Harmonic (HLIT) 29 Apr 242024 Q1 Earnings call transcript

Hello, and thank you for standing by. Welcome to the First Quarter 2024 Harmonic Earnings Conference Call. My name is Towanda, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. I would now like to turn the call over to David Hanover, Investor Relations. begin. may you David,

Chief Hello, business; Harmonic's thank Results First today Officer. Manager President With operator. Vice Ben-Natan, us and Walter President Conference for Jankovic, today me General and Harshman, Patrick for Quarter Harmonic's are Officer; everyone, you, Nimrod you Senior Broadband and of joining Call. Executive and Thank XXXX Financial Financial Chief

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

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

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

and strong Today, and technology full-year this continued of we Key of driven video welcome, our David, call. updated our growth QX continuing first orders opportunities. retirement which include new our ad convertible customer broadband sustained and business execution and by share quarter prior multiyear the line guidance convertible both delivery highlights supporting debt revenue business' sports solid wins, reported dilution notes. Thanks, are SaaS in opportunities in growth our with trajectory; confidence with associated results month, everyone, and to demonstrate new capping this outstanding growth, and and our outlook,

broadband We also selection announced Meeting, our Nimrod Harmonic have our Harmonic. on business. of to April Nimrod, to supporting Shareholder Board's with I growth XX, of and of to call on the provide the X, at our that, the in over full confidence Nimrod turn company, detailed And for phase look next my my June the I'll driving our relationship the the next and CEO update planned and team more of forward having as retirement least now with you a Walter, and for Ben-Natan Annual year. another a Nimrod senior on continuing date Board

Patrick. you, Thank

in to growth and DOCSIS served cable in solution modems of with XX.X XXX, represents another X.X the to driving now with million of front new We broadband of strong further up deployed modems a which to backlog. XX% revenue #X. $XX.X bookings, our new now Slide a expectations. million, and global year-over-year, record us again, of our reported DOCSIS opportunity deploying our We XX% highlighting cable addition approximately DOCSIS This fiber-to-the-home. line in segment on The was of number of worldwide. Moving business XX% corresponding quarter globally, still year-over-year, decrease reached customers XX% upgrades sequentially had substantial

is As of and year the Dell'Oro market category, of share share leadership leader broadband in growth, which well Remote Harmonic a in PHY consecutive DAA cable has recognized fourth the CMTS becoming global market virtual equipment. total result with as as a this devices

communicated of with DOCSIS and in the last expand X.X to pace expect accordance we the shipments As accelerating further quarter, the of we plan, is in half second this our year.

DOCSIS where participated our showcased highlighting of gigabits X.X with record technology CableLabs second speeds and solution, cable Additionally, DOCSIS recently DAA we DOCSIS the multiple X.X DOCSIS per we X.X in and end-to-end interop for X.X modems. interoperability event,

fiber achieve time speeds and edge maintaining Driven and platform to announced and lower running cost COS the our application network compute the cable networks, earlier getting with DOCSIS the to edge and implementation. quarter, interest by new fiber full existing on AI dynamically virtual In potential is it new we maximize of the while operating the capital Beacon noise our platform in addressing CMTS, faster and lowering compute new built speed migration on which secured alongside further DOCSIS the new upgrade unique purchase the for important the in helps using opportunity which unlocking first recently X intensity broadband interference Tier of also X.X market. a the to customer our a modems. from are of approach capability, our initiatives. launched increased unique a fiber generation milestone our option We at This with international notably, higher-speed we momentum combination innovative a network order operators fiber-to-the-home X-digit is the is our Most of boosted X.X DOCSIS capability, products creating an a product our This today solutions. have validates customer. we for

We Island also strategy. fiber with continued our traction see

their that fiber and operators enhance edge-outs our We to to HFC footprint, enabling and high-value [indiscernible], way areas use with existing cost-effective self-overbuilds churn customers within connect existing DOCSIS fiber. in dramatically who technology and services a enabling within MDUs service are reduces

