Harmonic (HLIT) 30 Oct 232023 Q3 Earnings call transcript

Welcome to the Third Quarter 2023 Harmonic Earnings Conference Call. My name is Carmen, and I'll be your operator for today's call. [Operator Instructions] Please note that today's conference is being recorded. I will now turn the call over to David Hanover, Investor Relations. David, you may begin.

operator. you, Thank thank Third and joining today us Hello, XXXX you Financial Harmonic's Quarter Results for everyone, for Conference Call. are Jankovich, With Officer; today Patrick and President me Chief and Walter Chief Officer. Financial Harshman, Executive

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

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have projections contained regarding to section results and the we expectations statements events in to actual XX-Q cause results press provide of our call Harmonic Such Form unless provide otherwise documents may projections GAAP events a important the with basis. and financial during During of release. or or note We are most financial this our metrics, differ call, statements. indicated, These metrics performance you forward-looking GAAP future non-GAAP documents and we SEC, on contained this These from factors, a will which today's those And and statements posted please on X-K. other filed recent website we reconciliation press reports identify which are and corresponding can results including statements and our today's refer future XX-K the company. materially. with risk only are the differ release, preliminary on that to determined files current in forward-looking together or numbers materially forward-looking with the SEC actual

is to our remainder of business on over our financial CEO, press and historical, some statistical Harshman. Patrick? or now information turn included version And call and information our be this of will on the in I'll and operations, The available a the of also regarding website. information call release. this the will discuss recorded Patrick We other

reported substantial in third Video Today, quarter our range welcome, key as make within of Well, our guidance number third further expectations quarter and areas, and results, everyone, and us customers' alignment progress and and fiber-to-the-home growth plans prospects. in quarter giving were our long-range deferred a to including to growth our thanks, which with DOCSIS We strong X.X, we call. confidence David, with our continue we ended revenue, backlog SaaS. showing the

diving X overarching Before quarter, mentioned of details into the I the points.

our financially regarding healthy. we're broadband business, First,

period growth. Our and technology remains on of investment, execution positioned very we remain We're track and sustained for strong. multiyear strong differentiation deliver uniquely therefore fully a network to

deliver being innings announcing our growth synergies early of sports we several Video Due Video a business And for recently With third strong in have now to Video strategies, substantial in our to customer is compelling. businesses are third, for our of strategic growth and commenced streaming customers won Second, less formal we runway that to year-over-year migrating the believe the business. recurring on-boarded. we're XX% video a and there broadband SaaS. our marketplace our platforms, revenue review continues between changes process in still Live with SaaS in on and quarter new basis, the

have financial us with received Together alternatives Walter goal optimizing led we to planning of initiate of business. the strategic will long-term Additionally, range capital with for clear assessing color our business allocation external review. These factors, we're several value. a for with video additional legal coupled interest a the provide from advisers, momentarily. parties and Video

our million, USD solution year of front $XX.X our now to corresponding the XX.X in deployed of XX% significant footprint opportunity cable globally, data down up We revenue served global segment million Approximately modems highlights. expansion as XXX%, a highlighting USD million customers modems segment now still reached ago, largely of worldwide. number of us. $XX.X from with expected. broadband year-over-year, Moving XX% delivered The cable deploying

third You'll anticipated revenue for X recall related decline reasons. this quarter quarter; last we

established And bleeding pandemic. playing in inventory DOCSIS This plans leading in roll-out. customers were largely DOCSIS down some was anticipated. out positions a second, X.X during anticipation we DOCSIS better-than-anticipated First, deployment to of slowdown the had X.X is X.X progress technology all as on

fiber, a legacy that's Regarding been DOCSIS industry. the way both the STN and compete software that edge X.X impressive been with extended changer industry, support done has duplex out we full of progress specification, the deployment is rest enable of of front has work spectrum CMTS cOS unified with powerful simply fiber stunning. unified along DOCSIS game solutions the optionality a that the to way isn't against. X.X, XG device A the handling providing cloud-native possible of FDX in variants Equally we've for

