Arris Group Inc.
) plans to present its end-to-end video, data and voice solutions
to the IBC Exhibition and Conference, between September 7 to 11 in
In the exhibition, ARRIS will exhibit smooth functioning of
content delivery by supplying service providers with improved
capacity and a seamless migration path between legacy service
delivery and next-generation IP networks.
During the exhibition, ARRIS intends to give demonstration on
innovative products like ARRIS VIPr, an advanced video processing
platform, a next generation video transcoder generating video
streams in multiple bit rates, multiple formats and multiple
resolutions in order to support multi-screen, high quality HD/SD
The ARRIS Whole Home Solution, which is a centralized
triple-play gateway solution comprising a media gateway, players,
Moxi® user interface and cloud services portal, escorts the
personalization and management of home entertainment and media to
an entirely new level.
A few days back, ARRIS posted solid financial results for the
second quarter of 2012, handily beating the Zacks Consensus
Estimates. Arris Group benefited as several cable MSOs upgraded
their customer premises equipments (CPEs) with high-speed DOCSIS
Arris completed the acquisition of BigBand Networks Inc. We
believe the acquisition of BigBand is a major step by Arris to
convert itself as an all IP-converged network architecture solution
However, we believe the market for broadband infrastructure
offerings is highly competitive and is prolifically supplied by
large companies, including
) controlled Motorola Mobility,
Cisco Systems, Inc.
) and LM Ericsson.
These competitors have broader product portfolios targeting
diversified markets of cable TV, telecom, and satellite
communications. Diversification into digital video market may not
generate expected results since all these bigger rivals already
have strong footings in the business.
Moreover, higher startup cost of the newly launched products
coupled with limited customer base will continue to act headwind
for the company going forward. We, thus maintain our long-term
Neutral recommendation on ARRIS.
Currently, ARRIS has a short-term Zacks #3 Rank (Hold) on the
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