Harmonic to buy Rhozet; Q2 sales up 34 percent
Harmonic Inc. will acquire Rhozet Corp., a privately-held company based in Santa Clara, Calif., that offers software-based universal transcoding solutions that facilitate the creation of multi-format video for Internet, mobile and broadcast applications. The purchase price is $15.5 million.
The move automatically brings Harmonic's presence into the online video service provisioning market, where Rhozet's transcoding solutions are today in use by Amazon.com, MSN and Yahoo!, among others.
Harmonic also expects to use Rhozet’s transcoding technology to enable its current customers to create and deliver Internet and mobile video programming.
The Rhozet product line includes Carbon Coder, a stand-alone software transcoding application, and Carbon Server, an enterprise-level distributed transcoding management application. This scalable solution is designed to allow users to start with a single system that can be expanded to a large transcoding server farm, and includes features such as load balancing and failover protection for maximum reliability.
Separately, the company was selected by Comcast to provide edge QAMs for Comcast’s imminent rollout of switched digital video (see accompanying story, “Comcast taps Arris, Harmonic eQAMs...").
Harmonic said second quarter sales were $71.3 million, up 34 percent from $53.3 million in the second quarter of 2006. The company recorded a profit of $6.2 million, compared to a $2.9 million loss a year ago.
"We are pleased with our sales and earnings growth in the first six months of 2007, as well as our improved gross margins and inventory management, and our strong bookings in the second quarter of 2007," said Patrick Harshman, president and CEO.