Harmonic’s $274 million (€215.53 million) purchase of video production and playout company Omneon has been delayed until the autumn. “Omneon’s business has continued to perform really well and the customers around the world have provided strong positive feedback on the combination,” Patrick Harshman, Harmonic’s President and CEO told an investor call. “We now expect the deals will close in late Q3 or early in the fourth quarter”. It was previously hoped that the completion of formalities could be timed to coincide with the second quarter results announcement.
Harmonic has benefitted from a shift in video-on-demand content to the HD format, in turn driving a need for more edge capacity in cable networks. “Across our customer base, we’ve started to see a whole new encoder upgrade cycle where our latest generation HD and standard-definition encoders are being purchased to replace existing encoders, opening up bandwidth for new HD channels in the process.” Harshman said there was a renewed cable industry focus on switch digital video rollouts and on HFC network segmentation, both of which presented ongoing opportunities for the company.
In its second quarter results, Harmonic reported net revenues of $95.5 million, up 18% from $81.3 million in the second quarter of 2009 and up 13% from $84.8 million in the first quarter of 2010. Total bookings in the second quarter of 2010 were approximately $103.9 million, up 28% from approximately $81.3 million for the second quarter of 2009.
