Broadband Briefs for 1/14/10
• Mediacom to carry Epix pay-TV channel
By The Associated Press
LOS ANGELES (AP) – Epix, the pay-TV channel owned by three Hollywood studios, announced its second carriage deal in two days, this time with Mediacom Communications, the nation's seventh-largest cable TV provider.
The fledgling channel will show movies from Viacom Inc.'s Paramount Pictures, Metro-Goldwyn-Mayer Studios Inc. and Lionsgate Entertainment Corp. to paying subscribers starting in April.
On Monday, Epix reached a deal to run on channels provided by Cox Communications, the nation's third-largest cable TV provider, also starting in April. The channel debuted in October on Verizon's FiOS network and costs $9.99 per month for subscribers. The channel's movies are also available to subscribers at EpixHD.com.
• Harmonic moving HQ to San Jose
By Brian Santo
Harmonic is preparing to move its headquarters from Sunnyvale, Calif., to nearby San Jose. San Jose Mayor Chuck Reed and Harmonic President and CEO Patrick Harshman cut a ceremonial ribbon at the site of Harmonic’s new facilities, which Harmonic expects it will be able to move into in August after the current building is rebuilt and upgraded.
The building is planned to have 188,000 square feet and will also house the company’s R&D operations. Harmonic currently employs approximately 475 people in its Silicon Valley headquarters and an additional 375 employees in locations around the world.
"Harmonic has been located in Silicon Valley, an area home to a number of companies developing video technologies, since the company’s founding in 1988. We are excited about the move to our new San Jose facility, which will consolidate our local operations into a single building and provide the opportunity for us to design new labs and corporate offices," said Harshman. "The new San Jose location is convenient to many of our employees and also importantly offers ease of access to public transportation and major transportation corridors."
• Ixia to cut 80 jobs following acquisition
By The Associated Press
CALABASAS, Calif. (AP) – Network hardware maker Ixia said Thursday it is eliminating about 80 jobs to cut duplicate functions after its acquisition of the N2X product line from Agilent Technologies Inc. The company also lifted its fourth-quarter sales forecast to reflect contributions from two recent deals.
Ixia now expects $54 million to $56 million in revenue, an increase of about 32 percent over the same quarter last year. Its previous forecast called for sales of $50 million to $54 million. On average, analysts polled by Thomson Reuters were expecting $53 million.
Part of the uptick came from Ixia's acquisition last year of Catapult Communications, as well as the N2X product line, which it bought in October. The company said job cuts, which it plans to complete by the end of June, will save it about $11 million annually.
• Cogeco ups revenue, RGUs in Q1
By CED staff
Cogeco Cable’s revenue increased 6 percent in the first quarter of 2010, to reach $317.4 million. Net income amounted to $56.7 million. Revenue-generating units grew by 89,785 in the quarter, for a total of 2.98 million RGUs as of Nov. 30.
“Cogeco Cable’s financial results for the first quarter of fiscal 2010 exhibit continued RGU, revenue and operating income before amortization progression for the corporation. Our Canadian operations have grown at a steady pace, as demonstrated by net additions of 63,172 RGUs. In our European operations, the first-quarter results evidence that our customer base has begun to stabilize as a result of the customer retention and acquisition plans implemented in response to the difficult competitive environment experienced in the prior year, with a growth of 26,613 RGUs. In light of these positive results, management has revised most of its guidelines for the 2010 fiscal year. Projected RGU growth, revenue, operating income before amortization, net income and free cash flow have been increased to reflect the impact and the expected trend generated by the favorable financial results in the first quarter of the year,” said Louis Audet, president and CEO of Cogeco Cable.