SAN JOSE, Calif. - Harmonic Inc . (NASDAQ: NASDAQ:HLIT), a company specializing in virtualized broadband and video delivery solutions, announced today the return of Dan Whalen to its board of directors after a previous tenure from 2021 to 2023.
The reappointment brings Whalen's extensive management experience and industry knowledge back into the fold, as acknowledged by Nimrod Ben-Natan, Harmonic's president and CEO. Ben-Natan expressed confidence in Whalen's ability to contribute to the company's strategic business and growth initiatives, citing his valuable input during his previous term.
Whalen's industry background includes a recent role as president and CEO of ATX Networks, and prior positions at ADTRAN, Arris International, Cisco Systems (NASDAQ:CSCO), Comdisco, KPMG, and Bell Atlantic. His career has spanned various leadership roles, including senior vice president of sales, senior vice president and general manager of global services, and president of network & cloud.
In his statement, Whalen emphasized his commitment to aiding Harmonic's efforts to maintain its market leadership and execute on its global growth and value creation strategy. He highlighted Harmonic's role in transforming broadband access and video streaming through innovative solutions.
Harmonic is known for pioneering the industry's first virtualized broadband solution, which has allowed operators to deploy gigabit internet services more flexibly. The company also focuses on simplifying OTT video delivery through cloud and software platforms and powering gigabit internet service delivery.
Whalen, who holds a Bachelor of Engineering degree from Stevens Institute of Technology, rejoins the board effective immediately. This move is anticipated to bolster Harmonic's strategic direction as it continues to innovate in the broadband and video industries.
This information is based on a press release statement from Harmonic Inc.
In other recent news, Harmonic Inc. has delivered impressive financial results for the second quarter of 2024, surpassing expectations. The company's total revenue for the quarter was $138.7 million, a 14% increase from the previous quarter, driven by growth in both Broadband and Video segments. Despite a GAAP net loss of $12.5 million, largely due to restructuring costs, Harmonic maintains a positive outlook, reaffirming its full-year revenue guidance and projecting profitability in the Video segment starting in Q3.
Broadband segment revenue climbed to $92.9 million, marking a 17% sequential increase, while Video segment revenue reached $45.8 million, surpassing the high end of guidance. The company expects significant savings from its restructuring program, aiming for $18 million in savings for FY '24 and $28 million annually in FY '25.
Harmonic's cOS solutions are gaining traction with 118 global customers, capturing about 18% of the global market. The company is also expanding its fiber-to-the-home footprint with recent orders and wins. SaaS revenue is growing, fueled by live sports streaming and new customer acquisitions. These developments highlight Harmonic's strategic focus on growth areas like SaaS and fiber-to-the-home technologies.
InvestingPro Insights
As Dan Whalen rejoins the board of directors at Harmonic Inc., the company's financial metrics present a mixed picture. Harmonic's market capitalization currently stands at $1.63 billion, reflecting a solid market presence. Their Price to Earnings (P/E) ratio is 27.84, indicating that investors may be expecting higher earnings growth in the future compared to the company's current earnings. Notably, the adjusted P/E ratio for the last twelve months as of Q2 2024 shows a more favorable figure of 20.33.
On the performance front, Harmonic has seen a notable gross profit margin of 50.58%, a testament to its operational efficiency. However, the company's revenue has declined by 12.4% over the last twelve months as of Q2 2024, which could be a point of concern for stakeholders looking at top-line growth. Despite this, Harmonic has demonstrated strong returns, with a 31.69% one-year price total return, signaling robust investor confidence and market performance.
InvestingPro Tips for Harmonic highlight that the company is trading at a low P/E ratio relative to near-term earnings growth, suggesting that its stock might be undervalued based on future earnings potential. Moreover, analysts have revised their earnings upwards for the upcoming period, hinting at a positive outlook for the company's financial performance. For those interested in diving deeper into Harmonic's potential, InvestingPro offers additional tips, with a total of 12 tips available, which can be explored on their platform.
Overall, the return of an experienced executive like Dan Whalen to Harmonic's board could align well with the company's financial trajectory and strategic initiatives as reflected in the InvestingPro Insights.
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