Harmonic Inc. (NASDAQ:HLIT) Q1 2024 Earnings Call Transcript

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So I think there is momentum there. We were pleased with the mix of business we saw in Q1. But your observations that as we ramp up the second half, we obviously have the big customers that impact the overall number but we’re also seeing good traction and have good expectation around the rest of the customers growing from an absolute dollar perspective. So I’ll turn it over to Nimrod to provide a little more color on that.

Nimrod Ben-Natan: So I would say couple of things. First of all, there is a known list of operators that have yet to make a migration to a next generation architecture and we target them as key opportunities. We also have customers that are not 100% our solution, they still have a legacy. So we’re certainly looking to expand with them. And I would say above and beyond kind of the core architecture, we look at fiber as another dimension of growth with existing cable customers and also outside, we see a lot of value that we bring into fiber first customers. And this is an area where we have extended our go-to-market and we now brought kind of a fully dedicated sales leader on the broadband side, which is what I’ve seen over the last couple of weeks.

Couple of weeks is kind of boosting everything we’re doing, so I would say the combination of all of that along with the fact that we made it a priority. We’re continuing to focus on our major customers, kind of taking them through the transition that they make but we feel that this is a good timing for us to focus on the rest of the market and make the right investment. As well as I said, we feel the urgency, whether it’s a fiber competition, whether it’s the fixed wireless or the urgency to kind of extend the life after DOCSIS broadband network, the combination of all of that bring many of them into kind of a more urgent discussion about upgrading their network. So obviously, we’re going to keep kind of focusing on the execution and growing that piece as Walter described.

Tim Savageaux: And Walter, just to follow-up, I think, on another comment, which was, I guess, in maintaining the broadband revenue target for the year. I think you made a comment about kind of getting to the same place with a different mix. Is that sort of what we’re talking about here, which is more new customer revenue, more fiber or did you mean — and maybe less of big customer or I’d like you to kind of amplify on that?

Walter Jankovic: Just from overall perspective, we have a lot of customer shift as you would expect as things move on through the year. I would characterize it as we had some shifts in big customers that had an impact as well we’ve had some shifts in some of the smaller customers as well. And when I mean shift, it could be positive in terms of more or it could be less. And so I think one of the key things and you hit it, when you — on your first question, it’s all around diversification. And I think this is one of those situations as I looked at the number with the team for the full year, we’re getting some benefits from diversification in terms of when there’s some changes going one way, there’s some potential offsets another way. And so that’s the way I would characterize the workup of the full year number. It’s different than it was 90 days ago but it’s still holding in at the number we have overall that we guided 90 days ago.

Operator: Thank you. Ladies and gentlemen, I’m showing no further questions in the queue. I would now like to turn the call back over to Patrick for closing remarks.

Patrick Harshman: Okay. Well, thank you again everybody for joining us this afternoon. We’re excited about the quarter, we’re excited about the momentum. And we’re looking forward to our next opportunity with you all. Until then, have a good day. Good bye.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.

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