|  |
|--|
|  |  |
|  |  |

|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | GAAP revenue $113.7 million, up 13% year over year; non-GAAP revenue $113.6 million, up 12% year over year. |

|         |                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------|
| • | Cable Access segment revenue: GAAP $24.1 million, up 80% year over year; non-GAAP $24.1 million, up 79% year over year. |

|         |                                                                                             |
|---------|---------------------------------------------------------------------------------------------|
| • | Video segment revenue was $89.5 million, up 22% quarter over quarter and 2% year over year. |

|         |                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------|
| • | Video segment operating margin: 14.2%, sixth consecutive quarter of positive segment operating income. |

|         |                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
| • | Gross margin: GAAP 53.1% compared to 48.1% in the year ago period; non-GAAP 54.5% compared to 50.1% in the year ago period. |

|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating income: GAAP income $7.3 million and non-GAAP income $12.7 million, compared to GAAP loss $8.1 million and non-GAAP income $1.6 million in the year ago period. |

|         |                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | EPS: GAAP net income per share 4 cents and non-GAAP net income per share 11 cents, compared to GAAP net loss per share 14 cents and non-GAAP net loss per share zero cents in the year ago period. |

|         |                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------|
| • | CableOS deployments continued to scale, surpassing 535,000 served cable modems, up 11% quarter over quarter. |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | CableOS global design win momentum continued with 29 deployments and trials underway, up 16% quarter over quarter. |

|         |                                                                         |
|---------|-------------------------------------------------------------------------|
| • | Over 37,000 OTT channels deployed globally, up 5% quarter over quarter. |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | Video SaaS customer base increased from 7 to 19 customers, up 171% year over year. |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           |   | GAAP |   | Non-GAAP |
| Key Financial Results                          |   | Q4 2018 |   | Q3 2018 |   | Q4 2017 |   | Q4 2018 |   | Q3 2018 |   | Q4 2017 |
|                                           |   | (in millions, except per share data) |
| Net revenue                                    |   | $ | 113.7 |  |   | $ | 100.6 |  |   | $ | 101.0 |  |   | $ | 113.6 |  |   | $ | 101.4 |  |   | $ | 101.1 |  |
| Net income (loss)                              |   | $ | 3.3 |  |   | $ | (7.8 | ) |   | $ | (11.8 | ) |   | $ | 9.7 |  |   | $ | 3.4 |  |   | $ | (0.4 | ) |
| Diluted EPS                                    |   | $ | 0.04 |  |   | $ | (0.09 | ) |   | $ | (0.14 | ) |   | $ | 0.11 |  |   | $ | 0.04 |  |   | $ | 0.00 |  |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Financial Information                    | Q4 2018 |   | Q3 2018 |   | Q4 2017 |
|                                           | (in millions) |
| Bookings for the quarter                       | $ | 92.8 |  |   | $ | 79.5 |  |   | $ | 122.9 |  |
| Backlog and deferred revenue as of quarter end | $ | 186.4 |  |   | $ | 207.6 |  |   | $ | 224.4 |  |
| Cash and cash equivalents as of quarter end    | $ | 66.0 |  |   | $ | 61.7 |  |   | $ | 57.0 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| GAAP Financial Guidance |   | Q1 2019 |   | 2019 |
|                    | Low |   | High |   | Low |   | High |
|                    |   |   | (in millions, except percentages and per share data) |
| Net Revenue             |   | $ | 80.0 |  |   | $ | 90.0 |  |   | $ | 390.0 |  |   | $ | 440.0 |  |
|                    | Video |   | $ | 70.0 |  |   | $ | 75.0 |  |   | $ | 290.0 |  |   | $ | 310.0 |  |
|                    | Cable Access |   | $ | 10.0 |  |   | $ | 15.0 |  |   | $ | 100.0 |  |   | $ | 130.0 |  |
| Gross Margin %          |   | 50.6 | % |   | 52.9 | % |   | 48.3 | % |   | 52.0 | % |
| Operating Expenses      |   | $ | 52.0 |  |   | $ | 54.0 |  |   | $ | 211.1 |  |   | $ | 221.1 |  |
| Operating Income (Loss) |   | $ | (13.5 | ) |   | $ | (4.4 | ) |   | $ | (32.8 | ) |   | $ | 17.6 |  |
| Tax Benefit (Expense)   |   | $ | (0.7 | ) |   | $ | (0.7 | ) |   | $ | (2.6 | ) |   | $ | (2.6 | ) |
| EPS                     |   | $ | (0.20 | ) |   | $ | (0.09 | ) |   | $ | (0.54 | ) |   | $ | 0.02 |  |
| Shares                  |   | 88.2 |  |   | 88.2 |  |   | 89.5 |  |   | 91.1 |  |
| Cash                    |   | $ | 60.0 |  |   | $ | 70.0 |  |   | $ | 65.0 |  |   | $ | 85.0 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-GAAP Financial Guidance |   | Q1 2019 |   | 2019 |
|                        | Low |   | High |   | Low |   | High |
|                        |   |   | (in millions, except percentages and per share data) |
| Net Revenue                 |   | $ | 80.0 |  |   | $ | 90.0 |  |   | $ | 390.0 |  |   | $ | 440.0 |  |
|                        | Video |   | $ | 70.0 |  |   | $ | 75.0 |  |   | $ | 290.0 |  |   | $ | 310.0 |  |
|                        | Cable Access |   | $ | 10.0 |  |   | $ | 15.0 |  |   | $ | 100.0 |  |   | $ | 130.0 |  |
| Gross Margin %              |   | 52.5 | % |   | 54.5 | % |   | 50.0 | % |   | 53.5 | % |
| Operating Expenses          |   | $ | 49.0 |  |   | $ | 51.0 |  |   | $ | 195.0 |  |   | $ | 205.0 |  |
| Operating Income (Loss)     |   | $ | (9.0 | ) |   | $ | 0.1 |  |   | $ | (10.0 | ) |   | $ | 40.4 |  |
| Tax rate                    |   | 12 | % |   | 12 | % |   | 12 | % |   | 12 | % |
| EPS                         |   | $ | (0.11 | ) |   | $ | (0.01 | ) |   | $ | (0.16 | ) |   | $ | 0.33 |  |
| Shares                      |   | 88.2 |  |   | 88.2 |  |   | 89.5 |  |   | 91.1 |  |
| Cash                        |   | $ | 60.0 |  |   | $ | 70.0 |  |   | $ | 65.0 |  |   | $ | 85.0 |  |

