DJ Harmonic Up -3: Analyst Sees More Demand For Products
10 Jul 17:38
Another positive view of Harmonic's outlook came in a research note Tuesday
by Robert Tango, an analyst with William Blair.
In the note, Tango said after a period of deteriorating market conditions,
indications are that certain cable operators and satellite companies will soon
be demanding more of the company's video compression products.
These include the company's Narrowcast Services Gateway encoder and its
TransRater.
"Cable operators have indicated to us that they would like to begin offering
video-on-demand services by Q1 2002," Tango wrote in his report. "Therefore, it
is imperative that networks are adequately equipped with necessary elements."
Tango said the company has already announced deals for these products with
two smaller companies.
"We would not be surprised if the company were to strike deals with larger,
more visible cable operators," Tango wrote.
He added that as a percentage of sales, both research and development and
sales and administrative costs should decline steadily in the third and fourth
quarters.
"Expense control combined with increasing volumes may allow the company's
cash position to stabilize more quickly then expected," he wrote.
-By Paula L. Stepankowsky, Dow Jones Newswires; 360-636-2008;
paula.stepankowsky@dowjones.com
(END) DOW JONES NEWS 07-10-01
05:38 PM |
