(HLIT) 2023 Q3 法說會逐字稿

Welcome to the Third Quarter 2023 Harmonic Earnings Conference Call. My name is Carmen, and I'll be your operator for today's call. (Operator Instructions) Please note that today's conference is being recorded. I will now turn the call over to David Hanover, Investor Relations. David, you may begin.

歡迎參加 Harmonic 2023 年第三季財報電話會議。我叫卡門，我是今天電話的接線生。 （操作員指示）請注意，今天的會議正在錄製中。我現在將把電話轉給投資者關係部的戴維漢諾威 (David Hanover)。大衛，你可以開始了。

Thank you, operator. Hello, everyone, and thank you for joining us today for Harmonic's Third Quarter 2023 Financial Results Conference Call. With me today are Patrick Harshman, President and Chief Executive Officer; and Walter Jankovich, Chief Financial Officer. Before we begin, I'd like to point out that in addition to the audio portion of the webcast, we've also provided slides for this webcast, which you may view by going to our webcast on our Investor Relations website.

謝謝你，接線生。大家好，感謝您今天參加我們哈雷 2023 年第三季財務業績電話會議。今天與我在一起的有總裁兼執行長 Patrick Harshman；沃爾特·揚科維奇（Walter Jankovich），財務長。在開始之前，我想指出，除了網路廣播的音訊部分之外，我們還為本次網路廣播提供了幻燈片，您可以透過我們的投資者關係網站上的網路廣播來觀看這些幻燈片。

Now turning to Slide 2. 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 files with the SEC, including our most recent 10-Q and 10-K reports and the forward-looking statements 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 or forward-looking statements. And please note that unless otherwise indicated, the financial metrics we provide during this call are determined on a non-GAAP basis. These metrics, together with corresponding GAAP numbers and a reconciliation to GAAP are contained in today's press release, which we have posted on our website and filed with the SEC on Form 8-K.

現在轉向投影片 2。在本次電話會議中，我們將提供有關公司未來事件或未來財務表現的預測和其他前瞻性陳述。此類陳述僅是目前的預期，實際事件或結果可能有重大差異。我們請您參閱 Harmonic 向 SEC 提交的文件，包括我們最新的 10-Q 和 10-K 報告以及今天初步業績新聞稿的前瞻性聲明部分。這些文件確定了重要的風險因素，這些因素可能導致實際結果與我們的預測或前瞻性陳述中包含的結果有重大差異。請注意，除非另有說明，否則我們在本次電話會議中提供的財務指標是根據非公認會計原則確定的。這些指標以及相應的 GAAP 數字和 GAAP 調節表包含在今天的新聞稿中，我們已將其發佈在我們的網站上，並以 8-K 表格形式向 SEC 提交。

We will also discuss historical, financial and other statistical information regarding our business and operations, and some of this information is included in the press release. The remainder of the information will be available on a recorded version of this call or on our website.

我們還將討論有關我們業務和營運的歷史、財務和其他統計信息，其中一些資訊包含在新聞稿中。其餘資訊將在本次通話的錄音版本或我們的網站上提供。

And now I'll turn the call over to our CEO, Patrick Harshman. Patrick?

現在我將把電話轉給我們的執行長 Patrick Harshman。派崔克？

Well, thanks, David, and welcome, everyone, to our third quarter call. Today, we reported third quarter results, which were within our guidance range and expectations as we continue to make substantial progress in a number of key areas, including DOCSIS 4.0, fiber-to-the-home and Video SaaS. We ended the quarter with strong backlog and deferred revenue, showing our alignment with our customers' growth plans and giving us further confidence in our long-range growth prospects.

好吧，謝謝大衛，歡迎大家參加我們的第三季電話會議。今天，我們報告了第三季業績，該業績在我們的指導範圍和預期之內，因為我們繼續在 DOCSIS 4.0、光纖到府和影片 SaaS 等多個關鍵領域取得實質進展。本季結束時，我們的積壓訂單和遞延收入強勁，這表明我們與客戶的成長計畫保持一致，並使我們對長期成長前景更加充滿信心。

Before diving into the details of the quarter, I mentioned 3 overarching points. First, regarding our broadband business, we're financially healthy. Our technology execution and differentiation remains very strong. We're uniquely positioned for a sustained period of network investment, and we therefore remain fully on track to deliver strong multiyear growth. Second, our Video SaaS business continues to deliver strong recurring revenue growth of 42% in the third quarter on a year-over-year basis, with several new customers recently won and being on-boarded. With Live sports still in the early innings of migrating to streaming platforms, we believe there is substantial runway for growth in our Video SaaS. And third, we're announcing that we have commenced a formal strategic review process for our Video business. Due to changes in the marketplace and our customer strategies, synergies between our broadband and video businesses are now less compelling.

在深入了解本季的細節之前，我提到了 3 個要點。首先，就我們的寬頻業務而言，我們的財務狀況良好。我們的技術執行力和差異化仍然非常強大。我們在持續的網路投資方面處於獨特的地位，因此我們仍然完全有望實現多年的強勁成長。其次，我們的視訊 SaaS 業務在第三季度繼續實現強勁的經常性收入同比增長 42%，最近贏得了一些新客戶並加入其中。由於體育直播仍處於遷移到串流平台的早期階段，我們相信我們的影片 SaaS 仍有很大的成長空間。第三，我們宣布我們已經開始對視訊業務進行正式的策略審查流程。由於市場和我們的客戶策略的變化，我們的寬頻和視訊業務之間的協同效應現在不再那麼引人注目。

Additionally, we have received interest from several external parties for our video business. These factors, coupled with capital allocation planning led us to initiate the strategic review. Together with financial and legal advisers, we're assessing a range of alternatives for the Video business with a clear goal of optimizing long-term value. Walter will provide additional color momentarily. Moving now to our broadband segment highlights. We delivered segment revenue of USD $75.8 million, down from USD $91.9 million a year ago, largely as expected. The number of global customers deploying our solution reached 104%, up 21% year-over-year, with corresponding 23.5 million data cable modems now served worldwide. Approximately 13% of cable modems deployed globally, highlighting the significant footprint expansion opportunity still in front of us.

此外，我們也收到了多個外部方對我們視訊業務的興趣。這些因素加上資本配置規劃促使我們啟動了策略審查。我們與財務和法律顧問一起評估視訊業務的一系列替代方案，其明確目標是優化長期價值。沃爾特將立即提供額外的顏色。現在轉向我們的寬頻細分市場亮點。我們的分部收入為 7,580 萬美元，低於一年前的 9,190 萬美元，基本上符合預期。部署我們解決方案的全球客戶數量達到 104%，年增 21%，目前全球有 2,350 萬個數據電纜數據機。大約 13% 的電纜數據機已在全球部署，這凸顯了我們仍然面臨著巨大的佔地面積擴展機會。

You'll recall last quarter; we anticipated this third quarter revenue decline for 2 related reasons. First, some customers were bleeding down inventory positions established during the pandemic. And second, better-than-anticipated progress on DOCSIS 4.0 technology was leading to a slowdown in DOCSIS 3.1 deployment plans in anticipation of DOCSIS 4.0 roll-out. This is all playing out largely as we had anticipated. Regarding DOCSIS 4.0, the progress has been stunning. A powerful cOS cloud-native software is way out front of the rest of the industry, handling both variants of the DOCSIS 4.0 specification, full duplex and extended spectrum along with 5G fiber in a unified way that simply isn't possible with legacy CMTS solutions that we compete against. Equally impressive has been the edge device work we've done to enable unified support of FDX STN fiber, providing deployment optionality that's a game changer for the industry.

