With a lot of the quarter within the books, it is clear that cable tech suppliers are seeing some sizable momentum as operators push forward with upgrades of their hybrid fiber/coax (HFC) networks to help DOCSIS 3.1+ and DOCSIS 4.0 alongside fiber-to-the-premises (FTTP) buildouts in adjoining and fully new areas.
It is also clear that there is some M&A on the horizon, with each Harmonic and Vistance/Aurora Networks (previously CommScope; Amphenol now owns the CommScope model) reiterating they intend to discover potential acquisitions that may assist them develop their current broadband companies or allow them to increase into new areas.
Many of the corporations on this grouping have just lately offered off property to allow them to prioritize their core broadband companies. Amongst these strikes, Harmonic just lately closed the sale of its video enterprise to MediaKind; Vistance offered its Ruckus unit to Belden; and Vecima Networks has divested its Telematics enterprise by way of a take care of Lantronix.
By firm, this is a recap (up to now) of the quarter:
Harmonic’s large quarter
Harmonic shares have been up greater than 12% Thursday morning after the corporate beat Q2 numbers, raised steerage for the remainder of 2026, and noticed elevated diversification of its enterprise amid gross sales momentum in a “rest-of-market” section that doesn’t embody Harmonic’s two prime prospects (Comcast and Constitution Communications).
Harmonic’s Q2 gross sales of $133.5 million handily beat the $120.9 million anticipated by analysts, and was forward of steerage within the vary of $115 million to $125 million. Harmonic expects Q3 gross sales within the vary of $125 million to $135 million. It additionally expects full-year 2026 gross sales of $505 million to $525 million, up from prior steerage of $475 million to $495 million.
Constitution and Comcast stay marquee prospects for Harmonic, however prospects within the ROM section jumped 44% and comprised 37% of whole revenues in Q2. Talking on Wednesday’s earnings name, Harmonic CEO Nimrod Ben-Natan mentioned ROM momentum is coming from a mixture of DOCSIS 3.1+, DOCSIS 4.0 and PON deployments. The latter features a rising mixture of fiber deployments with telcos that fall outdoors of the standard cable business.
Power within the ROM section will contribute to Harmonic’s long-term buyer diversification and alerts that operators “have begun to observe Constitution and Comcast’s lead with extra conviction,” Raymond James analyst Simon Leopold defined in a analysis observe.
Harmonic ended the quarter with $232 million in money and $85 million obtainable from an undrawn credit score facility. That offers Harmonic ample monetary flexibility to spend money on natural progress, return capital to shareholders and pursue “strategic” M&A that may additional develop and diversify the enterprise, CFO Walter Jankovic mentioned Wednesday on Harmonic’s earnings name.
He did not specify the place Harmonic will search for M&A alternatives. Nevertheless, anticipate any transactions to suit Harmonic’s stance as a “pure-play” broadband firm following the sale of its video enterprise.
Harmonic mentioned its footprint of cOS – its virtualized platform for HFC and PON entry networks – now contains 161 prospects and serves 48.2 million buyer premises tools (CPE) gadgets. Meaning Harmonic added 11 cOS prospects throughout Q2 together with help for a further 2.5 million CPE gadgets.
Harmonic will shed extra mild on its methods when it hosts an investor day in mid-September.
Vistance/Aurora additionally on the hunt for M&A
With its $1.85 billion sale of Ruckus to Belden now within the books, Vistance Networks/Aurora Networks is flush with money and can use a few of it to pursue progress alternatives, together with potential M&A and doable inventory buybacks.
Talking on a Q2 earnings name earlier this month, CEO Chuck Treadway mentioned Vistance/Aurora will discover alternatives inside and outdoors of cable community tech, together with doable M&A targeted on adjoining markets. He did not level to something particular. The corporate ended Q2 with $152 million of money available.