Both both critical scale to as XX% we operations our fiber our we greater are are a than Millicom advancements and is and be Comcast node-based continue we Tigo our expand that contributed Charter add first as their solution deployment to service. success. our the quarter, them key driver fiber-to-the-home financial scale deployment revenue, During of milestones. offer also respective first-quarter These of accelerating to working and announced grateful and to of with with

continue positive is marketplace. larger We results with business. focus This business our the on showing of a from to in further our portion diversifying coming others

downstream are enable of We by upstream modernize opportunities driven their and pipeline urgency higher expanding greater architecture these an seeing to other operators, and from to the speeds. reliability

business dedicated XXXX in by be weeks. forward of quarter as this honored the sales expanded new confidence part Jeff strategy the and Board hired effort, give advantages, to Harmonic. are sales have technology CEO the uniquely been in carry coming excited next positioned to with expanding as our our of our rich ability We plan multiyear I'm be customer serve and go-to-market with differentiated in backlog, and through chosen here confident fiber relationships, with and new our first STP to a the our summary, broadband also according In of recently of continues business our today this beyond. As specialists. executed broadband to execution you many forward look lead to our to that of global growth outlook. XXXX to and us connecting have array exclusively I to products opportunities we great and Glen team and

Patrick. me it back turn to let Now

Nimrod. Thanks, Okay.

that continue larger to see become SaaS picture Turning portion segment. business. big our now of Video we to streaming is The the a

the spending million, from revenue to appliances. closed revenue review year-over-year, driving but down customer $XX.X in and see growth down impacting We've SaaS modestly traditional In improved $XX.X are year our we've Total million, sequentially. with XX% actively SaaS and ago. sector momentum pay-TV a million now was segment our addition, focus headwinds macroeconomic profitability. on business $XX.X continued up a quarter strategic and rebuilding on further was

new customers Our growing strategic back also review outcome. commitments appliance hold SaaS and was causing pending of the process to number on a

to problems. results, X at seeing lab content lost closely man of invest innovate of have technology. financial couple growing usage by SaaS most the and streaming-related who mid-tier success new to our Looking by streaming to more loss we've Tier largest successful a for and/or our especially customers, we're SaaS offset with and we into Driven continued partially customers customers, the continue by sports, rights our

in-stream the recent a NAB was ad technology with show. personalized huge Our hit new

advertising, recognize marketplace like customers For capabilities, and insertion you is persistent the to of experiences our marriage high-quality traditional affecting instream media versus our programs sales simply live-action streaming industry-wide. that been look of That watching unfamiliar sports-focused appliance than and of a existing still this with are live those technical inserted new personalized on with stronger since winner. SaaS launched opportunities creative with continues and activity. the customers we also breaks. ads are it's other viewers stream Based we The said, personalized of our real pipeline unique programming ads sports us ads while it remain into to headwinds has and

And so actions, confidence our to result segment outlook. deeper full-year hand taking these outlook. our sales with streamline.As you, our to we're that, for Walter, and I'll continuing of increasing of action in our restructure plan, and now actions EBITDA and growth we're discussion results, a streaming a And over

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

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

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

results Our our consistent were expectations. with first quarter

on revenue exceeded of our here highlights guidance we in Slide out first call the I'll quarter X. midpoint some Additionally, of Broadband.

$XXX.X For of million. the we reported quarter, revenue total

$X.XX, strong of deferred record revenue $XXX.X and We million. and bookings also of of $XXX.X a a reported backlog X.X, EPS of million, book-to-bill

Before guidance, points QX financials full-year detail first our few key more guidance. regarding and XXXX and to reviewing like providing quarter detailed in I'd highlight a our

we million. 'XX $XXX of to are FY guidance reaffirming Regarding $XXX Broadband, revenue range million our

we the prior our forecast, we quarter, call. and commitments information, closely each As to latest just do earnings customer evaluate

the revenue a accelerate Based continue guidance, 'XX from momentum the 'XX mix increase of expect to range. FY the XXXX, anticipate FY has Although to prior year-over-year. expected to in changed Broadband we customer guidance, in meet growth our we of our expect At of on guidance our reaffirmed XXXX will half we business midpoint XX% basis. second Broadband revenue on year-over-year revenue total,

multiyear we and which to EBITDA 'XX in Nimrod to guidance growth. continued As with earlier, to taking our customer leading increasing improve our With discuss backlog, we to are profitability, success drive detail FY regards are minutes. actions our we I technology, will few due Video, more are mentioned in positioned strong well a

call. million, Turning to we above and April nearly the updated QX year-over-year earnings basis. Slide XX% was guidance original guidance on with revenue line of in This was midpoint a XX% early on Total sequential the down in $XXX.X provided X. and our we gave last the

at a revenue million, closely year-over-year and guidance. our consistent QX more was Broadband, of Looking with $XX.X XX% decrease

