Arris Group Inc.
) - a leading video and broadband gear manufacturer - has
recently entered into a deal with a major Taiwanese MSO, China
Network System Co. Ltd. (CNS). Per the contract, Arris will
supply high-definition set-tops (HMC3000) and a middleware
platform (KreaTV) to China Network System.
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Nationwide, China Network serves more than one million
subscribers. So converting its basic video subscriber base into a
fully digitalized format will create considerable opportunities
for Arris going forward.
By installing Arris's two-way applications over its IP network
and digital TV service, CNS will not only be able to trim down
costs but will also deliver high-quality video services.
Moreover, CNS can support value-added services over the enhanced
Arris will also offer HFC solutions, DOCSIS3.0 cable modems (the
SB6141) & gateways (the SBG6580) to CNS. The modems and
gateways will support two-way applications on KreaTV.
In the fourth quarter of 2013, Arris' total revenue stood at
$1,199.1 million, up a whopping 248.6% year over year. The
company's Customer Premises Equipments (CPE) segment generated
$865.4 million of total revenue, up by a substantial 434.9% over
the prior-year quarter. Quarterly Domestic revenues accounted for
68.9% of the total revenue while International revenues
contributed the remaining 31.1%.
Verizon Communications Inc.
Time Warner Cable
) have together contributed 38% of Arris' total revenue in the
fourth quarter of 2014. Hence, we believe that a strong product
portfolio and continuous contract wins will significantly boost
the company's top line moving ahead.
Currently, Arris Group Inc. carries a Zacks Rank #3 (Hold).