The corporate’s present core enterprise is in cable community tech, together with DOCSIS cable modem termination methods (CMTSs), digital CMTSs, nodes, amplifiers and distant PHY and distant MACPHY gadgets for distributed entry structure (DAA) upgrades.
Exterior of the DOCSIS world, Vistance presents PON merchandise and a digital broadband community gateway acquired from the public sale of Casa Methods’ cable property in 2024. Vistance additionally has a safety enterprise line that features public key infrastructure (PKI) merchandise for digital video methods and IoT gadgets. With the Ruckus deal completed, Treadway mentioned Vistance will put extra concentrate on the safety enterprise, which has “vital potential for funding and progress.”
Q2 internet gross sales (together with Ruckus) dropped 3% to $513 million. The monetary influence from rising reminiscence chip pricing and “stranded prices” have been about $15 million within the quarter. Kyle Lorentzen, Vistance’s EVP and CFO, mentioned three prospects represented about 70% of Q2 revenues. He did not title them, however Vistance’s 2025 annual report confirmed that Comcast made up about 35% of internet gross sales for that 12 months.
The DOCSIS-focused Aurora section pulled in Q2 internet gross sales of $319 million, down 1% year-over-year, attributable to robust gross sales of legacy tech that was partially offset by increased amplifier gross sales.
Treadway mentioned marketplace for DOCSIS 4.0 merchandise is on the upswing, together with ongoing deployments of Full Duplex (FDX) merchandise to Comcast and Prolonged Spectrum DOCSIS (ESD) amps heading to “a number of giant” North American cable operators. The corporate began to ship and deploy “unified” nodes that help each FDX and ESD in Q2. Unified D4.0-capable amps are in lab testing now, and can begin delivery in early 2027.
“We anticipate shipments [of next-gen DOCSIS products] to ramp up over the following couple of quarters, and these merchandise will proceed to ship over a number of years,” he mentioned.
AOI posts a contemporary cable income document
Like Vistance/Aurora, Utilized Optoelectronics (AOI) additionally noticed a surge in amplifier gross sales in Q2. AOI, which now additionally within the fiber node enterprise, posted document cable tech gross sales of $80.6 billion, forward of the $78.5 billion anticipated by Raymond James, and up 43.8% from the year-ago interval.
The majority of AOI’s cable gross sales exercise is for 1.8GHz amps, with most of it going to the provider’s largest cable operator buyer, Constitution Communications. Mediacom Communications just lately tapped AOI to help its D4.0 upgrades.
Cable represented 42% of whole AOI revenues within the interval, versus 56% from information heart merchandise and a pair of% from fiber-to-the-premises/telecom.
The present quarter must be even higher. Stefan Murry, AOI’s CFO and chief technique officer, mentioned the corporate anticipates Q3 cable revenues within the vary of $100 million to $110 million, with an expectation that the cable section will ship greater than $325 million yearly.
These numbers are taking form greater than three years after AOI began to develop and promote cable merchandise on to cable operators below a staff led by former Cisco and Scientific-Atlanta exec Todd McCrum.
And it seems like McCrum might be going out on prime. Murry introduced on August 7 that McCrum, the corporate’s SVP and GM of broadband entry, is leaving AOI to spend extra time along with his household. Steve Pederson, who joined AOI in 2023 to steer product technique, has been tapped to tackle McCrum’s function. Pederson can also be late of S-A and Cisco.
Vecima Networks: Keep tuned
Vecima Networks has but to submit fiscal This fall outcomes. It just lately introduced an unique vCMTS take care of Canada’s Videotron that adopted Vecima’s first-ever vCMTS settlement, with Cox Communications, which is within the technique of merging with Constitution Communications.
Like a few of its cable tech friends, Vecima has additionally shed some property of late, together with the sale of its Telematics unit.
Vecima additionally made some adjustments up prime, upping Clay McCreery to president and COO. He is been COO since 2020. Sumit Kumar stays CEO.
Vecima additionally named Ryan Nicomento to chief product officer, up from SVP and GM of video and broadband options.
