Arris reports another hot quarter, net income up 75% in Q3

Arris
Image: Arris

Arris Group reported another quarter of solid sales with revenue increasing 41 percent year-over-year to $1.725 billion in the third quarter, while income rose 75 percent to $146.7 million.

Overall, Arris reported revenue of $1.231 billion for its customer premises equipment unit, up from just $812 million for the third quarter of 2015. Network and cloud sales totaled $504 million, up from $410 million in the year-ago time period. 

RELATED: Charter, Arris partner up for WorldBox 2.0

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Sales were up from segments ranging from video CPE to cable network access equipment. 

Video CPE revenue increased 101 percent on a year-over-year basis, with Arris launching a 4K set-tops with Telus Optik TV in Canada and Portugal Telecom’s MEO 4K service. But it was the overall integration of the Pace product lines that made the biggest difference.

Boding well for quarters to come: Arris just announced a partnership with Charter Communications during the quarter for the operator’s Worldbox 2.0 program. And Arris has partnered with Telefónica to deliver a broad range of new set-tops incorporating the latest technologies across their satellite, cable, and telco networks.

Broadband CPE, meanwhile, was up 3 percent over Q3 2015, with Arris launching what it called a new portfolio of residential gateways with a “large North American service provider. The company also said a U.S. cable operator had rendered an order for a 24-channel downstream gateway. 

RELATED: Charter and Arris set up warrant agreement tied to network and cloud sales

On the network and cloud side, business was up 23 percent year-over-year. 

New CEO Bruce McCLelland said Arris expects good things as it begins ramping up product lines for Distributed Access Architectures.

"DAA moves the generation of the QAM signal out to the fiber node and leverages digital optics to support longer transmission lengths, support faster broadband speeds and more capacity," he said. "We demonstrated these capabilities at SCTE, and we expect to begin lab and field trials in the first half of 2017."

McClelland added that, "In parallel, we expect there will be a significant upgrade cycle starting in 2017, as operators take advantage of the increased density and capabilities of our second generation E6000 hardware technology. We are now in production and shipping our uCAM-II upstream line card, which improves density and provides support for DOCSIS 3.1. We expect to declare general availability and begin recognizing revenue in the fourth quarter. The remaining gen 2 downstream and routing modules will start to ship to customers for testing late in the first quarter. We will also begin customer validation of a new 10-gig EPON line card at the same time."

For Arris, it was the first quarter under McCLelland, who recently took over the reigns from Bob Stanzione. 

"Of course it's a little intimidating to follow in the footsteps that Bob has created, but I couldn't have asked for a better training ground for the last 15 years," McClelland said. "And with Bob's continued support, the support of Dave and the executive management team, and the hard work of the incredible Arris team, I'm very confident our greatest days are still ahead."

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