Technology

Harmonic Announces Second Quarter 2024 Results

Published

2 months ago

July 29, 2024

Revenue of $138.7 million up 14% quarter over quarter at high end of guidance

Reaffirming Broadband and Video Full Year Revenue Guidance

SAN JOSE, Calif., July 29, 2024 /PRNewswire/ — Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the second quarter of 2024.

“Our second quarter revenue was at the high end of our guidance range while profitability in both businesses exceeded our expectations,” said Nimrod Ben-Natan, president and chief executive officer of Harmonic. “These results demonstrate strong execution in both our Broadband and Video businesses as we continue to implement our 2024 and long-term growth plans.”

Q2 Financial and Business Highlights

Financial

Revenue: $138.7 million, compared to $156.0 million in the prior year periodBroadband segment revenue: $92.9 million, compared to $97.1 million in the prior year periodVideo segment revenue: $45.8 million, compared to $58.9 million in the prior year periodGross margin: GAAP 52.9% and non-GAAP 53.1%, compared to GAAP 54.5% and non-GAAP 54.7% in the prior year periodBroadband segment non-GAAP gross margin: 47.6% compared to 50.5% in the prior year periodVideo segment non-GAAP gross margin: 64.4% compared to 61.7% in the prior year periodOperating income (loss): GAAP loss $15.6 million and non-GAAP income $12.2 million, compared to GAAP income $10.0 million and non-GAAP income $18.2 million in the prior year periodNet income (loss): GAAP net loss $12.5 million and non-GAAP net income of $9.3 million, compared to GAAP net income $1.6 million and non-GAAP net income $14.0 million in the prior year periodNon-GAAP adjusted EBITDA: $16.1 million income compared to $21.1 million income in the prior year periodNet income (loss) per share: GAAP net loss per share of $0.11 and non-GAAP net income per share of $0.08, compared to GAAP net income per share of $0.01 and non-GAAP net income per share of $0.12 in the prior year periodBacklog and deferred revenue of $613.1 millionCash: $45.9 million, compared to $71.0 million in the prior year period

Business

Commercially deployed our cOS™ solution with 118 customers, serving 30.1 million cable modemsContinuing to diversify our Broadband customer base with the recent announcement that Telecentro, a leading telecommunications operator in Argentina, has selected Harmonic’s industry-leading cOS broadband platformFirst production shipments of our new high-density Pier optical line terminal (OLT) shelf for PON applicationsIncreasing Video sales pipeline of larger Appliance and Tier 1 SaaS opportunities

Select Financial Information

GAAP

Non-GAAP

Key Financial Results

Q2 2024

Q1 2024

Q2 2023

Q2 2024

Q1 2024

Q2 2023

(Unaudited, in millions, except per share data)

Net revenue

$ 138.7

$ 122.1

$ 156.0

Net income (loss)

$ (12.5)

$ (8.1)

$ 1.6

$ 9.3

$ 0.4

$ 14.0

Net income (loss) per share

$ (0.11)

$ (0.07)

$ 0.01

$ 0.08

$ 0.00

$ 0.12

Other Financial Information

Q2 2024

Q1 2024

Q2 2023

(Unaudited, in millions)

Adjusted EBITDA for the quarter (1)

$ 16.1

$ 4.1

$ 21.1

Bookings for the quarter

$ 72.4

$ 146.1

$ 194.7

Backlog and deferred revenue as of quarter end

$ 613.1

$ 677.8

$ 663.8

Cash and cash equivalents as of quarter end

$ 45.9

$ 84.3

$ 71.0

(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to “Preliminary Adjusted EBITDA Reconciliation” below for a reconciliation to net income (loss), the most comparable GAAP measure.

* Not applicable

Explanations regarding our use of non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations”.

Financial Guidance

Q3 2024 GAAP Financial Guidance

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total GAAP

Broadband

Video

Total GAAP

Net revenue

$ 130

$ 45

$ 175

$ 140

$ 50

$ 190

Gross margin %

51.9 %

52.9 %

Gross profit

$ 91

$ 101

Tax rate

24 %

Net income

$ 16

$ 22

Net income per share

$ 0.14

$ 0.19

Shares (1)

117.0

(1) Diluted shares assumes stock price at $11.29 (Q2 2024 average price).

2024 GAAP Financial Guidance

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total GAAP

Broadband

Video

Total GAAP

Net revenue

$ 460

$ 185

$ 645

$ 500

$ 195

$ 695

Gross margin %

51.4 %

53.1 %

Gross profit

$ 332

$ 369

Tax rate

24 %

Net income

$ 23

$ 45

Net income per share

$ 0.19

$ 0.38

Shares (1)

117.3

(1) Diluted shares assumes stock price at $11.29 (Q2 2024 average price).

Q3 2024 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Gross margin %

48.0 %

63.0 %

51.9 %

49.0 %

64.0 %

52.9 %

Gross profit

$ 63

$ 28

$ 91

$ 69

$ 32

$ 101

Adjusted EBITDA(2)

$ 34

$ —

$ 34

$ 39

$ 3

$ 42

Tax rate

21 %

Net income per share

$ 0.19

$ 0.24

Shares (3)

117.0

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below.

(2) Refer to “Net Income to Consolidated Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income, the most comparable GAAP measure.

(3) Diluted shares assumes stock price at $11.29 (Q2 2024 average price).

2024 Non-GAAP Financial Guidance (1)

(Unaudited, in millions, except
percentages and per share data)

Low

High

Broadband

Video

Total

Broadband

Video

Total

Gross margin %

47.0 %

63.0 %

51.6 %

49.0 %

64.0 %

53.2 %

Gross profit

$ 216

$ 117

$ 333

$ 245

$ 125

$ 370

Adjusted EBITDA(2)

$ 102

$ —

$ 102

$ 126

$ 5

$ 131

Tax rate

21 %

Net income per share (3)

$ 0.56

$ 0.75

Shares (3)

117.3

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below.