While DOCSIS is rollout certain of deployment to The near-term Harmonic positive. X.X plans. customers' may long-term for mid- anticipation impact quite story

existing our to new making we is We've value see multi-gigabit fiber and operators to technology an X.X and edge consumers As DOCSIS and DOCSIS core extended, cOS including have customer customers XX opportunity their In winds, been our into with DOCSIS impressive customers in for existing to deliver net new simultaneously our a our we've online highlights highly this progress or The fiber-to-the-home DOCSIS in the have new X.X, and technology leader flexibility the tool fiber networks, its success fiber-focused sell power parallel base growing unique already fiber deploy competitive also secured providers. services. this X.X advanced DOCSIS devices. fiber cable with area. with with XX

strong fiber existing of outside existing to penetration OLT our with winds then focus will fiber continuing opportunities supports profiles NG-PON in business, for well growth. internationally. growth With cable sustained The cable Cable-Tec shelf, for And market force recent and design sales our operators expect which within backlog endorsements the to variety PON Combo new SCTE at new traditional fiber-based and expanding to very our broadband and operator domestically example, our broadband recently and customer our our deferred XXXX for remain grow customer XXG, every and strong accounts summary, expanding Expo complementary empower Denver positioned as in sales demonstrate confident revenue, subscribers. cable broadband a announced In success. technology, our We increasingly of we new footprint geography and and in further winds fiber. and new deploy engage our position we're

So million turning and now reflecting quarter million, record happened contend new USD segment. million, by the customer Highlighting $XX.X appliance with of highlight as revenue our year-over-year. project $XX.X were Total headwinds. delays was SaaS, USD The at to the intentional year total transition was grew SaaS to SaaS pace our SaaS Approximately from our ago, plants several SaaS Video USD $XX.X winds a down video revenue, transformation half up again customers a accelerating customers. of macroeconomic XX%. streaming base and historic new select winds with these XX%

seeing market. latency, to recently WRC deal player recurring So press issued is broad continue targeted differentiate remains insertion quality, in benefits of we're to sports driver customers to in quarter, Only Among and global online during meaning these the releases. our of be revenue View and our whom array continues also funnel low video ad customers, to to more clear, exceptional came to latest appliance these streaming quality-related starting clients' delays, sales a engagements Lift new promoter our we primary of a the us the SaaS Germany, some SaaS. few winds, flexible sports of transition in with grow. addition new SaaS Live

appliance more project of instances the delays. the is our side extended for On which we of business, customers, intensive capital saw several

demand coming for periods pipelines However, activity. the and see a to and we're starting has of international our pent-up sales signs domestic of grown, and resumption actually encouraging

So by hearts that on extremely finally, that please recent trying taken situation colleagues Israel the like horrible and events we know to with are time. hand families, have during place to in briefly during outraged before the Like you to over and Walter, Israel. many, were I weeks you our our this I'd in comment

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

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

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

related within third call. taking quarter to the into customer Our guidance our to we environment earnings conference pushouts on demand macroeconomic referred larger that were results last account our range,

on QX highlights Before Slide financials reviewing the detail, out our X. I'll call in here XXXX

deferred and a $X.XX I'll For record $XX.X revenue $XXX.X the million. million guidance. USD $XXX.X million and USD bookings QX with quarter, of few we USD near backlog revenue reported EPS of moments, provide of In of

the Turning mentioned I revenue X. XX.X% was factors earlier. QX to down to Slide Total mainly year-over-year, due

QX Looking another broadband The revenue in X were by I inventory initial USD adjustments customers. largely note our million. to at broadband, quarter, Tier that we decline stage to year-over-year the was want the $XX.X was third during ramp of due customer.

from $XX.X or for video, see reflected revenue of USD the video to million, segment ramp to SaaS quarter, the benefit year. million while appliance expect the revised the lower I USD due included as revenue guidance. was factors revenue prior of our video XX% up earlier, were We QX $XX.X sales of revenue in In noted this QX in XX%

We the maximizing of continue growth profitability to also execute SaaS strategic focusing transformation continued of while our Video appliance business. on the with the on business in

parties we with of any for both business. our otherwise action review. of focus the Video intend continues review assess right unless it strategic not due further We a video the the be and also note, transaction. for SaaS. shift the on over time business review Video no to until of allocation for several This and not that our established consider mentioned, are we been to on disclose number decision developments SaaS high-growth board from a now review result Patrick broadband has Please past be strategic alternatives assessment priorities, evaluating the decided making we months. was Video of interest after this indications to our and as in alternatives Based or and is our made completion timetable specific its strategic partly clear, areas. the may capital in thorough to process do As a the respect still approves to strategic concludes To to

reflecting of quarter company to XX% our third QX quarter results. representing XX% We of Total reflecting 'XX, segments above Broadband decreased project the points gross customer representing basis Video greater margins margin in in revenue. XX for sequentially. one down macroeconomic gross was 'XX, noted both and XX.X% and Turning had was QX XX.X% headwinds segment XX.X% than gross earlier. total year-over-year for guidance. gross of revenue QX 'XX, business total during back our margin Comcast was our with margin delays

