Harmonic, Inc. HLIT recently announced that it has formed a strategic collaboration with Sercomm, a prominent provider of telecom broadband solutions based in Taiwan to drive innovation in DOCSIS 4.0 unified technologies. The newest advancement of the DOCSIS (Data Over Cable Service Interface Specifications) standard, version 4.0 facilitates high-speed data transmission over cable networks.

DOCSIS 4.0, an improved version of DOCSIS 3.1 standard, effectively optimizes network capacity, improves service delivery and supports symmetrical upstream and downstream data speeds. By providing high-speed Internet services, DOCSIS 4.0 allows operators to remain competitive against emerging wireless broadband technologies such as 5G Fixed Wireless Access.

However, despite the advantages, there are some challenges that can hinder widespread upgradation to DOCSIS 4 standards. High upfront investments in infrastructure, lack of interoperability with different network equipment, integration complexities with existing systems are major obstacles faced by operators.

The collaboration of Sercomm and Harmonic aims to overcome these barriers. Sercomm is set to introduce new DOCSIS 4.0 Unified Amplifiers powered by Harmonic FDX and unified nodes. Along with symmetrical data speed, the solution will offer enhanced interoperability between network components and minimize integration complexities. 

The partnership brings a highly integrated solution that reduces deployment time and expedites the delivery of advanced broadband solutions to consumers, giving operators a competitive edge. Seamless interoperability between Sercomm’s amplifiers and HLIT’s unified nodes allows operators to maximize their existing infrastructure and simplify network upgrades. This ensures cost efficiency and a smoother transition to DOCSIS 4.0.

Will This Venture Drive HLIT’s Share Performance?

In a rapidly evolving broadband landscape, service providers are looking to quickly upgrade their networks and offer high-performance services to remain competitive in the market. The use of high data intensive applications, such as video streaming, online gaming, remote work and IoT devices are propelling the demand for faster and more reliable broadband services among consumers. Amid this backdrop, Harmonic, with its comprehensive broadband solution suit, is well positioned to capitalize on this emerging trend. Moreover, the company is placing a strong emphasis on creating solutions that enhance network performance without a substantial overhaul in operators' existing network. This approach bodes well for long-term growth.

HLIT’s Stock Price Performance

The stock has gained 23.1% over the past year compared with the industry’s growth of 80.7%.

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HLIT's Zacks Rank & Stocks to Consider

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

Workday Inc. WDAY carries a Zacks Rank of 2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 9.88%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support.

InterDigital IDCC sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Plexus Corp. PLXS flaunts a Zacks Rank of 1 at present. It is a leading electronic contract manufacturing services provider to original equipment manufacturers in a wide range of industries. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

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