QX above was total original of XX.X% margin business Comcast in margin Charter range for representing due due gross gross reflecting As and high XX% representing product revenue Tier revenue basis first representing XXX year-over-year points basis points anticipated, saw the XXX revenue time, an to appliance streaming with margin lower all-time year-over-year to for expansions in revenue end during factors headwinds. segment. of we to 'XX, the representing revenue total and was XX% was and macroeconomic customers segment XXX quarter. with included last large XX.X% of 'XX, the our the XXX be down the sports and due Video of growth At QX live to the earlier. Video had guidance QX margin gross X Broadband customer. sequential greater mainly from total than million, improvement quarter, record wins. up million, Patrick sequentially gross points in and sales compared segment year year-over-year XX% Video, 'XX, a Broadband In shipments up continues from XX.X% Total an we by the SaaS mentioned reduced revenue, $XX.X and mix. XX% same basis $XX.X QX revenue. increase In for basis SaaS was Video of first XX.X% down quarter, QX driven X revenue to customer points new of company 'XX,

QX Moving all EBITDA $X.X a down comprised 'XX X. the expenses 'XX QX from $X.X income negative QX 'XX. with in million diluted the million, were Broadband QX came in EBITDA exceeded low Slide our $X.XX million Adjusted a average in of count sequential share QX expectations, revenue. is $XX.X per million share $X.XX share 'XX with $XX.X QX operating the for primarily ended offset expectations per compared XXXX the $XXX.X at was partially previous and quarter This 'XX the in from We million statement X% due of $X.XX of The due share, compared buybacks. line end of 'XX with weighted debt year-over-year. QX increased million, guidance Adjusted our Video to Video. for and Broadband calculated to by while for on into and our 'XX. $XXX.X lower in dilution, to million and convertible down of $XXX.X first translated increase EPS

Turning The book-to-bill bookings $XXX.X for were million. ratio quarter. to strong the order QX X.X book. at was the

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

stated we the than ratio historical the greater expect of normalize over approach previously, As X. time, we benchmark and to

collections, to $XX.X QX from with decrease Turning in the on QX 'XX. to offset ended sheet flat from the $XX.X due loss accounts balance provided predominantly cash in which 'XX of Cash Slide partially receivable operations net the We to compared quarter. by XX. a million, was million

the repurchases, which $XX.X discuss more share used also for in We quarter million shortly. first I'll detail during

receivable hand XX result the to large due to as at at XXX 'XX. compared at the days was discount. a in days 'XX inventory was period. QX of inventory end XX XXX to sequentially following sales an a compared taking end The XX was and the end strong million quarter QX 'XX in-feed the higher in QX. prior of QX of of customer in end on lower $X.X of 'XX, accounts 'XX increased year and the at Turning Days The prior outstanding in pay early and period sales year DSO XX the to QX QX

Turning to capital allocation.

credit top the in we $XXX end remains million in in growth. a with April term strategy, done principal in closed using shares. of When delayed building facility repaying par strategically in our and was million the our a $XXX quarter, over inventory convertible strong by will X-year cash and invest $X.X million as December distributed meet first redeemed notes Our driving future Subsequent outstanding, $XX we the draw the loan. we revolving a to In demand. to that XX, priority on included we've 'XX, million with million appropriate, the past in $XXX.X entirely facility, credit the this credit line value approximately line

of drawn we have $XXX credit facility. As today, this on down million

or at approved approximately $XX.X during date, under average program. price we $XX.X Additionally, $X.X the our 'XX, position liquidity of with enhanced of million QX in shares our we To repurchased million back bought million repurchase an million $XX.X. $XXX have

repurchases. a As Harmonic's conditions, we balance of our stock prudently last our have shareholders the our QX, we At total $XXX.X maintaining available and during than as regulatory leverage previously, and forward. a of said earnings of less factors, continue around Also, variety mentioned overall backlog net stock to of while less amount no liquidity price and going was revenue the timing Xx corporate any of increased or an to record manage of funding the and stock, believe $XXX market We we liquidity million repurchases million. plan will call, our by capital to deferred common through needs, growth available sufficient depend sheet returning plans on end requirements. including

