Harmonic Inc. Reports 12% Revenue Growth to $678.7 Million for Fiscal Year 2024

Harmonic Inc. reported a total net revenue of $678.7 million for the fiscal year ended December 31, 2024, marking a 12% increase from $607.9 million in 2023. The company's revenue was primarily driven by its Broadband segment, which saw a significant rise of 26% to $488.2 million, largely due to technology transitions and new deployments. In contrast, the Video segment experienced a decline of 13%, generating $190.5 million, attributed to project delays and lower sales across most regions. The overall gross profit for the year was $365.9 million, resulting in a gross margin of 53.9%, an improvement from 51.4% in the previous year.

In terms of profitability, Harmonic's operating income rose to $63.1 million, compared to $22.2 million in 2023, reflecting a substantial increase in operational efficiency. The company recorded a net income of $39.2 million, down from $84.0 million in the prior year, primarily due to a significant tax benefit recognized in 2023. Research and development expenses decreased by 4% to $121.0 million, while selling, general, and administrative expenses also fell by 6% to $153.1 million, indicating a focus on cost management.

Strategically, Harmonic has been active in enhancing its product offerings and expanding its market presence. The company has focused on its cOS software-based broadband access solutions, which are designed to provide greater scalability and efficiency for broadband operators. Additionally, Harmonic has been transitioning its Video business towards software-as-a-service (SaaS) models, which are expected to drive future growth. The company also announced a new stock repurchase program, authorizing the repurchase of up to $200 million of its common stock through February 2028.

Operationally, Harmonic's customer base remains concentrated, with Comcast and Charter Communications accounting for 44% and 18% of total revenue, respectively. The company employed 1,240 full-time employees as of December 31, 2024, with a significant portion dedicated to research and development. The company continues to face challenges related to project delays and customer spending patterns, particularly in the Video segment, which may impact future revenue growth.

Looking ahead, Harmonic anticipates continued demand for its broadband and video solutions, driven by industry trends such as the increasing adoption of streaming services and the need for enhanced broadband infrastructure. However, the company also acknowledges potential risks, including economic uncertainties and competitive pressures, which could affect its financial performance. Harmonic's management remains committed to executing its strategic initiatives to capitalize on growth opportunities while managing operational costs effectively.