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

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | Revenue: GAAP $80.1 million, down 11.1% year over year; non-GAAP $80.1 million, down 11.2% year over year. |

|         |                                                                                           |
|---------|-------------------------------------------------------------------------------------------|
| • | SaaS and service revenue: 34.6% of total revenue, compared to 29% in the year ago period. |

|         |                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|
| • | SaaS and service gross margin: GAAP 59.6% and non-GAAP 61.3%, an increase of 690 and 500 basis points, respectively, year over year. |

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | Gross margin: GAAP 52.2%, compared to 52.4% in the year ago period; non-GAAP 54.5%, compared to 55.3% in the year ago period. |

|         |                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating expenses: GAAP $50.3 million, compared to $56.5 million in the year ago period; non-GAAP $47.5 million, compared to $49.4 million in the year ago period. |

|         |                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------|
| • | Video segment operating income:  $2.0 million, seventh consecutive quarter of positive segment operating income. |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Ended Q1 with cash of $69.9 million, up $3.9 million quarter over quarter. |

|         |                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------|
| • | CableOS deployments continued to scale, over 670,000 served cable modems, up 24% quarter over quarter. |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | CableOS global design win momentum continued with 32 deployments and trials underway, up 10% quarter over quarter. |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| • | Video SaaS customer base increased from 19 to 25 customers, up 32% quarter over quarter. |

|         |                                                                         |
|---------|-------------------------------------------------------------------------|
| • | Over 6.5 million consumers served by Video SaaS, up 70% year over year. |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           |   | GAAP |   | Non-GAAP |
| Key Financial Results                          |   | Q1 2019 |   | Q4 2018 |   | Q1 2018 |   | Q1 2019 |   | Q4 2018 |   | Q1 2018 |
|                                           |   | (in millions, except per share data) |
| Net revenue                                    |   | $ | 80.1 |  |   | $ | 113.7 |  |   | $ | 90.1 |  |   | $ | 80.1 |  |   | $ | 113.6 |  |   | $ | 90.2 |  |
| Net income (loss)                              |   | $ | (11.3 | ) |   | $ | 3.3 |  |   | $ | (13.7 | ) |   | $ | (4.8 | ) |   | $ | 9.7 |  |   | $ | (1.1 | ) |
| Diluted EPS                                    |   | $ | (0.13 | ) |   | $ | 0.04 |  |   | $ | (0.16 | ) |   | $ | (0.05 | ) |   | $ | 0.11 |  |   | $ | (0.01 | ) |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Financial Information                    | Q1 2019 |   | Q4 2018 |   | Q1 2018 |
|                                           | (in millions) |
| Recurring revenue*                             | $ | 27.7 |  |   | $ | 30.5 |  |   | $ | 26.1 |  |
| Recurring revenue as % of total revenue        | 34.6 | % |   | 26.8 | % |   | 29.0 | % |
| Bookings for the quarter                       | $ | 81.0 |  |   | $ | 92.8 |  |   | $ | 102.6 |  |
| Backlog and deferred revenue as of quarter end | $ | 187.2 |  |   | $ | 186.4 |  |   | $ | 224.4 |  |
| Cash as of quarter end                         | $ | 69.9 |  |   | $ | 66.0 |  |   | $ | 52.0 |  |

