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

Oct 26, 2020 • 05:00 pm ET

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

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Presentation
Executive
Sanjay Kalra

customer base and further penetrate our existing customers. Based on the midpoint of full-year guidance I just gave, Cable Access segment revenue is expected to grow by approximately 53% in 2020 compared to 2019 after excluding the one-time Q3 '19 software license revenue. At the same time, our Video segment showed solid improvement in Q3. We continue to see increased customer activity and expect the rebound will continue for the balance of this year, driving profitability and cash generation in both of our business segments.

Regarding 2021 expectations, we are in the middle of our planning process and we will be able to share more detailed guidance on our next earnings call. At this time, we expect to be profitable in both segments in 2021, while strengthening our market leadership position for both Cable Access and live video streaming. In summary, the Company is continuing to execute on its strategic priorities in both segments, delivering results that have been quite positive.

With that, thank you and back to you, Patrick.

Executive
Patrick Harshman

Okay. Thanks, Sanjay. We want to conclude by emphasizing that our core growth drivers and execution priorities for 2020 are very much intact. For Cable Access business, we remain incredibly focused on scaling our Tier 1 customer deployments across their extensive footprints with a growing range of products and services, securing new design wins with additional global operators, particularly additional Tier 1s and launching new solutions that expand our addressable market, especially fiber-to-the-home. For our Video segment, our objectives continue to be accelerating the growth of our live streaming deployments, expanding our addressable market to include both non-traditional streaming customers, especially through cloud-based services, and 5G bandwidth reclamation projects and to remain profitable, as we drive these growth initiatives.

Finally, echoing Sanjay's comments, I want to again recognize our employees who continue to push forward with passion and conviction, despite this year's challenges and I also want to thank our customers and our shareholders who continue to place their confidence in Harmonic.

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