| Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||
| Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| ☒ | Accelerated Filer | ☐ | |||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
| June 28, 2024 | December 31, 2023 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| Accounts receivable, net | |||||||||||
| Inventories | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
| Property and equipment, net | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Goodwill | |||||||||||
| Deferred income taxes | |||||||||||
| Other non-current assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Convertible debt | $ | $ | |||||||||
| Current portion of long-term debt | |||||||||||
| Current portion of other borrowings | |||||||||||
| Accounts payable | |||||||||||
| Deferred revenue | |||||||||||
| Operating lease liabilities | |||||||||||
| Other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt | |||||||||||
| Other long-term borrowings | |||||||||||
| Operating lease liabilities, non-current | |||||||||||
| Other non-current liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 12) | |||||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated deficit | ( | ( | |||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Total liabilities and stockholders’ equity | $ | $ | |||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Appliance and integration | $ | $ | $ | $ | |||||||||||||||||||
| SaaS and service | |||||||||||||||||||||||
| Total net revenue | |||||||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Appliance and integration | |||||||||||||||||||||||
| SaaS and service | |||||||||||||||||||||||
| Total cost of revenue | |||||||||||||||||||||||
| Total gross profit | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | |||||||||||||||||||||||
| Selling, general and administrative | |||||||||||||||||||||||
| Lease-related asset impairment and other charges | |||||||||||||||||||||||
| Restructuring and related charges | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Income (loss) from operations | ( | ( | |||||||||||||||||||||
| Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Other income (expense), net | ( | ( | |||||||||||||||||||||
| Income (loss) before income taxes | ( | ( | |||||||||||||||||||||
| Provision for (benefit from) income taxes | ( | ( | |||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Net income (loss) per share: | |||||||||||||||||||||||
| Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss) before tax | ( | ( | |||||||||||||||||||||
| Provision for (benefit from) income taxes | ( | ( | |||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
| Total comprehensive income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Three Months Ended June 28, 2024 | |||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balance at March 29, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Issuance of common stock under award and purchase plans, net | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
| Repurchase of common stock | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
| Excise tax on share repurchases | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of common stock upon conversion of 2024 Notes | ( | — | — | ( | |||||||||||||||||||||||||||||||
| Balance at June 28, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of common stock under stock option, award and purchase plans, net | ( | — | — | ( | |||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Six Months Ended June 28, 2024 | |||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Issuance of common stock under award and purchase plans, net | ( | — | — | ( | |||||||||||||||||||||||||||||||
| Repurchase of common stock | ( | ( | — | ( | — | ( | |||||||||||||||||||||||||||||
| Excise tax on share repurchases | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of common stock upon conversion of 2024 Notes | ( | — | — | ( | |||||||||||||||||||||||||||||||
| Balance at June 28, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of common stock under award and purchase plans, net | ( | — | — | ( | |||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Six Months Ended | |||||||||||
| June 28, 2024 | June 30, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | ( | $ | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation | |||||||||||
| Lease related asset impairment and other charges | |||||||||||
| Stock-based compensation | |||||||||||
| Foreign currency remeasurement | |||||||||||
| Deferred income taxes, net | ( | ||||||||||
| Provision for excess and obsolete inventories | |||||||||||
| Other adjustments | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | ( | ||||||||||
| Inventories | ( | ||||||||||
| Other assets | ( | ||||||||||
| Accounts payable | ( | ( | |||||||||
| Deferred revenues | |||||||||||
| Other liabilities | ( | ( | |||||||||
| Net cash provided by (used in) operating activities | ( | ||||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | ( | ( | |||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from long-term debt | |||||||||||
| Repayment of convertible debt | ( | ||||||||||
| Payments for debt issuance costs | ( | ||||||||||
| Repurchase of common stock | ( | ||||||||||
| Proceeds from other borrowings | |||||||||||
| Repayment of other borrowings | ( | ( | |||||||||
| Proceeds from common stock issued to employees | |||||||||||
| Taxes paid related to net share settlement of equity awards | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | ( | ||||||||||
| Net decrease in cash and cash equivalents and restricted cash | ( | ( | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | |||||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | $ | |||||||||
| Cash and cash equivalents and restricted cash at end of period | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash included in prepaid expenses and other current assets | |||||||||||
| 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 | $ | $ | |||||||||
| Six Months Ended | |||||||||||
| June 28, 2024 | June 30, 2023 | ||||||||||
| Supplemental cash flow disclosure: | |||||||||||
| Net cash paid for income taxes | $ | $ | |||||||||
| Cash paid for interest | $ | $ | |||||||||
| Supplemental schedule of non-cash investing activities: | |||||||||||
