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Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?


To: J Fieb who wrote (3267)1/29/2000 7:26:00 PM
From: Maya  Respond to of 4134
 
FWIW, HLIT is the stock of the week at stockspecials.com:
stockspecials.com

Stock Special of the Week for January 31st - February 5th

HARMONIC

HLIT: $96.56

Harmonic designs, manufactures, and markets digital and fiber optic systems for delivering video, voice, and data over cable, satellite, and wireless networks. These advanced solutions enable cable television and other network operators to provide a range of broadcast and interactive broadband services that include high-speed Internet access, telephony, and video-on-demand.

During the fourth quarter of 1999, Harmonic announced it would acquire the DiviCom unit of C-Cube Microsystems (CUBE). DiviCom is a leading developer of MPEG-2 encoding systems for digital video. This addition will position
Harmonic as a leading supplier of solutions for delivering video, voice, and data over a variety of network architectures. The transaction is expected to close by the end of March. The combination with DiviCom will double the size of HLIT, allow them to offer more complete solutions for cable operators, and will expand their penetration into telecommunications, satellite, wireless, and other emerging broadband markets.

For the fourth quarter of 1999, Harmonic reported sales of $63.3 million, up 134% from $27.1 million for the fourth quarter of 1998. Net income for the fourth quarter of 1999 was $10.8 million or $0.33 per share, a dime higher
than analystsƒ?? expectations. For 1999, Harmonic reported sales of $184.1 million, up 119% from $83.9 million for 1998. Net income for 1999 was $23.7 million or $0.76 per share, compared to a net loss for 1998.

Growth should remain strong for Harmonic in the years to come as cable operators continue to upgrade their systems for broadband capabilities and capacity. Harmonic experienced strong demand for its fiber optic products
across its worldwide base of cable customers during the fourth quarter. Domestic sales increased 197% from the fourth quarter of 1998. While AT&T continued to be Harmonic's largest single customer, non-AT&T sales were up 72 percent sequentially. International sales increased across all regions, up 47% from the fourth quarter of 1998.

Harmonic will most likely be a beneficiary of the pending America Online/Time Warner merger. Itƒ??s clear that it is the combined companyƒ??s intent to rapidly rollout broadband services over Time Warnerƒ??s infrastructure.
Quicker adoption of broadband will benefit HLIT, as they are a leading provider of fiber optic systems for the cable industry.

Earnings at Harmonic are expected to be $1.00 in 2000 and $1.33 in 2001. Analysts, all nine of who have ƒ??buyƒ?? ratings on HLIT, project that the company will grow 36 percent annually for the next five years. These earnings estimates are likely quite conservative given that fourth quarter earnings at HLIT were $0.33, ten cents above expectations. I expect sales in 2000 to come in over $300 million without the Divicom acquisition), so the stock ƒ??s price-to-sales ratio of just over nine times is quite reasonable. The Stock Specialistƒ??s twelve-month price target for HLIT stock is $150 per share.



To: J Fieb who wrote (3267)2/15/2000 11:20:00 PM
From: Joe Wagner  Respond to of 4134
 
J. Is this a primitive SAN treated by the Cable Industry as a modern system? The following are snips from the news release. It sounds like Harmonic could use an Ancor/Sun Full Fabric SAN if they roll out a really big set up. The last paragraph looks like a primitive SAN. I wonder how well the Harmonic Video Server Gateway (VSG) would work hooked onto an Ancor Director with 127 servers connected to it? Or would one VSG for every interactive channel mean you could get 125 interactive channels off of one 128 Port Director, by hooking 125 VSGs to one Director and then three ports would mesh/connect to another 128 port Director that could connect up to 125 Video Servers? Any comments about this? It sounds like Harmonic should be talking to Sun or EMC unless they get into the SAN business, in that case they should contact Ancor. When the VOD Interactive market heats up and evolves, a merger with MTI, SUN, or EMC etc.. could make sense, or maybe SeaChange is developing Full Fabric SANs as we speak (but I doubt it).

"TELEWEST SELECTS HARMONIC TO DELIVER BROADBAND ACCESS SOLUTIONS FOR VOD SERVICES

This initial deployment will be the world's largest-ever rollout of standards-based VOD service.

