Arris Group Inc.
(
ARRS
), a global technology leader in the development of next-generation
high-speed data network, has unveiled the Release 8.1 software for
its industry leading Cable Modem Termination System (CMTS)
business. The latest offering will augment the performance of its
existing C4 CMTS and C4c CMTS line of products.
Release 8.1 along with the System Control Module 3 (SCM)
provides certain improved features including higher performance for
control plane related tasks like IP Detailed Record (IPDR), Simple
Network Management Protocol (SNMP) and Command Line interface among
others. Additionally, this feature rich software can support DOCSIS
3.0 upstream channel bonding with IPv6 capabilities.
CMTS is an equipment, typically placed in a piece of headend and
are used to provide high speed data services over cable internet or
voice-over Internet Protocol (VOIP) technology. Arris C4 CMTS along
with its upgraded features support upstream services in as low as 5
MHz frequency and as high as 85 MHz, thereby enabling operators to
use more spectrums for future services in a cost effective manner.
The company has shipped 75,662 C4 CMTS downstream ports in the
second quarter of 2012.
Arris will benefit from the intense competition between cable
operators, satellite carriers and telecom service providers for
broadband market share. As residential VoIP and HDTV services
continue to grow, operators have started dealing with increased
network traffic, resulting from robust demand for video download
and file sharing. We believe Release 8.1 software will be a value
addition to Arris's already popular CMTS product line and will
strengthen its already impressive order book.
Arris' second quarter 2012 revenue was $349.3 million, up 31.4%
year over year and 2.1% from the Zacks Consensus Estimate of $342.0
million. Domestic revenue for the quarter was 74%, while
International revenue was 26%. Two of Arris' biggest clients -
Comcast Corp.
(
CMCSA
) and
Time Warner Cable Inc
. (
TWC
) - together constituted 49.1% of the total second-quarter
revenue.
We are maintaining our long-term Neutral recommendation on Arris
Group Inc. The company also retains a Zacks #3 Rank, implying a
short-term Hold rating.
ARRIS GROUP INC (ARRS): Free Stock Analysis
Report
COMCAST CORP A (CMCSA): Free Stock Analysis
Report
TIME WARNER CAB (TWC): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research