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

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| • | Strong sequential and year-over-year bookings and revenue growth. |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | Backlog and deferred revenue grew to a record $190.4 million. |

|         |                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Remained on track to realize $20-$22 million of annualized cost savings from the combination of Harmonic and TVN by the end of calendar year 2016. |

|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | Entered into a $10 million engineering collaboration agreement that will extend into 2017. |

|         |                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Several key trials underway on our recently announced VOS Cloud and VOS 360 software-as-a-service offerings with new cloud partners and tier 1 pay TV operators. |

----

|         |                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net revenue to be $104.5 million to $109.5 million, which includes Video revenue of $92.5 million to $95.5 million and Cable Edge revenue of $12.0 million to $14.0 million |

|         |                                   |
|---------|-----------------------------------|
| • | Gross margin to be 50.0% to 51.0% |

|         |                                                        |
|---------|--------------------------------------------------------|
| • | Operating expense to be $65.5 million to $66.5 million |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | Operating loss to be $(12.5) million to $(10.5) million |

|         |                              |
|---------|------------------------------|
| • | EPS to be $(0.16) to $(0.14) |

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | Share count for EPS calculation to be approximately 78 million shares of Harmonic common stock |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | Cash on hand at quarter-end to be $60.0 million to $65.0 million |

|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net revenue to be $408.0 million to $418.0 million, which includes Video revenue of $348.0 million to $353.0 million and Cable Edge revenue of $60.0 million to $65.0 million |

|         |                                   |
|---------|-----------------------------------|
| • | Gross margin to be 50.0% to 51.0% |

|         |                                                          |
|---------|----------------------------------------------------------|
| • | Operating expense to be $257.5 million to $261.5 million |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | Operating loss to be $(55.0) million to $(50.0) million |

|         |                              |
|---------|------------------------------|
| • | EPS to be $(0.69) to $(0.64) |

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | Share count for EPS calculation to be 78 million to 79 million shares of Harmonic common stock |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | Capital expenditures to be $14.0 million to $16.0 million |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | Cash on hand at year-end to be $65.0 million to $70.0 million |

|         |                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net revenue to be $105.0 million to $110.0 million, which includes Video revenue of $93.0 million to $96.0 million and Cable Edge revenue of $12.0 million to $14.0 million |

|         |                                   |
|---------|-----------------------------------|
| • | Gross margin to be 53.0% to 54.0% |

|         |                                                        |
|---------|--------------------------------------------------------|
| • | Operating expense to be $54.0 million to $55.0 million |

|         |                                                     |
|---------|-----------------------------------------------------|
| • | Operating income to be $2.0 million to $4.0 million |

|         |                          |
|---------|--------------------------|
| • | EPS to be $0.01 to $0.03 |

|         |                                  |
|---------|----------------------------------|
| • | Tax rate to be approximately 15% |

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | Share count for EPS calculation to be approximately 78 million shares of Harmonic common stock |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | Cash on hand at quarter-end to be $60.0 million to $65.0 million |

|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net revenue to be $410.0 million to $420.0 million, which includes Video revenue of $350.0 million to $355.0 million and Cable Edge revenue of $60.0 million to $65.0 million |

|         |                                   |
|---------|-----------------------------------|
| • | Gross margin to be 53.0% to 54.0% |

|         |                                                          |
|---------|----------------------------------------------------------|
| • | Operating expense to be $212.0 million to $216.0 million |

|         |                                                      |
|---------|------------------------------------------------------|
| • | Operating income to be $5.0 million to $10.0 million |

|         |                          |
|---------|--------------------------|
| • | EPS to be $0.01 to $0.06 |

|         |                                  |
|---------|----------------------------------|
| • | Tax rate to be approximately 15% |

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | Share count for EPS calculation to be 78 million to 79 million shares of Harmonic common stock |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | Capital expenditures to be $14.0 million to $16.0 million |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | Cash on hand at year-end to be $65.0 million to $70.0 million |

----

----

|                         |
|-------------------------|
|                         |  |
| Harold Covert           | Blair King |
| Chief Financial Officer | Director, Investor Relations |
| Harmonic Inc.           | Harmonic Inc. |
| +1.408.542.2500         | +1.408.490.6172 |