| Capital expenditures incurred but not yet paid | $ | $ | |||||||||
| Supplemental schedule of non-cash financing activities: | |||||||||||
| Shares of common stock issued upon redemption of the 2024 Notes | |||||||||||
| As of | |||||||||||
| (in thousands) | June 28, 2024 | December 31, 2023 | |||||||||
| Contract assets | $ | $ | |||||||||
| Deferred revenue | $ | $ | |||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
| Variable lease cost | |||||||||||||||||||||||
| Total lease cost | $ | $ | $ | $ | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Cash paid for operating lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
| Accounts receivable, net: | As of | ||||||||||
| (in thousands) | June 28, 2024 | December 31, 2023 | |||||||||
| Accounts receivable | $ | $ | |||||||||
| Less: allowances for expected credit losses and sales returns | ( | ( | |||||||||
| Total | $ | $ | |||||||||
| Inventories, net: | As of | ||||||||||
| (in thousands) | June 28, 2024 | December 31, 2023 | |||||||||
| Finished goods | $ | $ | |||||||||
| Raw materials | |||||||||||
| Work-in-process | |||||||||||
| Service-related spares | |||||||||||
| Total | $ | $ | |||||||||
| Prepaid expenses and other current assets: | As of | ||||||||||
| (in thousands) | June 28, 2024 | December 31, 2023 | |||||||||
| Prepaid expenses | $ | $ | |||||||||
| Contract assets | |||||||||||
| Other current assets | |||||||||||
| Total | $ | $ | |||||||||
| Property and equipment, net: | As of | ||||||||||
| (in thousands) | June 28, 2024 | December 31, 2023 | |||||||||
| Machinery and equipment | $ | $ | |||||||||
| Capitalized software | |||||||||||
| Leasehold improvements | |||||||||||
| Furniture and fixtures | |||||||||||
| Construction-in-progress | |||||||||||
| Property and equipment, gross | |||||||||||
| Less: accumulated depreciation and amortization | ( | ( | |||||||||
| Total | $ | $ | |||||||||
| Other current liabilities: | As of | ||||||||||
| (in thousands) | June 28, 2024 | December 31, 2023 | |||||||||
| Accrued employee compensation and related expenses | $ | $ | |||||||||
| Other | |||||||||||
| Total | $ | $ | |||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Contractual interest expense | $ | $ | $ | $ | |||||||||||||||||||
| Amortization of debt issuance costs | |||||||||||||||||||||||
| Total interest expense recognized | $ | $ | $ | $ | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
| Research and development expense | |||||||||||||||||||||||
| Selling, general and administrative expense | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
| (in thousands, except per share amounts) | Number of Shares | Weighted Average Grant-Date Fair Value Per Share | |||||||||
| Balance at December 31, 2023 | $ | ||||||||||
| Granted | |||||||||||
| Vested | ( | ||||||||||
| Forfeited | ( | ||||||||||
| Balance at June 28, 2024 | $ | ||||||||||
| June 28, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
| Cash equivalents | |||||||||||||||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| June 28, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
| Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||||||||||||||||||||
(in thousands) | Value | Level 1 | Level 2 | Level 3 | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
| 2024 Notes | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Long-term debt | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Current portion of other borrowings | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Other long-term borrowings | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands, except per share amounts) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net income (loss) | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| 2024 Notes | |||||||||||||||||||||||
| Restricted stock units | |||||||||||||||||||||||
| Stock purchase rights under the ESPP | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Net income (loss) per share: | |||||||||||||||||||||||
| Basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| 2024 Notes | |||||||||||||||||||||||
| Restricted stock units | |||||||||||||||||||||||
| Stock purchase rights under the ESPP | |||||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Broadband | |||||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Video | |||||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Operating income (loss) | ( | ( | ( | ||||||||||||||||||||
| Total | |||||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Total consolidated segment operating income | $ | $ | $ | $ | |||||||||||||||||||
Stock-based compensation (1) | ( | ( | ( | ( | |||||||||||||||||||
Restructuring and related charges (1) | ( | ( | ( | ||||||||||||||||||||
Lease-related asset impairment and other charges (1) | ( | ( | |||||||||||||||||||||
Unallocated corporate expenses (1) | ( | ( | ( | ( | |||||||||||||||||||
| Consolidated income (loss) from operations | ( | ( | |||||||||||||||||||||
| Non-operating expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Income (loss) before income taxes | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
| Product sales | $ | $ | $ | $ | |||||||||||||||||||
| Professional services | |||||||||||||||||||||||
| Total Appliance and integration | |||||||||||||||||||||||
| SaaS | |||||||||||||||||||||||
| Support services | |||||||||||||||||||||||
| Total SaaS and services | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||
United States (1) | $ | $ | $ | $ | |||||||||||||||||||
Other countries (1) | |||||||||||||||||||||||
| Total revenue | $ | $ | $ | $ | |||||||||||||||||||
| (in thousands) | Severance and Benefits | ||||
| Balance at December 31, 2023 | $ | ||||
| Charges for current period | |||||
| Cash payments | ( | ||||
Other adjustments (1) | |||||
| Balance at June 28, 2024 | $ | ||||
| Included in other current liabilities | $ | ||||
| Included in other non-current liabilities | |||||
| Balance at June 28, 2024 | $ | ||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Appliance and integration | $ | 94,184 | $ | 111,127 | $ | (16,943) | (15) | % | $ | 175,779 | $ | 225,921 | $ | (50,142) | (22) | % | |||||||||||||||||||||||||
| as % of total net revenue | 68 | % | 71 | % | 67 | % | 72 | % | |||||||||||||||||||||||||||||||||
