Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - HARMONIC INC | d498555d8k.htm |
| EX-2.1 - EX-2.1 - HARMONIC INC | d498555dex21.htm |
| EX-99.1 - EX-99.1 - HARMONIC INC | d498555dex991.htm |
Exhibit 99.2
HARMONIC INC.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of December 31, 2012
(In thousands)
| As reported |
Pro forma adjustments |
Pro forma | ||||||||||
| ASSETS |
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| Cash and cash equivalents |
$ | 96,670 | $ | 46,000 | (A) | $ | 142,670 | |||||
| Short-term investments |
104,506 | — | $ | 104,506 | ||||||||
| Accounts receivable, net |
85,920 | — | 85,920 | |||||||||
| Inventories, net |
64,270 | (11,361 | )(B) | 52,909 | ||||||||
| Prepaid expenses and other current assets |
45,506 | (2,141 | )(B)(E) | 43,365 | ||||||||
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| Total current assets |
396,872 | 32,498 | 429,370 | |||||||||
| Property and equipment, net |
38,122 | (1,050 | )(B) | 37,072 | ||||||||
| Goodwill and intangibles, net |
270,965 | (14,547 | )(C) | 256,418 | ||||||||
| Other non-current assets |
11,572 | (1,650 | )(E) | 9,922 | ||||||||
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| Total assets |
$ | 717,531 | $ | 15,251 | $ | 732,782 | ||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities |
$ | 102,894 | $ | (662 | )(B)(D)(E) | $ | 102,232 | |||||
| Other non-current liabilities |
61,224 | 875 | (E) | 62,099 | ||||||||
| Total stockholders’ equity |
553,413 | 15,038 | (F) | 568,451 | ||||||||
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| Total liabilities and stockholders’ equity |
$ | 717,531 | $ | 15,251 | $ | 732,782 | ||||||
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See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements, which are an integral part of this statement.
HARMONIC INC.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the year ended December 31, 2012
(In thousands, except per share data)
| As reported |
Pro forma adjustments |
Pro forma | ||||||||||
| Product revenue |
$ | 448,340 | $ | 52,016 | (G) | $ | 396,324 | |||||
| Service revenue |
82,124 | 1,577 | (G) | 80,547 | ||||||||
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| Net revenue |
530,464 | 53,593 | 476,871 | |||||||||
| Product cost of revenue |
250,800 | 36,330 | (G) | 214,470 | ||||||||
| Service cost of revenue |
43,109 | 1,276 | (G) | 41,833 | ||||||||
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| Total cost of revenue |
293,909 | 37,606 | 256,303 | |||||||||
| Gross profit |
236,555 | 15,987 | 220,568 | |||||||||
| Research and development |
106,219 | 3,746 | (G) | 102,473 | ||||||||
| Selling, general and administrative |
130,938 | 3,741 | (G) | 127,197 | ||||||||
| Amortization of intangibles |
8,705 | — | 8,705 | |||||||||
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| (Loss) Income from operations |
(9,307 | ) | 8,500 | (17,807 | ) | |||||||
| Non-operating income (expense), net |
222 | — | 222 | |||||||||
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| (Loss) Income before income taxes |
(9,085 | ) | 8,500 | (17,585 | ) | |||||||
| Provision for (Benefit from) income taxes |
1,852 | 3,415 | (H) | (1,563 | ) | |||||||
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| (Loss) Income from continuing operations |
$ | (10,937 | ) | $ | 5,085 | $ | (16,022 | ) | ||||
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| Loss per share from continuing operations: |
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| Basic |
$ | (0.09 | ) | $ | (0.14 | ) | ||||||
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| Diluted |
$ | (0.09 | ) | $ | (0.14 | ) | ||||||
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| Shares used in computing per share amounts: |
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| Basic |
116,457 | 116,457 | ||||||||||
| Diluted |
116,457 | 116,457 | ||||||||||
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements, which are an integral part of this statement.
HARMONIC INC.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the year ended December 31, 2011
(In thousands, except per share data)
| As reported |
Pro forma adjustments |
Pro forma | ||||||||||
| Product revenue |
$ | 477,346 | $ | 56,258 | (G) | $ | 421,088 | |||||
| Service revenue |
71,986 | 2,200 | (G) | 69,786 | ||||||||
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| Net revenue |
549,332 | 58,458 | 490,874 | |||||||||
| Product cost of revenue |
256,230 | 39,604 | (G) | 216,626 | ||||||||
| Service cost of revenue |
38,588 | 1,204 | (G) | 37,384 | ||||||||
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| Total cost of revenue |
294,818 | 40,808 | 254,010 | |||||||||
| Gross profit |
254,514 | 17,650 | 236,864 | |||||||||
| Research and development |
102,732 | 3,610 | (G) | 99,122 | ||||||||
| Selling, general and administrative |
131,091 | 4,023 | (G) | 127,068 | ||||||||
| Amortization of intangibles |
8,918 | — | 8,918 | |||||||||
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| Income from operations |
11,773 | 10,017 | 1,756 | |||||||||
| Non-operating income (expense), net |
(140 | ) | — | (140 | ) | |||||||
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| Income before income taxes |
11,633 | 10,017 | 1,616 | |||||||||
| Provision for (Benefit from) income taxes |
2,854 | 3,605 | (H) | (751 | ) | |||||||
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| Income from continuing operations |
$ | 8,779 | $ | 6,412 | $ | 2,367 | ||||||
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| Income per share from continuing operations: |
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| Basic |
$ | 0.08 | $ | 0.02 | ||||||||
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| Diluted |
$ | 0.08 | $ | 0.02 | ||||||||
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| Shares used in computing per share amounts: |
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| Basic |
115,175 | 115,175 | ||||||||||
| Diluted |
116,427 | 116,427 | ||||||||||
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements, which are an integral part of this statement.
