Investor NDR Presentation

Transcription

1 Investor NDR Presentation May Harmonic, Inc. All rights reserved worldwide.

2 Forward Looking Statements During the course of this presentation, we may make projections or other forward looking statements regarding future events or the future financial performance of Harmonic. Such statements are only predictions and actual events or results may differ materially. We refer you to Harmonic s filings with the SEC, particularly our recent Reports on Form 10-K and 10-Q. These documents identify important risk factors that could cause actual results to differ materially from our projections or forward looking statements. We will also present financial metrics determined on a non-gaap basis. These items, together with the corresponding GAAP numbers and a reconciliation to GAAP, are contained in this presentation and earnings press releases on our website at. 2

3 Dynamic Video Economy 3

4 Harmonic Overview Harmonic is the market-leading provider of technology enabling production and delivery of premium video to any device over any network Media Companies Video Service Providers Consumers MANAGED DELIVERY MANAGED DELIVERY OVER-THE-TOP INTERNET DELIVERY 4

5 Harmonic Overview Broad revenue base GEOGRAPHY PRODUCTS MARKETS International U.S. Edge & Access Production & Playout Video Processing Services Cable Broadcast & Media Satellite & Telco 13% 27% 22% 55% 45% 18% 46% 41% 32% Global brand and presence California, Beijing, Hong Kong, London, Paris, Singapore, Tel Aviv, Tokyo >$100M R&D annual investment Over 450 development engineers 100% growth since 2008 Based on TTM revenues 5

6 Growth Strategy: 3 Dimensions International Video Technology Leadership New Media Customers 6

7 Growth Strategy: Broadcast and Media Market Expanding Broadcast and Media customer base 32% of 2011 revenue 17% pro forma revenue growth in 2011 Success spans traditional and mobile/web Internet applications 7

8 Growth Strategy: Broadcast and Media Market Harmonic to Provide MediaGrid Shared Storage Systems and ProMedia Carbon Transcoding for NBC Olympics Production of the London Games April 14, 2012 Modern VideoFilm Builds Fast-Paced, High-Volume Post Workflow on Harmonic MediaGrid Shared Storage Systems March 26, 2012 Home Depot TV Leverages Harmonic Media Application Server (MAS) to Streamline File-Based Operations March 6, 2012 Omneon MediaGrid Active Storage System to Sit at Heart of Live Production for 2012 Summer Games for BBC October 17, 2011 Harmonic Production Storage Platform Enables Efficient Multiplatform Edit Workflow at Crawford Media Services October 11, 2011 China s SCTV Builds State-of-the-Art Facility on Harmonic Media Server and Storage Systems August 16,

9 Growth Strategy: International Markets Penetration of digital television worldwide less than 50% 60%+ Pay TV subscribers International Strong growth of Global Pay TV revenues 9

10 Executing on International Growth Strategy $Million, Pro forma Q Q Q Q Q Q Q Q Q Q Q Q Q Expanding International customer base 55% of 2011 revenue 14% pro forma revenue growth in 2011 Growth in both developed and emerging markets Near-term headwinds in Europe 10

11 Growth Strategy: Video Technology Leadership New ChannelPort playout server with branding Most significant Playout product release since Omneon acquisition New ProStream transcoder appliance Ultra-dense, powerful platform for multiscreen delivery New ProView 7100 integrated receiver-decoder with transcoding Further strengthens growing content delivery portfolio 11

12 Growth Strategy: Video Technology Leadership Recent over-the-top wins Announced ZON Portugal Cable and Satellite OTT service Announced Swisscom mobile/web service Announced NBC Olympics on-demand and OTT Our largest-ever file transcoding software deal with major Internet player Record bookings for ProMedia product line (Intel-based) HD OTT growth plays to our video technology strengths Video quality, compression and bandwidth management 12

13 GAAP Revenue and Gross Margin Growth $Millions 600 Revenue GAAP GP % 60% % % % % % 0 FY 07 FY 08 FY 09 FY 10 FY 11 0% 13

14 Q1 2012: Balance Sheet and Cap-Ex Highlights $Millions Cash $168.5 Up $6.7M from Q4 11 Accounts Receivable $ days Inventories $ turns Debt $0 Capital Expenditures $3.7 $15M-$20M for

15 Q2 2012: Financial Guidance Metric Q2 Revenue $130M - $140M Non-GAAP Gross Margin* 49% - 51% Non-GAAP Operating Expenses* $56M - $57M Non-GAAP Tax Rate** 25% *Excludes charges for stock-based compensation and the amortization of intangibles. **Assumes no extension to the R&D tax credit 15

16 Business Summary Substantial market opportunity New customer segments International expansion New video service applications Strong competitive position Technology leader Deep expertise and capabilities Global brand and relationships Ability to execute Proven innovator Business scale 16

17 Investor NDR Presentation May Harmonic, Inc. All rights reserved worldwide.