Arris reports flat Q3 with soft set-top sales, but E6000 networking business is a bright spot


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.”


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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.

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