SAN JOSE, Calif. - Harmonic (NASDAQ: NASDAQ:HLIT) announced today that Globo, Brazil's leading media conglomerate, is transitioning its playout workflow to the cloud, leveraging Harmonic's VOS® Media Software. This move is expected to enable Globo to expedite the launch of linear playout channels, enhance workflow efficiencies, and cut costs.
Globo's initiative will involve the integration of Harmonic's cloud-native media software with an Aveco automation system, enhancing the scalability, flexibility, and reliability of its operations. The software, which operates on Google (NASDAQ:GOOGL) Cloud, aims to synchronize microservices across all workflows for Globo.
Mauricio Felix, Globo's technology director, emphasized the importance of cloud-based workflows in maintaining the company's technological edge. Harmonic was chosen for its established cloud-native solution, expertise in cloud playout deployments, and strong local support.
Harmonic's senior vice president, Gil Rudge, highlighted that with VOS Media Software, Globo will become the first media company in the LATAM region to deliver 24/7 channels with a cloud-based playout and automation solution. He also noted the software's agility, resiliency, security, and scalability, which can support Globo's business growth.
The broader capabilities and advancements of Harmonic's video streaming and broadcast delivery solutions will be on display at the upcoming IBC2024 event in Amsterdam from September 13-16.
Harmonic, recognized as a global leader in virtualized broadband and video delivery solutions, has been instrumental in innovating broadband networking and OTT video delivery through cloud and software platforms. These advancements aim to enhance the monetization of live and on-demand content across diverse screens for media companies and service providers.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. For more detailed information, Harmonic's filings with the Securities and Exchange Commission can be consulted.
In other recent news, Harmonic Inc . has reported impressive financial results for the second quarter of 2024, with total revenue reaching $138.7 million, marking a 14% increase from the previous quarter. This growth was driven by both Broadband and Video segments, despite a GAAP net loss of $12.5 million, primarily due to restructuring costs. The company's Broadband segment revenue rose to $92.9 million, a 17% sequential increase, while Video segment revenue hit $45.8 million, surpassing the high end of guidance.
Harmonic has also welcomed back Dan Whalen to its board of directors. Whalen, with his extensive management experience and industry knowledge, is expected to contribute to the company's strategic business and growth initiatives.
In terms of future expectations, Harmonic maintains a positive outlook, reaffirming its full-year revenue guidance and projecting profitability in the Video segment starting in Q3. The company is also anticipating significant savings from its restructuring program, aiming for $18 million in savings for FY '24 and $28 million annually in FY '25. These recent developments highlight Harmonic's strategic focus on growth areas like SaaS and fiber-to-the-home technologies.
InvestingPro Insights
In light of Harmonic's (NASDAQ: HLIT) recent announcement regarding its collaboration with Globo, investors may find the following InvestingPro data and tips particularly insightful:
InvestingPro Data:
- Market Cap: Harmonic currently has a market capitalization of $1.67 billion.
- P/E Ratio: The P/E ratio stands at 28.38, indicating how much investors are willing to pay for each dollar of earnings.
- Revenue Growth: The company has seen a revenue decrease of 12.4% over the last twelve months as of Q2 2024.
InvestingPro Tips:
- Analyst Confidence: With 5 analysts revising their earnings upwards for the upcoming period, there appears to be a positive sentiment regarding Harmonic's future financial performance.
- Valuation: Harmonic is trading at a low P/E ratio relative to near-term earnings growth, which may suggest that the stock is undervalued in the context of its growth potential.
These data points and tips suggest that while Harmonic is experiencing some challenges in revenue growth, the company is still viewed favorably by analysts in terms of earnings potential and stock valuation. The transition to cloud-based solutions for clients like Globo could potentially enhance operational efficiencies and support future growth.
For investors seeking more insights, there are an additional 12 InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/HLIT. These tips provide a more comprehensive analysis of Harmonic's financial health and market position, helping investors make informed decisions.
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