As part of its Q3 2023 results announcement, Harmonic revealed it is undergoing a review of its video business.
“After careful consideration of the growth opportunities in both our broadband business and video SaaS business and our capital allocation priorities over the next several years, we have initiated a formal strategic review process for our video business,” said the company.
Harmonic added it is assessing “a range of alternatives” for its video business and has received “indication of interest” from a number of parties.
“Due to changes in the marketplace and our customer strategies, synergies between our broadband and video businesses are now less compelling,” said Harmonic CEO Patrick Harshman during the company’s Q3 earnings call.
“These factors coupled with capital allocation planning led us to initiate the strategic review,” he added. “Together with financial and legal advisors, we’re assessing a range of alternatives for the video business with a clear goal of optimising long-term value.”
Video represents about 40 per cent of Harmonic’s overall business, with Q3 sales of $51.4 million representing a 19.5 per cent decrease compared to the same quarter in 2022. However, sales of the company’s cloud-based SaaS solutions for streaming companies were up 42 per cent to $12.5 million.
“With live sports still in the early innings of migrating to streaming platforms, we believe there are substantial runway for growth in our video SaaS,” Harshman said.