Harmonic Inc. (HLIT) - Financial and Strategic SWOT Analysis Review
Reference Code: GDTC29890FSA Publication Date: MAY 2011
4300 North First Street Phone +1 408 5422500 Revenue 423.3 (million USD)
San Jose, CA Fax +1 408 5422511 Net Profit -4.34 (million USD)
95134 Website www.harmonicinc.com Employees 1,106
Exchange Industry Technology and
United States HLIT [NASDAQ]
Communications
Company Overview
Harmonic Inc. (Harmonic) provides advanced video solutions to media and entertainment industry. The company offers
principally a wide spectrum of video products and system solutions to the service providers of next generation broadcasting
services such as high definition, video-on-demand, network personal video recording and time-shifted TV. It serves distinct
modes of communications providers including cable, satellite, broadcast and telephone as key sources of revenue. Harmonic’s
product portfolio is classified into three active categories, namely, video production platforms and playout solutions, video
processing solutions and edge and access products.
Key Executives SWOT Analysis
Name Title Harmonic Inc., SWOT Analysis
Lewis Solomon Chairman Strengths Weaknesses
Patrick J. Harshman Chief Executive Officer
Dependence on Key
Increasing Operational
Harold Covert Director Customers
Efficiency
Patrick Gallagher Director
Dependence on Third-party
E. Floyd Kvamme Director Comprehensive Offerings
Manufacturers
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
Share Data
Opportunities Threats
Harmonic Inc.
Share Price (USD) as on 25-May-2011 7.72 R&D Operations Industry Consolidation
EPS (USD) -0.04
Strategic Acquisitions Rapid Technological Changes
Market Cap (million USD) 872
Enterprise Value (million USD) 813
Shares Outstanding (million) 115 Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
Financial Performance
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
Harmonic Inc. (HLIT) - Financial and Strategic SWOT Analysis Review Reference Code: GDTC29890FSA
Source : www.globalcompanyintelligence.com Page 1
Table of Contents
Table of Contents........................................................................................................................................................................................................... 2
List of Tables .................................................................................................................................................................................................................. 4
List of Figures................................................................................................................................................................................................................. 4
Section 1 - About the Company ..................................................................................................................................................................................... 5
Harmonic Inc. - Key Facts .............................................................................................................................................................................................. 5
Harmonic Inc. - Key Employees..................................................................................................................................................................................... 6
Harmonic Inc. - Key Employee Biographies................................................................................................................................................................... 7
Harmonic Inc. - Major Products and Services................................................................................................................................................................ 8
Harmonic Inc. - History................................................................................................................................................................................................... 9
Harmonic Inc. - Company Statement ........................................................................................................................................................................... 11
Harmonic Inc. - Locations And Subsidiaries ................................................................................................................................................................ 12
Head Office............................................................................................................................................................................................................ 12
Other Locations & Subsidiaries ............................................................................................................................................................................. 12
Affiliate ................................................................................................................................................................................................................... 12
Section 2 – Company Analysis .................................................................................................................................................................................... 14
Harmonic Inc. - Business Description .......................................................................................................................................................................... 14
Harmonic Inc. - SWOT Analysis................................................................................................................................................................................... 15
SWOT Analysis - Overview ................................................................................................................................................................................... 15
Harmonic Inc. - Strengths ...................................................................................................................................................................................... 15
Strength - Increasing Operational Efficiency................................................................................................................................................... 15
Strength - Comprehensive Offerings............................................................................................................................................................... 15
Strength - Balanced Operations...................................................................................................................................................................... 15
Harmonic Inc. - Weaknesses................................................................................................................................................................................. 15
Weakness - Dependence on Key Customers ................................................................................................................................................. 16
Weakness - Dependence on Third-party Manufacturers ................................................................................................................................ 16
Weakness - Declining Liquidity ....................................................................................................................................................................... 16
Harmonic Inc. - Opportunities ................................................................................................................................................................................ 16
Opportunity - R&D Operations ........................................................................................................................................................................ 16
Opportunity - Strategic Acquisitions ................................................................................................................................................................ 16
Opportunity - Demand for Online Video .......................................................................................................................................................... 16
Harmonic Inc. - Threats ......................................................................................................................................................................................... 17
Threat - Industry Consolidation ....................................................................................................................................................................... 17
Threat - Rapid Technological Changes........................................................................................................................................................... 17
Threat - Highly Competitive Market................................................................................................................................................................. 17
Harmonic Inc. - Key Competitors ................................................................................................................................................................................. 18
Section 3 – Company Financial Ratios ........................................................................................................................................................................ 19
Financial Ratios - Capital Market Ratios................................................................................................................................................................ 19
Financial Ratios - Annual Ratios............................................................................................................................................................................ 19
Performance Chart ................................................................................................................................................................................................ 21
Financial Performance........................................................................................................................................................................................... 21
Financial Ratios - Interim Ratios............................................................................................................................................................................ 22
Financial Ratios - Ratio Charts .............................................................................................................................................................................. 23
Section 4 – Appendix ................................................................................................................................................................................................... 24
Methodology .......................................................................................................................................................................................................... 24
Ratio Definitions...........................................................................................