----

----

----

----

|                         |
|-------------------------|
|                         |  |
| Sanjay Kalra            | Nicole Noutsios |
| Chief Financial Officer | Investor Relations |
| Harmonic Inc.           | Harmonic Inc. |
| +1.408.490.6031         | +1.510.315.1003 |

----

|                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                               |  |  |  |  |  |  |  |
|                                                                                                                                                                          | December 31, 2018 |   | December 31, 2017 |
| ASSETS                                                                                                                                                                        |   |   |   |
| Current assets:                                                                                                                                                               |   |   |   |
|    Cash and cash equivalents                                                                                                                                   | $ | 65,989 |  |   | $ | 57,024 |  |
|    Accounts receivable, net                                                                                                                                    | 81,795 |  |   | 69,844 |  |
|    Inventories                                                                                                                                                 | 25,638 |  |   | 25,976 |  |
|    Prepaid expenses and other current assets                                                                                                                   | 23,280 |  |   | 18,931 |  |
| Total current assets                                                                                                                                                          | 196,702 |  |   | 171,775 |  |
| Property and equipment, net                                                                                                                                                   | 22,321 |  |   | 29,265 |  |
| Goodwill                                                                                                                                                                      | 240,618 |  |   | 242,827 |  |
| Intangibles, net                                                                                                                                                              | 12,817 |  |   | 21,279 |  |
| Other long-term assets                                                                                                                                                        | 38,377 |  |   | 42,913 |  |
| Total assets                                                                                                                                                                  | $ | 510,835 |  |   | $ | 508,059 |  |
|                                                                                                                                                                          |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                    |   |   |   |
| Current liabilities:                                                                                                                                                          |   |   |   |
|    Other debts and capital lease obligations, current                                                                                                          | $ | 7,175 |  |   | $ | 7,610 |  |
|    Accounts payable                                                                                                                                            | 33,778 |  |   | 33,112 |  |
|    Income taxes payable                                                                                                                                        | 1,099 |  |   | 233 |  |
|    Deferred revenue                                                                                                                                            | 41,592 |  |   | 52,429 |  |
|    Accrued and other current liabilities                                                                                                                       | 52,761 |  |   | 48,705 |  |
| Total current liabilities                                                                                                                                                     | 136,405 |  |   | 142,089 |  |
| Convertible notes, long-term                                                                                                                                                  | 114,808 |  |   | 108,748 |  |
| Other debts and capital lease obligations, long-term                                                                                                                          | 12,684 |  |   | 15,336 |  |
| Income taxes payable, long-term                                                                                                                                               | 460 |  |   | 917 |  |
| Other non-current liabilities                                                                                                                                                 | 18,228 |  |   | 22,626 |  |
| Total liabilities                                                                                                                                                             | 282,585 |  |   | 289,716 |  |
|                                                                                                                                                                          |   |   |   |
| Stockholders’ equity:                                                                                                                                                   |   |   |   |
|    Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding                                                                 | — |  |   | — |  |
|    Common stock, $0.001 par value, 150,000 shares authorized; 87,057 and 82,554 shares issued and outstanding at December 31, 2018 and 2017, respectively | 87 |  |   | 83 |  |
|    Additional paid-in capital                                                                                                                                  | 2,296,795 |  |   | 2,272,690 |  |
|    Accumulated deficit                                                                                                                                         | (2,067,416 | ) |   | (2,057,812 | ) |
|    Accumulated other comprehensive income (loss)                                                                                                               | (1,216 | ) |   | 3,382 |  |
| Total stockholders’ equity                                                                                                                                              | 228,250 |  |   | 218,343 |  |
| Total liabilities and stockholders’ equity                                                                                                                              | $ | 510,835 |  |   | $ | 508,059 |  |

