Arris reported a 33 percent uptick in first quarter revenue to $1.615 billion, a result that exceeded analysts' forecast and was driven by improvements in both network/cloud and CPE sales.
CPE sales were also up 33 percent year-over-year, and 64 percent over the prior quarter, with Arris crediting the integration of Pace DOCSIS and DSL product lines for the improvement in sales. Arris closed its $2.1 billion acquisition of Pace in January. Today's earnings call was the newly merged company's first as the rechristened Arris International.
Network and cloud sales, meanwhile, were also up 33 percent compared to the first quarter of 2015, with Arris crediting part of that result to record sales of its E6000 CCAP platform.
Arris CEO Bob Stanzione painted a positive outlook for investors in the coming quarters, noting that many of the company's operator clients "are reporting great first quarters and big CAPEX plans."
With cable's big mergers about to close, he said, "we're looking forward to having greater visibility."
Stanzione also said that softness in the telco sector is beginning to abate, with AT&T beginning to get its feet under it in regard to managing DirecTV, and Verizon's FiOS assets having been transferred to Frontier Communications, which Stanzione said will likely be a more "aggressive" spender.
Asked about the FCC's proposal to disrupt the pay-TV set-top leasing business, Stanzione said Arris continues to oppose the plan. "In the worst case, I think the impact is a couple of years off," he added. "But in that worst case, it could also open up a retail market, which we're pretty excited about."
- read this Arris earnings release
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