----

|                                                                                                                                                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                       |  |  |  |  |  |  |  |
|                                                                                                                                                                                  | July 1, 2016 |   | December 31, 2015 |
| ASSETS                                                                                                                                                                                |   |   |   |
| Current assets:                                                                                                                                                                       |   |   |   |
|    Cash and cash equivalents                                                                                                                                           | $ | 51,516 |  |   | $ | 126,190 |  |
|    Short-term investments                                                                                                                                              | 13,760 |  |   | 26,604 |  |
|    Accounts receivable, net                                                                                                                                            | 102,668 |  |   | 69,515 |  |
|    Inventories                                                                                                                                                         | 36,624 |  |   | 38,819 |  |
|    Prepaid expenses and other current assets                                                                                                                           | 44,210 |  |   | 25,003 |  |
| Total current assets                                                                                                                                                                  | 248,778 |  |   | 286,131 |  |
| Property and equipment, net                                                                                                                                                           | 36,517 |  |   | 27,012 |  |
| Goodwill                                                                                                                                                                              | 235,369 |  |   | 197,781 |  |
| Intangibles, net                                                                                                                                                                      | 39,638 |  |   | 4,097 |  |
| Other long-term assets                                                                                                                                                                | 28,635 |  |   | 9,936 |  |
| Total assets                                                                                                                                                                          | $ | 588,937 |  |   | $ | 524,957 |  |
|                                                                                                                                                                                  |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                            |   |   |   |
| Current liabilities:                                                                                                                                                                  |   |   |   |
|    Other debts and capital lease obligations, current                                                                                                                  | $ | 7,829 |  |   | $ | — |  |
|    Accounts payable                                                                                                                                                    | 35,794 |  |   | 19,364 |  |
|    Income taxes payable                                                                                                                                                | 139 |  |   | 307 |  |
|    Deferred revenue                                                                                                                                                    | 63,518 |  |   | 33,856 |  |
|    Accrued liabilities                                                                                                                                                 | 52,346 |  |   | 31,354 |  |
| Total current liabilities                                                                                                                                                             | 159,626 |  |   | 84,881 |  |
| Convertible debt, long-term                                                                                                                                                           | 100,712 |  |   | 98,295 |  |