你會記得上個季度；我們預計第三季營收下降有兩個相關原因。首先，一些客戶正在減少大流行期間建立的庫存部位。其次，DOCSIS 4.0 技術的進展優於預期，導致 DOCSIS 3.1 部署計畫因 DOCSIS 4.0 的推出而放緩。這一切基本上都按照我們的預期進行。 DOCSIS 4.0的進展令人驚嘆。強大的 cOS 雲原生軟體遠遠領先於業界其他軟體，能夠以統一的方式處理 DOCSIS 4.0 規範的兩種變體、全雙工和擴展頻譜以及 5G 光纖，而傳統 CMTS 解決方案根本無法實現這一點我們與之競爭的。同樣令人印象深刻的是我們為實現 FDX STN 光纖的統一支援而所做的邊緣設備工作，提供了改變行業遊戲規則的部署可選性。

While anticipation of DOCSIS 4.0 rollout may impact certain customers' near-term deployment plans. The mid- to long-term story for Harmonic is quite positive. As our technology leader is extended, we have an opportunity to sell this DOCSIS 4.0 technology into already deploy DOCSIS 3.1 networks, and our customers have a new tool to deliver their consumers highly competitive multi-gigabit services. In parallel with this advanced DOCSIS 4.0, we've also been making impressive progress in the fiber-to-the-home area. We've secured 14 new fiber winds, including 10 in our existing customer base and for net new with fiber-focused or fiber online providers. The growing fiber success with existing DOCSIS customers highlights the value cable operators see and our unique cOS core with its flexibility to simultaneously power DOCSIS and fiber edge devices. We expect fiber penetration within our existing accounts to grow as cable operators increasingly deploy complementary fiber-based broadband to new and existing subscribers. And then at new winds outside of our traditional cable operator footprint demonstrate our expanding fiber sales focus and success. The recently announced new OLT shelf, which supports 10G, Combo PON and NG-PON will further empower our sales force to engage with a variety of customer profiles domestically and internationally.

雖然 DOCSIS 4.0 推出的預期可能會影響某些客戶的近期部署計畫。哈雷的中長期前景相當樂觀。隨著我們技術領先地位的擴展，我們有機會將此DOCSIS 4.0 技術銷售到已部署的DOCSIS 3.1 網路中，並且我們的客戶擁有一種新工具來為消費者提供極具競爭力的多千兆位服務。在推出先進的 DOCSIS 4.0 的同時，我們在光纖到戶領域也取得了令人矚目的進展。我們已經獲得了 14 個新的光纖風，其中 10 個來自我們現有的客戶群，以及來自專注於光纖或光纖線上供應商的淨新客戶。現有 DOCSIS 客戶日益增長的光纖成功凸顯了有線營運商所看到的價值，以及我們獨特的 cOS 核心及其同時為 DOCSIS 和光纖邊緣設備供電的靈活性。我們預計，隨著有線電視營運商越來越多地向新用戶和現有用戶部署基於光纖的互補寬頻，我們現有客戶中的光纖滲透率將會成長。然後，在我們傳統電纜運營商足跡之外的新風中，展示了我們不斷擴大的光纖銷售重點和成功。最近推出的新 OLT 機架支援 10G、Combo PON 和 NG-PON，這將進一步幫助我們的銷售人員與國內外各種客戶群互動。

In summary, we remain confident in our technology, our market position and our growth opportunities for our broadband business, expanding broadband cable and fiber. With continuing strong backlog and deferred revenue, very strong customer endorsements for example, the recent SCTE Cable-Tec Expo 2023 in Denver and new design winds in every geography we're well positioned for sustained growth. So turning now to our Video segment. The highlight of the quarter was again SaaS revenue, USD $12.5 million, up 42% year-over-year. Total revenue was USD $51.4 million, down from USD $63.8 million a year ago, reflecting our intentional SaaS transformation and several video plants project delays and select customers contend with macroeconomic headwinds. Highlighting the accelerating transition to streaming SaaS, new winds happened at a record pace as our total SaaS customer base grew by 20%. Approximately half of these new SaaS winds were with historic appliance customers.

總之，我們對我們的技術、市場地位以及寬頻業務的成長機會、擴大寬頻和光纖業務仍然充滿信心。憑藉持續強勁的積壓和遞延收入、非常強大的客戶認可，例如最近在丹佛舉行的 2023 年 SCTE Cable-Tec Expo 以及每個地區的新設計風，我們為持續成長做好了充分準備。現在轉向我們的視訊部分。本季的亮點再次是 SaaS 收入，達到 1,250 萬美元，年增 42%。總收入為 5,140 萬美元，低於一年前的 6,380 萬美元，反映出我們有意進行 SaaS 轉型、多家視訊工廠項目延遲以及部分客戶面臨宏觀經濟逆風。隨著我們的 SaaS 客戶群總數增加了 20%，新風以創紀錄的速度發生，凸顯了向串流媒體 SaaS 的加速轉型。這些新的 SaaS 風潮中約有一半來自歷史悠久的設備客戶。

So to be clear, in addition to some of clients' deal delays, we're also seeing more appliance customers starting to transition to SaaS. Only a few of these new SaaS engagements came online during the quarter, meaning our recurring sales revenue funnel continues to grow. Live sports remains the primary driver of these new SaaS winds, is exceptional video quality, low latency, flexible targeted ad insertion and a broad array of quality-related benefits continue to differentiate us in the market. Among our latest sports streaming customers, our global player View Lift and WRC promoter in Germany, with whom we recently issued press releases. On the appliance side of the business, which is more capital intensive for our customers, we saw several instances of extended project delays. However, our domestic and international sales pipelines for the coming periods has actually grown, and we're starting to see encouraging signs of pent-up demand and a resumption of activity.

因此需要明確的是，除了一些客戶的交易延遲之外，我們還看到更多的設備客戶開始轉向 SaaS。本季度，這些新的 SaaS 專案中只有少數上線，這意味著我們的經常性銷售收入管道持續成長。體育直播仍然是這些新 SaaS 風的主要驅動力，卓越的視訊品質、低延遲、靈活的定向廣告插入以及廣泛的與品質相關的優勢繼續使我們在市場上脫穎而出。在我們最新的體育串流媒體客戶中，包括我們的全球玩家 View Lift 和德國 WRC 發起人，我們最近與他們發布了新聞稿。在設備業務方面，對於我們的客戶來說，資本更加密集，我們看到了幾起專案延期的情況。然而，我們未來一段時期的國內和國際銷售管道實際上已經成長，我們開始看到被壓抑的需求和活動恢復的令人鼓舞的跡象。

So finally, before I hand you over to Walter, I'd like to briefly comment on the situation in Israel. Like many, we were outraged by the horrible events that have taken place during recent weeks to our colleagues in Israel and families, and please know that our hearts are with you during this extremely trying time. As a company, our first and utmost priority is the safety of our people. The majority of our people are secure, and we're taking the appropriate measures to ensure their continued safety and support. And with that, let me hand it over to you, Walter for a deeper discussion of our results and outlook.