| SaaS and service | 44,556 | 44,836 | (280) | (1) | % | 85,021 | 87,691 | (2,670) | (3) | % | |||||||||||||||||||||||||||||||
| as % of total net revenue | 32 | % | 29 | % | 33 | % | 28 | % | |||||||||||||||||||||||||||||||||
| Total net revenue | $ | 138,740 | $ | 155,963 | $ | (17,223) | (11) | % | $ | 260,800 | $ | 313,612 | $ | (52,812) | (17) | % | |||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Gross profit | $ | 73,457 | $ | 84,940 | $ | (11,483) | (14) | % | $ | 136,538 | $ | 168,994 | $ | (32,456) | (19) | % | |||||||||||||||||||||||||
| as % of total net revenue (“gross margin”) | 52.9 | % | 53.5 | % | 52.4 | % | 53.9 | % | |||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Research and development | $ | 28,784 | $ | 32,205 | $ | (3,421) | (11) | % | $ | 59,489 | $ | 65,714 | $ | (6,225) | (9) | % | |||||||||||||||||||||||||
| as % of total net revenue | 21 | % | 21 | % | 23 | % | 21 | % | |||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative | $ | 39,821 | $ | 42,773 | $ | (2,952) | (7) | % | $ | 78,686 | $ | 82,055 | $ | (3,369) | (4) | % | |||||||||||||||||||||||||
| as % of total net revenue | 29 | % | 27 | % | 30 | % | 26 | % | |||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Impairment charges | $ | 9,000 | $ | — | $ | 9,000 | * | $ | 9,000 | $ | — | $ | 9,000 | * | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Total restructuring and related charges | $ | 11,482 | $ | — | $ | 11,482 | * | $ | 14,979 | $ | 83 | $ | 14,896 | * | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Interest expense, net | $ | (1,424) | $ | (800) | $ | (624) | 78 | % | $ | (2,147) | $ | (1,506) | $ | (641) | 43 | % | |||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Other income (expense), net | $ | 619 | $ | (136) | $ | 755 | (555) | % | $ | 330 | $ | (429) | $ | 759 | (177) | % | |||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Provision for (benefit from) income taxes | $ | (3,903) | $ | 7,471 | $ | (11,374) | (152) | % | $ | (6,352) | $ | 12,559 | $ | (18,911) | (151) | % | |||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | June 28, 2024 | June 30, 2023 | Change | June 28, 2024 | June 30, 2023 | Change | |||||||||||||||||||||||||||||||||||
| Broadband | |||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 92,937 | $ | 97,096 | $ | (4,159) | (4) | % | $ | 171,834 | $ | 197,447 | $ | (25,613) | (13) | % | |||||||||||||||||||||||||
| as % of total revenue | 67 | % | 62 | % | 5 | % | 66 | % | 63 | % | 3 | % | |||||||||||||||||||||||||||||
Operating income (1) | 13,781 | 18,066 | (4,285) | (24) | % | 22,375 | 38,179 | (15,804) | (41) | % | |||||||||||||||||||||||||||||||
Operating margin % (1) | 15 | % | 19 | % | (4) | % | 13 | % | 19 | % | (6) | % | |||||||||||||||||||||||||||||
| Video | |||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 45,803 | $ | 58,867 | $ | (13,064) | (22) | % | $ | 88,966 | $ | 116,165 | $ | (27,199) | (23) | % | |||||||||||||||||||||||||
| as % of total revenue | 33 | % | 38 | % | (5) | % | 34 | % | 37 | % | (3) | % | |||||||||||||||||||||||||||||
Operating income (1) | (1,569) | 90 | (1,659) | (1,843) | % | (8,920) | (1,336) | (7,584) | 568 | % | |||||||||||||||||||||||||||||||
Operating margin % (1) | (3) | % | — | % | (3) | % | (10) | % | (1) | % | (9) | % | |||||||||||||||||||||||||||||
| Total | |||||||||||||||||||||||||||||||||||||||||
| Revenue | $ | 138,740 | $ | 155,963 | $ | (17,223) | (11) | % | $ | 260,800 | $ | 313,612 | $ | (52,812) | (17) | % | |||||||||||||||||||||||||
| Six Months Ended | |||||||||||
| (in thousands) | June 28, 2024 | June 30, 2023 | |||||||||
| Net cash provided by (used in): | |||||||||||
| Operating activities | $ | 4,666 | $ | (10,252) | |||||||
| Investing activities | (3,856) | (3,833) | |||||||||
| Financing activities | (34,923) | (5,451) | |||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | (1,391) | 981 | |||||||||
| Net decrease in cash and cash equivalents | $ | (35,504) | $ | (18,555) | |||||||
| Period | Total Number of Shares Purchased | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under Publicly Announced Plan or Program (in millions) | ||||||||||||||||||||||
| March 30, 2024 - April 26, 2024 | 751,300 | $ | 11.14 | 751,300 | $ | 65 | ||||||||||||||||||||
| April 27, 2024 - May 24, 2024 | 0 | n/a | 0 | $ | 65 | |||||||||||||||||||||
| May 25, 2024 - June 28, 2024 | 0 | n/a | 0 | $ | 65 | |||||||||||||||||||||
| Total | 751,300 | 751,300 | ||||||||||||||||||||||||
Exhibit Number | Exhibit Index | ||||
| 10.1 (i)* | |||||
| 10.2(ii)* | |||||
| 10.3(ii)* | |||||
| 10.4(ii)* | |||||
| 31.1 | |||||
| 31.2 | |||||
| 32.1** | |||||
| 32.2** | |||||
| 101 | The following materials from Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL) include: (i) Condensed Consolidated Balance Sheets at June 28, 2024 and December 31, 2023, (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 28, 2024 and June 30, 2023, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 28, 2024 and June 30, 2023, (iv) Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 28, 2024 and June 30, 2023, (v) Condensed Consolidated Statements of Cash Flows for the six months ended June 28, 2024 and June 30, 2023, and (vi) Notes to Condensed Consolidated Financial Statements. | ||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | ||||
| HARMONIC INC. | |||||
| By: | /s/ Walter Jankovic | ||||
| Walter Jankovic | |||||
| Title: Chief Financial Officer | |||||
Date: August 2, 2024 | |||||
| By: | /s/ Nimrod Ben-Natan | ||||
| Nimrod Ben-Natan | |||||
| President and Chief Executive Officer | |||||
| By: | /s/ Walter Jankovic | ||||
| Walter Jankovic | |||||
| Chief Financial Officer | |||||
| /s/ Nimrod Ben-Natan | ||
| Nimrod Ben-Natan | ||
| President and Chief Executive Officer | ||
| /s/ Walter Jankovic | ||
| Walter Jankovic | ||
| Chief Financial Officer | ||
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
| Preferred stock, shares issued (in shares) | 0 | 0 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
| Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
| Common stock, shares issued (in shares) | 115,998,000 | 112,407,000 |
| Common stock, shares outstanding (in shares) | 115,998,000 | 112,407,000 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Revenue: | ||||
