deferred strong for we us ended to as from we with into business well to backlog We record demand XXXX continue, see believe execute the and revenue. our XXXX existing on the the continue quarter and both customers of

to attention everyone, today. turn for call before let's open up we final for your remarks you, for the now Patrick Thank questions. And back

new sides In Jeremy. the very Well, financial of results, and significant thank contracts, strong you, characterized customer the quarter, excellent Broadband delivered important summary, we Video new and both in house. relationships another by

in remain full technology, advantage and serve. XXXX beyond. our customer and great confident these the and relationships, XXXX and markets ahead lead see continue all our opportunities XXXX, taking determined team in of we opportunity Our through, We to

Thank your for open call let's now that, you support. for continued with And up the questions.

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

Simon. please question Your

for Great. question. Thanks the taking

CMTS the March, DAA me fingers you struck been our crossed in and what So, other which waiting products, talks Charter discuss specifically the virtual nodes. does all it about for. announced as not products But keeping award, was we've the such

I'm is solutions. simply sort But head-end timing, of Given not nodes the we them forecast, get the little sell your DAA -- revenue it. the on a that bit I'd color to CableOS composition and project more intent and of as well appreciate if assuming the could

can't was partnership the Well, broad you speak Harmonic The go a talk customer's it's awkward Simon. the to little particular that brings and to really any that we with saw and It's bear. with that plans. agreed there any about communication -- portfolio Charter intended specificity the in capabilities to we around

that. our we're hence, that core solution is Certainly, say I virtualized engagement essential our to would any and in worldwide. the specific involved mention of in

and strong as of hardware centralized see we solution. So, the around both interest the elements opportunity as well the core software

it's would And pursue too would hardware-related just so kind with without actually Charter, business, customer. thematic other about anything the of we -- we like that just specific within implying Charter [ph]

over suggests the even year, your for a low And then $XXX full little The forecast the just end just of million, a $XXX as the a for segment year is year. to the load million heavy follow-up. given the Broadband first half back-end that is pretty and

think between of is quarter it of sort revenue about coming Thank the figure very and we where should do sort somewhere XQ, the of How that out to is XQ sort third XQ timing? a the that? it you. trying think guide? Is we or loaded in How from given back-end about

of every still Look, one customers actually scaling. our is Yes.

our of plans that. but based to we short saying the and base. that's up expect deployment stop I'd to global we customer be of be of QX up growth. continued is on aggregate theme top QX overall And the So, it's continuing on linear expect

Thank much. you very

you. Thank

Thank you.

& line of question Koontz the of next Our Needham Company. Ryan comes from

Ryan. please question Your

helpful. bookings I you're number, sure the so ask but respond assume obviously. the in to question. on contribution I'm much Nice would to terms moving long-term going up gross as the -- great stronger work us for I software the wanted Thanks and there some be deferred, margin software help quantitively can not that understand there on you the Maybe in there's light of contribution Bookings, quarter? there a well. shift with shed

-- And happen. well for timing our Jeremy software the that results, in in those its and you appreciate how things that's, Thanks the as strong did Ryan, question. get did Hi our mix. a and sometimes the here. margins absolutely And up we push on

We've software hardware. to systems as we taken you as really a approach know, sell, between how and

hardware are out Ryan. backlog, not So, we breaking software the in and

sure. Sure,

then And revenue. if maybe the Okay. reflect you non-Comcast could on

You've had to meaningful start just investors you a revenue of about the the guide? think we as in some see Do forward there growth tremendous year? run think there. here How the we'll through should the scale go non-Comcast

ahead. cable Comcast furthest The short is in planet, the and yes. operator also the largest answer they're is

out rest the them much position And the So market larger. the it's our market rest the surprising with to see strong. is But aggregate, increasingly growing is front. not in of competitive of

ahead the of So larger the over us that the and markets we're the just time, with larger will rest we're be -- a market rest of about is Comcast, the business seeing, the still have portion excited work we the while of the increasingly believe. that of we math of

so That's deal. charter much again on fair. Thanks the and congrats

Thank you, Ryan.

Thank you.

Our Frankel Please line the of Rosenblatt. ahead, of Steven. from comes Steven next question go

Good afternoon. Thanks.