最後，在我把你交給沃特之前，我想先簡單評論一下以色列的局勢。和許多人一樣，我們對最近幾週發生在以色列的同事和家人身上的可怕事件感到憤怒，請知道，在這個極其艱難的時刻，我們的心與你們同在。作為一家公司，我們的首要任務是員工的安全。我們大多數員工都是安全的，我們正在採取適當措施確保他們的持續安全和支持。接下來，讓我把它交給你，沃爾特，讓你更深入地討論我們的結果和前景。

Thanks, Patrick, and thank you all for joining us today. Before I discuss our quarterly results as well as our outlook, I'd like to remind everyone that the financial results I'll be referring to are provided on a non-GAAP basis. As David mentioned earlier, our Q3 press release and earnings presentation includes reconciliations of the non-GAAP financial measures to GAAP that are discussed on this call. Both of these are available on our website. Our third quarter results were within our guidance range, taking into account customer demand pushouts related to the larger macroeconomic environment that we referred to on our last earnings conference call.

謝謝派崔克，也謝謝大家今天加入我們。在討論我們的季度業績和展望之前，我想提醒大家，我將提到的財務表現是根據非公認會計原則提供的。正如大衛先前所提到的，我們的第三季新聞稿和收益報告包括本次電話會議中討論的非公認會計準則財務指標與公認會計準則財務指標的調節。這兩個都可以在我們的網站上找到。考慮到我們在上次收益電話會議上提到的與更大的宏觀經濟環境相關的客戶需求推動，我們的第三季業績在我們的指導範圍內。

Before reviewing our Q3 2023 financials in detail, I'll call out the highlights here on Slide 7. For the quarter, we reported revenue of USD $127.2 million with EPS of $0.00 bookings of USD $96.3 million and near record backlog and deferred revenue of USD $627.2 million. In a few moments, I'll provide Q4 guidance. Turning to Slide 8. Total Q3 revenue was down 18.3% year-over-year, mainly due to the factors I mentioned earlier. Looking at broadband, Q3 revenue was USD $75.8 million. The year-over-year decline was due largely to inventory adjustments by our broadband customers. I want to note that during the third quarter, we were in the initial ramp stage of another Tier 1 customer. We expect to see the benefit of this ramp in Q4 as reflected in our revised guidance.

在詳細回顧我們2023 年第三季度的財務數據之前，我將在幻燈片7 上重點介紹一下這裡的要點。本季度，我們的收入為1.272 億美元，每股收益為0.00 美元，預訂量為9630萬美元，積壓訂單和遞延收入接近創紀錄水準6.272 億美元。稍後，我將提供第四季的指導。轉向幻燈片 8。第三季總收入年減 18.3%，主要是由於我之前提到的因素。從寬帶來看，第三季營收為 7,580 萬美元。年比下降主要是由於我們的寬頻客戶的庫存調整。我想指出的是，在第三季度，我們正處於另一個一級客戶的初始階段。我們預計將在第四季度看到這一成長的好處，這反映在我們修訂後的指導中。

In video, Q3 revenue was USD $51.4 million, while video appliance sales were lower due to the factors I noted earlier, video revenue included SaaS revenue of USD $12.5 million or 24% of segment revenue for the quarter, up 42% from the prior year. We continue to execute on the strategic transformation of our Video business with the continued growth of SaaS while also focusing on maximizing profitability in the appliance business. As Patrick mentioned, we are evaluating strategic alternatives for our Video business. To be clear, we still consider both broadband and Video SaaS to be high-growth areas. Based on that and after making a thorough assessment of our capital allocation priorities, we decided now is the right time to assess strategic alternatives for video as it continues its strategic shift to focus on SaaS. This decision was also made partly due to the indications of interest in our Video business from a number of parties over the past several months. Please note, no timetable has been established for the completion of the strategic review and the review may not result in any transaction. We do not intend to disclose further developments with respect to this review process unless and until our board approves a specific action or otherwise concludes the review.

在影片方面，第三季營收為5,140 萬美元，而影音設備銷售額因我先前提到的因素而有所下降，影片收入包括SaaS 收入為1,250 萬美元，佔該季部門收入的24%，比前一年增長42% 。隨著SaaS的持續成長，我們持續執行視訊業務的策略轉型，同時也專注於設備業務獲利能力的最大化。正如帕特里克所提到的，我們正在評估視訊業務的策略替代方案。需要明確的是，我們仍然認為寬頻和視訊 SaaS 都是高成長領域。基於此，在對我們的資本配置優先事項進行全面評估後，我們認為現在是評估視訊策略替代方案的最佳時機，因為影片將繼續其策略轉型，專注於 SaaS。做出這項決定的部分原因是過去幾個月多方對我們的視訊業務表現出了興趣。請注意，尚未確定完成策略審查的時間表，審查可能不會產生任何交易。除非我們的董事會批准一項具體行動或以其他方式結束審查，否則我們不打算披露有關此審查過程的進一步進展。

Turning back to our third quarter results. We had one customer representing greater than 10% of total revenue during the quarter with Comcast representing 41% of total revenue. Total company gross margin was 49.5% for Q3 '23, reflecting decreased gross margins in both of our business segments sequentially. Broadband gross margin was 44.5% for Q3 '23, down 50 basis points year-over-year and above our guidance. Video segment gross margin was 56.9% in Q3 '23, reflecting macroeconomic headwinds and project delays noted earlier. Moving down the income statement on Slide 9. Q3 operating expenses were USD $62.9 million, down 6.4% sequentially and up 3.2% year-over-year. The sequential decrease reflects cost containment actions and R&D that is assigned to cost of sales for specific customer projects, partially offset by an increase due to a specific bad debt expense of USD $1 million.

回到我們第三季的業績。我們有一個客戶佔本季總收入的 10% 以上，其中康卡斯特佔總收入的 41%。 23 年第三季公司總毛利率為 49.5%，反映出我們兩個業務部門的毛利率連續下降。 2023 年第三季寬頻毛利率為 44.5%，年減 50 個基點，高於我們的指引。 23 年第三季視訊業務毛利率為 56.9%，反映了宏觀經濟逆風和先前提到的專案延誤。將投影片 9 中的損益表向下移動。第三季營運費用為 6,290 萬美元，季減 6.4%，年增 3.2%。環比下降反映了成本控制措施和分配給特定客戶項目銷售成本的研發，但部分被 100 萬美元特定壞帳費用增加所抵銷。

Adjusted EBITDA for Q3 '23 was USD $3.5 million or 2.8% of revenue, comprised of USD $8.1 million from broadband and negative USD $4.6 million from video. Adjusted EBITDA for broadband came in above the high end of our expectations, while video was lower due to the factors noted earlier. This all translated into Q3 '23 EPS of USD $0.00 per share, in line with our previous guidance and compared with USD $0.12 in Q2 '23 and $0.13 per share for Q3 '22. We ended the third quarter of 2023 with a calculated diluted weighted average share count of USD $116.7 million compared to USD $119.3 million in Q2 '23 and USD $113.2 million in Q3 '22. The sequential decrease is primarily due to the decreased convertible debt dilution of 2.5 million shares.