| Total net revenue | $ 138,740 | $ 155,963 | $ 260,800 | $ 313,612 |
| Cost of revenue: | ||||
| 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 | 0 | 9,000 | 0 |
| Restructuring and related charges | 11,482 | 0 | 14,519 | 83 |
| 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 (in dollars per share) | $ (0.11) | $ 0.01 | $ (0.18) | $ 0.06 |
| Diluted (in dollars per share) | $ (0.11) | $ 0.01 | $ (0.18) | $ 0.06 |
| Weighted average shares outstanding: | ||||
| Basic (in shares) | 115,030 | 111,462 | 113,705 | 111,130 |
| Diluted (in shares) | 115,030 | 119,255 | 113,705 | 118,508 |
| Appliance and integration | ||||
| Revenue: | ||||
| Total net revenue | $ 94,184 | $ 111,127 | $ 175,779 | $ 225,921 |
| Cost of revenue: | ||||
| Total cost of revenue | 50,878 | 57,437 | 93,952 | 117,185 |
| SaaS and service | ||||
| Revenue: | ||||
| Total net revenue | 44,556 | 44,836 | 85,021 | 87,691 |
| Cost of revenue: | ||||
| Total cost of revenue | $ 14,405 | $ 13,586 | $ 30,310 | $ 27,433 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net income (loss) | $ (12,532) | $ 1,555 | $ (20,621) | $ 6,648 |
| Foreign currency translation adjustments | (1,367) | 667 | (4,281) | 2,626 |
| Other comprehensive income (loss) before tax | (1,367) | 667 | (4,281) | 2,626 |
| Provision for (benefit from) income taxes | 47 | (25) | 140 | (97) |
| Other comprehensive income (loss), net of tax | (1,414) | 692 | (4,421) | 2,723 |
| Total comprehensive income (loss) | $ (13,946) | $ 2,247 | $ (25,042) | $ 9,371 |
BASIS OF PRESENTATION |
6 Months Ended |
|---|---|
Jun. 28, 2024 | |
| Accounting Policies [Abstract] | |
| BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all normal recurring adjustments, which are necessary for the fair statement of our financial information. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). Operating results for interim periods are not necessarily indicative of the results that may be expected for any subsequent quarter or for the fiscal year ending December 31, 2024. All intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The Company’s significant accounting policies are described in Note 2 to its audited Consolidated Financial Statements included in the 2023 Form 10-K. There have been no significant changes to these policies during the six months ended June 28, 2024.
|
RECENT ACCOUNTING PRONOUNCEMENTS |
6 Months Ended |
|---|---|
Jun. 28, 2024 | |
| Accounting Changes and Error Corrections [Abstract] | |
| RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024; this ASU allows for early adoption. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. This ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted.
|
CONTRACT ASSETS AND DEFERRED REVENUE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONTRACT ASSETS AND DEFERRED REVENUE | CONTRACT ASSETS AND DEFERRED REVENUE Contract assets exist when the Company has satisfied a performance obligation but does not have an unconditional right to consideration (e.g., because the entity first must satisfy another performance obligation in the contract before it is entitled to invoice the customer). Deferred revenue represents the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Contract assets and deferred revenue consisted of the following:
Contract assets and the non-current portion of deferred revenue are reported as components of “Prepaid expenses and other current assets” and “Other non-current liabilities,” respectively, on the condensed consolidated balance sheets. Revenue recognized during the three months ended June 28, 2024 and June 30, 2023, that was included within the deferred revenue balance at January 1, 2024 and January 1, 2023, was $10.3 million and $14.1 million, respectively. Revenue recognized during the six months ended June 28, 2024 and June 30, 2023, that was included within the deferred revenue balance at January 1, 2024 and January 1, 2023, was $26.6 million and $35.3 million, respectively. Remaining performance obligations represent contracted revenues that have not yet been recognized and include deferred revenue and unbilled amounts that will be recognized as revenue in the future. The aggregate balance of the Company’s remaining performance obligations as of June 28, 2024 was $613.1 million, 52% of which is expected to be recognized as revenue over the next 12 months and the remainder thereafter. Refer to Note 10, “Segment Information” for disaggregated revenue information.
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LEASES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES | LEASES The components of lease expense are as follows:
Supplemental information related to leases are as follows:
In the second quarter of fiscal 2024, we reviewed the right-of-use lease assets and other fixed assets associated with our San Jose headquarters and our facilities in the United Kingdom (“UK”) for potential impairment due to an intended change in the use of these spaces. Following our analysis, we recorded total lease-related impairment and other charges of $9.0 million which primarily consisted of right-of-use asset impairment charges of $2.9 million, related leasehold improvement impairment charges of $4.2 million, and fair value of other unrecoverable facility costs of $1.9 million. For asset groups where impairment was triggered, the Company utilized an income approach to value the asset groups by developing discounted cash flow models. The significant assumptions used in the discounted cash flow models for each of the asset groups included projected sublease income over the remaining lease terms, expected downtime prior to the commencement of future subleases, expected lease incentives offered to future tenants, and discount rates that reflected the level of risk associated with these future cash flows.
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OTHER FINANCIAL STATEMENT INFORMATION |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER FINANCIAL STATEMENT INFORMATION | OTHER FINANCIAL STATEMENT INFORMATION The following tables provide details of selected balance sheet components:
During the second quarter of fiscal 2024, we recorded an impairment charge of $4.2 million related to our leasehold improvements. Refer to Note 4, “Leases” for more details.
