MIRA INFORM REPORT

Report Date :

29.11.2007

IDENTIFICATION DETAILS

Name :	HARMONIC INC
Registered Office :	549 Baltic Way, Sunnyvale, Ca 94089-1101
Country :	United States
Financials (as on) :	31.12.2005
Date of Incorporation :	08/1989
Legal Form :	Institutions
Line of Business :	Non-ferrous Wire Drawing & Insulating

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Slow by 6 days
Litigation :	Clear

Company Information

HARMONIC INC
549 BALTIC WAY
SUNNYVALE, CA 94089-1101
(408) 542-2500

Business Identification Number:

816221723

File Established:

08/1989

Date of Incorporation:

03/29/1995

SIC code:

NONFERR WIRE DRAWING & INSULATING - 3357

Executive Summary

  Intelliscore for HARMONIC INC

72.24

0-32.47

32.48-58.63

58.64-70.19

70.2-77.71

77.72-100

0

100

High risk

Low risk

LOW TO MEDIUM RISK
70% of businesses indicate a higher risk of becoming seriously delinquent than this business

Key score factors:

	NUMBER OF TRADES NET 1-30 TERMS
	NUMBER OF CURRENT ACCOUNTS
	NUMBER OF RECENTLY ACTIVE ACCOUNTS
	NUMBER OF TRADES WITH A HIGH BALANCE TO HIGH CREDIT RATIO

  Current DBT range compared to all industries*

6 DBT
($5,400 Balance)

0-15

16-50

51+

80%

11%

9%

% of US businesses falling within DBT range

DBT Norms:
All industries: 6 DBT        Same industry: 5 DBT

Legal Filings and Collections

Bankruptcy filings:

0

Tax lien filings:

0

Judgment filings:

0

Total collections: details (PLACED 02/06)

1

Sum of legal filings:

$0

UCC filings: details (FILED 02/99-07/07)

4

Cautionary UCC filings present?

Yes**

Trade Information

Monthly average DBT:

6

Highest DBT previous 6 months:

10

Highest DBT previous 5 quarters:

18

Total continuous trades:

13

Current continuous trade balance:

$5,400

Trade balance of all trades (39):

$424,000

Average balance previous 5 quarters:

$45,680

Highest credit amount extended: details

$52,900

6 month balance range:

$5,400 - $11,600

* Days Beyond Terms (DBT) is a dollar weighted calculation of the average number of days that payment was made beyond the invoice due date based on trades on file that have been updated in the previous 3 months.

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivable, Contracts, Hereafter Acquired Inventory, Leases, Notes Receivable or Proceeds.

  7 month DBT trends

90+

60

30

5

8

9

10

3

6

6

0

May07

Jun07

Jul07

Aug07

Sep07

Oct07

Current

  Quarterly DBT trends (previous 5 quarters)

90+

60

30

1

15

18

12

8

0

3Q06

4Q06

1Q07

2Q07

3Q07

Performance Analysis

Predicted DBT for 01/23/2008: 6 DBT

Payment Trend Indication:
Show No Identifiable Trend

Industry payment comparison:
Has paid the same as similar firms

Most Frequent Industry Purchasing Terms:
NET 30, 0000000, and CREDIT

Legal Filings and Collections

Collections
Date Placed	Status	Original Balance	Outstanding Balance	Date Closed	Agency	Agency Phone
02/2006	Paid in Full	$1,997	$0	03/2006	RECEIVABLE MANAGEMENT SERVICES	(000) 000-0000

Trade Payment Information

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
ADVERTISNG	11/2007		NET 30		$0						CUST 4 YR
+AIR TRANS	09/2007	09/2007		$41,300	$4,200	78%	21%	1%			CUST 18 YR
BANK	09/2007		NET 30		$0
ELEC EQUIP	10/2007		NET 30		$0						CUST 36 YR
ELEC SUPLR	10/2007	06/2001	COD	$15,200	$0						CUST 18 YR
FACTOR	11/2007	11/2004	NET 30		$0						CUST 3 YR
+FREIGHT	08/2007*		VARIED	$600	$600	100%					CIA
FRGHT FWRD	11/2007	08/2005	NET 30		$0
INDUS SUPL	10/2007	08/2003	NET 30	$12,800	$0						CUST 17 YR
PACKAGING	11/2007	10/2007	NET 30	$500	$0						CUST 5 YR
PLUMBING	09/2007	03/2001	NET30		$0						CUST 7 YR
-REFRIG	10/2007		NET30	$2,400	$1,200		100%
TELECOM	10/2007	09/2007	NET EOM	$16,700	$0						CUST 10 YR
UTILITY	07/2007		NET 15	$52,900	$0

