Harmonic Inc.

After the speaker's presentation, we'll open up for questions. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please note that this conference is being recorded. I will now turn the call over to David Hanover, Investor Relations. David, you may begin.

Thank you, Operator. Hello, everyone, and thank you for joining us today for Harmonic's second quarter 2025 financial results conference call. With me today are Nimrod Ben-Natan, President and CEO, and Walter Jankovic, Chief Financial Officer. Before we begin, I'd like to point out that in addition to the audio portion of the webcast, we've also provided slides for this webcast, which you may view by going to our webcast on our Investor Relations website. Now turning to slide two. During this call, we will provide projections and other forward-looking statements regarding future events or future financial performance of the company. Such statements are only current expectations and actual events or results may differ materially. We refer you to documents harmonic filed with the SEC, including our most recent 10Q and 10K reports and the forward-looking statements section of today's preliminary press release. These documents identify important risk factors which can cause actual results to differ materially from those contained in our projections or forward-looking statements. And please note that unless otherwise indicated, the financial metrics we provide you on this call are determined on a non-GAAP basis. These metrics, together with corresponding GAAP numbers and our reconciliation of GAAP, are contained in today's press release, which we have posted on our website and filed with the SEC on Form 8K. We will also discuss historical, financial, and other statistical information regarding our business and operation, and some of this information is included in the press release. The remainder of the information will be available on a recorded version of this call or on our website. And now I'll turn the call over to our CEO, Nimrod Ben-Natan. Nimrod?

