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Harmonic Announces Deployment of EyeQ by Magyar Telekom

Zacks

Harmonic Inc. HLIT recently announced that Magyar Telekom, a Hungarian telecommunications company, has successfully deployed its EyeQ content-aware encoding solution for the Internet Protocol television service of the latter.

Nowadays, content providers and pay-TV operators are required to deliver high-quality video on devices while keeping their capital and operational costs low.

EyeQ is a new way to determine the target video rates for the different video profiles in an adaptive bit rate deployment.

EyeQ Content-Aware Encoding Solution

Harmonic’s solution enables operators to deliver high video quality for subscribers of its over-the-top multiscreen services. EyeQ leverages the function of the human visual system to provide a superior viewing experience while reducing bandwidth consumption by up to 30% without requiring any additional changes in the existing H.264 delivery infrastructure or vast array of decoders on the market.

HD videos have high demand and with the Harmonic EyeQ solution, Magyar Telekom is able to satisfy the consumer requirement for a high-quality viewing experience in a capex-friendly way.

Magyar Telekom employed advanced statistical multiplexing technology from Harmonic, which aggregates the variable bit rate encoded channels into a constant bit rate core network to optimize its bandwidth.

EyeQ entails lower bitrates especially over wireless connections such as WiFi or 4G. It supports both live and file-based applications. Video on demand services benefit from EyeQ reduced bitrate. The scale of live services during popular events can stress the network and increase the cost of distribution, making the content-aware encoding solution extremely valuable for these services.

Further, operator's ability to deliver more HD services improves its position within the marketplace while enhancing revenues. The solution is seen as an investment into the future as it can be extended to other delivery platforms and cost-effectively deployed.

Share Price Performance

Over the past three months, Harmonic’s shares have returned 19.2% against the industry decline of 3.4%.



Zacks Rank and Stocks to Consider

Harmonic currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include Turtle Beach Corporation HEAR, AudioCodes Ltd. AUDC and Ubiquiti Networks, Inc. UBNT. While Turtle Beach sports a Zacks Rank #1 (Strong Buy), AudioCodes and Ubiquiti carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Turtle Beach exceeded earnings estimates twice in the trailing four quarters with an average positive surprise of 33.7%.

AudioCodes exceeded earnings estimates thrice in the trailing four quarters with an average positive surprise of 16.2%.

Ubiquiti has a long-term earnings growth expectation of 18.6%. It exceeded earnings estimates thrice in the trailing four quarters with an average positive surprise of 8.9%.

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