23 年第 3 季調整後 EBITDA 為 350 萬美元，佔營收的 2.8%，其中寬頻營收為 810 萬美元，影片營收為負 460 萬美元。寬頻的調整後 EBITDA 高於我們預期的上限，而影片由於前面提到的因素而較低。這一切都轉化為23 年第3 季每股0.00 美元的每股收益，與我們先前的指引一致，而23 年第2 季的每股盈餘為0.12 美元，22 年第3 季的每股盈餘為0.13 美元。截至 2023 年第三季度，我們計算出的稀釋加權平均股票數量為 1.167 億美元，而 23 年第二季為 1.193 億美元，22 年第三季為 1.132 億美元。環比下降主要是由於 250 萬股可轉換債務稀釋減少。

Turning to the order book. Q3 bookings were USD $96.3 million. The book-to-bill ratio was 0.8% for the quarter. For Q2 '23 and Q3 '22, our book-to-bill ratios were 1.2 and 1.1, respectively. As we've stated previously, over time as supply chain conditions improve, we expect this ratio to normalize and approach the historical benchmark of greater than one. For Q3, we were below one after several quarters of being above one. Turning to the balance sheet on Slide 10. We ended Q3 '23 with cash of USD $75.6 million. The net USD $4.6 million sequential increase was due to a few factors. Cash from operations provided USD $11 million due predominantly to a decrease in both inventory and accounts receivable, offset by a decrease in other current liabilities. We also used USD $1.9 million in the purchase of fixed assets.

轉向訂單簿。第三季預訂額為 9,630 萬美元。該季度的訂單出貨比為 0.8%。 23 年第二季和 22 年第三季度，我們的訂單出貨比分別為 1.2 和 1.1。正如我們之前所說，隨著時間的推移，隨著供應鏈狀況的改善，我們預計這一比率將正常化並接近大於 1 的歷史基準。對於第三季度，我們在連續幾季高於 1 後又低於 1。轉向幻燈片 10 上的資產負債表。截至 23 年第三季度，我們擁有 7,560 萬美元的現金。環比淨增長 460 萬美元是由幾個因素造成的。營運現金提供 1,100 萬美元，主要是由於庫存和應收帳款減少，但被其他流動負債的減少所抵消。我們還用了190萬美元購買固定資產。

Also, in addition to cash of USD $75.6 million, at quarter end, we had short-term investments of term deposits of USD $6.3 million, together totaling USD $81.9 million. Turning to accounts receivable and days sales outstanding at the end of Q3 '23, DSO was 78% compared to 69 in Q2 '23 and 61 in the prior year period. As we mentioned on our last earnings call, one of our larger customers informed us that they will no longer take an early pay discount in Q3, which is reflected here. Days inventory on hand was 145 days at the end of Q3 '23 compared to 145 at the end of Q2 '23 and 116 at the end of Q3 '22. The inventory decline in the quarter was a result of lower in feed as we continue to tighten our supply chain.

此外，除現金 7,560 萬美元外，截至季末，我們還有定期存款短期投資 630 萬美元，總計 8,190 萬美元。至於 23 年第 3 季末的應收帳款和應收帳款週轉天數，DSO 為 78%，而 23 年第 2 季為 69%，去年同期為 61%。正如我們在上次財報電話會議上提到的，我們的一位大客戶告訴我們，他們將在第三季不再享有提前薪資折扣，這反映在此。 23 年第 3 季末的庫存天數為 145 天，而 23 年第 2 季末的庫存天數為 145 天，22 年第 3 季末的庫存天數為 116 天。本季庫存下降是由於我們繼續收緊供應鏈而導致飼料減少。

Regarding capital allocation, our top priority remains driving our future growth. When appropriate, we will strategically invest in building inventory as we've done in the past to meet strong demand. We retain the flexibility to maintain somewhat lower inventory levels. This is reflected in our lower ending inventory balances for the third quarter.

在資本配置方面，我們的首要任務仍然是推動我們未來的成長。在適當的時候，我們將像過去那樣策略性地投資於建立庫存，以滿足強勁的需求。我們保留保持較低庫存水準的靈活性。這反映在我們第三季較低的期末庫存餘額。

Our forward capital allocation strategy also includes our 2024 convertible notes and in the stock repurchases under our stock repurchase program. As we said previously, the timing and amount of any stock repurchases will depend on a variety of factors, including the price of Harmonic's common stock, market conditions, corporate needs and regulatory requirements. At the end of Q3, total backlog and deferred revenue was USD $627.2 million. Our strong backlog reflects continued demand from our large broadband customers and growing video SaaS commitments. Just under 50% of our backlog and deferred revenue has customer request dates for shipments of products and for providing services within the next 12 months.

我們的遠期資本配置策略還包括 2024 年可轉換票據和股票回購計畫下的股票回購。正如我們之前所說，任何股票回購的時間和金額將取決於多種因素，包括哈雷普通股的價格、市場狀況、公司需求和監管要求。截至第三季末，積壓訂單和遞延收入總額為 6.272 億美元。我們強勁的積壓反映了我們大型寬頻客戶的持續需求和不斷增長的影片 SaaS 承諾。在我們的積壓訂單和遞延收入中，有不到 50% 的客戶要求在未來 12 個月內出貨並提供服務。

Lastly, we generated USD $9.1 million in free cash flow in the quarter. In summary, our Q3 results were within our expectations, the short-term macroeconomic headwinds while frustrating, have not impacted our market share. We continue to see strong demand for our market-leading technology solutions as customers recognize the value add that we bring to their businesses. Before reviewing guidance, I'd like to mention that given the strategic review process we announced today, we have decided to move our Analyst Day, which was previously planned for late 2023 to early next year. More information will be forthcoming once we have finalized those details. Let's now review our revised non-GAAP guidance for the fourth quarter, beginning on Slide 11. We expect broadband to deliver revenue between USD $105 million to USD $120 million, below our prior guidance at the midpoint.

最後，我們在本季產生了 910 萬美元的自由現金流。綜上所述，我們第三季的業績符合我們的預期，短期宏觀經濟的不利因素雖然令人沮喪，但並未影響我們的市場佔有率。隨著客戶認識到我們為其業務帶來的附加價值，我們繼續看到對我們市場領先的技術解決方案的強勁需求。在審查指導意見之前，我想提一下，鑑於我們今天宣布的策略審查流程，我們決定將先前計劃於 2023 年底舉行的分析師日推遲到明年初。一旦我們敲定了這些細節，我們將提供更多資訊。現在讓我們從投影片 11 開始回顧我們修訂後的第四季非 GAAP 指引。我們預計寬頻業務將帶來 1.05 億美元至 1.2 億美元的收入，低於我們之前的指引中位數。

Gross margins between 44% to 45% reflecting a similar product mix as in Q3, operating expenses between USD $29 million to USD $30 million and adjusted EBITDA between USD $19 million to USD $26 million. For broadband, we still expect to see a rebound in Q4 and the potential to hit a record quarter in revenue. Today's guidance and wider range reflects the current macroeconomic climate. For our video segment in Q4 on Slide 12, we expect revenue in the range of USD $45 million to USD $55 million, gross margin in the range of 59% to 60%, operating expenses in the range of USD $33 million to USD $35 million and adjusted EBITDA to range from a loss of USD $5 million to a loss of USD $1 million. For video, we are being conservative in providing a wider range on guidance given the ongoing strategic review and other factors I mentioned earlier.

