Arris Group Inc.
) - a global technology leader in the development of advanced
cable telephony, next-generation high-speed data network, started
developing E6000 converged edged router for the cable MSOs, which
will eventually impact the top-line growth of Arris from this
During the second half of 2012, Arris introduced E6000 router,
which will act as a powerful C4 cable modem termination system
(CMTS) of the company while it can be converted into a Converged
Cable Access Platform (CCAP).
CCAP will help the carriers to maximize bandwidth, simplify
the operational structure and evolve according to the
subscribers' demand. E6000 will integrate edge QAM legacy video
architecture and CMTS DOCSIS IP network of Arris, so that the
cable TV operators can get a readymade integrated-IP
Time Warner Cable
) are the two largest customers of Arris, with combined video
subscriber base of more than 30 million. Moreover, these two
constitute 51.1% of Arris' total revenue and are gradually
exploring CCAP, having nearly completed the deployment of Docsis
3.0 technology across both the customers' footprints.
Hence, both huge subscriber base and the deployment of Docsis
3.0 technology may bolster the demand for Arris' new E6000
In the recently concluded quarter, Arris' total revenue was
$344 million, up 22.4% year over year but fell shy of the Zacks
Consensus Estimate of $354 million. However, the company exited
the quarter with a strong order backlog of $222.6 million.
Arris has decided to purchase the cable set top box business
of Motorola Mobility, which is a subsidiary of
). The deal is expected to get regulatory approval by the second
quarter of 2013. Successful completion of the deal will further
strengthen the position of Arris going forward.
Currently, Arris Group carries a Zacks Rank #2 (Buy).
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