Trade Payment Totals

Trade Payment Experiences				Account Status Days Beyond Terms
Type	Lines Reported	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
Continuously Reported	13	$141,800	$5,400	60%	39%	1%			DBT: 6
Newly Reported	1	$600	$600	100%					DBT: 0
Trade Lines Totals	14	$142,400	$6,000	64%	35%	1%			DBT: 6

Additional Payment Experiences

Trade Payment Experiences (Trade Lines With an (*) after date are newly reported)						Account Status Days Beyond Terms
Business Category	Date Reported	Last Sale	Payment Terms	Recent High Credit	Balance	Cur	1-30	31-60	61-90	91+	Comments
+AIR TRANS	11/2006		NET 30	$3,700	$3,100	81%	17%			2%	COLLECTION
BUS SERVCS	05/2007	05/2007	NET 30		$0
COMMUN SVC	06/2006	06/2006	NET 30	$400	$0
COMPUTERS	05/2005		CREDIT		$0						CUST 37 YR
-COMPUTERS	06/2006	05/2006		$6,500	$1,700		84%	11%		5%
DP EQUIP	04/2006	05/2004	NET 30		$0
=DP SUPPLY	07/2005	06/2005	NET 30	$4,500	$2,200	100%
-ELEC MFG	04/2006	02/2006	NET 30	$913,000	$410,400		80%	15%		5%
ELEC PARTS	06/2006	11/1998	NET 30		$0						CUST 8 YR
FACTOR	06/2006		NET 30		$0
FACTOR	06/2005	12/1999	NET 30		$0
FACTOR	02/2007	10/2002	NET 30		$0
FINCL SVCS	06/2007	03/2007	NET30	$3,800	$0
FREIGHT	12/2005		NET30		$0						CUST 5 YR
GENERAL	02/2005	04/2004	NET 30		$0						CUST 1 YR
INDUS SUPL	05/2005		NET 30		$0						CUST 13 YR
+LAUNDRY	11/2006		NET 30	$3,100	$400	100%
LEASING	02/2005		NET 30		$0
LEASING	09/2007		CONTRCT	$7,600	$0
OFFC SUPPL	06/2007	06/2007	NET	$3,700	$0						CUST 10 YR
OFFC SUPPL	11/2005	03/2001	CREDIT		$0						CUST 5 YR
SERVICES	04/2006	04/2004	VARIED	$47,900	$0
=TELECOM	08/2006		NET 30	<$100	<$100	31%	31%	38%			DISPUTE
TRUCK DLR	02/2007		CONTRCT	$600	$0
+UTILITY	05/2007	06/2002	NET 15	<$100	<$100	100%					SATSFTRY

Monthly Payment Trends

Payment Trends Analysis
NONFERR WIRE DRAWING & INSULATING INDUSTRY SIC: 3357

Account Status
Days Beyond Terms

Date Reported

Industry

Cur

DBT

Business
DBT

Balance

Cur

1-30

31-60

61-90

91+

CURRENT

N/A

N/A

6

$5,400

60%

39%

1%

OCT07

83%

5

6

$5,400

60%

39%

1%

SEP07

84%

5

3

$5,400

82%

17%

1%

AUG07

83%

5

10

$7,200

66%

17%

17%

JUL07

84%

5

9

$8,100

70%

15%

15%

JUN07

79%

7

8

$8,700

72%

14%

14%

MAY07

76%

6

5

$11,600

70%

30%

Quarterly Payment Trends

Payment History - Quarterly Averages				Account Status Days Beyond Terms
Quarter	Months	DBT	Balance	Cur	1-30	31-60	61-90	91+
Q3 - 07	JUL-SEP	8	$6,900	72%	16%	12%
Q2 - 07	APR-JUN	12	$29,800	25%	74%	1%
Q1 - 07	JAN-MAR	18	$61,800	15%	69%	16%
Q4 - 06	OCT-DEC	15	$116,000	11%	83%	6%
Q3 - 06	JUL-SEP	1	$13,900	92%	8%

Inquiries

Summary of Inquiries
Business Category	NOV07	OCT07	SEP07	AUG07	JUL07	JUN07	MAY07	APR07	MAR07
GENERAL								1
LEASING						1
Totals						1		1

UCC Profile

The UCC Filings are summarized and listed below.