(2) Refer to “Net Income to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income, the most comparable GAAP measure.

(3) Diluted shares assumes stock price at $11.29 (Q2 2024 average price).

Conference Call Information

Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, July 29, 2024. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register.vevent.com/register/BI0a4873336ead4b6c81df331d35635fb3. A replay will be available after 5:00 p.m. PT on the same web site.

About Harmonic Inc.

Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry’s first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers’ homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.

Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our expectations regarding: net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, in no particular order, the following: the market and technology trends underlying our Video and Broadband businesses will not continue to develop in their current direction or pace; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the impact of general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; delays or decreases in capital spending in the cable, satellite, telco, broadcast and media industries; customer concentration and consolidation; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; losses of one or more key customers; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOS™ and VOS product solutions; dependence on various broadband and video industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the impact on our business of natural disasters. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic’s filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2023, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic’s results of operations in conjunction with the corresponding GAAP measures.

The Company believes that the presentation of non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.

The non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to non-GAAP results published by other companies. A reconciliation of the historical non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.

Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Stock-based compensation – Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies.

Restructuring and related charges – Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.

Non-cash interest expense expenses related to convertible notes and other debt – We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors’ ability to view the Company’s results from management’s perspective. In addition, we believe excluding these costs from the non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.

Discrete tax items and tax effect of non-GAAP adjustments – The income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures in order to provide a more meaningful measure of non-GAAP net income.

Depreciation – Depreciation expense, along with interest, tax and stock-based compensation expense, and restructuring charges, is excluded from Adjusted EBITDA because we do not believe depreciation and the other items relate to the ordinary course of our business or are reflective of our underlying business performance.

Non-recurring advisory fees – There were non-recurring costs that we excluded from non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives.

Lease-related asset impairment and other charges – There were lease-related asset impairment and other charges that we excluded from non-GAAP results relating to the reduction of our leased office space, as we continue to adapt to the changing dynamics of work and seek to optimize value for our business. These charges primarily consist of right-of-use asset impairment and related leasehold improvement impairment, and the fair value of other unrecoverable facility costs due to the intended change in use of certain leased space.

Harmonic Inc.

Preliminary Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value)

June 28, 2024

December 31, 2023

ASSETS

Current assets:

Cash and cash equivalents

$ 45,850

$ 84,269

Restricted cash

2,827

—

Accounts receivable, net

119,999

141,531

Inventories

84,133

83,982

Prepaid expenses and other current assets

31,742

20,950

Total current assets

284,551

330,732

Property and equipment, net

29,603

36,683

Operating lease right-of-use assets

15,244

20,817

Goodwill

237,884

239,150

Deferred income taxes

112,906

104,707

Other non-current assets

33,508

36,117

Total assets

$ 713,696

$ 768,206

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Convertible debt

$ —

$ 114,880

Current portion of long-term debt

944

—

Current portion of other borrowings

8,348

4,918

Accounts payable

30,017

38,562

Deferred revenue

53,142

46,217

Operating lease liabilities

6,166

6,793

Other current liabilities

53,284

61,024

Total current liabilities

151,901

272,394

Long-term debt

113,805

—

Other long-term borrowings

5,245

10,495

Operating lease liabilities, non-current

16,594

18,965

Other non-current liabilities

33,343

29,478

Total liabilities

320,888

331,332

Stockholders’ equity:

Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding

—

Common stock, $0.001 par value, 150,000 shares authorized; 115,998 and 112,407 shares issued and outstanding at June 28, 2024 and December 31, 2023, respectively

116

112

Additional paid-in capital

2,416,152

2,405,043

Accumulated deficit

(2,013,333)

(1,962,575)

Accumulated other comprehensive loss

(10,127)

(5,706)

Total stockholders’ equity

392,808

436,874

Total liabilities and stockholders’ equity

$ 713,696

$ 768,206

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)

Three Months Ended

Six Months Ended

June 28, 2024

June 30, 2023

June 28, 2024

June 30, 2023

Revenue:

Appliance and integration

$ 94,184

$ 111,127

$ 175,779

$ 225,921

SaaS and service

44,556

44,836

85,021

87,691

Total net revenue

138,740

155,963

260,800

313,612

Cost of revenue:

Appliance and integration

50,878

57,437

93,952

117,185

SaaS and service

14,405

13,586

30,310

27,433

Total cost of revenue

65,283

71,023

124,262

144,618

Total gross profit

73,457

84,940

136,538

168,994

Operating expenses:

Research and development

28,784

32,205

59,489

65,714

Selling, general and administrative

39,821

42,773

78,686

82,055

Lease-related asset impairment and other charges

9,000

—

9,000

—

Restructuring and related charges

11,482

—

14,519

Total operating expenses

89,087

74,978

161,694

147,852

Income (loss) from operations

(15,630)

9,962

(25,156)

21,142

Interest expense, net

(1,424)

(800)

(2,147)

(1,506)

Other income (expense), net

619

(136)

330

(429)

Income (loss) before income taxes

(16,435)

9,026

(26,973)

19,207

Provision for (benefit from) income taxes

(3,903)

7,471

(6,352)

12,559

Net income (loss)

$ (12,532)

$ 1,555

$ (20,621)

$ 6,648

Net income (loss) per share:

Basic

$ (0.11)

$ 0.01

$ (0.18)

$ 0.06

Diluted

$ (0.11)

$ 0.01

$ (0.18)

$ 0.06

Weighted average shares outstanding:

