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
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
LRTV Huawei Video Resource Center
How Telefonica Spain Considers Antenna Selection for LTE Network Deployment

7|4|14   |   2:19   |   (0) comments


Tony Conlan, Global CTO of RAN, Telefonica, shares his opinion on antennas in LTE network deployment: Tower space is the premier requirement on antennas; reliability is important to reduce OPEX; and EasyRET solution will be helpful for antenna maintenance.
LRTV Huawei Video Resource Center
dtac Thailand: Multi-band Antenna & Capacity Solution for a Better MBB Experience

7|3|14   |   3:45   |   (0) comments


With the development of LTE, tower space and load are limited for new antenna, but users' capacity requirements are growing fast. To provide a better MBB experience, Panya Vechbanyongratana from dtac Thailand shared his experiences and antenna requirements.
LRTV Documentaries
BTE Panel: Network of the Future

7|2|14   |   1:00:57   |   (0) comments


Full-length video of the ATIS Panel Discussion: 'How Far Away Is the Network of the Future & What Does It Look Like?' from the Big Telecom Event (BTE) in Chicago.
LRTV Custom TV
Redknee Supports BH Telecom With Redknee Unified

7|2|14   |   6.14   |   (0) comments


Lucas Skoczkowski, CEO of Redknee, and Amir Orucevic, Director BH Mobile, discuss how the benefits of the Redknee Unified suite of products provide BH Telecom with innovation and leadership in the market, with the flexibility to launch services faster to the market, provide new and compelling promotions and pricing models, and combine services in order to drive ...
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Hot Topics
Microsoft to Axe 12,500 Ex-Nokia Employees
Sarah Reedy, Senior Editor, 7/17/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Have IBM & Apple Partnered Their Way to Cloud Leadership?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/18/2014
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
FiOS: Slower Sub Growth, Faster Upload Speeds
Alan Breznick, Cable/Video Practice Leader, 7/22/2014
Like Us on Facebook
Twitter Feed