----

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | Three months ended |   | Year ended |
|                                                  | December 31, 2018 |   | December 31, 2017 |   | December 31, 2018 |   | December 31, 2017 |
| Revenue:                                              |   |   |   |   |   |   |   |
|      Product                 | $ | 73,291 |  |   | $ | 65,988 |  |   | $ | 252,067 |  |   | $ | 224,645 |  |
|      Service                 | 40,364 |  |   | 34,986 |  |   | 151,491 |  |   | 133,601 |  |
| Total net revenue                                     | 113,655 |  |   | 100,974 |  |   | 403,558 |  |   | 358,246 |  |
| Cost of revenue:                                      |   |   |   |   |   |   |   |
|      Product                 | 36,184 |  |   | 33,959 |  |   | 127,268 |  |   | 119,802 |  |
|      Service                 | 17,150 |  |   | 18,443 |  |   | 67,081 |  |   | 68,624 |  |
| Total cost of revenue                                 | 53,334 |  |   | 52,402 |  |   | 194,349 |  |   | 188,426 |  |
| Total gross profit                                    | 60,321 |  |   | 48,572 |  |   | 209,209 |  |   | 169,820 |  |
| Operating expenses:                                   |   |   |   |   |   |   |   |
|    Research and development            | 21,913 |  |   | 22,752 |  |   | 89,163 |  |   | 95,978 |  |
|    Selling, general and administrative | 30,078 |  |   | 31,893 |  |   | 118,952 |  |   | 136,270 |  |
|    Amortization of intangibles         | 791 |  |   | 795 |  |   | 3,187 |  |   | 3,142 |  |
|    Restructuring and related charges   | 214 |  |   | 1,223 |  |   | 2,918 |  |   | 5,307 |  |
| Total operating expenses                              | 52,996 |  |   | 56,663 |  |   | 214,220 |  |   | 240,697 |  |
| Income (loss) from operations                         | 7,325 |  |   | (8,091 | ) |   | (5,011 | ) |   | (70,877 | ) |
| Interest expense, net                                 | (2,909 | ) |   | (3,014 | ) |   | (11,401 | ) |   | (11,078 | ) |
| Other income (expense), net                           | 162 |  |   | (394 | ) |   | (536 | ) |   | (2,222 | ) |
| Loss on impairment of long-term investments           | — |  |   | (530 | ) |   | — |  |   | (530 | ) |
| Income (loss) before income taxes                     | 4,578 |  |   | (12,029 | ) |   | (16,948 | ) |   | (84,707 | ) |
| Provision for (benefit from) income taxes             | 1,248 |  |   | (184 | ) |   | 4,087 |  |   | (1,752 | ) |
| Net income (loss)                                     | $ | 3,330 |  |   | $ | (11,845 | ) |   | $ | (21,035 | ) |   | $ | (82,955 | ) |
| Net income (loss) per share:                          |   |   |   |   |   |   |   |
|    Basic                               | $ | 0.04 |  |   | $ | (0.14 | ) |   | $ | (0.25 | ) |   | $ | (1.02 | ) |
|    Diluted                             | $ | 0.04 |  |   | $ | (0.14 | ) |   | $ | (0.25 | ) |   | $ | (1.02 | ) |
| Shares used in per share calculations:                |   |   |   |   |   |   |   |
|    Basic                               | 86,846 |  |   | 82,014 |  |   | 85,615 |  |   | 80,974 |  |
|    Diluted                             | 89,028 |  |   | 82,014 |  |   | 85,615 |  |   | 80,974 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |  |  |  |  |  |  |  |
|                                                                                                                | Year ended |
|                                                                                                                | December 31, 2018 |   | December 31, 2017 |
| Cash flows from operating activities:                                                                               |   |   |   |
| Net loss                                                                                                            | $ | (21,035 | ) |   | $ | (82,955 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                     |   |   |   |
|    Amortization of intangibles                                                                       | 8,367 |  |   | 8,322 |  |
|    Depreciation                                                                                      | 12,971 |  |   | 14,599 |  |
|    Stock-based compensation                                                                          | 17,289 |  |   | 16,610 |  |
|    Amortization of discount on convertible debt                                                      | 6,060 |  |   | 5,489 |  |
|    Provision for non-cash warrant                                                                    | 1,178 |  |   | 153 |  |
|    Restructuring, asset impairment and loss on retirement of fixed assets                            | 1,491 |  |   | 1,906 |  |
|    Loss on impairment of long-term investments                                                       | — |  |   | 530 |  |
|    Unrealized foreign exchange (gain) loss                                                           | (1,906 | ) |   | 2,369 |  |
|    Deferred income taxes, net                                                                        | 661 |  |   | 2,189 |  |
|    Provision for doubtful accounts, returns and discounts                                            | 2,521 |  |   | 4,912 |  |
|    Provision for excess and obsolete inventories                                                     | 1,649 |  |   | 6,005 |  |
|    Other non-cash adjustments, net                                                                   | 407 |  |   | 445 |  |
|    Changes in operating assets and liabilities:                                                      |   |   |   |
|       Accounts receivable                                                             | (14,700 | ) |   | 12,598 |  |
|       Inventories                                                                     | (2,045 | ) |   | 11,687 |  |
|       Prepaid expenses and other assets                                               | 3,227 |  |   | 6,642 |  |
|       Accounts payable                                                                | 1,018 |  |   | 3,432 |  |
|       Deferred revenues                                                               | (4,808 | ) |   | (392 | ) |
|       Income taxes payable                                                            | 440 |  |   | (2,978 | ) |
|       Accrued and other liabilities                                                   | (501 | ) |   | (8,499 | ) |
| Net cash provided by operating activities                                                                           | 12,284 |  |   | 3,064 |  |
| Cash flows from investing activities:                                                                               |   |   |   |
|    Proceeds from maturities of investments                                                           | — |  |   | 3,106 |  |
|    Proceeds from sales of investments                                                                | 104 |  |   | 3,792 |  |
|    Purchases of property and equipment                                                               | (7,044 | ) |   | (11,399 | ) |
| Net cash used in investing activities                                                                               | (6,940 | ) |   | (4,501 | ) |
| Cash flows from financing activities:                                                                               |   |   |   |
|    Proceeds from other debts and capital leases                                                      | 5,066 |  |   | 6,344 |  |
|    Repayment of other debts and capital leases                                                       | (7,132 | ) |   | (7,408 | ) |
|    Proceeds from common stock issued to employees                                                    | 4,947 |  |   | 4,716 |  |
|    Payment of tax withholding obligations related to net share settlements of restricted stock units | (230 | ) |   | (2,757 | ) |
| Net cash provided by financing activities                                                                           | 2,651 |  |   | 895 |  |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash                                       | (763 | ) |   | 1,879 |  |
| Net increase in cash, cash equivalents and restricted cash                                                          | 7,232 |  |   | 1,337 |  |
| Cash, cash equivalents and restricted cash, beginning of the year                                                   | 58,757 |  |   | 57,420 |  |
| Cash, cash equivalents and restricted cash, end of the year                                                         | $ | 65,989 |  |   | $ | 58,757 |  |
|                                                                                                                |   |   |   |
| Reconciliation of cash, cash equivalents, and restricted cash to the preliminary consolidated balance sheets        |   |   |   |
| Cash and cash equivalents                                                                                           | $ | 65,989 |  |   | $ | 57,024 |  |
| Restricted cash included in prepaid expenses and other current assets                                               | — |  |   | 530 |  |
| Restricted cash included in other long-term assets                                                                  | — |  |   | 1,203 |  |
|     Total cash, cash equivalents and restricted cash                                            | $ | 65,989 |  |   | $ | 58,757 |  |