| Other debts and capital lease obligations, long-term                                                                                                                                  | 16,190 |  |   | — |  |
| Income taxes payable, long-term                                                                                                                                                       | 3,980 |  |   | 3,886 |  |
| Deferred tax liabilities, long-term                                                                                                                                                   | 957 |  |   | — |  |
| Other non-current liabilities                                                                                                                                                         | 15,341 |  |   | 9,727 |  |
| Total liabilities                                                                                                                                                                     | 296,806 |  |   | 196,789 |  |
|                                                                                                                                                                                  |   |   |   |
| 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; 78,015 and 76,015 shares issued and outstanding at July 1, 2016 and December 31, 2015, respectively | 78 |  |   | 76 |  |
|    Additional paid-in capital                                                                                                                                          | 2,245,120 |  |   | 2,236,418 |  |
|    Accumulated deficit                                                                                                                                                 | (1,949,715 | ) |   | (1,903,908 | ) |
|    Accumulated other comprehensive loss                                                                                                                                | (3,352 | ) |   | (4,418 | ) |
| Total stockholders' equity                                                                                                                                                            | 292,131 |  |   | 328,168 |  |
| Total liabilities and stockholders' equity                                                                                                                                            | $ | 588,937 |  |   | $ | 524,957 |  |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Three months ended |   | Six months ended |
|                                                         | July 1, 2016 |   | July 3, 2015 |   | July 1, 2016(1) |   | July 3, 2015 |
|                                                         |   |
| Net revenue                                                  | $ | 108,759 |  |   | $ | 103,103 |  |   | $ | 190,591 |  |   | $ | 207,119 |  |
| Cost of revenue                                              | 57,667 |  |   | 48,718 |  |   | 98,845 |  |   | 97,706 |  |
|    Gross profit                               | 51,092 |  |   | 54,385 |  |  | 91,746 |  |  | 109,413 |  |
| Operating expenses:                                          |   |   |   |   |   |   |   |
|    Research and development                   | 26,507 |  |   | 21,816 |  |   | 50,070 |  |   | 44,145 |  |
|    Selling, general and administrative        | 36,516 |  |   | 31,281 |  |   | 69,386 |  |   | 62,477 |  |
|    Amortization of intangibles                | 4,232 |  |   | 1,446 |  |   | 6,597 |  |   | 2,892 |  |
|    Restructuring and asset impairment charges | 1,903 |  |   | 185 |  |   | 4,515 |  |   | 229 |  |
|       Total operating expenses | 69,158 |  |  | 54,728 |  |  | 130,568 |  |  | 109,743 |  |
| Loss from operations                                         | (18,066 | ) |   | (343 | ) |  | (38,822 | ) |  | (330 | ) |
| Interest (expense) income, net                               | (2,651 | ) |   | 17 |  |   | (5,072 | ) |   | 72 |  |
| Other income (expense), net                                  | 332 |  |   | 59 |  |   | 323 |  |   | (447 | ) |
| Loss on impairment of long-term investment                   | — |  |   | — |  |   | (1,476 | ) |   | (2,505 | ) |
| Loss before income taxes                                     | (20,385 | ) |   | (267 | ) |  | (45,047 | ) |  | (3,210 | ) |
| Provision for income taxes                                   | 242 |  |   | 727 |  |   | 760 |  |   | 441 |  |
| Net loss                                                     | $ | (20,627 | ) |   | $ | (994 | ) |  | $ | (45,807 | ) |  | $ | (3,651 | ) |
| Net loss per share:                                          |   |   |   |   |   |   |   |
|    Basic and diluted                          | $ | (0.27 | ) |   | $ | (0.01 | ) |  | $ | (0.59 | ) |  | $ | (0.04 | ) |
| Shares used in per share calculation:                        |   |   |   |   |   |   |   |
|    Basic and diluted                          | 77,342 |  |   | 88,426 |  |   | 77,168 |  |   | 88,541 |  |