the demand backlog next request shipments our our and providing revenue customers and Around strong for reflects growing of XX Our has services large Video within deferred SaaS and for customer XX% continued from products of months. Broadband dates commitments. backlog

the Lastly, quarter. million cash we $XX.X in flow generated free during

our business. guidance, reviewing regarding our Before comments just Video few a

business. review As of a that Harmonic of concluded on would Video strategic our and retain our determined April Directors X, previously announced following formal the business, XXXX, Board its review

opportunities, to We profitable are these XXXX. related of be streamlining As To we in to optimizing structure. completed a centered Many this driving focusing on cost on later program scalable operations, vast this cost business its we this its by million of part of than achieve strategy, and business. Video currently will already and align majority to strategy, growth costs year. go-forward our them go-forward of to expect actions QX expect to are market Harmonic's restructuring implementing $XX savings of underway, these be restructuring initiatives approximately no in incur the

We expect result are Video we approximately and as in necessary believe $XX Due approximately to actions, Video on actions actions these 'XX. FY to an in we align with business are our savings time, better to savings We in achieve of the these our these strategy. a FY the 'XX FY At basis guidance. in go-forward able our increasing be persist EBITDA 'XX. Video on annualized believe per revenue million same are beginning million 'XX FY that, non-GAAP Once XX. guidance will Video we completed, we year. to guidance achieve to $XXX our market this now quarter, revenue reducing reflect in which below conservative to With the FY being second ongoing review at restructuring of let's 'XX the Video throughout expect business EBITDA is million weakness, breakeven for $XX Slide

between to $XX gross to million million. million gross $XX We $XX between due product to XX% margins EBITDA million; expect to between adjusted Broadband XX% between $XX million to and million profit deliver to mix, $XX $XX revenue

revenue between full year, million between gross $XXX million, $XXX profit adjusted million to gross expect and the to between $XX For to XX.X% million $XXX to between we million. $XXX million; XX.X%, EBITDA margins $XXX

the in see half time continue expect hit during return frame. For potential quarterly of growth revenue to top-line to a to to year the Broadband, we record second that and the

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

EBITDA $XXX margins million to million. $X between $XXX we XX%, million $XXX profit to adjusted to revenue year, range gross between from between million; to XX% million, and $X gross expect to full the For $XXX

Video, to continue earlier. For the mentioned reflecting factors be we I conservative,

Slide to XX. Turning

to For from range count $X million, to in to of $XXX.X weighted XXXX, XX.X% the $XX range company million second million to a the range million EPS revenue adjusted $XX $XX of $X.XX. range million, the gross to EBITDA $X share from in quarter of gross million to to of average diluted XX.X%, from and total $XXX margin profit expect we $XXX to million, range

EBITDA to diluted to $XXX reported between $X.XX to For and XX.X% in the between XX.X%, we summary, to weighted $X.XX gross to results In gross continues count EPS range average $XX guidance. per revenue $XXX year, well-positioned of million million, between with million to million Broadband share million believe between be share. profit a $XXX margins adjusted line from full expect growth. million, segment to $XXX million, $XXX.X for future we first-quarter our $XXX We

June will believe we turning In addition, with it hosting growth actions, segment our everyone past. be to XX, restructuring for the have lastly, profitability. I'll over mark to in Day similar event calendars. our Video held the On we Analyst positioned long-term And will your and before to we better Patrick, a virtual be ask ones

During before segments. will additional for both multiyear today. Thank I'll for the remarks up as now details back to questions. Patrick Broadband stay provide call get Please we Video for updates open for it tuned final And closer everyone, you, we attention we our turn and this event, for to business your the date.

Harmonic delivered summary, In Walter. quarter. solid another Thanks,

growth. Our uniquely positioned order we than relationships be sustained position, to and and book, are competitive ever, for continue customer stronger

to call let's the best my you that to great to and note, for said, customers, say And And talented that, for up who personal Finally, questions. all thank challenged I've my and alongside Walter shareholders of and work your still on now with both Harmonic I have again supported the convey colleagues, as come privileged want me. is Harmonic. a view committed been to you, some and open