HARMONIC INC.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the year ended December 31, 2010
(In thousands, except per share data)
| As reported |
Pro forma adjustments |
Pro forma | ||||||||||
| Product revenue |
$ | 370,783 | $ | 52,076 | (G) | $ | 318,707 | |||||
| Service revenue |
52,561 | 3,492 | (G) | 49,069 | ||||||||
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| Net revenue |
423,344 | 55,568 | 367,776 | |||||||||
| Product cost of revenue |
201,057 | 36,232 | (G) | 164,825 | ||||||||
| Service cost of revenue |
26,886 | 1,276 | (G) | 25,610 | ||||||||
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| Total cost of revenue |
227,943 | 37,508 | 190,435 | |||||||||
| Gross profit |
195,401 | 18,060 | 177,341 | |||||||||
| Research and development |
77,197 | 2,970 | (G) | 74,227 | ||||||||
| Selling, general and administrative |
108,150 | 3,736 | (G) | 104,414 | ||||||||
| Amortization of intangibles |
4,912 | — | 4,912 | |||||||||
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| Income (Loss) from operations |
5,142 | 11,354 | (6,212 | ) | ||||||||
| Non-operating income (expense), net |
297 | — | 297 | |||||||||
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| Income (Loss) before income taxes |
5,439 | 11,354 | (5,915 | ) | ||||||||
| Provision for income taxes |
9,774 | 4,221 | (H) | 5,553 | ||||||||
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| (Loss) Income from continuing operations |
$ | (4,335 | ) | $ | 7,133 | $ | (11,468 | ) | ||||
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| Loss per share from continuing operations: |
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| Basic |
$ | (0.04 | ) | $ | (0.11 | ) | ||||||
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| Diluted |
$ | (0.04 | ) | $ | (0.11 | ) | ||||||
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| Shares used in computing per share amounts: |
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| Basic |
101,487 | 101,487 | ||||||||||
| Diluted |
101,487 | 101,487 | ||||||||||
See accompanying Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements, which are an integral part of this statement.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
| 1. | Basis of Presentation |
The unaudited pro forma condensed consolidated financial statements as of December 31, 2012 and for the years ended December 31, 2012, 2011 and 2010 presented are based on the historical audited statements of Harmonic Inc (“the “Company”) contained in its Annual Report on Form 10-K for the year ended December 31, 2012 after giving effect to the sale of its cable access HFC business (the “HFC Business”) completed on March 5, 2013 (the “Transaction”), and using the assumptions and adjustments described below.
The unaudited pro forma condensed consolidated balance sheet as of December 31, 2012 is presented as if the Transaction had occurred on December 31, 2012.
The unaudited pro forma condensed consolidated statements of operations for the fiscal years ended December 31, 2012, 2011 and 2010 are presented as if the Transaction had occurred on January 1, 2010, the first day of the 2010 fiscal year, and do not assume interest income on the cash proceeds.
The unaudited pro forma condensed consolidated financial statements are based upon available information and assumptions that the Company believes are reasonable under the circumstances and are prepared to illustrate the estimated effects of the Transaction. You should read this information in conjunction with the Company’s audited historical consolidated financial statements as of December 31, 2012 and for the years ended December 31, 2012, 2011 and 2010, included in the Company’s annual report on Form 10-K for the year ended December 31, 2012.
The unaudited pro forma condensed consolidated financial statements have been provided for informational purposes only and are not necessarily indicative of the financial position or results of operations that would have been achieved had the Transaction occurred as of the dates noted above, nor are they necessarily indicative of the Company’s future operating results or financial position.
| 2. | Pro Forma Adjustments |
The following pro forma adjustments are included in the unaudited pro forma condensed consolidated balance sheet:
| (A) | To record the gross proceeds received from the Transaction of $46.0 million. |
| (B) | To eliminate the book value of the assets and liabilities sold in the Transaction, assuming the Transaction had been consummated on December 31, 2012. |
| (C) | To eliminate the estimated fair value of the goodwill allocated to the HFC Business. |
| (D) | To record the estimated third-party advisory and legal costs of approximately $2.3 million, which are directly attributable to the Transaction, but are not expected to have a continuing impact on the Company’s results of operations. |
| (E) | To record the tax effect related to the estimated pro forma gain on the Transaction. |
| (F) | To record the estimated pro forma gain on the Transaction. The actual gain on the Transaction is subject to adjustments. |
The following pro forma adjustments are included in the unaudited pro forma condensed consolidated statements of operations:
| (G) | These pro forma adjustments represent the results of operations which (i) are directly attributable to the HFC Business and (ii) will not continue after the completion of the Transaction. |
| (H) | To record the tax effect related to the HFC Business for the periods presented. |