----

|                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |  |  |  |  |  |  |  |
|                                                                                                                | Six months ended |
|                                                                                                                | July 1, 2016 |   | July 3, 2015 |
| Cash flows from operating activities:                                                                               |   |   |   |
| Net loss                                                                                                            | $ | (45,807 | ) |   | $ | (3,651 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                     |   |   |   |
|    Amortization of intangibles                                                                       | 8,322 |  |   | 3,439 |  |
|    Depreciation                                                                                      | 7,737 |  |   | 6,930 |  |
|    Stock-based compensation                                                                          | 5,862 |  |   | 8,018 |  |
|    Amortization of discount on convertible debt                                                      | 2,417 |  |   | — |  |
|    Restructuring, asset impairment and loss on retirement of fixed assets                            | 1,687 |  |   | 252 |  |
|    Loss on impairment of long-term investment                                                        | 1,476 |  |   | 2,505 |  |
|    Deferred income taxes                                                                             | 38 |  |   | — |  |
|    Provision for excess and obsolete inventories                                                     | 5,203 |  |   | 843 |  |
|    Allowance for doubtful accounts, returns and discounts                                            | 697 |  |   | (713 | ) |
|    Excess tax benefits from stock-based compensation                                                 | — |  |   | (22 | ) |
|    Other non-cash adjustments, net                                                                   | 144 |  |   | — |  |
|    Changes in assets and liabilities, net of effects of acquisition:                                 |   |   |   |
|       Accounts receivable                                                             | (16,000 | ) |   | (1,222 | ) |
|       Inventories                                                                     | 3,158 |  |   | (595 | ) |
|       Prepaid expenses and other assets                                               | (5,039 | ) |   | (11,635 | ) |
|       Accounts payable                                                                | 2,168 |  |   | 6,415 |  |
|       Deferred revenue                                                                | 26,795 |  |   | 9,833 |  |
|       Income taxes payable                                                            | (122 | ) |   | (815 | ) |
|       Accrued and other liabilities                                                   | (7,029 | ) |   | (5,994 | ) |
| Net cash (used in) provided by operating activities                                                                 | (8,293 | ) |   | 13,588 |  |
| Cash flows from investing activities:                                                                               |   |   |   |
| Acquisition of business, net of cash acquired                                                                       | (72,989 | ) |   | — |  |
|    Purchases of investments                                                                          | — |  |   | (12,986 | ) |
|    Proceeds from sales and maturities of investments                                                 | 12,842 |  |   | 15,744 |  |
|    Purchases of property and equipment                                                               | (7,708 | ) |   | (7,505 | ) |
|    Purchases of long-term investments                                                                | — |  |   | (85 | ) |
| Net cash used in investing activities                                                                               | (67,855 | ) |   | (4,832 | ) |
| Cash flows from financing activities:                                                                               |   |   |   |
| Payment of convertible debt issuance costs                                                                          | (582 | ) |   | — |  |
| Increase in other debts and capital leases                                                                          | 5,972 |  |   | — |  |
| Repayment of other debts and capital leases                                                                         | (6,524 | ) |   | — |  |
|    Payments for repurchase of common stock                                                           | — |  |   | (12,171 | ) |
|    Proceeds from common stock issued to employees                                                    | 3,737 |  |   | 9,133 |  |
|    Payment of tax withholding obligations related to net share settlements of restricted stock units | (1,034 | ) |   | (2,642 | ) |
|    Excess tax benefits from stock-based compensation                                                 | — |  |   | 22 |  |
| Net cash provided by (used in) financing activities                                                                 | 1,569 |  |   | (5,658 | ) |
| Effect of exchange rate changes on cash and cash equivalents                                                        | (95 | ) |   | (81 | ) |
| Net (decrease) increase in cash and cash equivalents                                                                | (74,674 | ) |   | 3,017 |  |
| Cash and cash equivalents at beginning of period                                                                    | 126,190 |  |   | 73,032 |  |
| Cash and cash equivalents at end of period                                                                          | $ | 51,516 |  |   | $ | 76,049 |  |