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| GAAP Financial Guidance                                                  |   | Q2 2019 |   | 2019 |
|                                                                     | Low |   | High |   | Low |   | High |
|                                                                     |   | (in millions, except percentages and per share data) |
| Net Revenue                                                              |   | $ | 80.0 |  |   | $ | 90.0 |  |   | $ | 385.0 |  |   | $ | 430.0 |  |
|           Video        |   | $ | 70.0 |  |   | $ | 75.0 |  |   | $ | 285.0 |  |   | $ | 300.0 |  |
|           Cable Access |   | $ | 10.0 |  |   | $ | 15.0 |  |   | $ | 100.0 |  |   | $ | 130.0 |  |
| Gross Margin %                                                           |   | 50.5 | % |   | 51.5 | % |   | 48.2 | % |   | 51.8 | % |
| Operating Expenses                                                       |   | $ | 54.5 |  |   | $ | 55.5 |  |   | $ | 210.5 |  |   | $ | 220.5 |  |
| Operating Income (Loss)                                                  |   | $ | (15.1 | ) |   | $ | (8.1 | ) |   | $ | (34.9 | ) |   | $ | 12.2 |  |
| Tax Expense                                                              |   | $ | (0.7 | ) |   | $ | (0.7 | ) |   | $ | (2.3 | ) |   | $ | (2.3 | ) |
| EPS                                                                      |   | $ | (0.21 | ) |   | $ | (0.14 | ) |   | $ | (0.56 | ) |   | $ | (0.04 | ) |
| Shares                                                                   |   | 88.9 |  |   | 88.9 |  |   | 89.3 |  |   | 89.3 |  |
| Cash                                                                     |   | $ | 60.0 |  |   | $ | 70.0 |  |   | $ | 65.0 |  |   | $ | 85.0 |  |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Non-GAAP Financial Guidance                                              |   | Q2 2019 |   | 2019 |
|                                                                     | Low |   | High |   | Low |   | High |
|                                                                     |   | (in millions, except percentages and per share data) |
| Net Revenue                                                              |   | $ | 80.0 |  |   | $ | 90.0 |  |   | $ | 385.0 |  |   | $ | 430.0 |  |
|           Video        |   | $ | 70.0 |  |   | $ | 75.0 |  |   | $ | 285.0 |  |   | $ | 300.0 |  |
|           Cable Access |   | $ | 10.0 |  |   | $ | 15.0 |  |   | $ | 100.0 |  |   | $ | 130.0 |  |
| Gross Margin %                                                           |   | 52.5 | % |   | 53.5 | % |   | 50.0 | % |   | 53.5 | % |
| Operating Expenses                                                       |   | $ | 51.0 |  |   | $ | 52.0 |  |   | $ | 195.0 |  |   | $ | 205.0 |  |
| Operating Income (Loss)                                                  |   | $ | (10.0 | ) |   | $ | (3.0 | ) |   | $ | (12.5 | ) |   | $ | 34.6 |  |
| Tax Rate                                                                 |   | 12 | % |   | 12 | % |   | 12 | % |   | 12 | % |
| EPS                                                                      |   | $ | (0.11 | ) |   | $ | (0.05 | ) |   | $ | (0.19 | ) |   | $ | 0.27 |  |
| Shares                                                                   |   | 88.9 |  |   | 88.9 |  |   | 89.3 |  |   | 91.0 |  |
| 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 |

