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Harmonic Revenue Slides 18% in Q3

Harmonic, a key technology vendor to cable operators and video service providers, reported an 18% year-over-year slide in third quarter revenue, to $94.9 million.

However, after a particularly slow second quarter, when the pandemic shifted the priorities of its clients, the San Jose, Calif.-based company revealed rebounding sales across its important cable access and video product lines in Q3. 

Also read: Cable-Tec Expo: Harmonic Debuts New Gigabit-speed Upstream Solution

In fact, cable access sales were actually up 28% sequentially, with Harmonic’s CableOS software product, which virtualizes key functions that used to be handled by expensive hardware appliances in cable networks, continuing to show strong growth. 

CableOS is now controlling the 1s and 0s that go into 2.1 million cable modems from 38 different cable operators around the world, Harmonic said, a 122% increase from a year ago. Of those 2.1 million modems, 1.4 are served by distributed access architecture (DAA) hardware and software products provided by Harmonic. 

Harmonic is currently in trials to expand CableOS’s reach beyond the hybrid fiber-coaxial (HFC) networks operated by cable companies, into networks that deliver fiber straight to customers.

“This is an important strategic milestone, demonstrating the extensibility of our cloud-native CableOS platform beyond traditional cable applications and, specifically, the opportunity for Harmonic to address the large and growing fiber-to-the-home market," Patrick Harshman, CEO of Harmonic, told investment analysts during a conference call Tuesday. 

Harmonic’s video business, meanwhile, saw a 15% sequential bump in revenue to $54.6 million. The company ended the third quarter with more than 48,000 live streaming channels deployed, a 15% year-over-year increase.