early You've Is their fact did customers' think you now were between between color be last -- phase, any that of that going last the that gave the those the of of or still from around deployment end pushed was the the in that and back the there anticipated year. four now and been they three out? the and Tier case get that with questions you call, had couple up would scaling Xs some or the plans I guys there theme were to very

forecast in or for change material we terms the had the a the bunch still them. There's of no It's that of case. expectations

customer switching I'm an that something of kind this video years? is mentioned us cloud-based think appliance in in commonplace couple you -- your of the of will although sorry, offerings base And to that do in switching broadband. over business, walk the interesting Maybe to case customer fairly SaaS. Maybe And your legacy next through economics the Thanks. you transition? become

with the I'll mean So short answer start the I yes. of question. the end is

I think cloud. business has the the that harness to or very learning that from broadcast on of curve, much market model the perspective -- perspective, kind an from think technology and how I both been understanding a economics

a and when. The overwhelming think, from personalization if, But the I a as that that -- a really perspective, from by innovation from question think flexibility well perspective, there's question it's I a market, not no both perspective it's economics, as but of are, advantages cost Steve. increasingly there's understood

to if is go is sports to September, back first our also infrastructure you you highlighted talked but opportunity. that SaaS So And Analyst -- to regard. the another in in that perhaps opportunity, it's great the first domino we see of we there the Day the traditional fall, will largest significant streaming broadcast if about did major perspective, we conversion from

on lastly, And CFO maybe update an Great. then search. the

headline Jeremy The is a well. big has smile. it's going Yes.

discussions we're and progress, can't the but a give CFO we're excellent really And specific number think good a candidates. you date, I making not-too-distant fortunate. a in on world-class We're having board of with So we'll future. I have that

you. Great. Thank

All you. right. Thank

you. Thank

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

Tim. please, question Your

could. Thank you. Two, if I

kind competitive of folks is little do a or of can the themselves can color little bit side, about few are? those wins Patrick, live sports First, or give broad-based the talk about you complexion on maybe talk any more video SaaS you they you it wins times, looking Are to you these we're bit but You there? it guys of mentioned the a getting? are us wins, can just how kind a

your just mentioned going plan. there the that looking according Thank update us at on you ramp see portfolio are you also you then how customers to you. well an how give and And going? fiber-to-the-home Can

Thanks. good Both Okay. questions, Tim.

it's front, the above. On the really, all SaaS of

traditional customers, I general, As are from our I say, categories spoken would they with -- our in all top SaaS in-house. we've competitors all they reflect come about. say, you on perhaps XX with our or, the previously competitive either as really

VOD first somewhat time stuff for our One the to they for outside. do is easier which technical customers, they've of a They example, three but is us the problem, gone their live themselves, top turn sports. own

competitive there And last from to companies that us more other moving span recent dimension, much maybe new from another are on appliances very moments to a situations are were who offering. on cloud-based new SaaS media with Other that I like that the we as companies, the competitive out are also approach XX all turnkey traditional brands brands a peer way companies touched years customers couple providing and ago, changing traditional philosophy and SaaS. a their wins you and the us, their to for infrastructure know of

So it's above. the of really all

described getting is And with and the kind increasingly myriad fragmented covering we it I'm sales of our it's previously -- opportunities. kinds engaged different market. these from market after dimensions a team as marketing the with it, to way impressed all get is of

-- there fiber the I all cable pressure we kind is seems and called for the really CableOS of layer a fiber distributed having in native is personal the really seems customer is fit that increasingly particularly in offering point, and node. cloud competitive of what our the On relevant gigabit becoming from for on part participants competitors. operators markets is And for increasing of application side, already is market. core certain plans. fiber-based fiber our the a arsenal, we And brownfield us solution perfect access increasingly where think on to to the strategic be important the newer Home-based top call

Thank Okay. you. Great.

Thank All right. you.

Thank you. [Operator Instructions]

comes of from Capital Tim Savageaux of the line Northland Our Markets. question next

Tim. Your question please,

on, I bookings that added global afternoon, XX% But new substantially. the given and which you've that I representing guess, you you about the wanted of us to a talked to kind this wins, your modems serve of on footprint, subscribers congrats about here globally? broadband cable of cable the historically, XX% Thanks. footprint think, And of maybe metric about is And your And crazy number. moment. a in I'll I touch ask good

but or a million up homes assume something I of XXX that's than the you mean subscriber I to us. in that so metric like gave that passed, metric different now, terms that's

whether in those win So pretty you're or -- of homes should XX% be to it's and kind both think where And footprint to me looks still But are on follow-up that. at of metrics how subscriber on, in of passed. XX% the the I both of early or your I cases, what assessing either we suggests you want look it to cycle?

I'm pick up. going to Tim, as always. question, one much. this Great so Thanks

back go of I about to you for we TAM, of the if Investor our the on think when our look Day, quarterly data calls. So it's did China, maybe million And talk size we architecture. about the high-speed much so households outside XXX for not

So reference that us. a is TAM for

way along, about speeds September, question then is your a Patrick we're as at about And X.X as out, you have a way coming have laid DOCSIS that. think, for multiple then fiber to fiber DOCSIS laid of also And we X.X. the And mark up. XX% and you in how out from far I that