Basic

115,030

111,462

113,705

111,130

Diluted

115,030

119,255

113,705

118,508

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Six Months Ended

June 28, 2024

June 30, 2023

Cash flows from operating activities:

Net income (loss)

$ (20,621)

$ 6,648

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation

6,311

6,089

Lease related asset impairment and other charges

9,000

—

Stock-based compensation

13,877

13,483

Foreign currency remeasurement

2,469

991

Deferred income taxes, net

(8,897)

1,321

Provision for excess and obsolete inventories

2,152

3,383

Other adjustments

354

1,292

Changes in operating assets and liabilities:

Accounts receivable, net

20,765

(10,392)

Inventories

(3,929)

6,894

Other assets

(6,761)

2,060

Accounts payable

(8,680)

(30,527)

Deferred revenues

6,179

1,223

Other liabilities

(7,553)

(12,717)

Net cash provided by (used in) operating activities

4,666

(10,252)

Cash flows from investing activities:

Purchases of property and equipment

(3,856)

(3,833)

Net cash used in investing activities

(3,856)

(3,833)

Cash flows from financing activities:

Proceeds from long-term debt

115,000

—

Repayment of convertible debt

(115,500)

—

Payments for debt issuance costs

(332)

—

Repurchase of common stock

(30,047)

—

Proceeds from other borrowings

—

3,829

Repayment of other borrowings

(1,334)

(4,721)

Proceeds from common stock issued to employees

3,542

3,084

Taxes paid related to net share settlement of equity awards

(6,252)

(7,643)

Net cash used in financing activities

(34,923)

(5,451)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(1,391)

981

Net decrease in cash and cash equivalents and restricted cash

(35,504)

(18,555)

Cash and cash equivalents and restricted cash at beginning of period

84,269

89,586

Cash and cash equivalents and restricted cash at end of period

$ 48,765

$ 71,031

Cash and cash equivalents and restricted cash at end of period

Cash and cash equivalents

$ 45,850

$ 71,031

Restricted cash included in prepaid expenses and other current assets

2,827

—

Restricted cash included in other non-current assets

—

Total cash, cash equivalents and restricted cash as shown in the condensed consolidated statement of cash flows

$ 48,765

$ 71,031

Harmonic Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

Six Months Ended

June 28, 2024

June 30, 2023

Supplemental cash flow disclosure:

Net cash paid for income taxes

$ 11,407

$ 5,008

Cash paid for interest

$ 1,895

$ 1,015

Supplemental schedule of non-cash investing activities:

Capital expenditures incurred but not yet paid

$ 282

$ 1,189

Supplemental schedule of non-cash financing activities:

Shares of common stock issued upon redemption of the 2024 Notes

4,578

—

Harmonic Inc.

Preliminary GAAP Revenue Information

(Unaudited, in thousands, except percentages)

Three Months Ended

June 28, 2024

March 29, 2024

June 30, 2023

Geography

Americas

$ 109,597

79 %

$ 93,031

76 %

$ 111,407

72 %

EMEA

22,680

16 %

23,560

19 %

36,242

23 %

APAC

6,463

5 %

5,469

5 %

8,314

5 %

Total

$ 138,740

100 %

$ 122,060

100 %

$ 155,963

100 %

Market

Service Provider

$ 104,429

75 %

$ 86,693

71 %

$ 108,703

70 %

Broadcast and Media

34,311

25 %

35,367

29 %

47,260

30 %

Total

$ 138,740

100 %

$ 122,060

100 %

$ 155,963

100 %

Six Months Ended

June 28, 2024

June 30, 2023

Geography

Americas

$ 202,628

78 %

$ 227,073

72 %

EMEA

46,240

18 %

69,183

22 %

APAC

11,932

4 %

17,356

6 %

Total

$ 260,800

100 %

$ 313,612

100 %

Market

Service Provider

$ 191,122

73 %

$ 226,692

72 %

Broadcast and Media

69,678

27 %

86,920

28 %

Total

$ 260,800

100 %

$ 313,612

100 %

Harmonic Inc.

Preliminary Segment Information

(Unaudited, in thousands, except percentages)

Three Months Ended June 28, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 92,937

$ 45,803

$ 138,740

$ —

$ 138,740

Gross profit

44,236

(1)

29,494

(1)

73,730

(1)

(273)

73,457

Gross margin %

47.6 %

(1)

64.4 %

(1)

53.1 %

(1)

52.9 %

Three Months Ended March 29, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 78,897

$ 43,163

$ 122,060

$ —

$ 122,060

Gross profit

37,494

(1)

26,569

(1)

64,063

(1)

(982)

63,081

Gross margin %

47.5 %

(1)

61.6 %

(1)

52.5 %

(1)

51.7 %

Three Months Ended June 30, 2023

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 97,096

$ 58,867

$ 155,963

$ —

$ 155,963

Gross profit

49,076

(1)

36,303

(1)

85,379

(1)

(439)

84,940

Gross margin %

50.5 %

(1)

61.7 %

(1)

54.7 %

(1)

54.5 %

Six Months Ended June 28, 2024

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 171,834

$ 88,966

$ 260,800

$ —

$ 260,800

Gross profit

81,730

(1)

56,063

(1)

137,793

(1)

(1,255)

136,538

Gross margin %

47.6 %

(1)

63.0 %

(1)

52.8 %

(1)

52.4 %

Six Months Ended June 30, 2023

Broadband

Video

Total Segment
Measures

Adjustments (1)

Consolidated
GAAP
Measures

Net revenue

$ 197,447

$ 116,165

$ 313,612

$ —

$ 313,612

Gross profit

99,366

(1)

70,917

(1)

170,283

(1)

(1,289)

168,994

Gross margin %

50.3 %

(1)

61.0 %

(1)

54.3 %

(1)

53.9 %

(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” above and “GAAP to Non-GAAP Reconciliations” below.

