Arris reports 23% video sales drop in Q4, deploys next-gen E6000 in hot network cloud market

Arris E6000 Gen 2 CCAP. (Arris)

Arris reported a narrow 1% drop in fourth-quarter income to $1.74 billion, with video device sales declining 23.4% on a market shift to lighter-weight IP-driven boxes.

“The network-based DVR is becoming more of a significant capability, and the ability of the gateway to service up content to a whole bunch of client devices in the home is also becoming a bigger trend,” Arris CEO Bruce McClelland said during Wednesday’s earnings call. 

However, Arris executives are bullish on 2018, with broadband device sales ticking up 9% to $433 million in fourth-quarter 2017. Network and cloud business is up 18% to $496 million, driven by deployments of Arris’ E6000 CMTS and the overall expansion of cable operator clients of DOCSIS 3.1 networks and technologies like Remote PHY and Remote PON. 

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In particular, Arris expressed confidence in the ability of its recently closed $800 million Ruckus Wireless business to build a brand-new revenue stream in the realm of enterprise networking. McClelland predicted 9% revenue growth in 2018 for Arris based on this addition. 

RELATED: Arris to provide 4K set-tops for Bell Canada’s MediaFirst deployment

McClelland also expressed confidence that client infrastructure investments would be spurred by the Republican-led corporate tax bonanza, as well as the FCC’s recent deregulation of the internet. 

The Suwanee, Georgia-based company announced its fourth-quarter earnings on the same day that it announced deployment of its second-generation E6000 Converged Cable Access Platform (CCAP) to seven clients: Comcast, Grande, TDS and WOW in the U.S.; and NOS Comunicações, LIWEST and TOYA in Europe. 

Announced in October, the E6000 Gen 2 enables customers to upgrade existing CCAP chassis to achieve up to a 70% increase in headend service group density without consuming more rack space.

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