QX to the sequentially third Slide into customer and in to containment and XXXX income by average were sales per share, X. We partially of in million expenses for decrease Moving million, USD for a quarter Adjusted broadband expectations, million video. down video share 'XX. USD decrease with the X.X% to a $XXX.X EPS above QX USD $X.X QX lower 'XX noted to translated for $X.XX and of USD weighted USD reflects the previous from X.X% an of our 'XX. decreased for R&D share the $XXX.X and $X.XX sequential specific of ended earlier. high USD guidance $XX.X 'XX in line of our $X.XX that assigned of QX USD increase down to was due of due negative million up X.X% on million convertible and with debt and primarily $XXX.X comprised of 'XX USD QX is year-over-year. in due while is end This per operating cost debt broadband The EBITDA statement sequential was dilution in million. diluted cost The from compared bad QX X.X offset actions EBITDA projects, came USD specific Adjusted expense or count of million QX shares. with $X compared $X.X calculated million factors USD the million revenue, 'XX $X.X all

book-to-bill the order X.X% bookings million. was Turning The to $XX.X were the book. for QX quarter. USD ratio

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

and As approach as supply we this benchmark time of conditions normalize ratio improve, chain we've over historical stated than one. to previously, expect the greater

QX, we above one were quarters after of For below several being one.

to USD accounts USD sheet The predominantly net from a million $X.X in a with decrease receivable, offset was few balance operations by to the We both to on in Turning USD liabilities. sequential QX a increase XX. inventory Slide current factors. ended and decrease provided due million cash 'XX $XX.X million. of other due $XX Cash

the Also, short-term million. We end, of USD at fixed $X.X million, purchase USD cash also together million, of used $XX.X to assets. $XX.X million of USD in investments $X.X in we of term quarter addition had totaling USD deposits

Turning sales the XX at DSO in to XX of outstanding prior accounts receivable year compared and 'XX, period. and was to XX% in end the days QX 'XX QX

lower our As an we XXX decline of in days reflected QX last in at 'XX early which as compared end quarter of and our our end that XXX at QX, supply customers we is QX a will inventory to no 'XX. longer continue of mentioned hand in feed here. was on call, QX the 'XX on chain. to end inventory result informed of Days earnings one The the tighten was us the the pay at take larger discount XXX of they

our retain to allocation, the When growth. flexibility This building demand. past reflected meet lower in invest our somewhat lower driving in capital inventory for maintain balances done We remains strong third ending to our is we priority Regarding the levels. will inventory quarter. the in we've appropriate, inventory top future as strategically

repurchases our the allocation capital convertible program. and stock stock forward also under XXXX in Our includes strategy our repurchase notes

end conditions, will any the QX, As backlog of revenue requirements. we stock, regulatory million. the said variety $XXX.X and previously, on and corporate USD stock including needs At of total amount was the a of Harmonic's timing common of and deferred repurchases market price factors, depend

demand and growing continued our reflects backlog SaaS video strong broadband from Our large customers commitments.

XX% under products revenue the backlog shipments our has dates and providing of services of XX Just deferred and customer within request months. for next for

Lastly, our have were In we flow in frustrating, results free not short-term generated share. summary, our impacted macroeconomic quarter. while in QX our cash the expectations, the USD $X.X headwinds market within million

the We technology value as businesses. we solutions market-leading continue to recognize customers to that for our their see strong bring demand add

today, once I'd guidance, to details. be reviewing to strategic Day, we we was have Before review like year. previously will mention the late for forthcoming announced early information we those planned have More given XXXX that next to decided our Analyst process which move finalized

Let's now our non-GAAP beginning the revised review for on fourth Slide quarter, guidance XX.

at to operating similar million, to XX% to expenses $XX expect EBITDA between deliver our Gross between prior broadband the between QX, We in to USD $XX midpoint. $XXX revenue below million. USD between as margins million mix $XXX XX% USD million guidance USD a $XX $XX product USD USD adjusted million reflecting to million and

the we For and Today's broadband, a macroeconomic see record range and hit rebound reflects a expect potential the to in still guidance quarter to current wider climate. revenue. QX in

of a USD loss of of range loss a $X range to of EBITDA in from QX segment USD and million million on gross in Slide $XX XX, XX%, $X million. the expect $XX expenses $XX USD USD to USD USD For to in we range in operating the adjusted million, margin the our $XX range revenue XX% video to million million of to

being For I other are given wider video, on range mentioned conservative review the guidance ongoing a providing we and earlier. strategic factors in

to Turning Slide XX.