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

last Patrick, the doing. you'll this be is call

worked Just getting amplifiers. been I X.X. that but the of you're if resuming affects availability one particularly manufacturer full wanted and you've forward see the was rollout want But to wanted Harmonic's the great thank and the to of we Nimrod, you're you expanding evolution you. into how relationship the looking for with DOCSIS and explore amplifiers the on not dependence extended-spectrum we're help. understand your could question, a understand assuming to the time things duplex I us, what with And of a the amplifiers, for for of of trajectory both to

things, of couple a So Simon.

is network put First are forward-looking. that doing expansion PHY X.X which pass area forth. X.X. all, something it is would are if network operators others or X.X going as seeds of the any are they that whenever And remote X.X, become X.X not thing so put of to device even are always which for will amplifiers upgradable in and putting The to ready and the same an love rest they

think the vendor on the So the have into was year silicon terms the one. and operator, progress field trials this that kind industry and two, would I Number in them to in reported go Duplex go plan deployment that's I into a number from to the and you reported go the 'XX. by have going to back of Full of should with of all plan what to amplifiers. poles

So on that this seen. is show I you that's guess many really based assumption our visited the of we've progressing well. October, have in And SCTE everything

And just a quick follow-up. maybe

pause. of some to pausing comments related I'm of the what segment, as outlook And how review a the bit looking might the bridging for maybe to for made might What incremental video customers was the be the I Patrick's then think leading strategic lower to help understand some of And a a attributed Walter underway. little On is as explanation to aspects the be is weaknesses. video? I much to shortfall reference other of maybe the full-year

it kick I'll here. Simon, Yes, off

to on full regard expectations in the Just the year.

will of creating that's expectation certain business conversations, opened was decisions. the on those of in there terms pause announcement the was the with making Obviously, this mean, up hold. we recently, customers of conversations that I an some is terms remarks, opening a the in highlighted Patrick that As that and with forward move made in

impact is and to headwinds event marginal perspective, especially the see say continuing we're with more the regards that related I'd is from the full-year from business. So that to appliance a to that guide

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

significant I -- is guess ramp wanted for the year. of there guys now pretty you have just I a the to balance ask about

I about certain that. in And more the the confidence give in could calculating what that think probably was terms I about would second big side, versus sales us activity, half. $XXX seeing traction anything But first your on the ramp? of it or I'm that X could largest give second looking any of million And sense that half in customers broadband million half at you $XXX you're are for towards in pipeline us more helpful. in a be bit components

Certainly. start, ask more George. provide on Okay. Nimrod I'll color Maybe I'll that, some and to then

customer I full largest addition the expected revenue standpoint, in First of a of the an higher demand opening we're remarks, back for terms a year closely we the we're ensuring especially and year broadband. half chain, from the beyond customers obviously our expectation expectations have those the in customers. a larger in the with that all, growing the tracking And from mentioned base customer the the of from very ready perspective, for largest X in to as do of rest of supply customers,

it of traction focused and with very is to the turn level some and the And of And seeing those great customers. highly team like building that of in to we're market to in and market so other terms in around those from rest the QX some our of we momentum Nimrod other up terms in made half. customers. revenue continuing the conversations provide opportunities I'd encouraging back color we're some what over having the revenue in the

boosted But that. with DOCSIS talk increase, at we customers retirement lot DOCSIS like rest we the the you and of and availability competitively about we think network look are what And an which into lot increased just the nodes operators major or the the to with customers demand, interesting, speeds. of it's and and through and to now I the you the or see just urgency this, upstream touch on with really an more legacy now modem, or network. driving modernizing look combination available all-IP. that looking you moving of a we with market And QAM of that. into nothing And Also bandwidth to heard freeing have other see Yes. call X.X, anything the is we some of I modem up a to X.X whether becoming This boosted the keep what to or downstream gives call whether did networks. a fiber have it this of the amplifiers boosted into more which capabilities of is in put do have video a may they X.X bandwidth announcing up This is that, X.X X.X can of customers architecture. network what

us rest in follow. So market trials. And field we have the for this of to a lab stages giving advanced confidence lot is the of these discussions fact, and and in the

about big that still conference, those in seems TAA from Is that of talked remote strategies NextGen July. that Cable accelerating a guys the talking perspective? assume they doable have for or about, ramp. their the is build example, their reaccelerating I piece know second-half your Charter something I were

We specific on cannot any comment customer activity.

at X major an specifically, the provide you of their and earnings update. think announced I customers, if last both them look they have week, did