Harmonic Inc.

GAAP to Non-GAAP Reconciliations (Unaudited)

(in thousands, except percentages and per share data)

Three Months Ended June 28, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income
(Loss) from
Operations

Total Non-
operating
Expense, net

Net Income
(Loss)

GAAP

$ 138,740

$ 73,457

$ 89,087

$ (15,630)

$ (805)

$ (12,532)

Stock-based compensation

—

273

(6,681)

6,954

—

6,954

Restructuring and related charges

—

(11,482)

11,482

—

11,482

Non-recurring advisory fees

—

(406)

406

—

406

Lease-related asset impairment and other charges

—

(9,000)

9,000

—

9,000

Non-cash interest expense related to convertible notes

—

338

Discrete tax items and tax effect of non-GAAP adjustments

—

(6,369)

Total adjustments

—

273

(27,569)

27,842

338

21,811

Non-GAAP

$ 138,740

$ 73,730

$ 61,518

$ 12,212

$ (467)

$ 9,279

As a % of revenue (GAAP)

52.9 %

64.2 %

(11.3) %

(0.6) %

(9.0) %

As a % of revenue (Non-GAAP)

53.1 %

44.3 %

8.8 %

(0.3) %

6.7 %

Diluted net income (loss) per share:

GAAP

$ (0.11)

Non-GAAP

$ 0.08

Shares used in per share calculation:

GAAP

115,030

Non-GAAP

116,690

Three Months Ended March 29, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income
(Loss) from
Operations

Total Non-
operating
Expense, net

Net Income
(Loss)

GAAP

$ 122,060

$ 63,081

$ 72,607

$ (9,526)

$ (1,012)

$ (8,089)

Stock-based compensation

—

522

(6,401)

6,923

—

6,923

Restructuring and related charges

—

460

(3,037)

3,497

3,508

Non-recurring advisory fees

—

(349)

349

—

349

Non-cash interest expense related to convertible notes

—

229

Discrete tax items and tax effect of non-GAAP adjustments

—

(2,538)

Total adjustments

—

982

(9,787)

10,769

240

8,471

Non-GAAP

$ 122,060

$ 64,063

$ 62,820

$ 1,243

$ (772)

$ 382

As a % of revenue (GAAP)

51.7 %

59.5 %

(7.8) %

(0.8) %

(6.6) %

As a % of revenue (Non-GAAP)

52.5 %

51.5 %

1.0 %

(0.6) %

0.3 %

Diluted net income (loss) per share:

GAAP

$ (0.07)

Non-GAAP

$ 0.00

Shares used in per share calculation:

GAAP

112,350

Non-GAAP

118,107

Three Months Ended June 30, 2023

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$ 155,963

$ 84,940

$ 74,978

$ 9,962

$ (936)

$ 1,555

Stock-based compensation

—

439

(5,620)

6,059

—

6,059

Non-recurring advisory fees

—

(2,135)

2,135

—

2,135

Non-cash interest expense related to convertible notes

—

223

Discrete tax items and tax effect of non-GAAP adjustments

—

3,982

Total adjustments

—

439

(7,755)

8,194

223

12,399

Non-GAAP

$ 155,963

$ 85,379

$ 67,223

$ 18,156

$ (713)

$ 13,954

As a % of revenue (GAAP)

54.5 %

48.1 %

6.4 %

(0.6) %

1.0 %

As a % of revenue (Non-GAAP)

54.7 %

43.1 %

11.6 %

(0.5) %

8.9 %

Diluted net income per share:

GAAP

$ 0.01

Non-GAAP

$ 0.12

Shares used in per share calculation:

GAAP and Non-GAAP

119,255

Six Months Ended June 28, 2024

Revenue

Gross Profit

Total
Operating
Expense

Income
(Loss) from
Operations

Total Non-
operating
Expense, net

Net Income
(Loss)

GAAP

$ 260,800

$ 136,538

$ 161,694

$ (25,156)

$ (1,817)

$ (20,621)

Stock-based compensation

—

795

(13,082)

13,877

—

13,877

Restructuring and related charges

—

460

(14,519)

14,979

14,990

Non-recurring advisory fees

—

(755)

755

—

755

Lease-related asset impairment and other charges

—

(9,000)

9,000

—

9,000

Non-cash interest expense related to convertible notes

—

567

Discrete tax items and tax effect of non-GAAP adjustments

—

(8,907)

Total adjustments

—

1,255

(37,356)

38,611

578

30,282

Non-GAAP

$ 260,800

$ 137,793

$ 124,338

$ 13,455

$ (1,239)

$ 9,661

As a % of revenue (GAAP)

52.4 %

62.0 %

(9.6) %

(0.7) %

(7.9) %

As a % of revenue (Non-GAAP)

52.8 %

47.7 %

5.2 %

(0.5) %

3.7 %

Diluted net income (loss) per share:

GAAP

$ (0.18)

Non-GAAP

$ 0.08

Shares used in per share calculation:

GAAP

113,705

Non-GAAP

117,419

Six Months Ended June 30, 2023

Revenue

Gross Profit

Total
Operating
Expense

Income from
Operations

Total Non-
operating
Expense, net

Net Income

GAAP

$ 313,612

$ 168,994

$ 147,852

$ 21,142

$ (1,935)

$ 6,648

Stock-based compensation

—

1,289

(12,194)

13,483

—

13,483

Restructuring and related charges

—

(83)

—

Non-recurring advisory fees

—

(2,135)

2,135

—

2,135

Non-cash interest expense related to convertible notes

—

446

Discrete tax items and tax effect of non-GAAP adjustments

—

5,488

Total adjustments

—

1,289

(14,412)

15,701

446

21,635

Non-GAAP

$ 313,612

$ 170,283

$ 133,440

$ 36,843

$ (1,489)

$ 28,283

As a % of revenue (GAAP)

53.9 %

47.1 %

6.7 %

(0.6) %

2.1 %

As a % of revenue (Non-GAAP)

54.3 %

42.5 %

11.7 %

(0.5) %

9.0 %

Diluted net income per share:

GAAP

$ 0.06

Non-GAAP

$ 0.24

Shares used in per share calculation:

GAAP and Non-GAAP

118,508

Harmonic Inc.

