Light Reading
But will the market for HEVC encoding and cable's new access platform ramp up fast enough for the vendor to turn in a rosy 2013?

Harmonic Banks on UltraHD & CCAP

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
1/30/2013
50%
50%

Harmonic Inc. sales dipped in the fourth quarter thanks to slower cable spending and weakness in Europe, but the vendor believes better days are ahead as it prepares to take advantage of two service provider growth areas -- UltraHD and the Converged Cable Access Platform (CCAP). Cable represented 45 percent of revenue in the quarter as Harmonic completed big orders that were placed earlier in 2012. It marked the cable's smallest contribution in 2012, with Comcast Corp. falling off of Harmonic's list of 10 percent-or-greater customers during the period, according to Raymond James Financial Inc. analyst Simon Leopold. Despite issues in Europe, Harmonic's international customers still represented 62 percent of revenues ($82.6 million), which was a record, fueled by gains in Asia, Latin America and other emerging markets. Harmonic earned 9 cents per share on revenues of $133.4 million, both numbers meeting analysts' expectations. But Harmonic expects first-quarter sales of $115 million to $125 million, off from the $133.3 million expected by analysts. Growth engines
On Tuesday's earnings call, Harmonic CEO Patrick Harshman identified Ultra HD encoding and cable's CCAP transition as significant growth markets that the vendor will focus on, though they aren't expected to pick up much stream from a revenue-generating standpoint until later this year. Harmonic is investing heavily in a CCAP platform that will compete with Arris Group Inc., Cisco Systems Inc., Casa Systems Inc., CommScope Inc. and perhaps Motorola Mobility LLC (though it will depend on what Arris does with Moto's CCAP platform once it completes the acquisition of Moto's Home business). Estimates vary, but CCAP, a super-dense architecture that will allow cable to put all of its services on the same platform, is expected to represent a $2 billion a year market. (See Sizing Up the CCAP Players and Harmonic Goes All-Out for CCAP.) Harshman said the vendor's first-generation CCAP is in tests with "five Tier 1 customers." Sales on that product could start in the second half of 2013. Harmonic is also anticipating a refresh cycle for video coding equipment as operators begin to adopt High Efficiency Video Coding (HEVC)/H.265, a new codec that promises to be 50 percent more efficient than H.264/MPEG-4 and play a big role in both UltraHD/4K video and mobile video services. (See ITU Blesses Bandwidth-Saving Video Codec.) "We believe this broad upgrade cycle will begin to play out beginning in the second half of 2013" in preparation for events such as the 2014 World Cup, Harshman said. While Harmonic envisions a healthy 2014, Harshman's still not ready to predict overall growth this year, at least not just yet. "It really depends on to what extent a couple of these things [CCAP and HEVC upgrades] take off in the back half of the year," he said. — Jeff Baumgartner, Site Editor, Light Reading Cable

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (1) comment


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Subsea Market Lures New Cast of Characters
Dan O'Shea, Managing Editor, 11/14/2014
Pics: Verizon's Chicago Destination Store
Sarah Reedy, Senior Editor, 11/19/2014
Like Us on Facebook
Twitter Feed