Como se combate o populismo? "Com eleições", responde Fukuyama

[Jameson]

Sweeter Notes From Harmonic

By Stephen D. Simpson, CFA
Tue Jun 7, 2:33 PM ET

At long last, I can find something positive to say about a cable equipment company. While Harmonic (Nasdaq: HLIT - News) has had its problems recently, I have always been optimistic because of the promise of the underlying business.

Today, Harmonic added a little good news to the mix. On top of announcing two equipment deals (one in Canada, one in Japan), the company said it's expanding its working relationship with Microsoft (Nasdaq: MSFT - News).

The two companies will work together to integrate the Microsoft TV IPTV Edition software with Harmonic's DiviCom encoding technology. Cutting through the technospeak that accompanied the announcement, the combination will allow customers to deliver more feature-rich digital TV content while gobbling up less bandwidth.

Although this sort of arrangement will likely be most attractive at first to telephone companies, everybody who tries to send information over wires is looking for ways to send more information without laying more wires. Nevertheless, this technology allows for TV to be transmitted over DSL lines and IP networks and could represent an avenue for telcos to compete with cable companies in the TV space. And after all, because cable TV players are getting into the digital phone service game, isn't it only fair that telcos try to respond in kind?

Nobody should expect this agreement to bring immediate change to either company. For Microsoft, it's another small step toward its corporate goal of providing software outside the obvious computer worlds. For Harmonic, it's another incremental enhancement that should ultimately expand its market and product offerings.

I'll leave it for other Fools to debate the merits of buying Microsoft today,but I am still deeply curious about the prospects for cable equipment players like Harmonic and C-COR (Nasdaq: CCBL - News). With cable, phone, and broadband companies trying to squeeze ever more data down the same pipes, I just have to believe that the market as a whole has real potential.

Harmonic has some definite challenges to face -- a big quarterly disappointment is fresh in investors' memories -- and it plays in a tough market. But if it can get things together, I think patient shareholders might like what they see.

For more on the cable TV world, see:

Sour Notes From Harmonic C-COR Unplugged Again Motorola's Ups and Downs Scientific Facts

Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).

[Jameson]

sessão de hoje:

[Luka!]

Harmonic Gives Cable Operators Tools to Access Enterprise and Mobile Voice/Data Transport...
Tue Jun 14, 2005 9:01 AM ET
Harmonic Gives Cable Operators Tools to Access Enterprise and Mobile Voice/Data Transport Market; New FLXLink T1 Solution Carries Current and Emerging Services Using the Existing Network Infrastructure

SUNNYVALE, Calif.--(Business Wire)--June 14, 2005--
Harmonic Inc. (Nasdaq:HLIT) today extended its
FLXLink(TM) family of commercial services solutions with the launch of
a multi-port T1 system that gives cable operators a cost-effective way
to access transport applications traditionally served by telcos. The
FLXLink T1-over-fiber solution, which is based on coarse wavelength
division multiplexing (CWDM) technology, can securely carry enterprise
and cellular digital voice/data services over the cable operator's
existing broadband television network. In addition to multiple T1
ports, the system includes a high-speed Ethernet (100BaseT) port that,
in parallel, can provision high-speed network services and support
future bandwidth-intensive services.
Today, millions of sites around the world rely on T1 connections
to deliver voice and data services. The applications range from
enterprise PBXs and network access services to backhauling wireless
digital communications by mobile telephone operators. Each year telcos
generate billions of dollars in revenue by provisioning T1 circuits.
Now, cable operators -- often with robust networks that already pass a
significant number of T1-enabled sites -- can deploy the new FLXLink
solution to quickly and cost-effectively reach this high-value market
segment.
"With the accelerating investment in Ethernet/IP switching
equipment, the FLXLink T1 solution is an excellent bridge between
legacy and emerging service infrastructures," said Sunil Frida,
Commercial Services Solutions Manager at Harmonic Inc. "Today, T1 is
the primary transport method though, in the future, with the
proliferation of mobile video and other bandwidth-intensive wireless
services, this will migrate to an Ethernet-based environment. Since
FLXLink T1 offers both interfaces, it provides a long-term advantage
with a rapid return on investment."
The bi-directional FLXLink T1 device delivers a combination of
four T1 and one 100-Mbps Ethernet services on a secure dedicated
wavelength. Unlike complex circuit emulation solutions, the FLXLink T1
is able to deliver true TDM (time-division multiplexing) circuits over
Ethernet while preserving both service quality and the full 100 Mbps
of Ethernet bandwidth. Using CDWM technology, Harmonic enables
operators to efficiently deliver new services by transmitting up to 10
distinct wavelengths over the same fiber that carries residential
broadband services. Depending on the architecture and bandwidth
requirements, a fully loaded system could support as many as 50
individual network connections (e.g., cell towers and enterprises).
FLXLink maximizes service availability while reducing costs by
making the network between the operator and customer sites completely
passive. A wavelength-specific CWDM network interface unit (NIU) is
deployed at each location to provide a secure two-way link as well as
media conversion. The new FLXLink T1 system -- which is fully
interoperable with existing T1 and Ethernet/IP equipment at both the
operator and customer premises -- can be installed in the same
platform as the FLXLink 100-Mbps and 1-Gbps solutions. This gives
operators the ability to better tailor their services to the needs of
the commercial customers within a given area and streamline the
deployment process. The platform incorporates high availability
features -- such as redundant and hot-swappable power supplies --
needed to transport mission critical services.
The entire line of FLXLink commercial services solutions is
controlled using the platform-based Element Management Card. A web
browser-based tool allows operators to remotely monitor and manage
their infrastructure, simplifying the verification of network and
equipment status, which reduces the number of on-site service calls.
Harmonic's FLXLink commercial services solutions, including the
new T1 system, will be showcased at Cable-Tec Expo 2005, Booth #2069,
June 15-17 in San Antonio, TX.

