In an indicator that cable's hardware demands may be at least temporarily sated--or that cable is making its long-awaited shift into a new era of IP-enabled products--equipment maker Arris (Nasdaq: ARRS) reported that its fourth quarter revenue was down 11.3 percent ($262.2 million versus $300 million) year-over-year and pointed to weaker sales to leading customers Comcast (Nasdaq: CMCSA) and Time Warner Cable (NYSE: TWC-WI) as a reason.
Comcast, which has been aggressively promoting higher commercial broadband speeds with Arris DOCSIS equipment, bought $83.5 million worth of gear, down from $89.8 million; TWC chimed in with only $45.4 million compared to $82.3 million a year ago.
Arris CFO David Potts noted that the vendor is "off to a good start in 2011" and CEO Bob Stanzione promised that Arris would "continue to invest heavily in new IP-based video products as the industry moves towards a convergence of conventional TV and IP-based TV."
- see this news release
Arris reaps rewards of cable's DOCSIS 3.0 drive
Arris has high hopes for Q4 09
Comcast prepared to offer high broadband speeds at high broadband prices