Harmonic Inc.

Welcome to the first quarter of 2026 Harmonic Earnings Conference Call. My name is Lisa, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 111. Also, please be advised that today's conference is being recorded. I would now like to 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 first quarter 2026 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 through 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 statement section of today's preliminary results press release. These documents identify important risk factors which can cause actual results to differ materially from those contained in our projections and 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 a reconciliation of GAAP, are contained in today's press release, which we have posted on our website and filed with the SEC on Form 8-K. 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 on our website. And now I'll turn the call over to our CEO, Nimrod Benetton. Nimrod?

Thanks David and welcome everyone to our first quarter 2026 earnings call. Q1 marked a strong start to the year and validated the strategy we outlined last quarter. We executed effectively across the business with continued strengths in rest of market demand and with our progress to date, we are entering the remainder of the year with improved visibility. Reflecting this momentum, we are raising our full year 2026 broadband revenue outlook. In addition to our strong financial results, this quarter also highlights our focus in expanding Harmonix's growth profile. In a world where AI is making broadband capacity and quality of service even more essential, we are building a uniquely focused broadband company with multiple growth drivers. Sustained leadership in DOCSIS, accelerating momentum in fiber, increasing global market share and growing intelligence layer that enables new high value services for our customers. Turning to slide four, let's look at some of the highlights for the quarter. Q1 broadband revenue rose 43% year over year to $121.7 million. A large part of this was from rest of market, which represented 42% of that total. an important indicator of our progress in broadening and diversifying our business. Bookings were also strong in the quarter, driving an 87% increase year-over-year in backlog and deferred revenue. Again, this bolsters our visibility, giving us the confidence to raise our full-year outlook. We also continued returning capital to our shareholders, repurchasing approximately 4.2 million shares for 43 million during the quarter. Finally, I want to mention that the pending sale of our video business remains on track to close in the second quarter, positioning Harmonic as a more focused broadband company going forward. A key highlight in the first quarter was the continued acceleration of our rest-of-market business with year-over-year revenue growth well above our long-term growth target. Beyond the increased revenue contribution this performance demonstrates the expanding global adoption of the harmonic platform across a broader range of industry operators our deployed cos base now includes 150 customers serving 45.7 million cpe devices we continue to see expansion within our tier 1 accounts alongside new new customer wins reinforcing our leadership position in the market We added several new customers in the first quarter, including two recent wins that illustrate the market traction we are experiencing. First, KBRO selected Harmonix fiber on demand solution to drive fiber deeper into its network in Taiwan. Second, Vive Broadband selected our platform to modernize its network across its US footprint with a clear path for broadband and docks for DOCSIS and fiber convergence. These wins reflect a broader market trend that plays directly to harmonic strengths. Operators are increasingly seeking a platform that can start with a specific use case and expand over time across DOCSIS, fiber, and autonomous network intelligence. Fiber is becoming an important growth driver for harmonic. Over the past year, Fiber products represented more than 14% of our appliance and integration revenue, and we expect this contribution to continue growing. In the first quarter, we secured multiple new fiber wins, including with international providers, while also expanding deployments with our largest Tier 1 fiber customers. We're also seeing traction with Sistar, our MDU optical node, including a sizable Q1 booking with a leading European broadband operator. At next week's FiberConnect conference, we will introduce new outside plant innovations, including the Perl XL and Jetty 3, designed to improve deployment efficiency, deliver industry-leading port density, extend network reach, enhance resilience, and simplify operations. These solutions enhance our ability to serve rural MDU and lower density fiber opportunities where deployments cost and operational complexity are critical factors. Together, our growing fiber traction, expanding portfolio, and converged COS architecture position Harmonic to gain share as operators look for more flexible and cost-effective ways to expand fiber broadband. Our unified DOCSIS 4.0 strategy also continues to gain commercial traction. During the first quarter, we expanded our DOCSIS 4.0 customer base with new wins while advancing deployments with existing customers. At the same time, we have continued building a solid pipeline for additional opportunities. DOCSIS 4.0 is increasingly about more than extending the network to 1.8 gigahertz. or delivering faster downstream speeds. We are seeing operators use DOCSIS 4.0 to increase upstream capacity while they continue densifying their network and optimizing existing infrastructure. With upstream traffic growing rapidly, including approximately 20% annually at one of our leading North American operators, our unified DOCSIS 4.0 solution gives operators a flexible path to higher multi-gigabit upstream performance whether through full 1.8 gigahertz upgrades, reclaiming spectrum from legacy QAM video, increasing node density, or other capital efficient approaches. As I mentioned, operators are looking for platforms that let them use DOCSIS and fiber together. A recent