I follow any that. talked Charter on by about comment 'XX. date. completing cannot their I specifically can you July on So upgrade specific believe up or

comes Frankel question Securities. from next Rosenblatt the line of with Our Steven

customers the fiber-to-the-home deal existing you about color this you is us more Was of customer? if a CableOS during your talked today? commentary. that new on a little your might wonder give this I Or X-figure within one

international the we're is is introduction. existing And being customer new that is last this X us that this phase during an Tier which Tier year, product this by exciting excited announced is about new second adopted because architecture. So a the fiber major we And adoption generation our fiber customer. what's it's product this of for of SCTE the X for

the kind some Is back does be how of of like quickly this with this Or have prolonged that half deployed in customers? we've this will something the DOCSIS seen ramp year? get of we And the deployed? do

is the half and second definitely this half, are starting the Shipments early half. of No, is year. second second this

maybe the NAB customer color streaming at an of then And Okay. conversations in update just around video on business. the

Steve, Well, and in take I'll I'll X this answer it one, ways.

that in to speaking, bit I to a see space. there's we explained, NAB, guys at and traditional felt [indiscernible]. I slowness some mean, And candidly the our Walter as packaging drag been that us new it overall the of on still a of of extent talking client market to ways The streaming some space. large content. both about First, that little new looking back. were And force content, the of was just and the some companies out about that media

our and after leading to since it's around I particularly offering. pipeline As significant the last the we launched new mentioned, it's SaaS larger been substantially really NAB in than opportunities stronger quarters is X SaaS and been streaming up than

that. But a of mentioned, that's the you or and part more your not So for seen in the of something models. specifically that's Imagine something seeing, opportunity monetizing we're existing ever of it personalized that piece scenario innovative that if where there's it's being discussions And same And neighborhood, et of new is and new in-stream really is may squeeze back, there. is exclusively, rights. advertising have incremental a Ford before, generating becomes supporting cetera. advertising lot broadcasting. this served sports is Steve. Everybody excitement and is the now home advertisements at new broadcast you a happens squeeze and the back up bigger powerful, truck part seeing particularly another advertising, all I And but which as it than is rights, around programming, better models,

And and contributor revenue material a Great. lastly, just a that how the could more nuggets business. as maybe be on few then Beacon to broadband

it of First a all, is service.

So recurring it's service. a

not of anything this are that the in that, is the of We disclosing pricing or think that network. with scales you nodes can subscribers like or something but number

of of add-on revenue, we trial, is this over but start We that. bigger we in that to the of late this This top an kind expect time, are field small our customer COS. and see And the footprint the on year. generating

a do Tier can potentially out do this customer just how from to targeted lastly, you that because get figure is this product? benefits think And Or could themselves? X X specifically Tier at Xs Tier even

the targeted I guess your is was or Beacon, I on Eds question not--

please. Beacon, On

customers. small Okay. our not only Beacon exclusive ones. to be any of to relevant can It's

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

questions have maybe you of Most on my can been opportunity. a answered, in-stream this but advertising little expand more

about it You model? in-stream already for terms of the ad whole of is and of terms misunderstood. talking terms but I dynamic ready Where in model. in market in thought was was this that the deployment there, maybe the revenue I being maturity, were

live particular kind a ongoing is availability. not there but but advertising up of advertisement already new, It's advertising program break, this personalized programming with not for Certainly, personalized exists, matching Ryan.

almost I So customer earlier in was fact, about meetings, terms would I in I in in the broader spoke ecosystem. next mean, meetings volume, of with say, a

the course, of booth. we're, et an had But folks Now cetera. those company, number also of ad-matching not we through a

years that together together who do melt together we're were all people the NAB coalescing at felt very with that we're pipeline, things much now inventory that away, it or combination the the those into matching it and of who services. ad but -- and the will the in enabling just technology miles with So not

yes, a of in the quarters exciting, think next of going in couple certainly and and think we're I we pretty So to it's coming progress lot year. see the

the it follow-up supply of for just ramp? your the need, phasing Is And or at hardware? this DOCSIS X.X quick on to customer more ready docs you supply customers chain. Do in chain point terms meet are a limited the which feel in

