Harmonic Inc. HLIT Harmonic Inc. (HLIT) recently announced a major advancement in video streaming technology with the introduction of new origin capabilities. These new features, part of the company’s Video Origin Software (VOS) family and XOS Advanced Media Processor, will likely enable service providers and broadcasters to optimize efficiency and flexibility while reducing operational costs. 

Harmonic's VOS family is a suite of software and Software as a Service (SaaS) solutions for video streaming encompassing VOS Media Software, VOS360 Media SaaS and related products. It is designed to simplify and optimize video processing and delivery. The VOS Media solution is a comprehensive media processing platform used to manage the video production and delivery workflow for broadcast and over-the-top applications over public or private cloud infrastructure. 

With its built-in user interface, the software allows for seamless playlist monitoring and automated channel delivery via the web, eliminating the need for a complex automation system. The end-to-end VOS360 cloud media processing SaaS, on the other hand, simplifies the entire process of media delivery for premium video streaming and broadcasting. 

What HLIT Brings to the Table?

Harmonic’s latest innovation combines cloud and on-premises storage, creating a hybrid origin solution designed to meet the diverse needs of service providers. By utilizing VOS360 Media SaaS and VOS Media Software, the hybrid solution efficiently handles less frequently accessed content by storing it in the cloud while keeping fresh video assets on-premises. Older content, including network personal video recorder assets, is automatically moved to cloud storage, improving both accessibility and storage management. 

This cloud-native solution offers an easy-to-configure platform with a unified user interface that integrates all media processing capabilities. Service providers can efficiently scale their storage based on demand, utilizing on-premises infrastructure for fixed workloads and cloud scalability for large asset repositories. This balanced strategy improves flexibility and reduces cloud storage costs.

In addition to the hybrid origin solution, Harmonic has introduced live and time-shift origin capabilities within the state-of-the-art XOS Advanced Media Processor. By integrating origin functionality directly into the XOS Media Processor, the company allows broadcasters to stream live content directly to content delivery networks using a single appliance. This integration minimizes operational complexity and reduces hardware costs, making it a streamlined and cost-effective option for live and time-shift content. 

Does HLIT Stock Stand to Gain From This Upgrade?

With these latest upgrades, Harmonic has redefined its streaming solutions, combining key functionalities from playout to compression origin and delivery. These advancements are expected to generate incremental demand for Harmonic’s solutions, leading to higher revenues. An improved financial performance is likely to drive the stock.

Harmonic Stock Price Performance

Shares of the company have plunged 16.1% over the past year against the industry’s growth of 34.9%.

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HLIT’s Zacks Rank & Stocks to Consider

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

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

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, it delivered an earnings surprise of 158.41%. 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.

Celestica Inc. CLS carries a Zacks Rank #2 (Buy) at present. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers.

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 12.87%. It has a long-term growth expectation of 14.41%.

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Harmonic Inc. (HLIT) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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