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

just not full year detail. We we guidance the go will QX in XXXX through since here guidance discussed

on continued further segment our earnings to growth. was For for we future earlier that to refer well execute third plans. during believe Broadband details, summary, release is quarter, our We the strategic our positioned please long-term In issued today.

quarter the it questions. during value. In open attention planned as for your strategic our addition, maximize today. segment everyone, progress alternatives we we to shift we I'll Thank remarks SaaS before final to Patrick back the made and with you, the now video turn even for to up shareholder call of transformation And consider for

you, right. Walter. thank Well, All

just on open will your it confidence and continued these and there. execute. for Let ability up you to me We're to thank creation. concluding wrap support, for emphasizing questions. drive focused well we our up thoughts in want exceptionally be by positioned to your and value to Harmonic growth it we with that, continues And objectives shareholder sustained

Our much.[Operator Raymond Thank Leopold James. from you Instructions] so with question is Simon first

like try I'd if squeeze may. two, to I in to

activity. deployed The I'm are the these And initiatives call, of mean amplifiers. for what talked in And build-outs answer of sense, to like I indicated if some is without be second of changes can And may that nodes of deep and Hopefully, fiber of of the two make deep from those from them. need looking availability fiber you the amplifiers, DA have for associated be upgrades sense deploy can upgraded you can some how on Charter rural that my to but upgraded conference some thoughts first waiting don't questions that market more they Harmonic. you much timing amplifiers the to about one there upgrade And was for I'll what require somebody carriers see the I is some their on some any rollout. the publicly Harmonic. ahead sorry, in its of share what think they get basically its then potential want do and question, for other is might both to upgrade of

Yes.

Thank Okay. Simon. you,

think a been asked attitude. about What anything beyond number I don't been else we've you and about take their cetera. said through We've et First, And of beginning from everyone is plans. to questions these that would charter have wait-and-see beginning, they what with position really specific regarding ramp-ups schedule, from the has remind our a we I to themselves been say large Charter, the customers. onboarding

I seen think we've a lot.

So that experience, a of a we've lot got of bear. lot we're to experience bringing and

neither in the we've unprepared eyes is being got which short-term prize, big picture. the schedule. for are That surprise changes on our We -- or said,

on where largest you if the think secured the Charter. year we ago, this compare to operator planet, were I we've a second

partner their years. the of their we're enabler several the changes the there. that we to going beneficiary going that heard are nothing next networks the picture and We trajectory a big of And think across going of forward. we work do from to extensive over And They're exciting and be think have them opportunity it or work. work prime

your the area, question nodes and on on so-called is needed done core question, Indeed, on an needed. we've of But RF the I is would a significant out what That which the no On ahead good said, there others number, I it's the there amplifier of second amplifier have is Simon. for, exact the opportunity footprint. what DAA is technology DAA can't and X. say, a is give being there a where majority question, done you DOCSIS significant the to

then. year X.X for quarters In growth ample fact, now. DOCSIS think DAA that say, amplifiers, is RF is now there from our industry and let's X there doesn't be by opportunity proactivity investments expects in need a I amplifiers that the to between our for estimation is And from view now, roughly

will our well, our amplifier focus And that doesn't the to -- technology the be the projects. year in plan, amplifiers. We'll over involve on of that available, playing DAA mirrors then So when some next expand. is customers' it And plans. part we is think key involved field our

Needham Company. it of with & from And line Ryan Koontz the comes

share at the high Simon's I down. a conference DOCSIS view was you just couple deployments level, DAA a higher C follow speeds. question obviously, a we're at want any don't I that you kind There in follow-up, quarters if kind mind forward? stages plus of to early about Can DOCSIS lot up X. DOCSIS share to weeks helpful. what next the can back any your few hardware get I thoughts? of transition going you mean, very the of of have is And in X.X the X of mind. one bus about have kind if to of on of And would mix you this over about thoughts be model

