Harmonic (HLIT) Raymond James TMT and Consumer Conference summary

Key announcements and strategic updates

• Announced sale of the Video business, including both appliance and streaming units, to Mediacom, enabling a focused strategy on broadband growth.

• The sale follows a strategic review and improved profitability in the Video segment, with a compelling offer from Mediacom prompting the transaction.

• Proceeds from the all-cash transaction will be used to invest in broadband, expand fiber capabilities, and support a $200 million share repurchase program.

• Transition positions the company as a pure-play broadband provider, targeting cable and fiber operators globally.

Market positioning and business model

• Holds over 90% market share in virtualized cable architecture and 65% in distributed broadband devices.

• Focuses on enabling multi-gigabit, low-latency broadband and reducing operating costs for operators.

• Operates with strong operating leverage and expects attractive growth as a standalone broadband business.

• Expanding customer base with recent wins in Tier 2 U.S. and European markets.

Industry trends and technology roadmap

• DOCSIS 4.0 rollout is expected to shift from a headwind in 2025 to a tailwind in 2026, with technology ramping up through the year.

• Fiber-to-the-home is the long-term industry direction, but a hybrid of fiber and DOCSIS will persist for a decade or more.

• Investment drivers include increasing bandwidth demand, AI-driven low-latency needs, and network self-healing capabilities.

• Unified amplifiers and new architectures are being adopted, with sufficient supply and flexibility for operators.