light reading interview with Optimum provides a compelling illustration of this approach. In their West Virginia deployment, built on harmonic COS broadband platform. Optimum is leveraging virtualization to modernize HFC infrastructure and consolidate head-end facilities by 50%. As their team noted, the architecture enables them to simultaneously deliver XGS PON and DOCSIS off of the same node, allowing them to build where demand dictates rather than overbuilding to every location. This is precisely the unique value of Harmonic's converged architecture, one platform, multiple access technologies, and more capital efficient choices for operators. Operators are increasingly focused on business outcomes rather than speed alone, a shift that plays directly to Harmonic's strengths. Harmonic is uniquely positioned here because our virtualized platform sees the network in real time across the core, the edge, and the subscriber experience. Our relatively new beacon and Pathfinder solutions already help operators maximize network performance while reducing both truck rolls and customer calls. Early deployments are showing tangible value, including a measured reduction of more than 30% in customer calls following beacon enablement. The newest addition to our intelligent portfolio is Ampli, a multi-vendor amplifier management software solution that extends our network visibility into a part of the network where we have not traditionally played. Built on a unique combination of harmonic COS platform intelligence, beacon speed maximizer, and orchestration capabilities, Ampli helps operators identify and address sources of network interference faster and more effectively. AMPLI maps the amplifier network, uses AI-driven analysis to pinpoint where issues are coming from, and helps direct field technicians with precise, actionable instructions, including the location and likely cause of the problem. It can also apply mitigation techniques to protect the subscriber experience while repairs are underway. We believe this can significantly reduce repair time and field operation costs. creating meaningful opportunity for measurable OPEX savings while improving network reliability and subscriber experience. We will be showcasing Ampli at the upcoming ANGA show in Germany. Our customer momentum is increasingly tied to measurable outcomes. One of our leading customers recently stated publicly that they are improving reliability across the network, are pleased with the results where upgrades have been completed and are seeing measurable progress in NPS. These outcomes are showing up in our customer scores. Our own customer NPS reached 85 in the first quarter, up from 82 at the year end 2025, reflecting the execution, partnership, and trust we have built with operators undertaking strategic multi-year network transformations. Turning to slide five. As presented during the last earnings call, the market opportunity ahead of us remains substantial. According to Deloro's recent outlook, the cable serviceable addressable market is expected to grow to more than $1.1 million by 2030. The fiber addressable exceeds $2.6 billion, and our share in that market is growing. On top of this, network intelligence and associated autonomous AI-driven operations uniquely made possible through our virtualized core represent an incremental addressable opportunity and an important new growth vector for harmonic. We believe longer term industry investment in broadband technology will not be defined by one upgrade cycle. Rather, we see ongoing reinforcing phases of modernization. DOCSIS 4.0 and upstream capacity expansion follow followed by network densification, AI-powered autonomous operations, targeted fiber expansion, and broader migration to fiber as new demand and economics support it. The multi-year evolution will drive more capacity, automation, and intelligence at every layer of the network, and more opportunity for providers of the enabling technology. Because Harmonix spans DOCSIS fiber and increasingly intelligence services, we believe we are best positioned to capture market share and create value across multiple investment phases and cycles. Turning to slide six, our long-term strategy remains centered on four priorities. First, we are extending our leadership in DOCSIS while accelerating our global fiber position through our converged COS architecture. This allows operators to modernize with greater flexibility across DOCSIS fiber and future access upgrades. Second, we are increasing customer diversification. The strong rest of market growth we achieved in the first quarter demonstrates meaningful progress towards broadening our revenue base beyond our largest customers. Third, we are leading with intelligence. Our cloud-native architecture and real-time telemetry give us a unique foundation for proactive operation, automated troubleshooting, improved customer outcomes, and new recurring revenue opportunities. Fourth, we are driving operating leverage as we simplify our cost structure and become a pure-play broadband business. Together, these priorities are designed to expand our addressable market diversify our revenue mix, and improve our long-term operating margin profile. This is where harmonics differentiation becomes clear. We help operators modernize faster with greater flexibility and lower operational complexity. Turning to slide seven, we are becoming a focused and well-rounded broadband company with leadership in virtualized DOCSIS, growing momentum in fiber, and differentiated intelligence layer that helps operators improve reliability, automate operations and deliver better subscriber experiences. The pending sale of our video business will further sharpen our strategic focus, simplify our operating model and provide additional capital to support our growth strategy. We will remain disciplined in capital allocation, investing organically, returning capital where appropriate and considering selective inorganic opportunities where they accelerate the diversification or advance our platform. That concludes my opening remarks. With that, I will turn the call over to Walter to walk you through our financials in more detail.