Aurora hits right note with Harmonic cable access
More changes are afoot at leading video delivery infrastructure provider Harmonic which has cut loose its cable access business to Aurora Networks in a deal valued at $46 million.
There has been much change at Harmonic since its takeover of Omneon in September 2010, and the company sees this latest move as a way of being able to address the rapidly changing video market on a sounder financial footing and with greater focus.
Cable access was an area in which the company had to date struggled to find synergies with its more successful video production, playout and video processing business lines. The business line generated $52.9 million of net revenue with gross margin of approximately 30% in calendar year 2012.
"The sale of the Cable Access business enables us to sharpen our focus on our largest growth opportunities," revealed Patrick Harshman, president and CEO. "Cable Access was Harmonic's lowest margin product line, and through this transaction and the increase in our authorised share repurchase programme, we will continue to drive growth in our core markets, expand our gross margin, reduce our outstanding shares, and position our business for stronger long-term earnings."
Aurora has bought a portfolio which includes optical transmitters, amplifiers, receivers and nodes.