----

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                 | Three months ended |
|                 | December 31, 2018 |   | September 28, 2018 |   | December 31, 2017 |
|                 | GAAP | Adjustment(1) | Non-GAAP |   | GAAP | Adjustment(1) | Non-GAAP |   | GAAP | Adjustment(1) | Non-GAAP |
| Product              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Video Products       | $ | 59,499 |  | $ | — |  | $ | 59,499 |  | 52% |   | $ | 45,781 |  | $ | — |  | $ | 45,781 |  | 45% |   | $ | 59,882 |  | $ | — |  | $ | 59,882 |  | 59% |
| Cable Access         | 13,792 |  | (4 | ) | 13,788 |  | 12% |   | 17,022 |  | 518 |  | 17,540 |  | 17% |   | 6,106 |  | 50 |  | 6,156 |  | 6% |
| Services and Support | 40,364 |  | (3 | ) | 40,361 |  | 36% |   | 37,813 |  | 272 |  | 38,085 |  | 38% |   | 34,986 |  | 65 |  | 35,051 |  | 35% |
| Total                | $ | 113,655 |  | $ | (7 | ) | $ | 113,648 |  | 100% |   | $ | 100,616 |  | $ | 790 |  | $ | 101,406 |  | 100% |   | $ | 100,974 |  | $ | 115 |  | $ | 101,089 |  | 100% |
|                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geography            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Americas             | $ | 63,007 |  | $ | (7 | ) | $ | 63,000 |  | 55% |   | $ | 54,119 |  | $ | 790 |  | $ | 54,909 |  | 54% |   | $ | 44,563 |  | $ | 115 |  | $ | 44,678 |  | 44% |
| EMEA                 | 25,880 |  | — |  | 25,880 |  | 23% |   | 26,316 |  | — |  | 26,316 |  | 26% |   | 39,209 |  | — |  | 39,209 |  | 39% |
| APAC                 | 24,768 |  | — |  | 24,768 |  | 22% |   | 20,181 |  | — |  | 20,181 |  | 20% |   | 17,202 |  | — |  | 17,202 |  | 17% |
| Total                | $ | 113,655 |  | $ | (7 | ) | $ | 113,648 |  | 100% |   | $ | 100,616 |  | $ | 790 |  | $ | 101,406 |  | 100% |   | $ | 100,974 |  | $ | 115 |  | $ | 101,089 |  | 100% |
|                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Market               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service Provider     | $ | 80,325 |  | $ | (7 | ) | $ | 80,318 |  | 71% |   | $ | 66,737 |  | $ | 790 |  | $ | 67,527 |  | 67% |   | $ | 53,052 |  | $ | 115 |  | $ | 53,167 |  | 53% |
| Broadcast and Media  | 33,330 |  | — |  | 33,330 |  | 29% |   | 33,879 |  | — |  | 33,879 |  | 33% |   | 47,922 |  | — |  | 47,922 |  | 47% |
| Total                | $ | 113,655 |  | $ | (7 | ) | $ | 113,648 |  | 100% |   | $ | 100,616 |  | $ | 790 |  | $ | 101,406 |  | 100% |   | $ | 100,974 |  | $ | 115 |  | $ | 101,089 |  | 100% |