----

|                                                                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                         |  |  |  |  |  |  |  |
|                                                                                                                                                                                    | March 29, 2019 |   | December 31, 2018 |
| ASSETS                                                                                                                                                                                  |   |   |   |
| Current assets:                                                                                                                                                                         |   |   |   |
|    Cash and cash equivalents                                                                                                                                             | $ | 69,916 |  |   | $ | 65,989 |  |
|    Accounts receivable, net                                                                                                                                              | 58,930 |  |   | 81,795 |  |
|    Inventories                                                                                                                                                           | 29,325 |  |   | 25,638 |  |
|    Prepaid expenses and other current assets                                                                                                                             | 22,900 |  |   | 23,280 |  |
| Total current assets                                                                                                                                                                    | 181,071 |  |   | 196,702 |  |
| Property and equipment, net                                                                                                                                                             | 20,976 |  |   | 22,321 |  |
| Operating lease right-of-use assets                                                                                                                                                     | 21,616 |  |   | — |  |
| Goodwill                                                                                                                                                                                | 239,848 |  |   | 240,618 |  |
| Intangibles, net                                                                                                                                                                        | 10,704 |  |   | 12,817 |  |
| Other long-term assets                                                                                                                                                                  | 39,962 |  |   | 38,377 |  |
| Total assets                                                                                                                                                                            | $ | 514,177 |  |   | $ | 510,835 |  |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                              |   |   |   |
| Current liabilities:                                                                                                                                                                    |   |   |   |
|    Other debts and capital lease obligations, current                                                                                                                    | $ | 7,124 |  |   | $ | 7,175 |  |
|    Accounts payable                                                                                                                                                      | 25,436 |  |   | 33,778 |  |
|    Income taxes payable                                                                                                                                                  | 884 |  |   | 1,099 |  |
|    Deferred revenue                                                                                                                                                      | 47,422 |  |   | 41,592 |  |
|    Accrued and other current liabilities                                                                                                                                 | 53,238 |  |   | 52,761 |  |
| Total current liabilities                                                                                                                                                               | 134,104 |  |   | 136,405 |  |
| Convertible notes, long-term                                                                                                                                                            | 116,413 |  |   | 114,808 |  |
| Other debts and capital lease obligations, long-term                                                                                                                                    | 12,402 |  |   | 12,684 |  |
| Income taxes payable, long-term                                                                                                                                                         | 466 |  |   | 460 |  |
| Other non-current liabilities                                                                                                                                                           | 30,231 |  |   | 18,228 |  |
| Total liabilities                                                                                                                                                                       | 293,616 |  |   | 282,585 |  |
| 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; 88,784 and 87,057 shares issued and outstanding at March 29, 2019 and December 31, 2018, respectively | 89 |  |   | 87 |  |
|    Additional paid-in capital                                                                                                                                            | 2,300,259 |  |   | 2,296,795 |  |
|    Accumulated deficit                                                                                                                                                   | (2,077,322 | ) |   | (2,067,416 | ) |
|    Accumulated other comprehensive loss                                                                                                                                  | (2,465 | ) |   | (1,216 | ) |
| Total stockholders' equity                                                                                                                                                              | 220,561 |  |   | 228,250 |  |
| Total liabilities and stockholders' equity                                                                                                                                              | $ | 514,177 |  |   | $ | 510,835 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
|                                                         | Three months ended |
|                                                         | March 29, 2019 |   | March 30, 2018 |
| Revenue:                                                     |   |   |   |
| Appliance and integration                                    | $ | 52,365 |  |   | $ | 63,986 |  |
| SaaS and service                                             | 27,741 |  |   | 26,141 |  |
| Total net revenue                                            | 80,106 |  |   | 90,127 |  |
| Cost of revenue:                                             |   |   |   |
| Appliance and integration                                    | 27,054 |  |   | 30,576 |  |
| SaaS and service                                             | 11,203 |  |   | 12,368 |  |
| Total cost of revenue                                        | 38,257 |  |   | 42,944 |  |
|    Gross profit                               | 41,849 |  |   | 47,183 |  |
| Operating expenses:                                          |   |   |   |
|    Research and development                   | 21,401 |  |   | 23,457 |  |
|    Selling, general and administrative        | 28,011 |  |   | 31,163 |  |
|    Amortization of intangibles                | 788 |  |   | 804 |  |
|    Restructuring and related charges          | 57 |  |   | 1,086 |  |
|       Total operating expenses | 50,257 |  |  | 56,510 |  |
| Loss from operations                                         | (8,408 | ) |   | (9,327 | ) |
| Interest expense, net                                        | (2,906 | ) |   | (2,757 | ) |
| Other expense, net                                           | (311 | ) |   | (532 | ) |
| Loss before income taxes                                     | (11,625 | ) |   | (12,616 | ) |
| Provision for (benefit from) income taxes                    | (319 | ) |   | 1,078 |  |
| Net loss                                                     | $ | (11,306 | ) |   | $ | (13,694 | ) |
| Net loss per share:                                          |   |   |   |
|    Basic and diluted                          | $ | (0.13 | ) |   | $ | (0.16 | ) |
| Shares used in per share calculation:                        |   |   |   |
|    Basic and diluted                          | 88,165 |  |   | 83,912 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |  |  |  |  |  |  |  |
|                                                                                                                | Three months ended |
|                                                                                                                | March 29, 2019 |   | March 30, 2018 |
| Cash flows from operating activities:                                                                               |   |   |   |
| Net loss                                                                                                            | $ | (11,306 | ) |   | $ | (13,694 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                     |   |   |   |
|    Amortization of intangibles                                                                       | 2,083 |  |   | 2,099 |  |
|    Depreciation                                                                                      | 2,846 |  |   | 3,456 |  |
|    Stock-based compensation                                                                          | 2,113 |  |   | 5,757 |  |
|    Amortization of discount on convertible debt                                                      | 1,605 |  |   | 1,453 |  |
|    Amortization of non-cash warrant                                                                  | 25 |  |   | 111 |  |
|    Restructuring, asset impairment and loss on retirement of fixed assets                            | 103 |  |   | 40 |  |
|    Deferred income taxes                                                                             | (538 | ) |   | — |  |
|    Foreign currency adjustments                                                                      | (638 | ) |   | 835 |  |
|    Provision for excess and obsolete inventories                                                     | 254 |  |   | 458 |  |
|    Allowance for doubtful accounts, returns and discounts                                            | 417 |  |   | 1,122 |  |
|    Other non-cash adjustments, net                                                                   | 287 |  |   | 132 |  |
|    Changes in operating assets and liabilities, net of effects of acquisition:                       |   |   |   |
|       Accounts receivable                                                             | 22,351 |  |   | (5,925 | ) |
|       Inventories                                                                     | (4,157 | ) |   | 424 |  |
|       Prepaid expenses and other assets                                               | 1,417 |  |   | (6,511 | ) |
|       Accounts payable                                                                | (8,177 | ) |   | (5,710 | ) |
|       Deferred revenue                                                                | 4,750 |  |   | 10,009 |  |
|       Income taxes payable                                                            | (192 | ) |   | 253 |  |
|       Accrued and other liabilities                                                   | (9,027 | ) |   | (933 | ) |
| Net cash provided by (used in) operating activities                                                                 | 4,216 |  |   | (6,624 | ) |
| Cash flows from investing activities:                                                                               |   |   |   |
|    Purchases of property and equipment                                                               | (1,674 | ) |   | (1,775 | ) |
| Net cash used in investing activities                                                                               | (1,674 | ) |   | (1,775 | ) |
| Cash flows from financing activities:                                                                               |   |   |   |
| Proceeds from other debts and capital leases                                                                        | 160 |  |   | — |  |
| Repayment of other debts and capital leases                                                                         | (97 | ) |   | (448 | ) |
|    Proceeds from common stock issued to employees                                                    | 2,012 |  |   | 2,347 |  |
|    Payment of tax withholding obligations related to net share settlements of restricted stock units | (657 | ) |   | — |  |
| Net cash provided by financing activities                                                                           | 1,418 |  |   | 1,899 |  |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash                                       | (33 | ) |   | 73 |  |
| Net increase (decrease) in cash, cash equivalents and restricted cash                                               | 3,927 |  |   | (6,427 | ) |
| Cash, cash equivalents and restricted cash at beginning of period                                                   | 65,989 |  |   | 58,757 |  |
| Cash, cash equivalents and restricted cash at end of period                                                         | $ | 69,916 |  |   | $ | 52,330 |  |
|                                                                                                                |   |   |   |
| Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets          |   |   |   |
| Cash and cash equivalents                                                                                           | $ | 69,916 |  |   | $ | 52,045 |  |
| Restricted cash included in prepaid expenses and other current assets                                               | — |  |   | 285 |  |
|     Total cash, cash equivalents and restricted cash                                            | $ | 69,916 |  |   | $ | 52,330 |  |