毛利率在 44% 到 45% 之間，反映了與第三季類似的產品組合，營運費用在 2,900 萬美元到 3,000 萬美元之間，調整後 EBITDA 在 1,900 萬美元到 2,600 萬美元之間。對於寬頻，我們仍然預期第四季會出現反彈，並有可能創下季度營收紀錄。今天的指引和更廣泛的範圍反映了當前的宏觀經濟氣候。對於幻燈片 12 上第四季的視訊部門，我們預計營收在 4,500 萬美元至 5,500 萬美元範圍內，毛利率在 59% 至 60% 範圍內，營運費用在 3,300 萬美元至 3,500 萬美元範圍內並將EBITDA 調整為虧損500 萬美元至虧損100 萬美元。對於視頻，鑑於正在進行的戰略審查和我之前提到的其他因素，我們在提供更廣泛的指導方面持保守態度。

Turning to Slide 13. For the fourth quarter of 2023, we expect total company revenue in the range of USD $150 million to USD $175 million, gross margin in the range of 48.5% to 49.7%, operating expenses to range from USD $62 million to USD $65 million, adjusted EBITDA to range from USD $14 million to USD $25 million, an effective tax rate of 20% and a weighted average diluted share count of approximately USD $117.1 million and EPS to range from a profit of USD $0.07 to USD $0.14 and cash to range from USD $80 million to USD $95 million. We will not go through the full year 2023 guidance here since we just discussed Q4 guidance in detail. For further details, please refer to our earnings release that was issued earlier today.

轉向幻燈片 13。對於 2023 年第四季度，我們預計公司總收入在 1.5 億美元至 1.75 億美元之間，毛利率在 48.5% 至 49.7% 之間，營運費用在 6,200 萬美元至6,500 萬美元，調整後EBITDA 範圍為1,400 萬美元至2,500 萬美元，有效稅率為20%，加權平均稀釋後股份數約為1.171 億美元，每股收益範圍為利潤0.07 美元至0.14 美元，現金範圍為8000 萬美元至9500 萬美元。由於我們剛剛詳細討論了第四季度的指導，因此我們不會在此詳細介紹 2023 年全年指導。如欲了解更多詳情，請參閱我們今天稍早發布的收益報告。

In summary, during the third quarter, we continued to execute on our long-term strategic plans. We believe our Broadband segment is well positioned for future growth. In addition, we made progress with the planned transformation of our video segment and shift to SaaS during the quarter even as we consider strategic alternatives to maximize shareholder value. Thank you, everyone, for your attention today. And now I'll turn it back to Patrick for final remarks before we open up the call for questions.

綜上所述，第三季我們繼續執行長期策略計畫。我們相信我們的寬頻業務已為未來的成長做好了準備。此外，我們在本季度計劃的視訊部門轉型和轉向 SaaS 方面取得了進展，儘管我們正在考慮實現股東價值最大化的策略替代方案。謝謝大家今天的關注。現在，在我們開始提問之前，我將把它轉回帕特里克進行最後發言。

All right. Well, thank you, Walter. Let me just wrap it up by emphasizing your concluding thoughts there. Harmonic continues to be exceptionally well positioned to drive sustained growth and shareholder value creation. We're focused on these objectives and confidence in our ability to execute. And with that, we want to thank you for your continued support, and we will open it up for questions.

好的。嗯，謝謝你，沃特。讓我透過強調你的結論性想法來結束它。哈雷在推動持續成長和股東價值創造方面繼續處於非常有利的地位。我們專注於這些目標，並對我們的執行能力充滿信心。在此，我們要感謝您一直以來的支持，我們將開放提問。

Thank you so much.(Operator Instructions) Our first question is from Simon Leopold with Raymond James.

非常感謝。（操作員說明）我們的第一個問題是西蒙·利奧波德和雷蒙德·詹姆斯提出的。

I'd like to try to squeeze in two, if I may. The first one is on its conference call, Charter publicly talked about some potential changes in the timing of its rollout. And I think what they indicated was they may do some more of their rural build-outs ahead of some of the other upgrade activity. And I want to see if you can share any thoughts on what that might mean for Harmonic. And then my second question, and sorry, I'll get both in is basically for some of these upgrade initiatives require upgrades to amplifiers, but there are carriers that have deployed fiber deep that don't need amplifiers to be upgraded to deploy the DA nodes from somebody like Harmonic. And what I'm looking for from you is some sense of how much of the market can be upgraded fiber deep without waiting for the availability of the associated amplifiers. Hopefully, those two questions make sense, and you can answer them.

如果可以的話，我想嘗試擠成兩半。第一個是在其電話會議上，Charter 公開談論了其推出時間的一些潛在變化。我認為他們表示他們可能會在其他一些升級活動之前進行更多的農村建設。我想看看您是否可以分享這對 Harmonic 意味著什麼。然後我的第二個問題，抱歉，我將兩者都納入基本上是因為其中一些升級計劃需要升級放大器，但有些運營商已經部署了光纖深度，不需要升級放大器來部署 DA來自Harmonic 等公司的節點。我希望您了解有多少市場可以升級光纖深度，而無需等待相關擴大機的可用性。希望這兩個問題有意義，並且您可以回答它們。

Yes. Okay. Thank you, Simon. First, regarding Charter, we don't have anything really specific to say beyond what they themselves said about their plans. What I would remind you and everyone else is that from the beginning, we've been asked questions about charter schedule, et cetera. And I think our position from the beginning has been to take a wait-and-see attitude. We've been through these onboarding ramp-ups with a number of large customers. I think we've seen a lot. So we've got a lot of experience, and we're bringing a lot of that experience to bear. We are -- neither surprise or unprepared for short-term changes in schedule. That being said, we've got our eyes on the prize, which is the big picture. I think if you compare this to where we were a year ago, we've secured the second largest operator on the planet, Charter. We are their partner going forward. They're going to do extensive work across their networks over the next several years. And we think we're going to be a prime beneficiary and enabler of that exciting work. And nothing we have heard from them or think it changes the big picture of the opportunity and the trajectory of that work there.