Calculation of Adjusted EBITDA by Segment (Unaudited)

(In thousands, except percentages)

Three Months Ended June 28, 2024

Broadband

Video

Income (loss) from operations (1)

$ 13,781

$ (1,569)

Depreciation

2,133

1,093

Other non-operating income, net

406

213

Adjusted EBITDA(2)

$ 16,320

$ (263)

Revenue

$ 92,937

$ 45,803

Adjusted EBITDA margin % (2)

17.6 %

(0.6) %

Three Months Ended March 29, 2024

Broadband

Video

Income (loss) from operations (1)

$ 8,594

$ (7,351)

Depreciation

1,986

1,099

Other non-operating expenses, net

(179)

(99)

Adjusted EBITDA(2)

$ 10,401

$ (6,351)

Revenue

$ 78,897

$ 43,163

Adjusted EBITDA margin % (2)

13.2 %

(14.7) %

Three Months Ended June 30, 2023

Broadband

Video

Income from operations (1)

$ 18,066

$ 90

Depreciation

1,671

1,388

Other non-operating expenses, net

(84)

(52)

Adjusted EBITDA(2)

$ 19,653

$ 1,426

Revenue

$ 97,096

$ 58,867

Adjusted EBITDA margin % (2)

20.2 %

2.4 %

Six Months Ended June 28, 2024

Broadband

Video

Income (loss) from operations (1)

$ 22,375

$ (8,920)

Depreciation

4,119

2,192

Other non-operating income, net

227

114

Adjusted EBITDA(2)

$ 26,721

$ (6,614)

Revenue

$ 171,834

$ 88,966

Adjusted EBITDA margin % (2)

15.6 %

(7.4) %

Six Months Ended June 30, 2023

Broadband

Video

Income (loss) from operations (1)

$ 38,179

$ (1,336)

Depreciation

3,315

2,774

Other non-operating expenses, net

(255)

(174)

Adjusted EBITDA(2)

$ 41,239

$ 1,264

Revenue

$ 197,447

$ 116,165

Adjusted EBITDA margin % (2)

20.9 %

1.1 %

(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations” above.

(2) Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. Refer below for the “Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation”.

Harmonic Inc.

Preliminary Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation (Unaudited)

(In thousands, except percentages)

Three Months Ended

June 28, 2024

March 29, 2024

June 30, 2023

Net income (loss) (GAAP)

$ (12,532)

$ (8,089)

$ 1,555

Provision for (benefit from) income taxes

(3,903)

(2,449)

7,471

Interest expense, net

1,424

723

800

Depreciation

3,226

3,085

3,059

EBITDA

(11,785)

(6,730)

12,885

Adjustments

Stock-based compensation

6,954

6,923

6,059

Restructuring and related charges

11,482

3,508

—

Non-recurring advisory fees

406

349

2,135

Lease-related asset impairment and other charges

9,000

—

Total consolidated segment adjusted EBITDA (Non-GAAP)

$ 16,057

$ 4,050

$ 21,079

Revenue

$ 138,740

$ 122,060

$ 155,963

Net income (loss) margin (GAAP)

(9.0) %

(6.6) %

1.0 %

Consolidated segment Adjusted EBITDA margin (Non-GAAP)

11.6 %

3.3 %

13.5 %

Six Months Ended

June 28, 2024

June 30, 2023

Net income (loss) (GAAP)

$ (20,621)

$ 6,648

Provision for (benefit from) income taxes

(6,352)

12,559

Interest expense, net

2,147

1,506

Depreciation

6,311

6,089

EBITDA

(18,515)

26,802

Adjustments

Stock-based compensation

13,877

13,483

Restructuring and related charges

14,990

Non-recurring advisory fees

755

2,135

Lease-related asset impairment and other charges

9,000

—

Total consolidated segment adjusted EBITDA (Non-GAAP)

$ 20,107

$ 42,503

Revenue

$ 260,800

$ 313,612

Net income (loss) margin (GAAP)

(7.9) %

2.1 %

Consolidated segment Adjusted EBITDA margin (Non-GAAP)

7.7 %

13.6 %

Harmonic Inc.

GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)

(In millions, except percentages and per share data)

Q3 2024 Financial Guidance (1)

Revenue

Gross Profit

Total Operating
Expense

Income from
Operations

Net Income

GAAP

$ 175

$ 190

$ 91

$ 101

$ 67

$ 69

$ 24

$ 32

$ 16

$ 22

Stock-based compensation expense

—

(5)

Restructuring and related charges

—

(1)

Lease-related impairment and other charges

—

(1)

Tax effect of non-GAAP adjustments

—

(1)

—

Total adjustments

—

(7)

Non-GAAP

$ 175

$ 190

$ 91

$ 101

$ 60

$ 62

$ 31

$ 39

$ 22

$ 29

As a % of revenue (GAAP)

51.9 %

52.9 %

38.3 %

36.3 %

13.7 %

16.8 %

9.3 %

11.6 %

As a % of revenue (Non-GAAP)

51.9 %

52.9 %

34.3 %

32.6 %

17.7 %

20.3 %

12.8 %

15.3 %

Diluted net income per share:

GAAP

$ 0.14

$ 0.19

Non-GAAP

$ 0.19

$ 0.24

Shares used in per share calculation:

GAAP and Non-GAAP

117.0

(1) Components may not sum to total due to rounding.