----

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                 | Three months ended |   | Three months ended |   | Three months ended |
|                 | July 1, 2016 |   | April 1, 2016 |   | July 3, 2015 |
|                 | GAAP |   | Adjustment(1) |   | Non-GAAP |   | GAAP(2) |   | Adjustment(1) |   | Non-GAAP(2) |   | GAAP and Non-GAAP(3) |
| Product              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Video Products       | $ | 62,158 |  |   | $ | 205 |  |   | $ | 62,363 |  | 57% |   | $ | 44,212 |  |   | $ | 355 |  |   | $ | 44,567 |  | 54% |   | $ | 56,096 |  |   | 54% |
| Cable Edge           | 15,751 |  |   | — |  |   | 15,751 |  | 14% |   | 13,432 |  |   | — |  |   | 13,432 |  | 16% |   | 21,351 |  |   | 21% |
| Services and Support | 30,850 |  |   | 575 |  |   | 31,425 |  | 29% |   | 24,188 |  |   | 268 |  |   | 24,456 |  | 30% |   | 25,656 |  |   | 25% |
| Total                | $ | 108,759 |  |   | $ | 780 |  |   | $ | 109,539 |  | 100% |   | $ | 81,832 |  |   | $ | 623 |  |   | $ | 82,455 |  | 100% |   | $ | 103,103 |  |   | 100% |
|                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geography            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Americas             | $ | 57,681 |  |   | $ | 150 |  |   | $ | 57,831 |  | 53% |   | $ | 48,977 |  |   | $ | 81 |  |   | $ | 49,058 |  | 59% |   | $ | 60,342 |  |   | 58% |
| EMEA                 | 33,456 |  |   | 488 |  |   | 33,944 |  | 31% |   | 19,855 |  |   | 401 |  |   | 20,256 |  | 25% |   | 27,360 |  |   | 27% |
| APAC                 | 17,622 |  |   | 142 |  |   | 17,764 |  | 16% |   | 13,000 |  |   | 141 |  |   | 13,141 |  | 16% |   | 15,401 |  |   | 15% |
| Total                | $ | 108,759 |  |   | $ | 780 |  |   | $ | 109,539 |  | 100% |   | $ | 81,832 |  |   | $ | 623 |  |   | $ | 82,455 |  | 100% |   | $ | 103,103 |  |   | 100% |
|                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Market               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service Provider     | $ | 64,921 |  |   | $ | 329 |  |   | $ | 65,250 |  | 60% |   | $ | 51,270 |  |   | $ | 150 |  |   | $ | 51,420 |  | 62% |   | $ | 64,041 |  |   | 62% |
| Broadcast and Media  | 43,838 |  |   | 451 |  |   | 44,289 |  | 40% |   | 30,562 |  |   | 473 |  |   | 31,035 |  | 38% |   | 39,062 |  |   | 38% |
| Total                | $ | 108,759 |  |   | $ | 780 |  |   | $ | 109,539 |  | 100% |   | $ | 81,832 |  |   | $ | 623 |  |   | $ | 82,455 |  | 100% |   | $ | 103,103 |  |   | 100% |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                        | Three months ended |
|                                                                        | July 1, 2016 |
|                                                                        | Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Net loss |
| GAAP                                                                        | $ | 108,759 |  | $ | 51,092 |  | $ | 69,158 |  | $ | (18,066 | ) | $ | (20,627 | ) |
| Cable Edge inventory charge                                                 | — |  | 4,519 |  | — |  | 4,519 |  | 4,519 |  |
| Acquisition accounting impact related to TVN deferred revenue               | 780 |  | 780 |  | — |  | 780 |  | 780 |  |
|   Stock-based compensation in cost of revenue                     | — |  | 424 |  | — |  | 424 |  | 424 |  |
|   Stock-based compensation in research and development            | — |  | — |  | (841 | ) | 841 |  | 841 |  |
|   Stock-based compensation in selling, general and administrative | — |  | — |  | (1,503 | ) | 1,503 |  | 1,503 |  |
|   Amortization of intangibles                                     | — |  | 1,307 |  | (4,232 | ) | 5,539 |  | 5,539 |  |
|   Restructuring and related charges                               | — |  | 6 |  | (1,903 | ) | 1,909 |  | 1,909 |  |
|   TVN acquisition-and integration-related costs                   | — |  | 433 |  | (2,970 | ) | 3,403 |  | 3,403 |  |
|   Non-cash interest expenses related to convertible notes         | — |  | — |  | — |  | — |  | 1,233 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments       | — |  | — |  | — |  | — |  | 278 |  |
| Non-GAAP                                                                    | $ | 109,539 |  | $ | 58,561 |  | $ | 57,709 |  | $ | 852 |  | $ | (198 | ) |
| As a % of revenue (GAAP)                                                    |   | 47.0 | % | 63.6 | % | (16.6 | )% | (19.0 | )% |
| As a % of revenue (Non-GAAP)                                                |   | 53.5 | % | 52.7 | % | 0.8 |  % | (0.2 | )% |
| Diluted net loss per share:                                                 |   |   |   |   |   |
|   Diluted net loss per share-GAAP                                 |   |   |   |   | $ | (0.27 | ) |
|   Diluted net loss per share-Non-GAAP                             |   |   |   |   | $ | 0.00 |  |
| Shares used to compute diluted net loss per share:                          |   |   |   |   |   |
|   GAAP                                                            |   |   |   |   | 77,342 |  |
|   Non-GAAP                                                        |   |   |   |   | 77,342 |  |