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                 | Twelve months ended |
|                 | December 31, 2018 |   | December 31, 2017 |
|                 | GAAP | Adjustment(1) | Non-GAAP |   | GAAP | Adjustment(1) | Non-GAAP |
| Product              |   |   |   |   |   |   |   |   |   |
| Video Products       | $ | 203,133 |  | $ | — |  | $ | 203,133 |  | 50% |   | $ | 204,301 |  | $ | — |  | $ | 204,301 |  | 57% |
| Cable Access         | 48,935 |  | 698 |  | 49,633 |  | 12% |   | 20,344 |  | 78 |  | 20,422 |  | 6% |
| Services and Support | 151,490 |  | 480 |  | 151,970 |  | 38% |   | 133,601 |  | 186 |  | 133,787 |  | 37% |
| Total                | $ | 403,558 |  | $ | 1,178 |  | $ | 404,736 |  | 100% |   | $ | 358,246 |  | $ | 264 |  | $ | 358,510 |  | 100% |
|                 |   |   |   |   |   |   |   |   |   |
| Geography            |   |   |   |   |   |   |   |   |   |
| Americas             | $ | 218,900 |  | $ | 1,178 |  | $ | 220,078 |  | 54% |   | $ | 171,736 |  | $ | 153 |  | $ | 171,889 |  | 48% |
| EMEA                 | 107,074 |  | — |  | 107,074 |  | 27% |   | 117,129 |  | 111 |  | 117,240 |  | 33% |
| APAC                 | 77,584 |  | — |  | 77,584 |  | 19% |   | 69,381 |  | — |  | 69,381 |  | 19% |
| Total                | $ | 403,558 |  | $ | 1,178 |  | $ | 404,736 |  | 100% |   | $ | 358,246 |  | $ | 264 |  | $ | 358,510 |  | 100% |
|                 |   |   |   |   |   |   |   |   |   |
| Market               |   |   |   |   |   |   |   |   |   |
| Service Provider     | $ | 253,421 |  | $ | 1,178 |  | $ | 254,599 |  | 63% |   | $ | 197,910 |  | $ | 153 |  | $ | 198,063 |  | 55% |
| Broadcast and Media  | 150,137 |  | — |  | 150,137 |  | 37% |   | 160,336 |  | 111 |  | 160,447 |  | 45% |
| Total                | $ | 403,558 |  | $ | 1,178 |  | $ | 404,736 |  | 100% |   | $ | 358,246 |  | $ | 264 |  | $ | 358,510 |  | 100% |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | Three months ended December 31, 2018 |
|                    | Video |   | Cable Access |   | Total Segment Measures(non-GAAP) |   | Adjustments (1) |   | Consolidated GAAP Measures |
| Net revenue             | $ | 89,528 |  |   | $ | 24,120 |  |   | $ | 113,648 |  |   | $ | 7 |  | * | $ | 113,655 |  |
| Gross profit            | 51,449 |  |   | 10,509 |  |   | 61,958 |  |   | (1,637 | ) |   | 60,321 |  |
| Gross margin%           | 57.5 |  % |   | 43.6 |  % |   | 54.5 |  % |   |   |   | 53.1 |  % |
| Operating income (loss) | 12,678 |  |   | — |  |   | 12,678 |  |   | (5,353 | ) |   | 7,325 |  |
| Operating margin%       | 14.2 |  % |   | — |  % |   | 11.2 |  % |   |   |   | 6.4 |  % |
|                    | Three months ended September 28, 2018 |
|                    | Video |   | Cable Access |   | Total Segment Measures(non-GAAP) |   | Adjustments (1) |   | Consolidated GAAP Measures |
| Net revenue             | $ | 73,344 |  |   | $ | 28,062 |  |   | $ | 101,406 |  |   | $ | (790 | ) | * | $ | 100,616 |  |
| Gross profit            | 41,937 |  |   | 10,871 |  |   | 52,808 |  |   | (2,706 | ) |   | 50,102 |  |
| Gross margin%           | 57.2 |  % |   | 38.7 |  % |   | 52.1 |  % |   |   |   | 49.8 |  % |
| Operating income (loss) | 5,258 |  |   | 395 |  |   | 5,653 |  |   | (9,304 | ) |   | (3,651 | ) |
| Operating margin%       | 7.2 |  % |   | 1.4 |  % |   | 5.6 |  % |   |   |   | (3.6 | )% |
|                    | Three months ended December 31, 2017 |
|                    | Video |   | Cable Access |   | Total Segment Measures(non-GAAP) |   | Adjustments (1) |   | Consolidated GAAP Measures |
| Net revenue             | $ | 87,596 |  |   | $ | 13,493 |  |   | $ | 101,089 |  |   | $ | (115 | ) | * | $ | 100,974 |  |
| Gross profit            | 46,639 |  |   | 4,034 |  |   | 50,673 |  |   | (2,101 | ) |   | 48,572 |  |
| Gross margin%           | 53.2 |  % |   | 29.9 |  % |   | 50.1 |  % |   |   |   | 48.1 |  % |
| Operating income (loss) | 5,752 |  |   | (4,192 | ) |   | 1,560 |  |   | (9,651 | ) |   | (8,091 | ) |
| Operating margin%       | 6.6 |  % |   | (31.1 | )% |   | 1.5 |  % |   |   |   | (8.0 | )% |
|                    | Twelve months ended December 31, 2018 |
|                    | Video |   | Cable Access |   | Total Segment Measures(non-GAAP) |   | Adjustments (1) |   | Consolidated GAAP Measures |
| Net revenue             | $ | 313,828 |  |   | $ | 90,908 |  |   | $ | 404,736 |  |   | $ | (1,178 | ) | * | $ | 403,558 |  |
| Gross profit            | 178,170 |  |   | 40,207 |  |   | 218,377 |  |   | (9,168 | ) |   | 209,209 |  |
| Gross margin%           | 56.8 |  % |   | 44.2 |  % |   | 54.0 |  % |   |   |   | 51.8 |  % |
| Operating income (loss) | 26,170 |  |   | (578 | ) |   | 25,592 |  |   | (30,603 | ) |   | (5,011 | ) |
| Operating margin%       | 8.3 |  % |   | (0.6 | )% |   | 6.3 |  % |   |   |   | (1.2 | )% |
|                    | Twelve months ended December 31, 2017 (2) |
|                    | Video |   | Cable Access |   | Total Segment Measures(non-GAAP) |   | Adjustments (1) |   | Consolidated GAAP Measures |
| Net revenue             | $ | 319,583 |  |   | $ | 38,927 |  |   | $ | 358,510 |  |   | $ | (264 | ) | * | $ | 358,246 |  |
| Gross profit            | 173,526 |  |   | 9,045 |  |   | 182,571 |  |   | (12,751 | ) |   | 169,820 |  |
| Gross margin%           | 54.3 |  % |   | 23.2 |  % |   | 50.9 |  % |   |   |   | 47.4 |  % |
| Operating loss          | (1,911 | ) |   | (23,002 | ) |   | (24,913 | ) |   | (45,964 | ) |   | (70,877 | ) |
| Operating margin%       | (0.6 | )% |   | (59.1 | )% |   | (6.9 | )% |   |   |   | (19.8 | )% |

----

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | Three months ended December 31, 2018 |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating expense, net | Net Income |
| GAAP                                                                  | $ | 113,655 |  | $ | 60,321 |  | $ | 52,996 |  | $ | 7,325 |  | $ | (2,747 | ) | $ | 3,330 |  |
|   Accounting impact related to warrant amortization         | (7 | ) | (7 | ) | — |  | (7 | ) | — |  | (7 | ) |
|   Stock-based compensation                                  | — |  | 376 |  | (2,711 | ) | 3,087 |  | — |  | 3,087 |  |
|   Amortization of intangibles                               | — |  | 1,295 |  | (791 | ) | 2,086 |  | — |  | 2,086 |  |
|   Restructuring and related charges                         | — |  | (27 | ) | (214 | ) | 187 |  | — |  | 187 |  |
|   Non-cash interest expenses related to convertible notes   | — |  | — |  | — |  | — |  | 1,577 |  | 1,577 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments | — |  | — |  | — |  | — |  | — |  | (593 | ) |
| Total adjustments                                                     | (7 | ) | 1,637 |  | (3,716 | ) | 5,353 |  | 1,577 |  | 6,337 |  |
| Non-GAAP                                                              | $ | 113,648 |  | $ | 61,958 |  | $ | 49,280 |  | $ | 12,678 |  | $ | (1,170 | ) | $ | 9,667 |  |
| As a % of revenue (GAAP)                                              |   | 53.1 | % | 46.6 | % | 6.4 |  % | (2.4 | )% | 2.9 |  % |
| As a % of revenue (Non-GAAP)                                          |   | 54.5 | % | 43.4 | % | 11.2 |  % | (1.0 | )% | 8.5 |  % |
| Diluted net income per share:                                         |   |   |   |   |   |   |
|   Diluted net income per share-GAAP                         |   |   |   |   |   | $ | 0.04 |  |
|   Diluted net income per share-Non-GAAP                     |   |   |   |   |   | $ | 0.11 |  |
| Shares used to compute diluted net income per share:                  |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                         |   |   |   |   |   | 89,028 |  |
|                                                                  | Three months ended September 28, 2018 |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating expense, net | Net Income (Loss) |
| GAAP                                                                  | $ | 100,616 |  | $ | 50,102 |  | $ | 53,753 |  | $ | (3,651 | ) | $ | (3,237 | ) | $ | (7,758 | ) |
|   Accounting impact related to warrant amortization         | 790 |  | 790 |  | — |  | 790 |  | — |  | 790 |  |
|   Stock-based compensation                                  | — |  | 614 |  | (4,819 | ) | 5,433 |  | — |  | 5,433 |  |
|   Amortization of intangibles                               | — |  | 1,295 |  | (792 | ) | 2,087 |  | — |  | 2,087 |  |
|   Restructuring and related charges                         | — |  | 7 |  | (987 | ) | 994 |  | — |  | 994 |  |
|   Loss on equity investments                                | — |  | — |  | — |  | — |  | 72 |  | 72 |  |
|   Non-cash interest expenses related to convertible notes   | — |  | — |  | — |  | — |  | 1,528 |  | 1,528 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments | — |  | — |  | — |  | — |  | — |  | 227 |  |
| Total adjustments                                                     | 790 |  | 2,706 |  | (6,598 | ) | 9,304 |  | 1,600 |  | 11,131 |  |
| Non-GAAP                                                              | $ | 101,406 |  | $ | 52,808 |  | $ | 47,155 |  | $ | 5,653 |  | $ | (1,637 | ) | $ | 3,373 |  |
| As a % of revenue (GAAP)                                              |   | 49.8 | % | 53.4 | % | (3.6 | )% | (3.2 | )% | (7.7 | )% |
| As a % of revenue (Non-GAAP)                                          |   | 52.1 | % | 46.5 | % | 5.6 |  % | (1.6 | )% | 3.3 |  % |
| Diluted net income (loss) per share:                                  |   |   |   |   |   |   |
|   Diluted net loss per share-GAAP                           |   |   |   |   |   | $ | (0.09 | ) |
|   Diluted net income per share-Non-GAAP                     |   |   |   |   |   | $ | 0.04 |  |
| Shares used to compute diluted net income (loss) per share:           |   |   |   |   |   |   |
|   GAAP                                                      |   |   |   |   |   | 86,321 |  |
|   Non-GAAP                                                  |   |   |   |   |   | 87,770 |  |
|                                                                  |   |   |   |   |   |   |