Telewest's upcoming deployment of VOD and other interactive services is an exciting and important step for the cable industry,"

The broadband access portion of Telewest's VOD trial relies on Harmonic's Video Server Gateway (VSG),

The fully integrated VSG combines program filtering and routing, signal grooming, conditional access scrambling, and QAM modulation all within one compact plug-in module

In this trial, video servers and other targeted service systems will be centralized in the headend, rather than being distributed in multiple hubs"

Full Article Below:

TELEWEST SELECTS HARMONIC TO DELIVER BROADBAND ACCESS SOLUTIONS FOR VOD SERVICES

- World?s Largest Standards-Based VOD Deployment Draws Heavily on Harmonic?s Expertise and Open-System Solutions -
SUNNYVALE, Calif.- January 19, 2000-- Harmonic Inc. (Nasdaq: HLIT) today announced that its open-standards broadband delivery solutions have been chosen by Telewest for its forthcoming trial of video-on-demand (VOD) in the U.K. The service, scheduled to be launched in early 2000, will be offered initially to approximately 300,000 homes, with plans to extend availability later in the year. This initial deployment will be the world's largest-ever rollout of standards-based VOD service.

"We determined that an open and technologically innovative platform was needed to build the broadband network that would enable us to enhance and expand our service offerings," said Paul Williamson, Telewest's director, visual products. "Harmonic's broadband solutions fulfill these requirements in two important ways. First, their standards-based platform works seamlessly with DVB-compliant products from multiple best-of-class vendors, including nCUBE and SeaChange video servers, NagraVision conditional access systems, and Pace Micro Technology set-top boxes. Second, the success of this trial requires the best the industry can offer in terms of technology. Harmonic's recognized technical expertise in delivering bandwidth over broadband networks makes them the logical choice for this trial."

"Telewest's upcoming deployment of VOD and other interactive services is an exciting and important step for the cable industry," said Patrick Harshman, Harmonic's vice president of marketing. "Telewest is offering their customers a range of interactive services that will greatly enhance each subscriber's traditional viewing experience. Harmonic is helping Telewest to make this possible by providing a suite of technologically sophisticated tools required for cost-effective, scalable bandwidth management."

The broadband access portion of Telewest's VOD trial relies on Harmonic's Video Server Gateway (VSG), part of the TRANsend digital product line, and dense wavelength division multiplexing (DWDM) transmission systems, part of the METROLink product line. Both platforms are compliant with digital video and open conditional access standards. The fully integrated VSG combines program filtering and routing, signal grooming, conditional access scrambling, and QAM modulation all within one compact plug-in module. Scaling service to deliver the optimal number of VOD program streams simply requires increasing the number of VSG modules.

In addition, Harmonic's DWDM optical transmission platform will significantly increase the bandwidth capacity of Telewest's HFC access network. In this trial, video servers and other targeted service systems will be centralized in the headend, rather than being distributed in multiple hubs, which is expected to greatly reduce Telewest's maintenance and real estate costs.

Harmonic has worked closely with Telewest to define the optimum architecture for this bandwidth-intensive service. Traditional hurdles to large-scale deployment of VOD can be overcome as cutting-edge, open-standards solutions from Harmonic and other vendors work in concert for the cost-effective delivery of VOD.

About Harmonic Inc.
Harmonic designs, manufactures and markets digital and fiber optic systems that deliver video, voice and data over cable, satellite, telco and wireless networks. These advanced solutions enable cable television and other network operators to provide a range of interactive broadband services that include high-speed Internet access, telephony and video-on-demand.

Harmonic is headquartered in Sunnyvale, Calif., where it also operates an R&D center and a manufacturing facility, and has a sales and support center in the U.K. The company also operates its Harmonic Data Systems subsidiary and an R&D center in Israel. In addition, the company maintains several sales and support centers worldwide. Harmonic is ISO 9001-certified and its stock is traded on the Nasdaq stock market under the symbol "HLIT." For more information, check the company's website at www.harmonicinc.com.

This press release contains forward-looking statements, including, but not limited to, the schedule and scale of initial and extended launch of Telewest's VOD service, the technological requirements for success of the trial, the expected functions and benefits of Harmonic's broadband solutions, and expected reductions in Telewest's maintenance and real estate costs, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The trial deployment is subject to numerous risks and uncertainties, many of which are beyond the control of Harmonic. In addition, actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors set forth in documents that Harmonic files with the SEC, specifically reports on Form 10-K and 10-Q.