Arris reported third-quarter revenue that was essentially flat year over year at nearly $1.73 billion, with its pay TV set-top sales declining, but the vendor enjoyed strong network sales built around its E6000 converged edge router business.
Revenue from Arris’ CPE division declined nearly 5% year over year due to a 12% drop in set-top shipments.
“Clearly, our customers are competing in a changing competitive landscape with increasing fragmentation,” Arris CEO Bruce McClelland told investors. “And in Q3, the traditional pay TV subscriber addition metrics in the U.S. were mostly negative.”
During the third quarter, Arris did have some set-top highlights: The vendor expanded on a partnership with Altice to deploy 4K HDR set-tops across the operator’s global footprint; it saw further expansion of the X1 wholesale business in Canada with Comcast; and it announced the deployment of OTT-capable set-tops built around Android TV.
“While we strongly believe in the power of the multi-faceted bundle offered by our service provider customers, it's really important for me to emphasize that we are very well positioned to benefit from the growth in over-the-top traffic,” McClelland added.
Meanwhile, its Network & Cloud business rose 10% year over year on strong sales of E6000 hardware and software.
Arris also said it achieved a milestone in the quarter, shipping its 200 millionth DOCSIS device.