Shares for Harmonic are down nearly 17% Tuesday, with the San Jose, Calif.-based technology company announcing a change at CEO, as well as a decision to pull its video business off the sales block following a review (yes, a strategic one).
Nimrod Ben-Natan, a 28-year product strategy veteran at the company, will step into the lead role, replacing Patrick Harshman, who is set to retire as president and CEO in June. Ben-Natan has led Harmonic's broadband business as senior VP and GM since 2012.
“Nimrod is ideally suited to lead Harmonic and our talented global team into its next chapter of innovation and growth,” Harshman said in a statement.
Added Raymond James analyst Simon Leopold: “While we see C-level transitions as a risk, we know Ben-Natan, and we expect a smooth transition.”
As for Harmonic's video unit, the company initiated a review back in October, with Harshman at the time telling equity analysts, “Due to changes in the marketplace and our customer strategies, synergies between our broadband and video businesses are now less compelling.”
Harmonic has a huge market lead in virtualized cable-network technology and is now making that an area of focus. Ben-Natan has overseen those initiatives.
However, the company doesn't seem to have received a compelling offer for its video assets.
"The board concluded its review and determined that current market conditions do not support its value creation objectives for the video business,” Harmonic said in its Tuesday statement.
