Harmonic on track to make savings following Thomson deal

Video delivery company, Harmonic, reported an uptick in revenues in the second quarter and said it was on track to make cost savings following its Thomson acquisition.

GAAP net revenue for Q2 was US$108.8 million, compared to US$103.1 million in Q2 2015. However, the company made a GAAP net loss of US$20.6 million, widening the US$ 1 million GAAP loss it made in the same quarter a year earlier.

Harmonic said that it remained on track to realise US$20-US$22 million of annualised cost savings by the end of the year following its US$75 million buyout of compression specialist Thomson Video Networks, which it completed in March.

“Our financial results for the second quarter of 2016 were at the high end of our plan for both our video and cable edge segments,” said Harmonic president and CEO, Patrick Harshman.

“Consequently, we enter the second half of the year with record backlog and deferred revenue. Our new CableOS products are scheduled to begin shipping in the fourth quarter of this year, and we remain on track to realise targeted synergy savings from the combination of Harmonic and Thomson Video Networks.”