是的。好的。謝謝你，西蒙。首先，關於憲章，除了他們自己所說的計劃之外，我們沒有任何具體的內容要說。我要提醒您和其他所有人的是，從一開始，我們就被問到有關包機時間表等問題。我認為我們從一開始就採取觀望態度。我們已經與許多大客戶一起經歷了這些入職培訓。我想我們已經見過很多了。因此，我們擁有豐富的經驗，並且我們正在運用這些經驗。對於日程安排的短期變化，我們既不感到驚訝，也不沒有做好準備。話雖這麼說，我們的目光都集中在獎品上，這是大局。我認為，如果你將這與一年前的情況進行比較，我們已經獲得了全球第二大營運商 Charter。我們是他們未來的合作夥伴。未來幾年，他們將在其網路中進行廣泛的工作。我們認為我們將成為這項令人興奮的工作的主要受益者和推動者。我們沒有從他們那裡聽到任何消息，也不認為這會改變那裡的機會和工作軌蹟的大局。

On the second question, it's a good question on DOCSIS 4. Indeed, what we've done on the core and the nodes is out ahead of what others have done on the so-called RF amplifier area, which is needed for, I would say, the majority of the DAA footprint. That being said, there is a significant to your question, and I can't give you an exact number, Simon. But there is a significant DAA opportunity where there is no amplifier technology needed. In fact, our estimation is I think the industry expects there to be RF amplifiers, let's say, roughly by a year from now, 5 quarters from now. And our view is that there is ample opportunity for investments for growth proactivity in DOCSIS 4.0 DAA that doesn't need amplifiers between now and then. So our -- that is our plan, to be involved in projects. And we think it mirrors some of our key customers' plans. We'll focus over the next year on DAA that doesn't involve amplifiers. And when the amplifier part technology is available, well, then the playing field will expand.

關於第二個問題，這是一個關於 DOCSIS 4 的好問題。事實上，我們在核心和節點上所做的工作領先於其他人在所謂的 RF 放大器領域所做的工作，我認為這是需要的比如說，DAA 足跡的大部分。話雖如此，你的問題很重要，我無法給你一個確切的數字，西蒙。但在不需要擴大機技術的情況下，存在著重要的 DAA 機會。事實上，我們的估計是，我認為業界預計大約一年後、五個季度後將會出現射頻放大器。我們的觀點是，DOCSIS 4.0 DAA 的成長主動性有充足的投資機會，從現在到那時都不需要擴大機。這就是我們的計劃，參與專案。我們認為這反映了我們一些主要客戶的計劃。明年我們將重點放在不涉及放大器的 DAA。當擴大機部分技術可用時，那麼競爭環境就會擴大。

And it comes from the line of Ryan Koontz with Needham & Company.

它來自 Ryan Koontz 和 Needham & Company 的血統。

I want to follow up on Simon's question about DOCSIS 4. And just at a high level, what your view is of DAA mix going forward? I mean, obviously, we're in the very early stages of deployments down. Can you kind of share any thoughts? There was a lot of bus at the C conference a couple of weeks back about this DOCSIS 3.1 kind of plus model to get higher speeds. And if you can kind of share any thoughts about the transition to DOCSIS 4 hardware that you have in mind over the next few quarters would be helpful. I have one follow-up, if you don't mind.

我想跟進 Simon 關於 DOCSIS 4 的問題。從較高的層面來看，您對未來 DAA 混合有何看法？我的意思是，顯然我們正處於部署的早期階段。能分享一些想法嗎？幾週前的 C 會議上有很多關於這種 DOCSIS 3.1 類型的 plus 模型以獲得更高速度的討論。如果您能分享您在接下來的幾個季度中考慮的任何向 DOCSIS 4 硬體過渡的想法，將會有所幫助。如果你不介意的話，我有一個後續行動。

Yes. Look, let's -- thank you for the question. Let's separate two things. One, DAA, the architecture where you have centralized core, I think -- if you were at the show, you saw the industry is virtualized score. That's it. And then you've got distributed hardware at the edge devices. And we're going to see that as the predominant architecture going forward for DOCSIS 3.1 as well as DOCSIS 4.0 and as well as hybrid DOCSIS in fiber. And I think that, that more than ever before, it's clear that's the consensus of the industry and it's clear that Harmonic leads in that area.

是的。聽著，讓我們——謝謝你的提問。讓我們分開兩件事。一、DAA，我認為這種架構擁有集中式核心——如果您在展會上，您會看到該行業的虛擬化分數。就是這樣。然後你就可以在邊緣設備上獲得分散式硬體。我們將看到它作為 DOCSIS 3.1 和 DOCSIS 4.0 以及光纖混合 DOCSIS 的主要架構。我認為，這比以往任何時候都更加明顯，這是該行業的共識，而且哈雷在該領域處於領先地位。

Now what's the mix going to be, I think, is the essence of your question between 3.1, 4.0, maybe a hybrid, this what we call Booster of 3.1 core, taking advantage of some DOCSIS 4 modem technology, we're going to see a mix of all of the above. And it's hard to exactly forecast. But our – there's going too cruciate, I mean, we're giving our customers an amazingly powerful Swiss Army knife that really allows them to be flexible, to be reactive to competitive as well as customer demand opportunity. And you're going to see a mix of all of it, Ryan. And I think if you were there in Denver, you saw we're way out in front on DOCSIS 3.1 now on this hybrid boosted 3.1 stuff on 4.0 as well as the overlay of fiber on top of that. So what's the exact mix, I'm not sure, but the key thing is for us is getting the customers to go with the Harmonic platform, so they've got that optionality. And I think more than ever before, we're positioned to take advantage of this.

現在，我認為，你的問題的本質是 3.1、4.0 之間的混合，也許是混合，這就是我們所說的 3.1 核心的 Booster，利用一些 DOCSIS 4 調製解調器技術，我們將看到上述所有內容的混合。而且很難準確預測。但我們的——我的意思是，我們正在為客戶提供一把極其強大的瑞士軍刀，真正讓他們變得靈活，對競爭和客戶需求機會做出反應。你會看到所有這些的混合體，瑞安。我想，如果您在丹佛，您會發現我們在 DOCSIS 3.1 方面遙遙領先，現在在 4.0 上混合增強了 3.1 內容，並在此基礎上覆蓋了光纖。我不確定具體的組合是什麼，但對我們來說關鍵是讓客戶使用 Harmonic 平台，這樣他們就有了選擇權。我認為我們比以往任何時候都更有能力利用這一點。

Yes. I mean, certainly, the software platform you guys have is a huge differentiator that can do all that. And a quick question on the video side. You talked about the growth in streaming SaaS and the headwinds in appliances. Are you seeing a direct cannibalization of the appliance business? Or are these two separate customer businesses going in different directions? And maybe you can give us some light on that side of the world?

是的。我的意思是，當然，你們擁有的軟體平台是一個巨大的差異化因素，可以做到這一切。還有一個關於視頻方面的快速問題。您談到了串流媒體 SaaS 的成長和設備的逆風。您是否看到家電業務面臨直接蠶食？或者這兩個獨立的客戶業務正在走向不同的方向？也許你可以給我們一些關於世界另一端的線索？

Look, it's a great question. Basically, there's overlap. As we pieced apart and we had a record quarter for new SaaS ads. So as we dug into it, we found about it was about 50-50 new customers or kind of new business models. But the other half was actually historic appliance customers moving to a SaaS model. So the SaaS is -- transformation is partly responsible in this past quarter, let's say, 50% responsible for the weakness we saw in appliance. Now the other part is really no different than you're seeing across the broader carrier landscape but it's inventory, its cost of capital, et cetera. Maybe you'll leave a little bit more headwinds internationally. So it's both, Ryan or a mix of the two.