UCC Summary		Filings
Date Range	Year	Cautionary UCCs^**	Total Filed	Released/ Term'd	Cont	Amended/ Assigned
JUL - PRESENT	2007	1	1
JAN - JUN	2007
JUL - DEC	2006
JAN - JUN	2006
JUL - DEC	2005
PRIOR TO JUL	2005	1	3
Total		2	4

** Cautionary UCC Filings include one or more of the following collateral: Accounts, Accounts Receivable, Contracts, Hereafter Acquired Inventory, Leases, Notes Receivable or Proceeds.

  UCC Filings

UCC FILED Date: 07/23/2007

Filing Number: 2007 3071395

Jurisdiction: SEC OF STATE DELAWAR

Secured Party: DE LAGE LANDEN FINANCIAL SERVICES, INC. PA WAYNE 19087 1111

Collateral: HEREAFTER AQUIRED PROP, EQUIP, UNDEFINED

UCC FILED Date: 12/08/2004

Filing Number: 4345656 5

Jurisdiction: SEC OF STATE DELAWAR

Secured Party: DELL FINANCIAL SERVICES, L.P. TX AUSTIN 78753 12234 N. IH-35

Collateral: EQUIP, HEREAFTER AQUIRED PROP, UNDEFINED

UCC FILED Date: 06/15/2001

Filing Number: 0116960255

Jurisdiction: SEC OF STATE CALIFOR

Secured Party: SILICON VALLEY BANK CA SANTA CLARA 95054 3003 TASMAN DR

Collateral: 

UCC FILED Date: 02/08/1999

Filing Number: 199905060300

Jurisdiction: SEC OF STATE CALIFOR

Secured Party: KONICA BUSINESS TECHNOLOGIES, INC. NJ PARK RIDGE 07656 POB 7

Collateral: EQUIP

Company Background Information

  Corporate Registration

THE FOLLOWING INFORMATION WAS PROVIDED BY THE STATE OF TENNESSEE

State of Origin: TN

Date of Incorporation: 03/29/1995

Current Status: Active

Business Type: Institutions - Profit

Charter Number: 0513136

Agent: CT CORPORATION SYSTEM

Agent Address: 800 S GAY ST KNOXVILLE, TN

  Additional Company Background Information

Operating Information

Business Type: Institutions

Primary SIC Code: NONFERR WIRE DRAWING & INSULATING - 3357

Secondary SIC Code: RADIO & TV COMM SYSTEMS & EQUIPMT - 3663

Additional SIC Code: 3577 - 3679

Number of Employees: 600

Sales: $150,000,000

Standard and Poor's Information

Balance sheet for fiscal year ending: DEC 31 Data current through: 03/20/2007 ($ Thousands)
		2006	2005	2004
	Cash and equivalent	0	110,828	100,607
	Receivables - net	0	43,433	64,148
	Inventory	0	38,552	41,763
	Other current assets	0	8,335	8,504
	Total current assets	0	201,148	215,022
	Fixed assets - net	0	17,040	19,611
	Investments	0	0	0
	Other assets	0	8,109	7,723
	Total assets	0	226,297	242,356
	Debt due in 1 year	0	894	1,151
	Notes payable	0	0	0
	Accounts payable	0	19,378	22,381
	Taxes payable	0	6,480	7,099
	Other current liabilities	0	57,043	67,279
	Total current liabilities	0	83,795	97,910
	Long term debt	0	532	1,434
	Other liabilities	0	28,988	32,455
	Net worth	0	112,982	110,557
	Total liab. and net worth	0	226,297	242,356

Operating statement for fiscal year ending: DEC 31 Data current through: 03/20/2007 ($ Thousands)
		2006	2005	2004
	Net sales	0	257,378	248,306
	Cost of goods sold	0	154,618	132,278
	Gross income on sales	0	102,760	116,028
	Expenses	0	108,054	113,865
	Pre-tax income	0	-5,294	2,163
	Taxes	0	437	589
	After tax income	0	-5,731	1,574
	Extraord. inc. & discont'd ops	0	0	0
	Net income	0	-5,731	1,574

Critical data and ratios for fiscal year ending: DEC 31 Data current through: 03/20/2007 ($ Thousands)
		2006	2005	2004
	Tangible net worth	0	106,335	104,146
	Net working capital	0	117,353	117,112
	Current ratio (times)	2.4	2.1	0.0
	% Total debt to tang. n.w.	106.5	126.5	0.0
	% Current debt to tang. n.w.	78.8	94.0	0.0
	% After tax inc. to tang. n.w.	0.0	1.5	0.0
	% After tax inc. to net sales	0.0	0.6	0.0
	Net sales to inventory (times)	6.6	5.9	0.0
	CGS to inventory (times)	91.0	115.2	0.0
	Avg. days sales outstanding (days)	0.0	0.0	0.0

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions