& cplSiteName &

Harmonic Sells Cable Access Unit for $46M

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
2/19/2013
50%
50%

Harmonic Inc. is selling off its cable access business to Aurora Networks Inc. for US$46 million, a move that will help Harmonic focus on higher-margin products, including video processing gear, edge QAMs and its budding Converged Cable Access Platform (CCAP). The product line Harmonic is selling off primarily involves outside plant equipment, including optical transmitters, amplifiers, receivers and nodes. Harmonic said cable access was its lowest gross margin product line (30 percent) and generated $52.9 million in net revenues for 2012. Harmonic's board has approved a $35 million share repurchase program that is contingent on the close of the deal, which is expected in the current quarter. It was not immediately known how many Harmonic employees will be joining Aurora. Why this matters
For Harmonic, the sale will let it sharpen its focus on product areas where it believes it has the most sizeable opportunities. During its fourth-quarter earnings call last month, CEO Patrick Harshman identified two key areas for growth: UltraHD encoding and CCAP, a next-generation cable access platform that will combine the edge QAM and cable modem termination system (CMTS) functions and prepare MSOs for an all-IP service transition. Harmonic says its first-generation CCAP product is in tests with at least five Tier 1 customers, with sales expected to start in the second half of 2013. For privately held Aurora, meanwhile, the deal should complement its own product line, and continue a recent string of acquisitions that has helped the company fill in gaps in its broadband access portfolio and expand its stable of customers. (See Aurora Buys Piece of Enablence.) For more



— Jeff Baumgartner, Site Editor, Light Reading Cable



(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
2/20/2013 | 1:47:22 PM
re: Harmonic Sells Cable Access Unit for $46M
Good point. That would certainly explain some of Harmonic's reasoning beyond the product synergy (or lack thereof) that Harshman got into during the call. JB
jtombes
50%
50%
jtombes,
User Rank: Light Beer
2/19/2013 | 10:34:17 PM
re: Harmonic Sells Cable Access Unit for $46M
Guessing this has been in the works for a while, but it looks as if HLIT's sale of cable access and the buy-back answers some of the concerns raised by large shareholder Voce Capital. Stock buy-back in particular.
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
2/19/2013 | 3:42:39 PM
re: Harmonic Sells Cable Access Unit for $46M
Harmonic President & CEO Patrick Harshman offered some additional details on the conf. call this morning.-á HLIT's access business has about 70 employees.-á

As part of the deal Harmonic has agreed to offer "transition services" to Aurora for up to five months. "You would expect the headcount to be in transition over that period of time," Harshman said. -áHarshman also said HLIT put the unit up for sale about 6 months ago and had multiple suitors interested.-á-á-áWithout the access biz, HLIT expects gross margins to rise 2% to 3%. Cable will-áremain its largest-ámarket. JB
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Top Priorities for B/OSS Transformation
James Crawshaw, Senior Analyst – OSS/BSS Transformation, Heavy Reading, 3/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.