Harmonic (HLIT) FY2023 results: revenue $388 million, down 37.8% on the year

Harmonic Inc. (HLIT) reported revenue of $388 million for fiscal 2023, the year ended 31 December 2023, down 37.8% on the year before. Net income was $84 million, up 198.0%, and diluted earnings per share $0.72. The figures are the company's own, from the 10-K it filed with the SEC on 16 February 2024.

Revenue

$388 million

-37.8% on the year

FY2016FY2023

Operating margin

7.7%

7.3% a year earlier

FY2016FY2023

Net income

$84 million

+198.0% on the year

FY2016FY2023

Diluted EPS

$0.72

+188.0% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	388	625	507	-37.8%
Cost of revenue	210	309	247	-31.9%
Gross profit	178	316	260	-43.6%
Gross margin	45.9%	50.5%	51.2%
Research and development	69.7	120	102	-42.1%
Selling, general and administrative	78.3	147	138	-46.6%
Operating income	30.0	45.5	18.8	-34.0%
Operating margin	7.7%	7.3%	3.7%
Interest expense	2.7	5.0	10.6	-46.5%
Pre-tax income	27.8	44.5	8.9	-37.4%
Income tax	-60.5	16.3	-4.4
Effective tax rate	-217.2%	36.6%	-49.4%
Net income	84.0	28.2	13.3	+198.0%
Net margin	21.6%	4.5%	2.6%
Diluted EPS	$0.72	$0.25	$0.12	+188.0%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2023	FY2022	FY2021	On the year
Operating cash flow	7.1	5.5	41.0	+28.9%
Capital expenditure	8.5	9.2	13.0	-8.4%
Free cash flow	-1.4	-3.8	28.0
Free cash flow margin	-0.4%	-0.6%	5.5%
Cash from investing	-8.5	-1.3	-13.0
Cash from financing	-5.0	-43.1	7.9
Depreciation and amortisation	12.3	12.3	13.1	-0.0%
Share-based compensation	27.3	25.2	24.1	+8.4%
Buybacks	0.0	5.1	0.0
Dividends paid	0.0	0.0	0.0
Diluted shares, weighted	117m	112m	106m	+4.4%
Shares outstanding at period end	112m	110m	103m	+2.3%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	437	325	296	+34.6%
Redeemable equity	n/a	0.0	0.9
Debt	130	130	154	+0.3%
Operating lease liabilities	19.0	24.1	29.1	-21.3%
Finance lease liabilities	n/a	n/a	0.0
Other liabilities	182	232	214	-21.4%
Total liabilities and equity	768	710	694	+8.2%
Fixed assets	36.7	39.8	42.7	-7.9%
Goodwill	60.8	238	240	-74.4%
Investments	n/a	0.0	n/a
Cash and equivalents	84.3	89.6	133	-5.9%
Receivables	142	108	88.5	+30.5%
Inventory	84.0	121	71.2	-30.6%
Other assets	361	114	118	+218.0%
Total assets	768	710	694	+8.2%

10-K for the year ended 31 December 2023, filed 16 February 2024: the filing.