About Harmonic Inc.

Harmonic Inc. is a leading provider of digital video, broadband
optical networking and IP delivery systems to cable, satellite,
telecom and broadcast network operators. Harmonic's open
standards-based solutions for the headend through the last mile enable
customers to develop new revenue sources and a competitive advantage
by offering powerful interactive video, voice and data services such
as video-on-demand, high definition digital television, telephony and
Internet access.
Harmonic (Nasdaq:HLIT) is headquartered in Sunnyvale, California,
with R&D, sales and system integration centers worldwide. The
Company's customers, including many of the world's largest
communications providers, deliver services in virtually every country.
Visit www.harmonicinc.com for more information.

[heterocedastico]

Industry = Communication Equipment

[Jameson]

comparativo com as outras empresas referidas no artigo

[Jameson]

Gostaria de ler opiniões sobre esta empresa e o sector em que labora.

Sour Notes From Harmonic
http://www.fool.com/news/mft/2005/mft05042514.htm

By Stephen D. Simpson, CFA
04/25/2005


At first blush, some investors might be tempted to think that broadband-solutions provider HarmonicLightwaves(Nasdaq: HLIT) had a pretty good quarter.

After all, weren't sales up 32% to $73 million, and didn't net income of $1.7 million reverse a year-ago loss? Well, yes, but the trouble comes from those pesky Wall Street analysts. See, while the company posted income of $0.05 a share (before items), the analysts' average estimate for the quarter was $0.09.

That seven-cent miss, coupled with disappointing guidance for the next quarter, translated into a 30% decline in Harmonic's stock in trading on Friday.

The biggest problem in the first quarter was the nature of the orders that Harmonic received from its customers: The company saw an unprecedented increase in customer demand for third-party equipment.

These products carry much lower margins for Harmonic, and as a result, the company saw a gross margin decline on an annual and sequential basis. What's worse, Harmonic management sees those high levels of third-party orders continuing and pressuring margins into the next quarter.

For the quarter, Comcast(Nasdaq: CMCSA) and Charter Communications(Nasdaq: CHTR) remained major customers, and cable companies as a group made up 75% of sales. Satellite-TV providers accounted for 10% of the quarter's business, and the remainder came largely from telco providers.

Sure, it's tough to drum up excitement for a company that just posted a major disappointment that sent the stock down 30%. What's more, when you see other small cable-equipment providers like Terayon Communication Systems(Nasdaq: TERN) and C-COR(Nasdaq: CCBL)struggling, you're tempted to question the whole thesis that cable companies need to spend more to improve their services.

That said, I still like the business. Cable companies continue to roll out services like digital video, video on demand, high-definition television, and high-speed Internet and telephony services. And those services require equipment like Harmonic's headends. What's more, telco companies remain a wild card, with fiber-to-the-premises and video services both holding significant promise.

Of course, Harmonic isn't the only game in town. Rivals like Scientific-Atlanta(NYSE: SFA) and Motorola(NYSE: MOT) can offer turnkey solutions and end-to-end product suites that are certainly attractive to buyers wanting to deal with a sole supplier.

Still, the market should be big enough to allow small and specialized firms like Harmonic to both survive and thrive. Of course, for that to happen, Harmonic needs to keep investing in R&D to stay ahead of the competition, boost profitability, and sell more of its own gear. Although 2005 isn't off to a roaring start, the race isn't over just yet, and Harmonic could still produce sweet notes for investors down the line.

For more on the cable space, check out these other Foolish takes:

C-COR Unplugged Again
Motorola's Ups and Downs
Scientific Facts
Watch More TV: Do It for C-COR
Comcast Casts Wider Net

Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).