----

|                     |
|---------------------|
|                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                | Three months ended |
|                | March 29, 2019 |   | December 31, 2018 |   | March 30, 2018 |
|                | GAAP | Adjustments(1) | Non-GAAP |   | GAAP | Adjustments(1) | Non-GAAP |   | GAAP | Adjustments(1) | Non-GAAP |
| Geography           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Americas            | $ | 34,188 |  | $ | 25 |  | $ | 34,213 |  | 43% |   | $ | 63,007 |  | $ | (7 | ) | $ | 63,000 |  | 55% |   | $ | 48,856 |  | $ | 111 |  | $ | 48,967 |  | 54% |
| EMEA                | 28,078 |  | — |  | 28,078 |  | 35% |   | 25,880 |  | — |  | 25,880 |  | 23% |   | 23,202 |  | — |  | 23,202 |  | 26% |
| APAC                | 17,840 |  | — |  | 17,840 |  | 22% |   | 24,768 |  | — |  | 24,768 |  | 22% |   | 18,069 |  | — |  | 18,069 |  | 20% |
| Total               | $ | 80,106 |  | $ | 25 |  | $ | 80,131 |  | 100% |   | $ | 113,655 |  | $ | (7 | ) | $ | 113,648 |  | 100% |   | $ | 90,127 |  | $ | 111 |  | $ | 90,238 |  | 100% |
|                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Market              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service Provider    | $ | 44,212 |  | $ | 25 |  | $ | 44,237 |  | 55% |   | $ | 80,325 |  | $ | (7 | ) | $ | 80,318 |  | 71% |   | $ | 52,217 |  | $ | 111 |  | $ | 52,328 |  | 58% |
| Broadcast and Media | 35,894 |  | — |  | 35,894 |  | 45% |   | 33,330 |  | — |  | 33,330 |  | 29% |   | 37,910 |  | — |  | 37,910 |  | 42% |
| Total               | $ | 80,106 |  | $ | 25 |  | $ | 80,131 |  | 100% |   | $ | 113,655 |  | $ | (7 | ) | $ | 113,648 |  | 100% |   | $ | 90,127 |  | $ | 111 |  | $ | 90,238 |  | 100% |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | Three months ended March 29, 2019 |
|                    | Video |   | Cable Access |   | Total Segment Measures(non-GAAP) |   | Adjustments (1) |   | Consolidated GAAP Measures |
| Net revenue             | $ | 67,176 |  |   | $ | 12,955 |  |   | $ | 80,131 |  |   | $ | (25 | ) | * | $ | 80,106 |  |
| Gross profit            | 38,602 |  |   | 5,093 |  |   | 43,695 |  |   | (1,846 | ) |   | 41,849 |  |
| Gross margin%           | 57.5 | % |   | 39.3 |  % |   | 54.5 |  % |   |   |   | 52.2 |  % |
| Operating income (loss) | 1,968 |  |   | (5,797 | ) |   | (3,829 | ) |   | (4,579 | ) |   | (8,408 | ) |
| Operating margin%       | 2.9 | % |   | (44.7 | )% |   | (4.8 | )% |   |   |   | (10.5 | )% |
|                    | 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        | 12,678 |  |   | — |  |   | 12,678 |  |   | (5,353 | ) |   | 7,325 |  |
| Operating margin%       | 14.2 | % |   | — |  % |   | 11.2 |  % |   |   |   | 6.4 |  % |
|                    | Three months ended March 30, 2018 |
|                    | Video |   | Cable Access |   | Total Segment Measures(non-GAAP) |   | Adjustments (1) |   | Consolidated GAAP Measures |
| Net revenue             | $ | 71,748 |  |   | $ | 18,490 |  |   | $ | 90,238 |  |   | $ | (111 | ) | * | $ | 90,127 |  |
| Gross profit            | 41,226 |  |   | 8,640 |  |   | 49,866 |  |   | (2,683 | ) |   | 47,183 |  |
| Gross margin%           | 57.5 | % |   | 46.7 |  % |   | 55.3 |  % |   |   |   | 52.4 |  % |
| Operating income (loss) | 1,995 |  |   | (1,513 | ) |   | 482 |  |   | (9,809 | ) |   | (9,327 | ) |
| Operating margin%       | 2.8 | % |   | (8.2 | )% |   | 0.5 |  % |   |   |   | (10.3 | )% |