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DEBT |
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | DEBT 2.00% Convertible Senior Notes due 2024 (the “2024 Notes”) In September 2019, the Company issued $115.5 million of the 2024 Notes pursuant to an indenture (the “2024 Notes Indenture”), dated September 13, 2019, by and between the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee. The 2024 Notes bore interest at a rate of 2.00% per year, payable semi-annually on March 1 and September 1 of each year, beginning March 1, 2020. The 2024 Notes would have matured on September 1, 2024, unless earlier repurchased by the Company, redeemed by the Company or converted pursuant to their terms. The 2024 Notes were initially convertible into cash, shares of the Company’s common stock, or a combination thereof, at the Company’s election, at an initial conversion rate of 115.5001 shares of the Company’s common stock per $1,000 principal amount of the 2024 Notes (which is equivalent to an initial conversion price of approximately $8.66 per share). Pursuant to the supplemental indenture entered into by the Company and the trustee during the fourth quarter of the fiscal year ended December 31, 2021, the Company made an irrevocable election to settle the principal amounts of the 2024 Notes solely with cash and would pay or deliver, as the case may be, any conversion value greater than the principal amount in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The 2024 Notes are recorded at face value less unamortized debt issuance costs. Amortization costs are reported as a component of interest expenses and are computed using the effective interest method. On April 18, 2024, the Company settled the conversion of the entire $115.5 million in aggregate principal amount of the 2024 Notes. In accordance with the provisions of the 2024 Notes Indenture, the Company settled such conversions of the 2024 Notes by paying and delivering, as applicable, a combination of $115.5 million in cash and 4.6 million shares of the Company’s common stock. The following table presents interest expense recognized for the 2024 Notes:
Revolving and Term Facilities In December 2023, the Company entered into a five-year Credit Agreement (the “Credit Agreement”), by and among the Company, certain subsidiaries of the Company from time to time party thereto, the lenders from time to time party thereto, and Citibank N.A., as administrative agent for the lenders. The Credit Agreement provides for a secured revolving credit facility in an aggregate principal amount of up to $120.0 million (“the Revolving Facility”), with a $10.0 million sublimit for the issuance of letters of credit, and a secured delayed draw term loan facility in an aggregate principal amount of up to $40.0 million (the “Term Facility”). The Revolving Facility and the Term Facility both mature on December 21, 2028. The proceeds of the loans under the Revolving Facility may be used for general corporate purposes. The proceeds of the loans under the Term Facility must be used to repurchase, redeem, acquire or otherwise settle the 2024 Notes. The Credit Agreement also includes an uncommitted accordion feature whereby the Company may increase the Revolving Facility by an aggregate amount not to exceed $100 million, subject to certain conditions, including lender consent. Loans under the Revolving and Term Facilities bear interest, at a floating rate per annum equal to an adjusted Term Secured Overnight Financing Rate (“SOFR”) rate (based on one-, three- or six-month interest periods), plus a SOFR premium fee of 0.1% and an applicable margin of between 2.00% to 2.75% (“Adjusted Term SOFR Loans”), determined based on the Company’s consolidated net leverage ratio. Unused commitments under the Revolving Facility are subject to a quarterly fee ranging from 0.25% to 0.35%, determined based on the Company’s consolidated net leverage ratio. The Credit Agreement contains customary affirmative and negative covenants. The Company is also required to maintain compliance with a maximum consolidated net leverage ratio and a minimum fixed charge coverage ratio, in each case, determined in accordance with the terms of the Credit Agreement. As of June 28, 2024, the Company was in compliance with the covenant under the Credit Agreement. As of June 28, 2024, the Company had borrowings of $75.0 million and $40.0 million under the Revolving Facility and the Term Facility, respectively. Beginning December 31, 2024, the principal amount of the term loans shall be repaid in quarterly installments equal to 1.25% of the principal amount of such Term Loans outstanding as of September 1, 2024, increasing to 1.875% beginning December 31, 2025, and to 2.50% beginning December 31, 2027. As of June 28, 2024, $1.0 million of such installment payments were due in twelve months and therefore classified as current portion of long-term debt on the condensed consolidated balance sheet. The carrying value of the borrowings under the Credit Agreement approximate their fair value because they bear interest at a market rate.
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STOCKHOLDERS’ EQUITY |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Share-based Compensation Plans The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s condensed consolidated statements of operations:
Restricted Stock Units:
The Company’s stock benefit plans include the 2002 Employee Stock Purchase Plan (“ESPP”) and current active stock plans adopted in 1995 and 2002 (“1995 Stock Plan” and “2002 Director Plan”, respectively). Refer to Note 12, “Employee Benefit Plans” of Notes to Consolidated Financial Statements in the 2023 Form 10-K for details pertaining to each plan. At the Company’s 2024 annual meeting, the Company’s stockholders approved amendments to the 1995 Stock Plan and the 2002 ESPP, increasing the number of shares of common stock reserved for issuance by 5,000,000 shares and 400,000 shares, respectively. As of June 28, 2024, an aggregate of 7,009,404 shares of common stock were reserved for issuance under the 1995 Stock Plan, of which 3,691,826 shares remained available for future grants. As of June 28, 2024, an aggregate of 588,191 shares of common stock were reserved for issuance under the 2002 Director Plan, of which 387,581 shares remained available for future grants. Share Repurchase Program In February 2022, the Board of Directors of the Company (“Board”) authorized the Company to repurchase up to $100 million of the Company’s outstanding shares of common stock through February 2025. The Company is authorized to repurchase, from time-to-time, shares of its outstanding common stock through open market purchases and 10b5-1 trading plans, in accordance with applicable rules and regulations, at such time and such prices as management may decide. The program does not obligate the Company to repurchase any specific number of shares and may be discontinued at any time. The actual timing and amount of repurchases are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. During the six months ended June 28, 2024, the company repurchased and retired approximately 2.4 million shares of the Company’s common stock for an aggregate amount of $30.0 million. As of June 28, 2024, approximately $64.8 million of the share repurchase authorization remained available for repurchases under this program.
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FAIR VALUE MEASUREMENTS |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as follows: •Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. •Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying value of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short maturities. The following table sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
The Company’s financial instruments not recorded at fair value on a recurring basis were as follows:
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NET INCOME (LOSS) PER SHARE |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the Company’s stock options, restricted stock units, and shares issuable under the ESPP, and the if-converted method for the 2024 Notes. As noted in Note 6, “Debt,” the principal amount of the 2024 Notes was settled in cash while the conversion spread value was settled in shares. The following table sets forth the computation of the basic and diluted net income per share:
The following table sets forth the potential dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effects were anti-dilutive:
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SEGMENT INFORMATION |
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENT INFORMATION | SEGMENT INFORMATION Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated regularly by the Company’s Chief Operating Decision Maker (the “CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the internal reporting structure, the Company consists of two operating segments: Broadband and Video. The operating segments were determined based on the nature of the products offered. The Broadband segment provides broadband access solutions and related services to broadband operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. The Video segment provides video processing, production and playout solutions and services worldwide to broadcast and media companies, new streaming media companies, broadband operators, and satellite and telecommunications (“telco”) Pay-TV service providers. The following table provides summary financial information by reportable segment:
A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows:
(1) Together with stock-based compensation, the Company does not allocate restructuring and related charges, lease-related asset impairment and other non-recurring expenses to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments. Disaggregation of Revenues The following table provides a summary of total revenues disaggregated by type:
The following table provides a summary of total revenues by geographic region:
(1) Revenue is attributed to countries based on the location of the customer. No single country, other than the United States, accounted for 10% or more of the Company’s net revenues for the three and six months ended June 28, 2024 and June 30, 2023, respectively.