聽著，這是一個很好的問題。基本上是有重疊的。當我們進行分析時，我們發現新的 SaaS 廣告季度創歷史新高。當我們深入研究時，我們發現大約有 50-50 個新客戶或某種新的商業模式。但另一半實際上是轉向 SaaS 模式的歷史設備客戶。因此，SaaS 是——上個季度的轉型對我們在設備領域看到的弱點負有 50% 的責任。現在，另一部分實際上與您在更廣泛的運營商環境中看到的沒有什麼不同，但它是庫存、資本成本等等。也許你會在國際上留下更多的阻力。所以兩者都是，瑞安或者兩者的混合。

And it comes from the line of Steve Frankel with Rosenblatt.

它來自史蒂夫·弗蘭克爾和羅森布拉特的血統。

Patrick, back on 4.0, and there's been a lot of discussion about the Broadcom ship availability and how it's impacting the amplifier side. Is there a similar supply chain concern around 4.0 nodes? Or do you have visibility into the chip supply you need to get those 4.0 nodes into the market?

Patrick，回到 4.0，關於 Broadcom 船舶可用性及其對放大器方面的影響進行了很多討論。 4.0節點周圍是否有類似的供應鏈問題？或者您是否了解將這些 4.0 節點推向市場所需的晶片供應？

The high level, there's a lot of complexity there, a lot of moving parts, but the high-level answer is we're in good shape. We've got ex relationship with Broadcom that we're grateful for excellent alignment with our customers. And we think we're in good shape there.

在高層，那裡有很多複雜性，有很多移動部件，但高層的答案是我們狀況良好。我們與博通有過合作關係，我們非常感謝與客戶的良好合作。我們認為我們在那裡狀況良好。

Okay. And then in terms of the new tier -- you've got a new Tier 1 that's ramping, that's great news. There's been this other group of Tier 1 that kind of have been stuck in neutral or first year. What can you do to get that group of customers accelerated and moving forward?

好的。然後就新的層級而言，新的 1 級正在不斷增加，這是個好消息。還有另一組 1 級人員被困在中立或第一年。您可以採取哪些措施來讓這群客戶加速並向前發展？

Well, we come out of this recent event in Denver, extremely encouraged exactly on that question. If you roll back 12 months ago, think about it, there was uncertainty about Remote PHY versus Remote MAC. There was all the stress about FDX versus ESD. A lot of uncertainty and confusion. We come out a year later -- we come out of set with those questions essentially being answered. It's Remote PHY on DOCSIS 4.0, it's a unified product. So I think things that were holding back to customers from having clarity on their plans have -- I mean, the fog is really clearing. And the substance the specificity of discussions we're now having with leading Tier 1 who have yet to get on board as well as Tier 2s. It's -- we're quite encouraged.

嗯，我們最近在丹佛舉行的這次活動結束後，在這個問題上受到了極大的鼓舞。如果回滾到 12 個月前，請想一想，遠端 PHY 與遠端 MAC 之間存在不確定性。 FDX 與 ESD 之間存在著各種壓力。很多不確定性和混亂。一年後我們出來了——我們基本上已經回答了這些問題。它是 DOCSIS 4.0 上的 Remote PHY，是一個統一的產品。因此，我認為那些阻礙客戶明確計畫的因素已經——我的意思是，迷霧確實正在消散。我們現在正在與尚未加入的領先一級公司以及二級公司進行討論的具體內容。我們深受鼓舞。

Now look, it doesn't mean we're going to be deploying with them next week. But as we look at the continued trajectory of this business, we're feeling that the industry and we, with our product and technology are in a very good place.

現在看，這並不意味著我們將在下週與他們一起部署。但當我們審視這項業務的持續發展軌跡時，我們感覺到這個產業和我們以及我們的產品和技術都處於一個非常好的位置。

Okay. And then one last one. Would you characterize what the book-to-bill looked like on the broadband side. We talked about the weakness in video, but what -- where were we on the broadband side in the quarter?

好的。然後是最後一張。您能否描述一下寬頻方面的訂單到帳單是什麼樣子的？我們討論了影片的弱點，但是本季我們在寬頻方面的表現如何？

Yes. Both of our businesses, Steve, its Walter here. We're below one in the quarter.

是的。我們兩家公司，史蒂夫，這裡是沃特。我們本季的業績低於一。

" For our next question, please. It comes from the line of Steve -- I'm sorry, George Notter with Jefferies.

「請回答我們的下一個問題。這個問題來自史蒂夫——對不起，傑弗里斯的喬治·諾特。

I guess, I wanted to ask about just the integration of CableOS into customer network. I think you referenced charter earlier. But I'm just wondering, I know there's some integration that has to be done to get a big MSO like that up and running on CableOS. I'm just curious on where you are in that integration process. Is it done? Is there more to do? What does the timing of that look like?

我想，我想問的只是將 CableOS 整合到客戶網路中的情況。我想你之前提到過憲章。但我只是想知道，我知道必須進行一些整合才能在 CableOS 上啟動並運行這樣的大型 MSO。我只是好奇你在整合過程中處於什麼位置。好了嗎？還有更多事情要做嗎？時間安排是怎樣的？

Indeed, CableOS is a change in a couple of dimensions. We're a new company than historic CMTS provider. And it's a different technology approach is software. It's cloud native. It's with amazing telemetry tools. A few or others were at the recent broadband event, you heard Comcast speak very publicly about the massive operational advantages they are driving now from the system. All of those come after a number of transformations on the back end, the CableOS is really at the core of. So yes, with every customer coming on board, there is integration work. There is training in terms of adopting of new tools and approaches. And we've seen, George, with different customers that process take varying amounts of time. And I can't give you a specific answer on where we are on charter, except to say that we're making good progress there as we are with other customers who are in the midst of onboarding. The question is, it is not one of it, but it's of exact timing. And we think we're making good progress with leading customers who are onboarding with CableOS -- cOS, excuse me at this time.

事實上，CableOS 在幾個方面都發生了變化。我們是一家新公司，而不是歷史悠久的 CMTS 提供者。另一種不同的技術方法是軟體。它是雲端原生的。它具有令人驚嘆的遙測工具。有些人或其他人參加了最近的寬頻活動，您聽到康卡斯特非常公開地談論他們現在從該系統中獲得的巨大營運優勢。所有這些都是在後端進行了一系列改造之後實現的，CableOS 才是真正的核心。所以，是的，隨著每個客戶的加入，都會有整合工作。有採用新工具和方法的訓練。喬治，我們已經看到，對於不同的客戶，這個過程需要不同的時間。我無法就我們的包租情況向您提供具體答案，只能說我們在這方面取得了良好進展，就像我們與其他正在入職的客戶一樣。問題是，這不是其中之一，而是確切的時間。我們認為我們在使用 CableOS（cOS，請原諒現在）的領先客戶方面取得了良好進展。

Is there a sort of minimum and maximum that you guys have seen from your experience just in terms of the time it takes to integrate it? I guess, on one hand, I look at Comcast. It seems like it's like a number of years, certainly for Comcast or achieve sort of full velocity in terms of the deployment of the network there and maybe just other smaller customers that move much more quickly. But I guess I'm just wondering if there's kind of a range of timing that we should think about in terms of that integration process.