2024 Financial Guidance (1)

Revenue

Gross Profit

Total Operating
Expense

Income from
Operations

Net Income

GAAP

$ 645

$ 695

$ 332

$ 369

$ 296

$ 304

$ 36

$ 65

$ 23

$ 45

Stock-based compensation expense

—

(25)

Restructuring and related charges

—

(15)

Non-recurring advisory fees

—

(1)

Lease-related impairment and other charges

—

(11)

Non-cash interest expense related to convertible
notes

—

Tax effect of non-GAAP adjustments

—

(12)

(11)

Total adjustments

—

(52)

Non-GAAP

$ 645

$ 695

$ 333

$ 370

$ 244

$ 252

$ 89

$ 118

$ 65

$ 88

As a % of revenue (GAAP)

51.4 %

53.1 %

45.9 %

43.7 %

5.6 %

9.4 %

3.6 %

6.5 %

As a % of revenue (Non-GAAP)

51.6 %

53.2 %

37.8 %

36.3 %

13.7 %

16.9 %

10.1 %

12.7 %

Diluted net income per share:

GAAP

$ 0.19

$ 0.38

Non-GAAP

$ 0.56

$ 0.75

Shares used in per share calculation:

GAAP and Non-GAAP

117.3

(1) Components may not sum to total due to rounding.

Harmonic Inc.

Calculation of Adjusted EBITDA by Segment on Financial Guidance (Unaudited) (1)

(In millions)

Q3 2024 Financial Guidance

Broadband

Video

Income (loss) from operations (2)

$ 32

$ 37

$ (1)

$ 2

Depreciation

Segment adjusted EBITDA(3)

$ 34

$ 39

$ —

$ 3

2024 Financial Guidance

Broadband

Video

Income (loss) from operations (2)

$ 93

$ 117

$ (4)

$ 1

Depreciation

Segment adjusted EBITDA(3)

$ 102

$ 126

$ —

$ 5

(1) Components may not sum to total due to rounding.

(2) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” above.

(3) Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer below for the “Net income to Consolidated Segment Adjusted EBITDA reconciliation on Financial Guidance”.

Harmonic Inc.

Net Income to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance (Unaudited) (1)

(In millions)

Q3 2024 Financial Guidance

2024 Financial Guidance

Net income (GAAP)

$ 16

$ 22

$ 23

$ 45

Provision for income taxes

Interest expense, net

Depreciation

EBITDA

Adjustments

Stock-based compensation

Restructuring and related charges

Lease-related impairment and other charges

Non-recurring advisory fees

—

Total consolidated segment adjusted EBITDA (Non-GAAP) (2)

$ 34

$ 42

$ 102

$ 131

(1) Components may not sum to total due to rounding.

(2) Consolidated Segment adjusted EBITDA is a Non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” above.

View original content to download multimedia:https://www.prnewswire.com/news-releases/harmonic-announces-second-quarter-2024-results-302208726.html

SOURCE Harmonic Inc.

Technology

CPC Corporation, Taiwan’s Lee Shun-Chin Receives Master Entrepreneur Honor at the Asia Pacific Enterprise Awards 2024

Published

2 hours ago

September 30, 2024

SINGAPORE, Sept. 30, 2024 /PRNewswire/ — The Esteemed Chairman and Standing Director of CPC Corporation, Taiwan, Lee Shun-Chin, has been recognized as a Master Entrepreneur at the Asia Pacific Enterprise Awards (APEA) 2024. The awards ceremony took place at the Grand Hyatt Taipei on 13 September.

The renowned Asia Pacific Enterprise Awards (APEA) honors exceptional entrepreneurs for their leadership while shining light on enterprises demonstrating corporate excellence. This year, in addition to honoring its chairman, the APEA also recognized CPC Corporation, Taiwan under the Inspirational Brand category for its outstanding achievements and ESG-centric approach.

CPC Corporation, Taiwan has established a strong presence throughout Taiwan and is involved in everything from importing petrochemical materials to supplying finished consumer goods. As it caters to various oil products, the company has implemented a few production and sales models as well as established many offices for effective oversight and governance.

CPC is shifting its focus from traditional energy to sustainable energy. The company aims to produce valuable fuel materials, reduce carbon emissions and fight climate change by introducing strategies that aim to produce valuable petrochemicals, reduce carbon emissions, and use renewable energy. Strategies implemented include improving its refining processes, adding value to chemicals, and carbon capture and reuse. The company also uses its expertise in carbon fiber composite materials to design special space-grade composite.

CPC aims to provide the people of Taiwan with a green, safe, and healthy social environment. It believes that sustainable growth needs balance in the economy, society, and environment. Hence, the company plans to focus on national development, improving its business practices, and promoting green energy to achieve low-carbon development. It aligns with ESG principles to promote “High-value Petrochemical, Low Carbon Emission, Lean-Renewable Energy” in order to realize sustainable development.

The company is dedicated to improving energy efficiency and promoting renewable energy to achieve net zero carbon emissions. With the goal of reducing carbon emissions by 40.6% and 49.5% by 2025 and 2030, 62 measures will be implemented to reduce carbon emissions by 262,000 metric tons, saving 74,000 metric tons of oil equivalent. CPC will also develop geothermal and hydrogen energy and build hydrogen refueling demonstration stations and hydrogen energy transmission and storage facilities to promote clean energy.