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RESTRUCTURING AND RELATED CHARGES |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RESTRUCTURING AND RELATED CHARGES | RESTRUCTURING AND RELATED CHARGES The Company has implemented several restructuring plans in the past few years. The goal of these plans was to bring operational expenses to appropriate levels relative to the Company’s net revenue, while simultaneously implementing extensive company-wide expense control programs. The restructuring plans have primarily been comprised of severance payments and termination benefits related to headcount reductions. During the first quarter of 2024, management initiated restructuring plans to further improve the Video business efficiencies in order to drive long-term growth and profitability. The total restructuring cost associated with these 2024 restructuring activities is currently estimated to be $15.4 million and will primarily be recorded to the restructuring expense line item within our condensed consolidated statements of operations. We recorded $11.5 million of restructuring expense in the second quarter of fiscal 2024 and we expect to incur substantially all of the remaining restructuring expense through the end of fiscal 2024. The following table summarizes the activities related to the Company’s restructuring plans accrual:
(1) Other adjustments include $1.6 million transfer from pension liabilities and $(0.4) million foreign exchange impact.
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
|---|---|
Jun. 28, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal proceedings From time to time, the Company is involved in lawsuits as well as subject to various legal proceedings, claims, threats of litigation, and investigations in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. The Company assesses potential liabilities in connection with each lawsuit and threatened lawsuits and accrues an estimated loss for these loss contingencies if both of the following conditions are met: information available prior to issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. While certain matters to which the Company is a party specify the damages claimed, such claims may not represent reasonably probable losses. Given the inherent uncertainties of litigation, the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss, if any, be reasonably estimated.
|
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Pay vs Performance Disclosure | ||||
| Net income (loss) | $ (12,532) | $ 1,555 | $ (20,621) | $ 6,648 |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Jun. 28, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies) |
6 Months Ended |
|---|---|
Jun. 28, 2024 | |
| Accounting Policies [Abstract] | |
| Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
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| Recent Accounting Pronouncements | In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The updated standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024; this ASU allows for early adoption. The adoption of this ASU is not expected to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. This ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted.
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| Fair Value Measurements | The applicable accounting guidance establishes a framework for measuring fair value and requires disclosure about the fair value measurements of assets and liabilities. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as follows: •Level 1 - Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. •Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
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| Segment Information | Operating segments are defined as components of an enterprise that engage in business activities for which separate financial information is available and evaluated regularly by the Company’s Chief Operating Decision Maker (the “CODM”), which for the Company is its Chief Executive Officer, in deciding how to allocate resources and assess performance. Based on the internal reporting structure, the Company consists of two operating segments: Broadband and Video. The operating segments were determined based on the nature of the products offered. The Broadband segment provides broadband access solutions and related services to broadband operators globally. A measure of assets by segment is not applicable as segment assets are not included in the discrete financial information provided to the CODM. The Video segment provides video processing, production and playout solutions and services worldwide to broadcast and media companies, new streaming media companies, broadband operators, and satellite and telecommunications (“telco”) Pay-TV service providers.
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CONTRACT ASSETS AND DEFERRED REVENUE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Contract Assets and Deferred Revenue | Contract assets and deferred revenue consisted of the following:
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Lease Expense | The components of lease expense are as follows:
Supplemental information related to leases are as follows:
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OTHER FINANCIAL STATEMENT INFORMATION (Tables) |
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accounts Receivable, Net | The following tables provide details of selected balance sheet components:
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| Schedule of Inventories |
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| Schedule of Prepaid Expenses and Other Current Assets |
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| Schedule of Property and Equipment, Net |
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| Schedule of Other Current Liabilities |
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DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Interest Expense | The following table presents interest expense recognized for the 2024 Notes:
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STOCKHOLDERS’ EQUITY (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Allocation of Share-Based Compensation Expense | The following table sets forth the detailed allocation of the share-based compensation expense which was included in the Company’s condensed consolidated statements of operations:
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| Schedule of Restricted Stock Units |
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FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
|
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| Schedule of Financial Instruments Not Recorded at Fair Value on a Recurring Basis | The Company’s financial instruments not recorded at fair value on a recurring basis were as follows:
|
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NET INCOME (LOSS) PER SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of the basic and diluted net income per share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Antidilutive Securities | The following table sets forth the potential dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effects were anti-dilutive:
|
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financial Information by Reportable Segments | The following table provides summary financial information by reportable segment:
|
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| Schedule of Reconciliation of Operating Income from Segments to Consolidated | A reconciliation of the Company’s consolidated segment operating income to consolidated income before income taxes is as follows:
(1) Together with stock-based compensation, the Company does not allocate restructuring and related charges, lease-related asset impairment and other non-recurring expenses to the operating income (loss) for each segment because management does not include this information in the measurement of the performance of the operating segments.
|
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| Schedule of Disaggregation of Revenue | The following table provides a summary of total revenues disaggregated by type:
|
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| Schedule of Total Revenues by Geographic Region | The following table provides a summary of total revenues by geographic region:
(1) Revenue is attributed to countries based on the location of the customer.
|
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RESTRUCTURING AND RELATED CHARGES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Activities Related to Restructuring Plans Accrual | The following table summarizes the activities related to the Company’s restructuring plans accrual:
(1) Other adjustments include $1.6 million transfer from pension liabilities and $(0.4) million foreign exchange impact.
