Harmonic Acquires Cogent Technology Inc.
Technology Creates Powerful Digital Stream Processing Solution for satellite, Cable and Broadcast Markets
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 19, 2000--Harmonic Inc. (Nasdaq:HLIT - news) today announced that it has completed the acquisition of privately-held Cogent Technology, Inc. of Santa Cruz, California, a developer of advanced MPEG-2 technology for the migration to digital television systems.
Harmonic has acquired Cogent's PCI multiplexing and de-multiplexing platform to augment the development of its Stream Processing solution for the satellite, cable and broadcast markets. A robust Stream Processing solution is another important part of Harmonic's strategy to provide network operators with a wide range of advanced digital services.
Harmonic's Stream Processing solution enables network operators to economically manipulate the MPEG-2 compressed video stream as it passes through the headend, en route to the consumer set-top box. Stream Processing provides a simpler, less expensive method for seamless splicing, bit rate changing, format conversion, and logo insertion. It improves on existing technology by reducing equipment expense at the headend and giving service providers the flexibility to customize the compressed digital stream.
To develop its advanced Stream Processing solution, Harmonic provided the proprietary microcode to enable rate changing
capability and the seamless, frame accurate ad insertion technology. The Cogent acquisition adds the DVB/ATSC compliant multiplexing and de-multiplexing platform.
``We are very pleased with this transaction and the significant potential of combining Cogent's technology into the Harmonic suite of digital headend solutions,'' said Anthony J. Ley, Chief Executive Officer of Harmonic. ``We expect that the acquisition of Cogent's expertise will decrease our time to market and strengthen our position in the stream processing market. This acquisition underscores our commitment to help customers better manage the compressed video stream and improve the content they deliver to viewers. We believe our broad suite of digital headend solutions can have a significant impact on the future of satellite, cable, wireless and broadcast markets.''
Under the terms of the acquisition, Harmonic issued approximately 284,000 shares of common stock to shareholders of Cogent. The transaction was effective as of July 1, 2000. Harmonic expects that the acquisition, which will be accounted for as a purchase, will have no material impact on earnings for the remainder of 2000, excluding a charge for in-process research and development which will be recorded in the third quarter of 2000. Cogent's products and eight employees will be integrated into Harmonic's Convergent Systems division.
Sounds like a great purchase since that last one seems to be a complete bust in earnings.
chris |