Thanks, David. and welcome everyone to our second quarter 2025 earnings score today we're sharing strong results that exceeded our guidance in both broadband and video reflecting our continued focus on execution and long-term value creation revenue was 138 million dollars driven by a record quarter in fiber significant sequential and year-over-year growth in broadband rest of world and robust performance across both appliances and SaaS streaming. We also continue to drive innovation and customer expansion in broadband, further enhancing our competitive position. In addition to our results, during the quarter, we returned capital to our shareholders by repurchasing an additional $14 million of our outstanding common shares, bringing total repurchases under the current program to 50%. We closed the quarter with backlog and deferred revenue of $504.5 million, underscoring consistent customer demand for our products and services, even as the industry transitions to unified DOCSIS 4.0, as we have discussed previously. While tariffs had minimal impact this quarter, the global trade environment remains uncertain. Looking ahead, we continue to expect revenue growth to resume in 2026, supported by unified DOCSIS 4.0 adoption, recent wins, and accelerated customer ramps. Turning to slide five, our broadband vision continues to gain momentum. We are accelerating the adoption of next generation virtualized broadband networks designed for speed, reliability, and simplicity. Spending DOCSIS and fiber This transformation is well underway, and we are helping customers modernize their networks and prepare for the future. We expect that the recently passed OBBBA, which provides bonus depreciation cash tax benefits to those building and modernizing broadband networks in the U.S., will help to incentivize those investments over the next several years. Turning to slide six, building on our broadband growth strategy The revenue in this segment was $86.9 million for the quarter, and gross margin was 46.5%, reflecting a lower mix of COS software in the quarter. We ended the quarter with 136 COS deployments in production, managing 35.3 million connected modems, demonstrating the scalability and maturity of our virtualized access platform. capabilities not yet evident elsewhere in the market. Our customer base continues to expand. This quarter, we added four new logos, including a large regional tier two North American broadband operator undertaking a major DOCSIS and fiber network transformation. Rest of world revenue grew significantly year over year, and we expect this momentum to continue. driving further expansion of our global installed base. Additionally, projects announced last quarter, such as Astound and a Tier 1 Latin American fiber project, are progressing well, with deployments ramping and customers coming online. Industry momentum is building as operators modernize networks for higher speeds, greater reliability, and lower costs. We believe our unified 4.0 architecture and converged access and fiber design backed by proven deployments and ongoing innovation will continue to enable faster rollouts and confidence scaling for our customers. Let's now turn to fiber, which is at the heart of our broadband strategy and a top priority as our customers increasingly leverage the fiber optionality built into our solution to deploy fiber to the home for MDUs, edge outs, and greenfield builds. In the second quarter, we delivered record fiber revenue while building a strong pipeline for the future, driven by both existing customers and new customer wins. This quarter, we introduced SISTAR, our new optical node purpose-built for multi-dwelling units, MDUs. SISTAR enables cable and tail cooperators to quickly and very cost-effectively deliver fiber-class broadband to low-density buildings using existing infrastructure. It simplifies deployments, lower costs, and accelerates time to market, giving operators a powerful and cost-effective way to compete in this MDU segment. We also partnered with Vodafone on their Fiber Island Showcase at the Angercom Show in Germany. The demonstration highlighted how our solution enabled operators to extend fiber-to-the-home connectivity more efficiently leveraging existing hfc and fiber investments to accelerate fiber broadband availability overall we made great progress this quarter in fiber with record revenue the launch of the new c-star product and the high profile vodafone showcase which underscore the powerful momentum and leadership we are building in fiber looking at unified access 4-0 our solution is rapidly moving to real wall deployment. We are shipping unified RPDs in volume and advancing the new unified ARA front end tray, which is entering customer labs this quarter for testing and early field drives. We also formally announced Mediacom as a unified DOCSIS 4.0 customer, and they have since shared their deployment strategy and the magnitude of their plans, reinforcing the reality and opportunity of DOCSIS 4.0 rollouts powered by our unified platform. We recently demonstrated a 14 gigabit per second throughput milestone on a live unified DOCSIS 4.0 system at CableApps Interop, exceeding today's 10 gig fiber to the home speeds and setting a new industry record. These advancements show how our technology is redefining broadband performance and why operators are turning to harmonic to lead their DOCSIS 4.0 evolution. On the topic of innovation, this continues to be the cornerstone of our leading industry position. And this quarter, we're excited to share two notable updates. First, Vectra, a leading operator in Poland, selected Harmonic for its broadband transformation, citing our patented PTP-less timing solution as a key differentiator. That solution is now live in full commercial production, simplifying network timing, lowering costs, and enhancing reliability, another step forward in delivering smarter, more efficient broadband infrastructure. Second, we collaborated with Kujo AI on a live demonstration of ultra-low latency broadband powered by our virtual CMTS and advanced traffic management. This joint showcase highlighted how operators can dramatically reduce latency for applications such as cloud gaming and advanced real-time collaboration, delivering a step change in broadband quality of experience. To summarize, broadband business continues to progress, adding new logos, expanding in fiber, and delivering advanced innovations. With the world's largest base of live virtual CMTS networks, leadership in unified DOCSIS 4.0, and a converged DOCSIS and fiber platform, we enable operators to deliver faster speeds, greater reliability, and lower operating costs. Record fiber business and rest of world revenue, along with the accelerated product innovation pipeline, give us confidence in the long-term growth of this business as unified and fiber deployment scale through 2026 and beyond. Turning to slide number seven, the video market continues to evolve rapidly. As broadcast grade reliability is no longer optional in premium streaming, but rather a necessity. Customers depend on Harmonic to deliver flawless performance for their most valuable content, specifically high-stakes live sports events where even a brief interruption can translate into the potential loss of millions of dollars. To meet these rising demands, we are seeing a strong momentum across appliances, SaaS streaming, and increasingly hybrid deployments that combine on-premise capacity with agnostic cloud flexibility. Our SaaS streaming platform is delivering at scale with high reliability across all major cloud providers. A clear example is our partner ViewLift, a live sports-focused platform that illustrates how our customers' growth fuels our SaaS streaming momentum. ViewLift is expanding its customer base and leveraging our cloud-agnostic SSAI advertising solution to achieve top-tier reliability and greater business flexibility. In the second quarter, our video segment delivered $51.1 million in revenue, reflecting strong overall performance. Our appliance business contributed solid profitability to our results, driven by primary distribution and competitive takeout deals, while our SaaS streaming business posted a record $15.4 million in quarterly revenue, again fueled by the expansion of live sports streaming and a growing pipeline of Tier 1 operators preparing to scale deployments. Additionally, our Akamai partnership positions us for expanded opportunities in premium streaming delivery in the second half of 2025. Together, we believe our appliance strengths, accelerating SaaS streaming growth, and differentiated hybrid approach with agnostic cloud support provide our video business with a solid foundation for sustained and profitable growth in 2025 and beyond. Now, I will turn to Walter for a deeper review of our financials.