Harmonic Unveils SeaStar Optical Node for High-Speed Broadband

Harmonic, Inc. HLIT recently announced the launch of SeaStar Optical Node, a state-of-the-art solution designed to deliver superior broadband connectivity in multi-dwelling units (MDUs). The legacy coaxial cabling systems used in many low-density MDUs lack the capability to facilitate multigigabit broadband connectivity required today. Upgrading the existing system and improving fiber connection is a costly and complex endeavor.

Harmonic’s optical node solution effectively addresses these issues. The solution converts the coax cables into high-speed broadband conduits. Leveraging the existing infrastructure, the solution facilitates an impressive speed exceeding 8 Gbps downstream and 1.5 Gbps upstream. It eliminates the need for costly rewiring and the risk of service disruption, and makes the process of network upgrades seamless for operators. 

Moreover, it allows operators to deliver high-speed broadband up to 5km away from a centralized point. To do that, it deploys several mini-nodes at the MDUs using point-to-point fiber connections. It also effectively mitigates issues occurred in RFoG (Radio Frequency over Glass) architectures, such as optical beat interference, limited bandwidth and higher latency.

The solution’s compact design and cost-effective nature make it a lucrative choice for improving connectivity infrastructure. Its high scalability and flexibility enable operators to swiftly adapt to evolving demand. One can easily expand capacity by adding a 10G PON port using Harmonic’s Fin OLT or an external OLT. The solution is powered by Harmonic's industry-leading cOS virtualized broadband platform, which provides a unified management of PON and DOCSIS services. This feature reduces capital expenditure, optimizes workflow and enhances operational efficiency.

Will This Product Launch Drive HLIT’s Share Performance?

Upgradation and deployment of high-speed broadband in low-density MDUs is a challenge due to costly infrastructure upgrades, service disruptions. Along with mitigating and addressing these issues, HLIT’s SeaStar Optical Node addresses key industry challenges in RFoG architecture. Owing to this, the solution is already gaining interest from leading communication solution providers like Netceed Poland. Its cost efficiency and high scalability are expected to drive faster market adoption and create a new revenue stream for broadband operators.

Harmonic is steadily advancing its portfolio to capitalize on the growing demand for high-speed broadband worldwide. The company is set to introduce Pearl R-OLT and Jetty-2 remote switch node modules that simplify the evolution process from GPON to XGS-PON, Combo PON, 25GS PON and beyond. Such innovative product launches augur well for long-term growth.

HLIT Stock’s Price Movement

Shares of Harmonic have plunged 24.5% over the past year against the industry’s growth of 35.9%.

HLIT’s Zacks Rank and Stocks to Consider

Harmonic currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry have been discussed below.

Juniper Networks, Inc. JNPR sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 4.88%. Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities within the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within its AI-driven enterprise portfolio, enabling customers to simplify the rollout of their campus wired and wireless networks while providing greater insight to network operators.

InterDigital IDCC carries a Zacks Rank #2 (Buy) at present. In the trailing four quarters, InterDigital delivered an earnings surprise of 160.15%. The company is a pioneer in advanced mobile technologies that enable wireless communications and capabilities.

InterDigital designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G, and IEEE 802-related products and networks.

Arista Networks, Inc. ANET, carrying a Zacks Rank of 2 at present, supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

Arista delivered a trailing four-quarter average earnings surprise of 11.82% and has a long-term growth expectation of 14.81%. Arista currently serves five verticals, namely cloud titans (customers that deploy more than one million servers), cloud specialty providers, service providers, financial services and the rest of the enterprise.

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