Harmonic Inc. (NASDAQ:HLIT) Q3 2020 Earnings Conference Call - Final Transcript

Welcome to the Q3 2020 Harmonic Earnings Conference Call. My name is Jimmy and I will be your operator for today's call. [Operator Instructions]

I will now turn the call over to David Hanover, Investor Relations. David, you may begin.

Thank you, Jimmy. Hello, everyone, and thank you for joining us for today's Harmonic's third quarter 2020 financial results conference call. With me today are Patrick Harshman, President and Chief Executive Officer; and Sanjay Kalra, Chief Financial Officer.

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

Now turning to Slide 2. During this call, we will provide projections and other forward-looking statements regarding future events, future financial performance of the Company. Such statements are only current expectations and actual events or results may differ materially. We refer you to the documents Harmonic filed with or furnished to the SEC, including our most recent 10-Q and 10-K reports and the forward-looking statements section of today's preliminary results press release. These documents identify important risk factors, which can cause actual results to differ materially from those contained in our projections or forward-looking statements.

And please note that unless otherwise indicated, the financial metrics we provide you on this call are determined on a non-GAAP basis. These metrics, together with corresponding GAAP numbers and a reconciliation to GAAP are contained in today's press release, which we posted on our website and furnished to the SEC on Form 8-K. We will also discuss historical financial and other statistical information regarding our business and operation and some of this information is included in the press release. The remainder of the information will be available on a recorded version of this call or on our website.

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

Thanks, David and welcome everyone to our third quarter call. Harmonic delivered a solid third quarter, as our Cable Access business continued to gain momentum, and our Video business rebounded strongly from the Q2 pandemic slowdown. Corporate revenue was $94.9 million; up 28% sequentially. EPS was $0.03 and book-to-bill was greater than 1, highlighting strong execution and market momentum as we head into the fourth quarter. Our company has really responded to the challenges and opportunities that this year has brought. We're executing well. Our competitive differentiation and customer relationships are stronger than ever and we see healthy demand for both our Cable Access and Video products and services.

Taking a closer look now at our Cable Access segment. We had another strong quarter. Revenue was $40.3 million; up 52% sequentially and segment operating income was over 14%. Our strongest financial quarter-to-date with the exception of Q3 a year ago when we recognized one-time revenue from our foundational software license deal with Comcast. As of the mid October Cable-Tec Expo, we were commercially deployed with 38 cable