-- Yes. question. for Look, let's you the thank

than One, you see you've virtualized think then things. as architecture I two centralized where the That's distributed in predominant going the DOCSIS separate the architecture as as have X.X forward the industry the I that more in And -- it's well is were clear devices. that hardware area. DOCSIS it. And clear And we're at Let's saw edge that core, well that's hybrid as X.X that, you think Harmonic the going it's if for consensus at show, industry as got DOCSIS leads that fiber. DAA, you before, to and and the of score. ever

reactive think really to as if of were you X.X there boosted the overlay in to I allows on it, going you an we're you're technology, them as our Ryan. see well mix call – Now all think, opportunity. what's to mix be going this your the too X.X to out we core, above. I there's all stuff going to our powerful of of Booster it's this But a amazingly essence is that. way that of X.X see the taking Army top a we're to exactly now knife X.X X.X, competitive be, customer some cruciate, on the in giving demand X.X, And mean, well fiber X Swiss forecast. on of customers And we're what And maybe I flexible, of of be as question of DOCSIS Denver, modem advantage DOCSIS going of a on between to hybrid, saw front hybrid mix as hard

think advantage got to key go platform, exact thing of that the what's before, more this. than I positioned I'm for with not customers but to And the So the getting take us sure, they've the we're so ever mix, optionality. is Harmonic is

have I a all the on is platform guys the that And huge you software question mean, differentiator a Yes. can that. quick certainly, do video side.

the the give about customer separate us SaaS growth going And some in appliances. on that different the businesses maybe Or of the cannibalization are appliance talked direct two in side You seeing headwinds directions? in you light Are can business? of and these world? a you streaming

it's Look, overlap. Basically, a question. great there's

As ads. we pieced apart quarter new and we for SaaS record had a

So as found half we was into it, moving about dug But a new we other new kind was SaaS customers it of the models. to about business or XX-XX actually historic appliance customers model.

-- So saw is in the we partly SaaS this responsible XX% for is weakness say, appliance. quarter, responsible past transformation the let's in

the cost is than its headwinds capital, more broader it's across Maybe cetera. internationally. landscape a you'll Now you're different carrier other part leave but et inventory, the little really seeing of no bit

or mix both, Ryan it's the two. a of So

Steve And it Frankel Rosenblatt. with line comes from of the

around a Patrick, been into similar lot chain nodes? Is to it's X.X, how supply of there those there's Or into visibility impacting back have concern the the the amplifier a on chip do X.X get and nodes you the discussion availability need Broadcom and side. market? you X.X about ship supply

complexity we in The for a grateful shape. with excellent ex lot customers. high-level answer relationship there, Broadcom there's that we're moving we're with of think high but good parts, of We've shape And a got there. in the good is level, lot our alignment we're

great and that's neutral been you group Okay. other in Tier that then kind or been new first have the in stuck customers moving of group tier -- ramping, of news. a this forward? you've to that's There's X year. of accelerated X do that get And new of can What terms got Tier

extremely Well, on question. we that this out come exactly of event Denver, encouraged recent in

PHY it, we There months out unified it's the was A answered. product. being versus It's out lot think ESD. back a If uncertainty there essentially versus about was all you X.X, ago, later of PHY stress MAC. come a FDX roll come with DOCSIS on set year confusion. about those We about and Remote Remote uncertainty -- Remote questions XX of

substance customers as X of clarity as leading have mean, board with on -- holding yet fog we're And from who having we're well have were get I now really things discussions the I It's on to that specificity quite plans think Tier encouraged. having the So is their back clearing. Xs. Tier to -- the

with next Now to we, at we're feeling with this place. doesn't we're are be the very trajectory a continued good technology it of industry in going our them But the product and week. that we look, deploying mean look as business, and

one. where you Okay. what the in the one what We in looked last then we broadband Would -- the And talked quarter? weakness side about the characterize the but broadband on book-to-bill like were on side. video,

here. one businesses, quarter. of our We're Yes. Steve, Both its below Walter the in