|
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CONTRACT ASSETS AND DEFERRED REVENUE - Schedule of Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Revenue from Contract with Customer [Abstract] | ||
| Contract assets | $ 3,700 | $ 4,772 |
| Deferred revenue | $ 65,762 | $ 59,705 |
LEASES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Leases [Abstract] | ||||
| Operating lease cost | $ 1,759 | $ 1,761 | $ 3,488 | $ 3,525 |
| Variable lease cost | 416 | 425 | 807 | 850 |
| Total lease cost | 2,175 | 2,186 | 4,295 | 4,375 |
| Supplemental cash flow disclosure: | ||||
| Cash paid for operating lease liabilities | $ 1,773 | $ 1,778 | $ 3,568 | $ 3,606 |
LEASES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Leases [Abstract] | ||||
| Lease-related asset impairment and other charges | $ 9,000 | $ 0 | $ 9,000 | $ 0 |
| Right-of-use asset impairment | 2,900 | |||
| Leasehold improvement impairment charge | 4,200 | |||
| Fair value of other unrecoverable facility costs | $ 1,900 | |||
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Accounts receivable | $ 124,069 | $ 144,731 |
| Less: allowances for expected credit losses and sales returns | (4,070) | (3,200) |
| Total | $ 119,999 | $ 141,531 |
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Finished goods | $ 41,456 | $ 43,987 |
| Raw materials | 30,487 | 27,806 |
| Work-in-process | 4,286 | 5,056 |
| Service-related spares | 7,904 | 7,133 |
| Total | $ 84,133 | $ 83,982 |
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Prepaid expenses | $ 9,592 | $ 3,789 |
| Contract assets | 3,700 | 4,772 |
| Other current assets | 18,450 | 12,389 |
| Total | $ 31,742 | $ 20,950 |
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | $ 143,999 | $ 147,055 |
| Less: accumulated depreciation and amortization | (114,396) | (110,372) |
| Total | 29,603 | 36,683 |
| Machinery and equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 75,300 | 74,659 |
| Capitalized software | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 26,992 | 27,129 |
| Leasehold improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 36,797 | 40,931 |
| Furniture and fixtures | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | 2,561 | 2,547 |
| Construction-in-progress | ||
| Property, Plant and Equipment [Line Items] | ||
| Property and equipment, gross | $ 2,349 | $ 1,789 |
OTHER FINANCIAL STATEMENT INFORMATION - Narrative (Details) $ in Millions |
3 Months Ended |
|---|---|
|
Jun. 28, 2024
USD ($)
| |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Leasehold improvement impairment charge | $ 4.2 |
OTHER FINANCIAL STATEMENT INFORMATION - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Accrued employee compensation and related expenses | $ 22,225 | $ 22,779 |
| Other | 31,059 | 38,245 |
| Total | $ 53,284 | $ 61,024 |
DEBT - Schedule of Interest Expense (Details) - 2024 Notes - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Debt Instrument [Line Items] | ||||
| Contractual interest expense | $ 334 | $ 578 | $ 912 | $ 1,156 |
| Amortization of debt issuance costs | 53 | 224 | 282 | 447 |
| Total interest expense recognized | $ 387 | $ 802 | $ 1,194 | $ 1,603 |
STOCKHOLDERS’ EQUITY - Schedule of Allocation of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Stock-based compensation | $ 6,954 | $ 6,059 | $ 13,877 | $ 13,483 |
| Cost of revenue | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Stock-based compensation | 273 | 439 | 796 | 1,289 |
| Research and development expense | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Stock-based compensation | 1,523 | 1,731 | 3,478 | 3,830 |
| Selling, general and administrative expense | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Stock-based compensation | $ 5,158 | $ 3,889 | $ 9,603 | $ 8,364 |
STOCKHOLDERS’ EQUITY - Schedule of Restricted Stock Units (Details) - Restricted stock units shares in Thousands |
6 Months Ended |
|---|---|
|
Jun. 28, 2024
$ / shares
shares
| |
| Number of Shares | |
| Beginning balance (in shares) | shares | 3,242 |
| Granted (in shares) | shares | 2,046 |
| Vested (in shares) | shares | (1,577) |
| Forfeited (in shares) | shares | (732) |
| Ending balance (in shares) | shares | 2,979 |
| Weighted Average Grant-Date Fair Value Per Share | |
| Beginning balance (in dollars per share) | $ / shares | $ 12.42 |
| Granted (in dollars per share) | $ / shares | 13.12 |
| Vested (in dollars per share) | $ / shares | 11.91 |
| Forfeited (in dollars per share) | $ / shares | 14.08 |
| Ending balance (in dollars per share) | $ / shares | $ 12.77 |
FAIR VALUE MEASUREMENTS - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - Money market funds - USD ($) $ in Thousands |
Jun. 28, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Cash equivalents | $ 19,342 | $ 23,683 |
| Level 1 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Cash equivalents | 19,342 | 23,683 |
| Level 2 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Cash equivalents | 0 | 0 |
| Level 3 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Cash equivalents | $ 0 | $ 0 |
NET INCOME (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Numerator: | ||||
| Net income (loss) | $ (12,532) | $ 1,555 | $ (20,621) | $ 6,648 |
| Denominator: | ||||
| Basic (in shares) | 115,030 | 111,462 | 113,705 | 111,130 |
| Diluted (in shares) | 115,030 | 119,255 | 113,705 | 118,508 |
| Net income (loss) per share: | ||||
| Basic (in dollars per share) | $ (0.11) | $ 0.01 | $ (0.18) | $ 0.06 |
| Diluted (in dollars per share) | $ (0.11) | $ 0.01 | $ (0.18) | $ 0.06 |