----

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|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | Three months ended December 31, 2017 |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating expense, net | Net Loss |
| GAAP                                                                  | $ | 100,974 |  | $ | 48,572 |  | $ | 56,663 |  | $ | (8,091 | ) | $ | (3,938 | ) | $ | (11,845 | ) |
|   Accounting impact related to warrant amortization         | 115 |  | 115 |  | — |  | 115 |  | — |  | 115 |  |
|   Stock-based compensation                                  | — |  | 747 |  | (4,756 | ) | 5,503 |  | — |  | 5,503 |  |
|   Amortization of intangibles                               | — |  | 1,295 |  | (795 | ) | 2,090 |  | — |  | 2,090 |  |
|   Restructuring and related charges                         | — |  | (56 | ) | (1,223 | ) | 1,167 |  | — |  | 1,167 |  |
|   TVN acquisition-and integration-related costs             | — |  | — |  | (84 | ) | 84 |  | — |  | 84 |  |
|   Avid litigation settlement and associated legal fees      | — |  | — |  | (692 | ) | 692 |  | — |  | 692 |  |
|   Loss on impairment of long-term investments               | — |  | — |  | — |  | — |  | 530 |  | 530 |  |
|   Non-cash interest expenses related to convertible notes   | — |  | — |  | — |  | — |  | 1,429 |  | 1,429 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments | — |  | — |  | — |  | — |  | — |  | (121 | ) |
| Total adjustments                                                     | 115 |  | 2,101 |  | (7,550 | ) | 9,651 |  | 1,959 |  | 11,489 |  |
| Non-GAAP                                                              | $ | 101,089 |  | $ | 50,673 |  | $ | 49,113 |  | $ | 1,560 |  | $ | (1,979 | ) | $ | (356 | ) |
| As a % of revenue (GAAP)                                              |   | 48.1 | % | 56.1 | % | (8.0 | )% | (3.9 | )% | (11.7 | )% |
| As a % of revenue (Non-GAAP)                                          |   | 50.1 | % | 48.6 | % | 1.5 |  % | (2.0 | )% | (0.4 | )% |
| Diluted net loss per share:                                           |   |   |   |   |   |   |
|   Diluted net loss per share-GAAP                           |   |   |   |   |   | $ | (0.14 | ) |
|   Diluted net loss per share-Non-GAAP                       |   |   |   |   |   | $ | 0.00 |  |
| Shares used to compute diluted net loss per share:                    |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                         |   |   |   |   |   | 82,014 |  |
|                                                                  | Twelve months ended December 31, 2018 |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating expense, net | Net Income (Loss) |
| GAAP                                                                  | $ | 403,558 |  | $ | 209,209 |  | $ | 214,220 |  | $ | (5,011 | ) | $ | (11,937 | ) | $ | (21,035 | ) |
|   Accounting impact related to warrant amortization         | 1,178 |  | 1,178 |  | — |  | 1,178 |  | — |  | 1,178 |  |
|   Stock-based compensation                                  | — |  | 1,953 |  | (15,336 | ) | 17,289 |  | — |  | 17,289 |  |
|   Amortization of intangibles                               | — |  | 5,180 |  | (3,187 | ) | 8,367 |  | — |  | 8,367 |  |
|   Restructuring and related charges                         | — |  | 857 |  | (2,918 | ) | 3,775 |  | — |  | 3,775 |  |
|   Gain on equity investments                                | — |  | — |  | — |  | — |  | (111 | ) | (111 | ) |
|   Avid litigation settlement and associated legal fees      | — |  | — |  | 6 |  | (6 | ) | — |  | (6 | ) |
|   Non-cash interest expenses related to convertible notes   | — |  | — |  | — |  | — |  | 6,060 |  | 6,060 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments | — |  | — |  | — |  | — |  | — |  | 950 |  |
| Total adjustments                                                     | 1,178 |  | 9,168 |  | (21,435 | ) | 30,603 |  | 5,949 |  | 37,502 |  |
|                                                                  |   |   |   |   |   |   |
| Non-GAAP                                                              | $ | 404,736 |  | $ | 218,377 |  | $ | 192,785 |  | $ | 25,592 |  | $ | (5,988 | ) | $ | 16,467 |  |
| As a % of revenue (GAAP)                                              |   | 51.8 | % | 53.1 | % | (1.2 | )% | (3.0 | )% | (5.2 | )% |
| As a % of revenue (Non-GAAP)                                          |   | 54.0 | % | 47.6 | % | 6.3 |  % | (1.5 | )% | 4.1 |  % |
| Diluted net income (loss) per share:                                  |   |   |   |   |   |   |
|   Diluted net loss per share-GAAP                           |   |   |   |   |   | $ | (0.25 | ) |
|   Diluted net income per share-Non-GAAP                     |   |   |   |   |   | $ | 0.19 |  |
| Shares used to compute diluted net income (loss) per share:           |   |   |   |   |   |   |
|   GAAP                                                      |   |   |   |   |   | 85,615 |  |
|   Non-GAAP                                                  |   |   |   |   |   | 86,741 |  |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                      | Twelve months ended December 31, 2017 |
|                                                                      | Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating expense, net | Net Loss |
| GAAP                                                                      | $ | 358,246 |  | $ | 169,820 |  | $ | 240,697 |  | $ | (70,877 | ) | $ | (13,830 | ) | $ | (82,955 | ) |
|   Cable Access inventory charge                                 | — |  | 3,316 |  | — |  | 3,316 |  | — |  | 3,316 |  |
|   Acquisition accounting impact related to TVN deferred revenue | 111 |  | 111 |  | — |  | 111 |  | — |  | 111 |  |
|   Accounting impact related to warrant amortization             | 153 |  | 153 |  | — |  | 153 |  | — |  | 153 |  |
|   Stock-based compensation                                      | — |  | 2,370 |  | (14,240 | ) | 16,610 |  | — |  | 16,610 |  |
|   Amortization of intangibles                                   | — |  | 5,180 |  | (3,142 | ) | 8,322 |  | — |  | 8,322 |  |
|   Restructuring and related charges                             | — |  | 1,279 |  | (5,307 | ) | 6,586 |  | — |  | 6,586 |  |
|   TVN acquisition-and integration-related costs                 | — |  | 342 |  | (2,476 | ) | 2,818 |  | — |  | 2,818 |  |
|   Avid litigation settlement and associated legal fees          | — |  | — |  | (8,048 | ) | 8,048 |  | — |  | 8,048 |  |
|   Loss on impairment of long-term investments                   | — |  | — |  | — |  | — |  | 530 |  | 530 |  |
|   Non-cash interest expenses related to convertible notes       | — |  | — |  | — |  | — |  | 5,489 |  | 5,489 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments     | — |  | — |  | — |  | — |  | — |  | 3,156 |  |
| Total adjustments                                                         | 264 |  | 12,751 |  | (33,213 | ) | 45,964 |  | 6,019 |  | 55,139 |  |
| Non-GAAP                                                                  | $ | 358,510 |  | $ | 182,571 |  | $ | 207,484 |  | $ | (24,913 | ) | $ | (7,811 | ) | $ | (27,816 | ) |
| As a % of revenue (GAAP)                                                  |   | 47.4 | % | 67.2 | % | (19.8 | )% | (3.9 | )% | (23.2 | )% |
| As a % of revenue (Non-GAAP)                                              |  |  | 50.9 | % | 57.9 | % | (6.9 | )% | (2.2 | )% | (7.8 | )% |
| Diluted net loss per share:                                               |   |  |  |  |  |  |  |  |  |  |  |
|   Diluted net loss per share-GAAP                               |   |  |  |  |  |  | $ | (1.02 | ) |
|   Diluted net loss per share-Non-GAAP                           |   |   |   |   |   | $ | (0.34 | ) |
| Shares used to compute diluted net loss per share:                        |   |   |   |   |   |  |
|   GAAP and Non-GAAP                                             |   |   |   |   |   | 80,974 |  |