Through his “High-value Petrochemical, Low Carbon Emission, Lean-Renewable Energy” transformation strategies, Chairman Lee Shun-Chin’s transformation strategies for CPC Corporation, Taiwan has enabled the organization to build resilience in areas of governance excellence, environmental friendliness, and social prosperity. His admiral leadership skills and vision for the company make him truly deserving of the APEA’s Master Entrepreneur recognition.

PR Newswire is the Official News Release Distribution Partner of Asia Pacific Enterprise Awards 2024.

About Enterprise Asia

Enterprise Asia is a non-governmental organization in pursuit of creating an Asia that is rich in entrepreneurship as an engine towards sustainable and progressive economic and social development within a world of economic equality. Its two pillars of existence are an investment in people and responsible entrepreneurship. Enterprise Asia works with governments, NGOs, and other organizations to promote competitiveness and entrepreneurial development, uplift the economic status of people across Asia, and ensure a legacy of hope, innovation, and courage for future generations. Please visit www.enterpriseasia.org for more information.

About Asia Pacific Enterprise Awards

Launched in 2007, the Asia Pacific Enterprise Awards is the region’s most prestigious award for outstanding entrepreneurship, continuous innovation, and sustainable leadership. The Award provides a platform for companies and governments to recognize entrepreneurial excellence, hence spurring greater innovation, fair business practices, and growth in entrepreneurship. As a regional award, it groups together leading entrepreneurs as a powerful voice for entrepreneurship and serves as a by-invitation-only networking powerhouse. The program has grown to encompass 16 countries/ regions and markets all over Asia. For further information, please visit www.apea.asia.

View original content:https://www.prnewswire.com/apac/news-releases/cpc-corporation-taiwans-lee-shun-chin-receives-master-entrepreneur-honor-at-the-asia-pacific-enterprise-awards-2024-302262019.html

SOURCE Enterprise Asia

Technology

Payfare Initiates Strategic Review Process to Enhance Value

Published

2 hours ago

September 30, 2024

TORONTO, Sept. 29, 2024 /PRNewswire/ – Payfare Inc. (“Payfare” or the “Company”) (TSX: PAY) (OTCQX: PYFRF), a leading international Earned Wage Access (“EWA”) company powering instant access to earnings and digital banking solutions for workforces, today announced that its Board of Directors has initiated, with the assistance of outside legal and financial advisors, a comprehensive and thorough strategic review process to explore and evaluate a broad range of potential options for the Company to enhance value.

The foundation, funding, and execution of Payfare’s ongoing programs remain secure with a robust pipeline of potential new opportunities in the gig economy and EWA space. To support conversion of these new opportunities and alleviate concentration risk, the Board has decided to initiate a strategic review to accelerate these goals. During this process, Payfare remains focused on executing its current business strategy and will continue to provide industry-leading financial solutions for its clients and cardholders. This review process will assess strategic alternatives that may include, but are not limited to strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination.

In conducting the strategic review, the Company’s Board and management team are committed to acting in the best interests of the Company, its shareholders and its stakeholders. There is no deadline or definitive timetable for the completion of the strategic review and Payfare does not intend to comment further unless the Board has approved a specific transaction or otherwise determined that disclosure is necessary or appropriate. There can be no assurances that the strategic review will result in any specific transaction or outcome.

Advisor

The Board has engaged Keefe, Bruyette & Woods Inc. (KBW) as financial advisor to assist with the strategic review process.

Support for DasherDirect Program and Cardholders Through Early 2025

Payfare is proud to have built DasherDirect, an award-winning digital banking solution providing cardholders with free instant pay, cashback rewards, and other meaningful benefits. Since inception, the program has successfully serviced millions of cardholders and processed billions of dollars of transactions. The level of adoption, user reviews, and app store ratings, including its consistent position as the top finance app as ranked by unitQ, demonstrates both the value proposition to cardholders and Payfare’s ability to deliver a best-in-class user experience. Payfare will continue its role as a good partner supporting the DasherDirect program and cardholders through early 2025.

Long-Term Client Renewals with Uber and Lyft Executed in 2024

On July 25, 2024, the Company announced the long-term renewal of its agreement with Lyft Inc. to power the Lyft Direct program. The renewal allows drivers on the Lyft platform to continue benefiting from free instant pay, a feature-rich digital banking product and cashback rewards for years to come. Subsequent to the extension, Payfare also announced new value-added product enhancements to Lyft Direct including Balance Protection, Lyft Direct Savings, and more. Active Lyft Direct users have increased by more than fifty percent year to date, demonstrating the ongoing success of the program.

On March 5, 2024, the Company announced the launch of the Uber Pro Card, a new program with Uber providing free instant payouts after every trip or delivery, enhanced loyalty features for drivers and delivery people, and backup balance for qualifying users on the Uber platform in Canada, powered by Payfare’s leading digital banking app. Active users of the Uber Pro Card have increased by more than five times compared to the legacy program.

Well-Funded to Support Future Growth

Payfare has over $100 million in cash, cash equivalents, and guaranteed investment certificates and is well capitalized to fund ongoing operations and new strategic initiatives. Although the loss of the DasherDirect program will have a substantial impact on the Company’s revenue profile, Payfare intends to right size its operating expenses to align with the near to mid-term reduction in revenues while providing the flexibility to execute on new business and initiatives to build long-term value.

About Payfare (TSX:PAY, OTCQX: PYFRF)

Payfare is a leading, international Earned Wage Access (“EWA”) company powering instant access to earnings through an award-winning digital banking platform for today’s workforce. Payfare partners with leading e-commerce marketplaces, payroll platforms, and employers to provide financial security and inclusion for all workers.