|                                                                        |   |   |   |   |   |
|                                                                        | Three months ended |
|                                                                        | April 1, 2016 |
|                                                                        | Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Net Loss |
| GAAP                                                                        | $ | 81,832 |  | $ | 40,654 |  | $ | 61,410 |  | $ | (20,756 | ) | $ | (25,180 | ) |
| Acquisition accounting impacts related to TVN deferred revenue              | 623 |  | 623 |  | — |  | 623 |  | 623 |  |
| Acquisition accounting impacts related to TVN fair value of inventory       | — |  | 189 |  | — |  | 189 |  | 189 |  |
|   Stock-based compensation in cost of revenue                     | — |  | 227 |  | — |  | 227 |  | 227 |  |
|   Stock-based compensation in research and development            | — |  | — |  | (969 | ) | 969 |  | 969 |  |
|   Stock-based compensation in selling, general and administrative | — |  | — |  | (1,898 | ) | 1,898 |  | 1,898 |  |
|   Amortization of intangibles                                     | — |  | 418 |  | (2,365 | ) | 2,783 |  | 2,783 |  |
|   Restructuring and related charges                               | — |  | (29 | ) | (2,612 | ) | 2,583 |  | 2,583 |  |
|   TVN acquisition-and integration-related costs                   | — |  | 58 |  | (3,038 | ) | 3,096 |  | 3,096 |  |
|   Impairment of long-term investment                              | — |  | — |  | — |  | — |  | 1,476 |  |
|   Non-cash interest expenses related to convertible notes         | — |  | — |  | — |  | — |  | 1,187 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments       | — |  | — |  | — |  | — |  | 1,963 |  |
| Non-GAAP                                                                    | $ | 82,455 |  | $ | 42,140 |  | $ | 50,528 |  | $ | (8,388 | ) | $ | (8,186 | ) |
| As a % of revenue (GAAP)                                                    |   | 49.7 | % | 75.0 | % | (25.4 | )% | (30.8 | )% |
| As a % of revenue (Non-GAAP)                                                |   | 51.1 | % | 61.3 | % | (10.2 | )% | (9.9 | )% |
| Diluted net loss per share:                                                 |   |   |   |   |   |
|   Diluted net loss per share-GAAP                                 |   |   |   |   | $ | (0.33 | ) |
|   Diluted net loss per share-Non-GAAP                             |   |   |   |   | $ | (0.11 | ) |
| Shares used to compute diluted net loss per share:                          |   |   |   |   |   |
|   GAAP                                                            |   |   |   |   | 76,996 |  |
|   Non-GAAP                                                        |   |   |   |   | 76,996 |  |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                        |   |   |   |   |   |
|                                                                        | Three months ended |
|                                                                        | July 3, 2015 |
|                                                                        | Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Net Income (Loss) |
| GAAP                                                                        | $ | 103,103 |  | $ | 54,385 |  | $ | 54,728 |  | $ | (343 | ) | $ | (994 | ) |
|   Stock-based compensation in cost of revenue                     | — |  | 422 |  | — |  | 422 |  | 422 |  |
|   Stock-based compensation in research and development            | — |  | — |  | (1,027 | ) | 1,027 |  | 1,027 |  |
|   Stock-based compensation in selling, general and administrative | — |  | — |  | (2,435 | ) | 2,435 |  | 2,435 |  |
|   Amortization of intangibles                                     | — |  | 86 |  | (1,446 | ) | 1,532 |  | 1,532 |  |
|   Restructuring and related charges                               | — |  | — |  | (185 | ) | 185 |  | 185 |  |
|   Discrete tax items and tax effect of non-GAAP adjustments       | — |  | — |  | — |  | — |  | (393 | ) |
| Non-GAAP                                                                    | $ | 103,103 |  | $ | 54,893 |  | $ | 49,635 |  | $ | 5,258 |  | $ | 4,214 |  |
| As a % of revenue (GAAP)                                                    |   | 52.7 | % | 53.1 | % | (0.3 | )% | (1.0 | )% |
| As a % of revenue (Non-GAAP)                                                |   | 53.2 | % | 48.1 | % | 5.1 |  % | 4.1 |  % |
| Diluted net income (loss) per share:                                        |   |   |   |   |   |
|   Diluted net loss per share-GAAP                                 |   |   |   |   | $ | (0.01 | ) |
|   Diluted net income per share-Non-GAAP                           |   |   |   |   | $ | 0.05 |  |
| Shares used to compute diluted net income (loss) per share:                 |   |   |   |   |   |
|   GAAP                                                            |   |   |   |   | 88,426 |  |
|   Non-GAAP                                                        |   |   |   |   | 89,444 |  |

