Harmonic president and CEO Patrick Harshman called the second quarter a “tale of two businesses,” as its video business segment grew 13% thanks to rising adoption of its VOS software-based media processing platform that was paired with a sharp 28% decline at its Cable Edge business, which includes edge QAMs and its budding converged cable access platform (CCAP) product line.
Overall Q2 revenues (Comcast represented 11% of revenues in the period) were down 1%, to $103 million. Harmonic posted a GAAP net loss of $1 million (1 cent per share), narrowed from a year-ago net loss of $2.7 million (3 cents per share). Wall Street analysts were expecting $103 million in revenues and a loss of 4 cents.
On the positive end, VOS bookings were three times those in the first quarter, which saw nearly two dozen new customers buy into the platform. Harmonic “is still in the early innings of demonstrating the true power of our next generation video architecture…it's increasingly clear that Harmonic's VOS platform is a real winner,” Harshman said on Monday's earnings call, noting Harmonic saw Ultra HD and HEVC compression activity “breaking loose” in the period though overall demand is “still modest.”