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                  | Three months ended March 29, 2019 |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss |
| GAAP                                                                  | $ | 80,106 |  | $ | 41,849 |  | $ | 50,257 |  | $ | (8,408 | ) | $ | (3,217 | ) | $ | (11,306 | ) |
|   Accounting impact related to warrant amortization         | 25 |  | 25 |  | — |  | 25 |  | — |  | 25 |  |
|   Stock-based compensation                                  | — |  | 225 |  | (1,888 | ) | 2,113 |  | — |  | 2,113 |  |
|   Amortization of intangibles                               | — |  | 1,295 |  | (788 | ) | 2,083 |  | — |  | 2,083 |  |
|   Restructuring and related charges                         | — |  | 301 |  | (57 | ) | 358 |  | — |  | 358 |  |
|   Non-cash interest expenses related to convertible notes   | — |  | — |  | — |  | — |  | 1,606 |  | 1,606 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments | — |  | — |  | — |  | — |  | — |  | 334 |  |
| Total adjustments                                                     | 25 |  | 1,846 |  | (2,733 | ) | 4,579 |  | 1,606 |  | 6,519 |  |
| Non-GAAP                                                              | $ | 80,131 |  | $ | 43,695 |  | $ | 47,524 |  | $ | (3,829 | ) | $ | (1,611 | ) | $ | (4,787 | ) |
| As a % of revenue (GAAP)                                              |   | 52.2 | % | 62.7 | % | (10.5 | )% | (4.0 | )% | (14.1 | )% |
| As a % of revenue (Non-GAAP)                                          |   | 54.5 | % | 59.3 | % | (4.8 | )% | (2.0 | )% | (6.0 | )% |
|                                                                  |   |   |   |   |   |   |
| Diluted net loss per share:                                           |   |   |   |  |   |   |
|   Diluted net loss per share-GAAP                           |   |   |   |   |   | $ | (0.13 | ) |
|   Diluted net loss per share-Non-GAAP                       |   |   |   |  |   | $ | (0.05 | ) |
| Shares used to compute diluted net loss per share:                    |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                         |   |   |   |   |   | 88,165 |  |
|                                                                  |   |   |   |   |   |   |
|                                                                  | 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 March 30, 2018 |
|                                                                  | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Loss |
| GAAP                                                                  | $ | 90,127 |  | $ | 47,183 |  | $ | 56,510 |  | $ | (9,327 | ) | $ | (3,289 | ) | $ | (13,694 | ) |
|   Accounting impact related to warrant amortization         | 111 |  | 111 |  | — |  | 111 |  | — |  | 111 |  |
|   Stock-based compensation                                  | — |  | 515 |  | (5,242 | ) | 5,757 |  | — |  | 5,757 |  |
|   Amortization of intangibles                               | — |  | 1,295 |  | (804 | ) | 2,099 |  | — |  | 2,099 |  |
|   Restructuring and related charges                         | — |  | 762 |  | (1,086 | ) | 1,848 |  | — |  | 1,848 |  |
|   Avid litigation settlement and associated legal fees      | — |  | — |  | 6 |  | (6 | ) | — |  | (6 | ) |
|   Non-cash interest expenses related to convertible notes   | — |  | — |  | — |  | — |  | 1,454 |  | 1,454 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments | — |  | — |  | — |  | — |  | — |  | 1,294 |  |
| Total adjustments                                                     | $ | 111 |  | $ | 2,683 |  | $ | (7,126 | ) | $ | 9,809 |  | $ | 1,454 |  | $ | 12,557 |  |
| Non-GAAP                                                              | $ | 90,238 |  | $ | 49,866 |  | $ | 49,384 |  | $ | 482 |  | $ | (1,835 | ) | $ | (1,137 | ) |
| As a % of revenue (GAAP)                                              |   | 52.4 | % | 62.7 | % | (10.3 | )% | (3.6 | )% | (15.2 | )% |
| As a % of revenue (Non-GAAP)                                          |   | 55.3 | % | 54.7 | % | 0.5 |  % | (2.0 | )% | (1.3 | )% |
|                                                                  |   |   |   |   |   |   |
| Diluted net loss per share:                                           |   |   |   |   |   |   |
|   Diluted net loss per share-GAAP                           |   |   |   |   |   | $ | (0.16 | ) |