Cautionary Statement Regarding Forward Looking Information

Information and statements contained in this news release that are not historical facts are “forward-looking information” within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to Payfare’s current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “target”, “intend”, “estimate”, “could”, “should”, “may” and “will” or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include, without limitation the strategic review process and timing and length of such process, exploring potential options including strategic partnerships, strategic investments, accretive acquisitions, a potential sale, merger or other business combination, execution of Payfare’s current business strategy and continued provision of industry-leading financial solutions for its clients and cardholders, support for the DasherDirect program and cardholders through early 2025, the impact of the loss of the DasherDirect program to the Company’s revenue profile, intentions to right size operating expenses and impacts to Payfare’s liquidity position, and executing on new opportunities and initiatives. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.

Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such risks include the factors discussed from time to time in Payfare’s filings with the Canadian Securities Authorities, copies of which can be found under Payfare’s profile on the SEDAR+ website at www.sedarplus.ca. In addition, there is risk that opportunities identified through the strategic review may take longer than anticipated or may not be a fit or appropriate for the Company or will not be at terms that are acceptable to the Company, and right sizing efforts may not have the intended impacts as expected by management on its liquidity.

Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Payfare undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

View original content:https://www.prnewswire.com/news-releases/payfare-initiates-strategic-review-process-to-enhance-value-302261975.html

SOURCE Payfare Inc.

Technology

vivo Unveils Funtouch OS 15: New Era of Smooth

Published

2 hours ago

September 30, 2024

SHENZHEN, China, Sept. 30, 2024 /PRNewswire/ — vivo today announced the launch of Funtouch OS 15 for users in international markets, ushering in a new era of smooth and an enhanced mobile experience. Building upon user feedback and requests, the latest Funtouch OS 15 is vivo’s take on the new Android 15 version, delivering unparalleled smoothness, a suite of new personalization options, and optimized features focused on photography, gaming, and productivity. Funtouch OS 15 seamlessly connects vivo users to the digital world, enhancing efficiency in everyday life.

Go Beyond Smooth: Experience Unparalleled Fluidity

Funtouch OS 15 improves the overall fluidity of the Android system and animated elements that bring the device to life. By replacing Android’s existing Fair Scheduling algorithm with vivo’s proprietary Priority Scheduling model, Funtouch OS 15 prioritizes computing power for foreground processes. This results in a 15% increase in average app startup speed, even under overload scenarios.

To further enhance performance, the new Memory Enhancement Technology employs an optimized zRAM memory compression algorithm, resulting in a remarkable 40% increase in compression speed. Additionally, it reduces GPU memory consumption for background applications, enabling users to run multiple apps simultaneously without compromising the device’s smoothness.

Funtouch OS 15 also introduces vivo’s exclusive Origin Animation, an innovative approach that enhances animation smoothness and interaction responsiveness. The Lightning-Speed Engine creates a dedicated channel for animation execution and improves app startup response speed by 20%. Inspired by nature, the Aqua Dynamic Effect enhances system interactions with animated effects that evoke the movement of water, making each interaction feel smoother and more natural. Last but not least, 700+ touch scenarios have been optimized based on extensive ergonomics research, ensuring a consistently Smooth Touch experience all around.

Notice: These features are only available on select models. Data is obtained from the company labs. Actual performance shall prevail.

Naturally You: Craft Your Own Digital Space

Funtouch OS 15 empowers users to express their individuality. With 3,800+ redesigned design elements, including updated system colors, fonts, icons, and illustrations, Funtouch OS 15 offers a clean and minimalistic aesthetic. Users can further personalize their devices with a wide array of options, including nine general system themes and a variety of Static, Immersive, and Video Wallpapers. Four new fingerprint recognition animations, customizable app icon styles, and adjustable icon shapes and sizes provide even greater control over the user interface.

Be Pro, So Easy: Efficiency at Your Fingertips

Recognizing the integral role smartphones play in everyday life, Funtouch OS 15 enhances creativity, elevates entertainment, and boosts efficiency. The AI Image Lab allows users to automatically enhance photo quality and remove shadows from documents using AI-powered tools. For avid mobile gamers, the upgraded Ultra Game Mode introduces a convenient sidebar with a performance panel, game tools, and the Game Small Window feature. This allows for quick access to social apps and easy setting adjustments, such as the screen refresh rate and touch sampling rate, without interrupting gameplay.

In terms of productivity, Funtouch OS 15’s optimized Link to Windows feature enhances cross-device collaboration between vivo devices and PCs, allowing users to sync content in real-time, manage file sharing efficiently, view recent photos across devices, and more. Additionally, the overhauled S-Capture feature now allows for annotations during screen recording, supports multiple audio tracks, and includes a control panel for microphone volume and system sound recordings.

Availability

Funtouch OS 15 will be available for upgrade starting from mid-October on vivo X Fold3 Pro, X100 Series and iQOO 12.

About vivo

vivo is a technology company that creates great products based on a design-driven value, with smart devices and intelligent services as its core. The company aims to build a bridge between humans and the digital world. Through unique creativity, vivo provides users with an increasingly convenient mobile and digital life.

While bringing together and developing the best local talents to deliver excellence, vivo is supported by a network of R&D centers in Shenzhen, Dongguan, Nanjing, Beijing, Hangzhou, Shanghai, Xi’an and more cities, including 5G, artificial intelligence, industrial design, photography and other up-and-coming technologies. vivo has also set up an intelligent manufacturing network (including those authorized by vivo), with an annual production capacity of nearly 200 million smartphones. As of now, vivo has branched out its sales network across more than 60 countries and regions, and is loved by more than 500 million users worldwide.

Following the company’s core values, which include Benfen*, user-orientation, design-driven value, continuous learning and team spirit, vivo has implemented a sustainable development strategy with the vision of developing into a healthier, more sustainable world-class corporation.

*”Benfen” is a term describing the attitude on doing the right things and doing things right – which is the ideal description of vivo’s mission to create value for society.

SOURCE vivo