Harmonic (HLIT) Barclays 23rd Annual Global Technology Conference summary

Strategic review and sale of video business

• Initiated a strategic review of the video business in November 2023, initially unable to find a buyer, but later restructured and improved performance before receiving a compelling offer from MediaKind.

• MediaKind's acquisition will make it a leading domestic provider of video streaming services and infrastructure, benefiting customers and employees.

• The sale allows a sharper focus on broadband, leveraging market leadership in virtualized CMTS and fiber, with added capital flexibility for investment and shareholder returns.

• The transaction is expected to close in the first half of 2026 due to required processes, including the France Works Council consultation.

Broadband business outlook and technology trends

• Unified DOCSIS 4.0 is on track for broad market readiness in 2026, with key ecosystem components now available.

• Major customers like Comcast and Charter are progressing with network upgrades, providing visibility into 2025 and 2026 growth.

• Fiber solutions are gaining traction, with Comcast as a reference customer and revenue growth expected in 2025 and 2026.

• Expansion into telco markets, especially tier two and three, is underway with differentiated, flexible solutions and new products like SEASTAR.

• BEAD program is seen as a future upside, with compliant solutions ready for late 2026-2027 opportunities.

Customer base and revenue diversification

• Over 140 customers are now on the broadband platform, reducing reliance on the top two operators over time.

• Expanded relationships with Charter and other operators are expected to drive multi-year network upgrades and recurring revenue.

• Competitive pressures in the market are driving operators to invest in speed, latency, and quality of service.