|   Diluted net loss per share-Non-GAAP                       |   |   |   |   |   | $ | (0.01 | ) |
| Shares used to compute diluted net loss per share:                    |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                         |   |   |   |   |   | 83,912 |  |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |
|                                                               | Q2 2019 Financial Guidance |
|                                                               | Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss |
| GAAP                                                               | $80.0 to $90.0 | $40.4 to $46.4 | $54.5 to $55.5 | $(15.1) to $(8.1) | $(3.3) | $(19.1) to $(12.1) |
|   Stock-based compensation                               | — | 0.3 | (2.7) | 3.0 | — | 3.0 |
|   Amortization of intangibles                            | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
|   Non-cash interest expense related to convertible notes | — | — | — | — | 1.7 | 1.7 |
|   Tax effect of non-GAAP adjustments                     | — | — | — | — | — | $1.3 to $2.1 |
| Total adjustments                                                  | — | 1.6 | (3.5) | 5.1 | 1.7 | $8.1 to $8.9 |
| Non-GAAP                                                           | $80.0 to $90.0 | $42.0 to $48.0 | $51.0 to $52.0 | $(10.0) to $(3.0) | $(1.6) | $(10.2) to $(4.0) |
| As a % of revenue (GAAP)                                           |   | 50.5% to 51.5% | 60.6% to 69.4% | (18.9)% to (9.0)% | (4.0)% | (23.9)% to (13.5)% |
| As a % of revenue (Non-GAAP)                                       |   | 52.5% to 53.5% | 56.7% to 65.0% | (12.5)% to (3.4)% | (2.0)% | (12.8)% to (4.5)% |
| Diluted net loss per share:                                        |   |   |   |   |   |   |
|   Diluted net loss per share-GAAP                        |   |   |   |   | $(0.21) to $(0.14) |
|   Diluted net loss per share-Non-GAAP                    |   |   |   |   | $(0.11) to $(0.05) |
| Shares used to compute diluted net loss per share:                 |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                      |   |   |   |   | 88.9 |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |
|                                                               | 2019 Financial Guidance |
|                                                               | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) |
| GAAP                                                               | $385.0 to $430.0 | $185.6 to $222.7 | $210.5 to $220.5 | $(34.9) to $12.2 | $(13.1) | $(50.3) to $(3.2) |
|   Stock-based compensation                               | — | 1.4 | (12.3) | 13.7 | — | 13.7 |
|   Amortization of intangibles                            | — | 5.2 | (3.1) | 8.3 | — | 8.3 |
|   Restructuring and related charges                      | — | 0.3 | (0.1) | 0.4 | — | 0.4 |
|   Non-cash interest expense related to convertible notes | — | — | — | — | 6.7 | 6.7 |
|   Tax effect of non-GAAP adjustments                     | — | — | — | — | — | $(1.1) to $4.6 |
| Total adjustments                                                  | — | 6.9 | (15.5) | 22.4 | 6.7 | $28.0 to $33.7 |
| Non-GAAP                                                           | $385.0 to $430.0 | $192.5 to $229.6 | $195.0 to $205.0 | $(12.5) to $34.6 | $(6.4) | $(16.6) to $24.8 |
| As a % of revenue (GAAP)                                           |   | 48.2% to 51.8% | 48.9% to 57.3% | (9.1)% to 2.8% | (3.0)% | (13.1)% to (0.7)% |
| As a % of revenue (Non-GAAP)                                       |   | 50.0% to 53.5% | 45.3% to 53.2% | (3.2)% to 8.0% | (1.5)% | (4.3)% to 5.8% |
| Diluted net income (loss) per share:                               |   |   |   |   |   |   |
|   Diluted net loss per share-GAAP                        |   |   |   |   | $(0.56) to $(0.04) |
|   Diluted net income (loss) per share-Non-GAAP           |   |   |   |   | $(0.19) to $0.27 |
| Shares used to compute diluted net loss per share:                 |   |   |   |   |   |   |
|   GAAP and Non-GAAP                                      |   |   |   |   | 89.3 |
| Shares used to compute diluted net income per share:               |   |   |   |   |   |   |
|   Non-GAAP                                               |   |   |   |   | 91.0 |