Harmonic Inc. (NASDAQ:HLIT) Q3 2020 Earnings Conference Call - Final Transcript
Oct 26, 2020 • 05:00 pm ET
Thank you. [Operator Instructions] Our first question comes from John Marchetti with Stifel. Your line is now open.
Thanks very much. I appreciate you taking the question. Patrick, I know you're not necessarily giving '21 guidance yet or not giving that outlook, but Sanjay and you both mentioned on the call, once we adjust for the Comcast impact in this quarter last year, the full year is obviously north of 50% growth in that CableOS business and I'm curious as we do start to look out into '21, and we think about the growth rate, given what you've gotten in backlog, give what you -- there is even a chunk of that that's not even fully in there yet. Is it wrong to assume that we should be looking at that type of similar growth rate as we're looking out into next year? Or what are some of the puts and takes as you think about '21, just for that CableOS business?
Well, thanks for the question, John. We -- in terms of puts, we feel very strongly about our competitive position and we feel it from a technological perspective, it's even more apparent that the market is headed our way, if you will. Really, the open question is, what will the pace of spending and investment be and how quickly can we on-board new customers and scale with those. I think as you know what we've seen. We've seen a variety of results. We've seen some customers come on board and start scaling quickly, others have taken a little bit longer amount of time. So to be clear, John, our question is -- the question in our mind is not one of -- if we can gain more market share, but it's simply how quickly and against what kind of market fundamentals we're working against and that's what we're working through right now from a planning perspective on.
Okay. And then maybe just as a follow-up to that, you mentioned Cable-Tec a couple of times and then we certainly were remotely participating in a lot of the panels and the discussions there. Just curious to get your take on the competitive landscape. Obviously, a lot more being shared about others coming into this market, what they're seeing from the trial and deployment activity perspective, but just curious as you're talking to customers, you had some very nice wins here over the last several quarters. Curious how you think that competitive landscape shaping up right now.
We came out of the event feeling pretty good. We didn't know what to expect competitively, as I've emphasized several times, we don't know what we don't know here. But other than the marketing messages of our competitors, kind of pivoting strongly to what we've been talking about for a while, we weren't -- we were not back by any specific announcements and the feedback that we continue to get from customers as well as other, let's say, close industry observers continues to tell us