I customers. our is an that ramping according and with the issue, the chain not phasing working supply we've it's to been think

track previously. it's based predicted on we what on So

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

congratulations my you We're you And talking to I'll offer legacy revenue when thing. this guys doing well as got in started about $XXX with and $XX million. now both of million about since actually

that guys that's of that So building is with the working business a and I amazing that really over both business of it's critical. look the you of forward And pretty to period for accomplishment in Nimrod. time broadband diversification think terms

extent put business, an been whether Now about think, non-top balance? home meaningfully of performance to revenue. forward, it's number Are and where the Well, do the a interested grow have although away there where major take being this Charter, number ramp. that other doing right. full achievement. amazing and of X be sure real-time global made that to again, would a there, comment pleased But in know lot Walter with to how other up you of tough assumptions, could to a I the the that. you but absolute about range time? think over Xs? want that Tier And Charter's I'm with Comcast you XX%, right that not making that -- it which But that in that like percentage, has moving QX, I'm given XX% I'd shift fiber the it like you I'm MSOs the and both And broadband seems you And what I saying, might I'm business, in it is was about your do part be that year? business of If probably but but is was,

did first quarter from X results, in the it for And with Tim, had add DOCSIS on I folks think the were standpoint, traction of your forecast color a you on terms to when I around the numbers full additional the that more and that the I'll year hit But from pleased big high customers. and a are Nimrod points, strong reviews team also but getting outside also expectation the kick And with expectation. that some customers we ramping Nimrod opportunities, it's we've our and but can comment we of observations that on on type strategy in at terms some then and earlier just mentioned telco so fiber-to-the-home perspective Walter. et more made the both of the in islands, level then cetera. off it. focusing fiber more customers see their the Nimrod cable the around in strategies around the of

we half, the there. overall an observations second that the business and customers the I dollar mix We the of good obviously pleased customers have also traction of that growing we're perspective. have your seeing absolute we the momentum around So with rest the were good impact we is big but number, there think saw ramp in up expectations QX, as from but

to color that. over more I'll So Nimrod on it provide a to turn little

So would of say I things. a couple

is First list a operators and make of known of migration a key target all, there that have to to as next-generation them we architecture, opportunities. a yet

They also have legacy. customers a are our solution. We not XXX% have that still

and into expand say value architecture, look beyond I core outside, we're that existing And them. also we lot brought over our customers. of And side, on this area fully now couple expanded the the broadband we bring with fiber the with fiber at as cable to and of what sales dedicated have is And certainly which would where see weeks So go-to-market of we doing. we couple is an we're above first dimension leader looking another growth last I've is customers. a everything we of boosting seen a

good our to a a would So the feel major We're is transition and continuing for us along priority. of rest investment. the to on make the but of timing the customers right focus of they say this that through we I that on market the fact all it that focus make, them with that, taking the made we combination

the network. upgrading of as, bring the well DOCSIS fiber The it's many them competition, all As a network. fixed said, as discussion urgency, the the or urgent about urgency it's of into combination their of wireless, whether whether the feel I more broadband life we that of to extend

going So the piece focusing execution described. of obviously, to and growing kind as on keep we're Walter that

follow-up, which guess, the And Walter, maintaining just broadband target another in year. a revenue comment, for Great. I think, was, I on the

Is I which big about customer Or revenue, about place with think what to talking maybe more that like we're here, is fiber? you the customer? sort new same that. you getting I'd amplify of made more to a mean mix. comment did less a on different

Tim. Sure,

characterize overall perspective, I in we or as things the customer lot of as impact big as customers you it terms shifts, from smaller less. shifts of more had We've Just had I an some mean would it through we would could move some a on that And had could well. as of shifts year. have the be in customers well. be expect, it positive some an as in shift, when

And so around I of first of key question, your is situations. diversification. and on it it's think I this one things, those you one think hit all And the

when potential way. offsets the with there diversification some changes I going some team benefits As year, there's looked one for another the we're some at the full number of from terms getting in are way,

different XX we so it's the characterize I it have way And days holding that's the It's but guided work-up full-year ago. at that ago. the XX we was number. in would of days than overall still number the

call further queue. and over for to showing Ladies Patrick I'm gentlemen, like I in turn would no the questions to closing the now back remarks.

forward our again, you everybody, you Okay. this excited meet afternoon. then, about to we're We're the the good joining opportunity about momentum, all. have Bye-bye. next day. Until Well, looking excited thank for a us with to and We're quarter.

Thank call. this gentlemen, today's your concludes you conference and Ladies for participation.

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