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|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |
|                                                                                | Q3 2016 Financial Guidance |
|                                                                                | Revenue | Gross Profit | Total Operating Expense | Income(loss) from Operations | Net Income(loss) |
| GAAP                                                                                | $104.5 to $109.5 | $53.0 to $56.0 | $65.5 to $66.5 | $(12.5) to $(10.5) | ($12.5) to ($10.5) |
|   Acquisition accounting impact related to TVN deferred revenue           | Approx. $0.5 | Approx. $0.5 | — | Approx. $0.5 | Approx. $0.5 |
|   Stock-based compensation expense                                        | — | Approx. $0.5 | Approx. ($3.0) | Approx. $3.5 | Approx. $3.5 |
|   Amortization of intangibles                                             | — | Approx. $1.5 | Approx. ($3.5) | Approx. $5.0 | Approx. $5.0 |
|   Restructuring and related charges and TVN acquisition/integration costs | — | Approx. $0.5 | Approx. ($5.0) | Approx. $5.5 | Approx. $5.5 |
|   Non-cash interest expense related to convertible notes                  | — | — | — | — | Approx. $1.0 |
|   Discrete tax items and tax effect of non-GAAP adjustments               | — | — | — | — | Approx. ($2.5) |
|                                                                                | Approx. $0.5 | Approx. $3.0 | Approx. ($11.5) | Approx. $14.5 | Approx. $13.0 |
|                                                                                |   |   |   |   |   |
| Non-GAAP                                                                            | $105.0 to $110.0 | $56.0 to $59.0 | $54.0 to $55.0 | $2.0 to $4.0 | $0.5 to $2.5 |
| As a % of revenue (GAAP)                                                            |   | 50% to 51% | 61% to 63% | (12)% to (9)% | (12)% to (10)% |
| As a % of revenue (Non-GAAP)                                                        |   | 53% to 54% | 50% to 52% | 2% to 4% | 0% to 2% |
| Diluted income (loss) per share:                                                    |   |   |   |   |   |
|   Diluted net loss per share-GAAP                                         |   |   |   |   | $(0.16) to $(0.14) |
|   Diluted net income per share-Non-GAAP                                   |   |   |   |   | $0.01 to $0.03 |
| Shares used to compute diluted income (loss) per share:                             |   |   |   |   |   |
|   GAAP and Non-GAAP                                                       |   |   |   |   | 78.0 |
|                                                                                |   |   |   |   |   |
|                                                                                | 2016 Financial Guidance |
|                                                                                | Revenue | Gross Profit | Total Operating Expense | Income(loss) from Operations | Net Income(loss) |
| GAAP                                                                                | $408.0 to $418.0 | $202.5 to $211.5 | $257.5 to $261.5 | $(55.0) to $(50.0) | $(54.0) to $(50.0) |
|   Acquisition accounting impact related to TVN deferred revenue           | Approx. $2.0 | Approx. $2.0 | — | Approx. $2.0 | Approx. $2.0 |
| Acquisition accounting impact related to TVN fair value of inventory                | — | Approx. $0.2 | — | Approx. $0.2 | Approx. $0.2 |
|   Stock-based compensation expense                                        | — | Approx. $2.0 | Approx. ($12.0) | Approx. $14.0 | Approx. $14.0 |
|   Amortization of intangibles                                             | — | Approx. $4.3 | Approx. ($11.0) | Approx. $15.3 | Approx. $15.3 |
|   Restructuring and related charges and TVN acquisition/integration costs | — | Approx. $1.5 | Approx. ($22.5) | Approx. $24.0 | Approx. $24.0 |
| Cable Edge inventory charge                                                         | — | Approx. $4.5 | — | Approx. $4.5 | Approx. $4.5 |
|   Non-cash interest expense related to convertible notes                  | — | — | — | — | Approx. $4.5 |
|   Discrete tax items and tax effect of non-GAAP adjustments               | — | — | — | — | Approx. ($10.0) |
|                                                                                | Approx. $2.0 | Approx. $14.5 | Approx. ($45.5) | Approx. $60.0 | Approx. $54.5 |
|                                                                                |   |   |   |   |   |
| Non-GAAP                                                                            | $410.0 to $420.0 | $217.0 to $226.0 | $212.0 to $216.0 | $5.0 to $10.0 | $0.5 to $4.5 |
| As a % of revenue (GAAP)                                                            |   | 50% to 51% | 62% to 63% | (13)% to (12)% | (13)% to (12)% |
| As a % of revenue (Non-GAAP)                                                        |   | 53% to 54% | 51% to 52% | 1% to 2% | 0% to 1% |
| Diluted income (loss) per share:                                                    |   |   |   |   |   |
|   Diluted net loss per share-GAAP                                         |   |   |   |   | $(0.69) to $(0.64) |
|   Diluted net income per share-Non-GAAP                                   |   |   |   |   | $0.01 to $0.06 |
| Shares used to compute diluted income (loss) per share:                             |   |   |   |   |
|   GAAP and Non-GAAP                                                       |   |   |   |   | 78 to 79 |