----

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|                                                                       |  |  |  |  |  |  |
|                                                                  | Q1 2019 Financial Guidance |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Loss |
| GAAP                                                                  | $80.0 to $90.0 | $40.5 to $47.6 | $52.0 to $54.0 | $(13.5) to $(4.4) | $(3.2) | $(17.4) to $(8.3) |
|   Stock-based compensation                                  | — | 0.2 | (2.2) | 2.4 | — | 2.4 |
|   Amortization of intangibles                               | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
|   Non-cash interest expense related to convertible notes    | — | — | — | — | 1.6 | 1.6 |
|   Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | $0.9 to $2.0 |
| Total adjustments                                                     | — | 1.5 | (3.0) | 4.5 | 1.6 | $7.0 to $8.1 |
| Non-GAAP                                                              | $80.0 to $90.0 | $42.0 to $49.1 | $49.0 to $51.0 | $(9.0) to $0.1 | $(1.6) | $(9.3) to $(1.3) |
| As a % of revenue (GAAP)                                              |   | 50.6% to 52.9% | 57.8% to 67.5% | (16.9)% to (4.9)% | (3.6)% | (21.7)% to (9.2)% |
| As a % of revenue (Non-GAAP)                                          |   | 52.5% to 54.5% | 54.4% to 63.8% | (11.3)% to 0.1% | (2.0)% | (11.6)% to (1.4)% |
| Diluted net loss per share:                                           |   |   |   |   |   |   |
|   Diluted net loss per share-GAAP                           |   |   |   |   |   | $(0.20) to $(0.09) |
|   Diluted net loss per share-Non-GAAP                       |   |   |   |   |   | $(0.11) to $(0.01) |
| Shares used to compute diluted net loss per share:                    |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                         |   |   |   |   |   | 88.2 |
|                                                                  |   |   |   |   |   |   |
|                                                                  | 2019 Financial Guidance |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) |
| GAAP                                                                  | $390.0 to $440.0 | $188.3 to $228.7 | $211.1 to $221.1 | $(32.8) to $17.6 | $(13.1) | $(48.5) to $1.9 |
|   Stock-based compensation expense                          | — | 1.5 | (12.9) | 14.4 | — | 14.4 |
|   Amortization of intangibles                               | — | 5.2 | (3.2) | 8.4 | — | 8.4 |
|   Non-cash interest expense related to convertible notes    | — | — | — | — | 6.7 | 6.7 |
|   Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | $(1.5) to $4.6 |
| Total adjustments                                                     | — | 6.7 | (16.1) | 22.8 | 6.7 | $28.0 to $34.1 |
| Non-GAAP                                                              | $390.0 to $440.0 | $195.0 to $235.4 | $195.0 to $205.0 | $(10.0) to $40.4 | $(6.4) | $(14.4) to $29.9 |
| As a % of revenue (GAAP)                                              |   | 48.3% to 52.0% | 48.0% to 56.7% | (8.4)% to 4.0% | (3.0)% | (12.4)% to 0.4% |
| As a % of revenue (Non-GAAP)                                          |   | 50.0% to 53.5% | 44.3% to 52.6% | (2.6)% to 9.2% | (1.5)% | (3.7)% to 6.8% |
| Diluted net income (loss) per share:                                  |   |   |   |   |   |   |
|   Diluted net income (loss) per share-GAAP                  |   |   |   |   |   | $(0.54) to $0.02 |
|   Diluted net income (loss) per share-Non-GAAP              |   |   |   |   |   | $(0.16) to $0.33 |
| Shares used to compute diluted net loss per share:                    |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                         |   |   |   |   |   | 89.5 |
| Shares used to compute diluted net income per share:                  |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                         |   |   |   |   |   | 91.1 |