你們從你們的經驗中看到的整合時間是否有一個最小值和最大值？我想，一方面，我關注康卡斯特。看起來這需要很多年的時間，對於康卡斯特來說當然是這樣，或者在網路部署方面達到全速，也許只是其他規模較小的客戶移動得更快。但我想我只是想知道我們是否應該在整合過程中考慮一系列的時間表。

Well, you're right. If we go back to the very first and massive process with Comcast that took years for a variety of reasons, and it wasn't just a back office. There's a lot of learning, a lot of innovation all over the network that was happening at that time. Undoubtedly, times have improved dramatically since then. But we're still in the range of months or 2-year kind of a thing, depending on a lot of factors concerning the historic legacy network and the orientation and the priorities of the customer we're working with. We've seen deployments happen in less than 2 months, and we are involved with the processes that take closer to a year. And it's everything in between, although the median time is definitely shortening, George, as we all continue to gain more experience.

嗯，你是對的。如果我們回到康卡斯特的第一個大規模流程，由於各種原因花了數年時間，而且它不僅僅是一個後台辦公室。當時整個網路上發生了很多學習和創新。毫無疑問，從那時起，時代已經有了巨大的進步。但我們仍然處於幾個月或兩年的時間範圍內，這取決於與歷史遺留網路以及我們正在合作的客戶的方向和優先順序有關的許多因素。我們看到部署在不到兩個月的時間內完成，而我們參與的流程則需要接近一年的時間。一切都介於兩者之間，儘管中間時間肯定在縮短，喬治，因為我們都在不斷獲得更多經驗。

One moment for our last question, please. And come from the line of Timothy Savageaux with Northland Capital Markets.

請稍等一下我們的最後一個問題。來自 Northland Capital Markets 的 Timothy Savageaux 家族。

A question about the overall topic would be gross margins on the broadband side. You're guiding to a pretty sharp increase and congrats on that and rebound in Q4 revenue in broadband. And I might have expected a pickup in gross margins there. If you look at the first half when you were kind of around the USD $100 million a quarter level, you're around 50% gross. So it does look like the mix is changing a bit. You mentioned a Tier 1 win ramping? Might that be more hardware heavy? So what sort of factors are affecting that guide not just relative to what you saw in Q3, but relative to what you saw in the first half? And then maybe more broadly, as you look at some of these bigger ramps, where do you think a reasonable expectation for broadband gross margins and mix to settle out?

關於整個主題的一個問題是寬頻方面的毛利率。您正在引導寬頻收入大幅成長，並對此表示祝賀並出現反彈。我可能會預期那裡的毛利率會上升。如果你看一下上半年的情況，當時你的季度收入約為 1 億美元，那麼你的毛利率約為 50%。所以看起來混合確實發生了一些變化。你提到了一級勝利的提升？硬體可能會更重嗎？那麼，哪些因素不僅相對於您在第三季看到的情況，而且還相對於您在上半年看到的情況，影響了該指南？然後，也許更廣泛地說，當您看到其中一些較大的成長時，您認為寬頻毛利率和混合的合理預期在哪裡？

Tim, thanks for the question. It's Walter here. So just with regards to the gross margins for Q4, your inclination in terms of the product mix that we're seeing in Q4 specifically as we ramp up in initial stages of a Tier 1 is definitely impacting that margin in terms of it being more centric towards the notes. And so that's a big part of the gross margin guide that we've provided for Q4. And then more broadly, in terms of the question, as we look forward over a longer period of time, the product mix will shift as you get more ramp up and you get more into a steady state with certain customers, you'll have the mix between the nodes as well as the cOS and that will bring the margins to a higher level. And so when we've guided before in our prior comments, we said you kind of look at it over a 4-quarter rolling period, and that would give you a more representative view of what we should expect our margins to look like over the longer period...

提姆，謝謝你的提問。我是沃特。因此，就第四季度的毛利率而言，我們在第四季度看到的產品組合的傾向，特別是當我們在第一級的初始階段加大力度時，肯定會影響該利潤率，因為它更集中走向筆記。因此，這是我們為第四季度提供的毛利率指南的重要組成部分。然後更廣泛地說，就這個問題而言，隨著我們展望更長的時間，產品組合將會發生變化，因為你會獲得更多的成長，並且與某些客戶更加穩定的狀態，你將擁有節點和作業系統之間的混合，這將使利潤率達到更高的水平。因此，當我們在先前的評論中提供指導時，我們說過您會在 4 個季度的滾動期內查看它，這將使您對我們預期的利潤率在較長時期...

Great. And my follow-up, it doesn't sound like you're expecting a big recovery with Comcast into Q4 and instead maybe this additional Tier 1 ramping well. First of all, is that a fair statement? And as you look at this strong Q4, do you think your concentration with Comcast will come down prior to -- obviously, we expect it to come down with Charter ramping in '24, but just talking about Q4 '23 by itself.

偉大的。我的後續行動是，聽起來您並不期望康卡斯特在第四季度出現大幅復甦，相反，這一額外的一級增長可能會很好。首先，這是一個公平的說法嗎？當你看到這個強勁的第四季度時，你認為你對康卡斯特的關注度會在之前下降嗎——顯然，我們預計它會隨著Charter 在24 年的增長而下降，但只是談論23 年第四季本身。

Yes. Just, Tim, on Q4 '23 specifically, very similar to what we mentioned back a quarter ago, our expectations in Q4 and continue to be in our guide for Q4 is a ramp-up of another Tier 1. So that, by nature, will reduce concentration across the largest customer in terms of the percent concentration. And so -- and we expect that concentration will continue to move in a direction of less concentration as we bring on more customers, including the Tier 1 as well as other customers as we move on through 2024.

是的。只是，提姆，特別是在23 年第4 季度，與我們一個季度前提到的非常相似，我們對第4 季度的預期以及繼續在我們的第4 季度指南中的預期是另一個1 級的提升。因此，本質上，將降低最大客戶的集中度百分比。因此，我們預計，隨著我們在 2024 年吸引更多客戶，包括一級客戶和其他客戶，集中度將繼續朝向集中度降低的方向發展。

And this concludes the Q-and-answer period. I will turn the call over to Patrick Harshman for final comments.

問答環節到此結束。我會將電話轉給帕特里克·哈什曼（Patrick Harshman）徵求最終意見。

Okay. Well, thank you all again for joining us today. We appreciate the dialogue and your support. We remain focused on driving the growth objectives that we've discussed here today and creating shareholder value. We look forward to our next opportunity to speak with you. Good day...

好的。好的，再次感謝大家今天加入我們。我們感謝您的對話和支持。我們仍然專注於推動我們今天討論的成長目標並創造股東價值。我們期待下一次與您交談的機會。再會...

Thank you, ladies and gentlemen. With that, we thank you for your participation, and you may now disconnect.

謝謝你們，女士們、先生們。至此，我們感謝您的參與，您現在可以斷開連接了。