-- still And ourselves as early exciting to follow-up look your in see very we So question. Tim. very forward here, days

you've seen, say, to they talked over year, go, by way long XX% of that basically the and a is upgrade the specifically which this a year-end end -- of with at with that like that being largest represent last customer, about but your does the footprint by Well, XX% year? the complete seems cadence similar the moving to year, kind of had

on metrics, a particular, for see those trying like this represent appreciated. that. of color Charter an be lot seems it I ways still would about while. to do seems a Any But a they've even front though to it guess type acceleration got you've is that go going Does been with obviously, or we'll Comcast in faster? that with

I and has plans. I open Comcast their mean at conferences, talking fortunate about recent all that etcetera, their and Look, we're we're fortunate, progress industry think been pretty

don't -- that their and I to that laid ways publicly, indeed multiyear to have they to both plans, there, we more their think, ambitions they've go. doing about and anything that, they're laid they're out and the add still I commitment to a really think out but what have fact really talked continuing have they're to

and a been current working bright indeed, just we be and partner, coming And with exciting technology fortunate at as several pretty to it along ways as you and future years, of of we're ways we've them. technology. a So know, see with them around for then the

your as -- the shifting backlog XX% I would well big that current new I expect the base got ship to and QX more orders in word last Great. that sneak imply customer this in a of you was broadband seem quickly. is commentary that case principally I say? guidance commentary that the your -- to function year as the in mean into from quarter, majority. you If to I know guess overwhelming. one I you right the for your side that on Is completely XXXX. could as is don't just for broadband to what fair

dealing us we our customers As important XX that's of that requirements. It still is commitment discussion the something cognizant within we working times is much about improving, the to and a is chain on. lead are and there supply general, And majority XX-month with with still remember said, months. while are backlog that in

to activity reflects, doesn't order more indeed, So months, be need view, into which right in does it XXXX. us but now, than bring XX it indeed general, XX-month really a

in see I it to We is see best of predominantly But coming that predominantly customers XXXX. about part think the to your way all new of on existing from a existing with new kind question, XXXX, customers. and beginning time yes. ramp. customers to caveat mean we slowly and really customers, that's really the XXXX, impact first the material

Great. Thanks.

Tim. you, Thank right. All

you. Thank

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

please. question, Your

wanted exited a more step back anticipated. think ecosystem we a of less there more back, I to where lot. had guys share you as had the a it about a was optical guess of course, vendor than nodes how there time the result, was node or market. And kind getting taken of Harmonic Thanks Cisco, was I period to Hi. the I of if go the sort conversation in past, -- for I

to And if market, a I guys margins, two-thirds? you share do in general market environment is the currently, I the third back you for guys share? in have know you diluting of do terms could you where come but of company? think you think what think node it's reasonable mean of kind half, are the Do I

and this. I that tracks consistent it's it's believe, We Group the think, with,

the have we XX% -- we distribute sole believe that about on we We is been think which that of in the to-date. deployed where George, area nodes, let's neighborhood participate. the access So we're focus of specifically nodes where DAA and

multiyear or presented or the XXXX XX% discussed don't percentage XX% with Day closer I somewhat, ago. Our this XX might have maybe our we but know, perhaps that months a we at you, Analyst model year to that envisions dropping

So of tied fiber pleasantly success extraordinarily DOCSIS view and bit great surprised been a the share. in that the be turns by our market it expect short, a from capability, built down. We've a increasingly throughput not very power we'll consumption, hence, reasons, be view, our is we've Perhaps a able from will had. way. that that from it and product, But cloud-native to it's just XX% we're lofty multiyear node share it's to that that house out to healthy able to point elements of we've both competitive. the we from maintain And number a a be comes our core being a continue market to confident

in it's those connected follow-up homes know then think of the I I up relative When put CableOS. million XX.X what I that metrics from derivative to guys now great. some have to second December. here, That's -- Got a numbers you chunk you said it. look the down quarter-to-quarter, as at you a of And are

I was X.X think, million quarter, an an that I connected homes, homes. passed -- think in this additional additional you December, X.X million

And think so your should that tightly revenue not with as sequentially that, I infer was down guys? should kind CableOS aligning revenue be so about from connected homes you of or I I

guidance year think the quarter-to-quarter Yes, deployment, happens are a into geographies and there's around the multiyear overall then by trend lot stuff do in indicator the over terms I in of But that different affected CableOS. first George, fluctuation. see full really wouldn't correlation weather, some I certainly quarter-to-quarter, that where guidance etcetera. read quarter too is And I we the think of our shipment best the much time. of a particularly

Great. Thanks Appreciate very it. guys. much,

All right. you, Thank George.

for I would management remarks. conference turn over now to back to the like closing

again right. thank We Well, great had first a all very for us. quarter. you joining much All

you. well underway, We then, our the about year opportunity quarter Second a evening, to to and is your everyone. to and meet with the good have appreciate we We're following rest excited excited very look our we're doing, next of positive. update what support. look business, years Until the to continue forward to continue

participating. concludes today's conference call. Thank for This you

may now disconnect. You