| Restricted stock units | ||||
| Denominator: | ||||
| Weighted average number diluted shares outstanding adjustment (in shares) | 0 | 1,573 | 0 | 1,786 |
| Stock purchase rights under the ESPP | ||||
| Denominator: | ||||
| Weighted average number diluted shares outstanding adjustment (in shares) | 0 | 76 | 0 | 38 |
| 2024 Notes | ||||
| Denominator: | ||||
| Weighted average number diluted shares outstanding adjustment (in shares) | 0 | 6,144 | 0 | 5,554 |
SEGMENT INFORMATION - Narrative (Details) |
6 Months Ended |
|---|---|
|
Jun. 28, 2024
segment
| |
| Segment Reporting [Abstract] | |
| Number of operating segments | 2 |
SEGMENT INFORMATION - Schedule of Financial Information by Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Segment Reporting Information [Line Items] | ||||
| Revenue | $ 138,740 | $ 155,963 | $ 260,800 | $ 313,612 |
| Operating income (loss) | (15,630) | 9,962 | (25,156) | 21,142 |
| Operating Segments | ||||
| Segment Reporting Information [Line Items] | ||||
| Revenue | 138,740 | 155,963 | 260,800 | 313,612 |
| Operating income (loss) | 12,212 | 18,156 | 13,455 | 36,843 |
| Operating Segments | Broadband | ||||
| Segment Reporting Information [Line Items] | ||||
| Revenue | 92,937 | 97,096 | 171,834 | 197,447 |
| Operating income (loss) | 13,781 | 18,066 | 22,375 | 38,179 |
| Operating Segments | Video | ||||
| Segment Reporting Information [Line Items] | ||||
| Revenue | 45,803 | 58,867 | 88,966 | 116,165 |
| Operating income (loss) | $ (1,569) | $ 90 | $ (8,920) | $ (1,336) |
SEGMENT INFORMATION - Schedule of Reconciliation of Operating Income from Segments to Consolidated (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Segment Reporting Information [Line Items] | ||||
| Total consolidated segment operating income | $ (15,630) | $ 9,962 | $ (25,156) | $ 21,142 |
| Stock-based compensation | (6,954) | (6,059) | (13,877) | (13,483) |
| Restructuring and related charges | (11,482) | 0 | (14,979) | (83) |
| Lease-related asset impairment and other charges | (9,000) | 0 | (9,000) | 0 |
| Unallocated corporate expenses | (89,087) | (74,978) | (161,694) | (147,852) |
| Non-operating expense, net | (805) | (936) | (1,817) | (1,935) |
| Income (loss) before income taxes | (16,435) | 9,026 | (26,973) | 19,207 |
| Operating Segments | ||||
| Segment Reporting Information [Line Items] | ||||
| Total consolidated segment operating income | 12,212 | 18,156 | 13,455 | 36,843 |
| Corporate, Non-segments | ||||
| Segment Reporting Information [Line Items] | ||||
| Unallocated corporate expenses | $ (406) | $ (2,135) | $ (755) | $ (2,135) |
SEGMENT INFORMATION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Segment Reporting Information [Line Items] | ||||
| Total revenue | $ 138,740 | $ 155,963 | $ 260,800 | $ 313,612 |
| Appliance and integration | ||||
| Segment Reporting Information [Line Items] | ||||
| Total revenue | 94,184 | 111,127 | 175,779 | 225,921 |
| Product sales | ||||
| Segment Reporting Information [Line Items] | ||||
| Total revenue | 87,441 | 99,594 | 161,357 | 207,418 |
| Professional services | ||||
| Segment Reporting Information [Line Items] | ||||
| Total revenue | 6,743 | 11,533 | 14,422 | 18,503 |
| SaaS and service | ||||
| Segment Reporting Information [Line Items] | ||||
| Total revenue | 44,556 | 44,836 | 85,021 | 87,691 |
| SaaS | ||||
| Segment Reporting Information [Line Items] | ||||
| Total revenue | 14,023 | 13,584 | 26,887 | 25,167 |
| Support services | ||||
| Segment Reporting Information [Line Items] | ||||
| Total revenue | $ 30,533 | $ 31,252 | $ 58,134 | $ 62,524 |
SEGMENT INFORMATION - Schedule of Total Revenues by Geographic Region (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Segment Reporting Information [Line Items] | ||||
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| United States | ||||
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| Total revenue | 100,829 | 101,908 | 182,821 | 207,649 |
| Other Countries | ||||
| Segment Reporting Information [Line Items] | ||||
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RESTRUCTURING AND RELATED CHARGES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges for current period | $ 11,482 | $ 0 | $ 14,979 | $ 83 |
| 2024 Restructuring Plan | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Expected cost | 15,400 | $ 15,400 | ||
| Charges for current period | $ 11,500 | |||
RESTRUCTURING AND RELATED CHARGES - Schedule of Activities Related to Restructuring Plans Accrual (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 28, 2024 |
Jun. 30, 2023 |
Jun. 28, 2024 |
Jun. 30, 2023 |
|
| Restructuring Reserve [Roll Forward] | ||||
| Charges for current period | $ 11,482 | $ 0 | $ 14,979 | $ 83 |
| 2024 Restructuring Plan | ||||
| Restructuring Reserve [Roll Forward] | ||||
| Charges for current period | 11,500 | |||
| Severance and Benefits | 2024 Restructuring Plan | ||||
| Restructuring Reserve [Roll Forward] | ||||
| Beginning balance | 313 | |||
| Charges for current period | 14,979 | |||
| Cash payments | (6,389) | |||
| Other adjustments | 1,235 | |||
| Ending balance | 10,138 | 10,138 | ||
| Severance and Benefits | 2024 Restructuring Plan | Other Current Liabilities | ||||
| Restructuring Reserve [Roll Forward] | ||||
| Ending balance | 4,263 | 4,263 | ||
| Severance and Benefits | 2024 Restructuring Plan | Other Non-Current Liabilities | ||||
| Restructuring Reserve [Roll Forward] | ||||
| Ending balance | $ 5,875 | $ 5,875 | ||
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