" For the Notter our of It next question, please. sorry, George Steve I'm line -- comes from Jefferies. with

network. just wanted I integration customer to of guess, I into CableOS the ask about

up and look on just I to some think MSO wondering, timing that But that done does running do? What the charter Is that to be get you CableOS. I'm where to integration process. there are a Is big referenced earlier. just I'm like more you curious done? I in know there's on integration that it has like? of

are cloud provider. company We're technology historic it's Indeed, very a A CMTS change in dimensions. new And event, couple or massive advantages from It's is software. operational It's amazing driving few a Comcast the different publicly CableOS approach others were they at native. you the speak about tools. the telemetry heard now is of system. a than recent a with broadband

number All at transformations of of CableOS core come the after is really on the of. the those end, back a

answer is of it's of is that work. varying on are amounts training excuse at specific good coming on it exact CableOS we're the time. we but it, midst we are customers are And onboarding who on timing. terms can't to say one every we've adopting me of -- onboarding. process is progress of progress question There other in customers and with approaches. we're a integration cOS, good as in time. board, customer are there think except with with yes, of I not And that is, you customers And this take making The give seen, there new tools leading of So where who with making George, charter, we different with

have range sort it? maybe minimum in terms there's guess, there seems experience kind Comcast. just should like more of a to Is maximum of Comcast terms it's integrate other quickly. takes for if think guys that I move process. of sort that guess terms of about that in and of I certainly it deployment in a a I'm network the on and at hand, just look of the your But It of time the achieve years, number much of you or full we like seen customers there from smaller of I velocity timing just integration wondering that one

X We've the the the we priorities depending still all although the we're of that lot a George, months historic to happening a between, with as network right. processes and seen Undoubtedly, learning, And to network lot we very improved a dramatically since a more months, continue that customer time shortening, is range concerning years in at the first go variety of a in back innovation thing, on times took that then. process working closer for over it gain involved and you're it's a back experience. we're the wasn't of of with office. year. of the the massive everything all have with. in the to legacy of time. lot Well, median take a are There's But was we definitely less deployments Comcast X-year than happen that factors just and If and reasons, and kind orientation of or

the with for our question, line from moment Markets. Capital last Savageaux And Northland Timothy please. One come of

broadband the the side. A be gross overall on question margins would about topic

a gross a I pickup sharp there. in in pretty on expected increase And broadband. QX and to and might guiding rebound that You're congrats have revenue in margins

If first $XXX you're were XX% around at you a when USD look the you half around gross. kind the of quarter million level,

look changing bit. So the it like does is a mix

bigger mix X these of at you guide So margins relative but sort where what what a win more ramps, broadly, as to out? You factors mentioned look are to reasonable ramping? the that and a saw for you to gross in hardware broadband maybe you half? And then QX, Might Tier in that settle do of you saw just more not first think what some expectation heavy? affecting be relative

here. thanks for Walter It's question. Tim, the

just mix QX we're ramp initial of being of product So definitely inclination as it the seeing of terms centric stages regards specifically more a terms gross to for in margins is we the in margin notes. in in that towards the up your that impacting X with QX, Tier

forward to provided a big a that's longer then terms gross QX. broadly, part product so for question, guide look in as period more time, that shift the margin of the will the And of mix we over we've And of get and the more margins the you certain a between with as ramp more as the nodes up well have bring will the mix you state that as get level. a customers, you'll higher cOS into steady and

of what a And representative more margins would our you a at when look we've so and period... longer should over before the look you like that in of comments, our kind view rolling to we give guided over prior it said expect we X-quarter period,

And Great. into with doesn't instead you're follow-up, a additional big maybe QX Comcast like it sound well. ramping recovery this and expecting Tier my X

you your QX a just First QX, strong you this it of about to -- but that look at And all, itself. come 'XX talking prior Charter think we in 'XX, will with as come Comcast by ramping to obviously, down down is concentration do expect with fair statement?

Yes.

continue guide we Tier 'XX to and be our Just, QX for Tim, ramp-up on very QX in similar quarter expectations of is mentioned specifically, a back our ago, X. a another what to QX in

reduce will nature, customer percent concentration. terms across the by the of that, concentration in largest So

And the of concentration more bring on other move we as concentration Tier customers customers, X direction through XXXX. in well continue less a so we expect will as including that as and move -- to on we as

And Harshman over this final Patrick comments. call the concludes the period. I for will turn Q-and-answer to

today us thank We and with objectives you Good focused look discussed and to here value. shareholder again next growth all the appreciate day... driving you. Well, Okay. the We speak to that joining We forward opportunity dialogue creating today. our your remain we've support. for on

and may for your and thank we now gentlemen. ladies that, With you, Thank you disconnect. participation, you