Arris reported its biggest revenue quarter ever, taking $1.73 billion in sales in the second quarter, a 37.3 percent year over year increase.
Sales spiked 40 percent in the pay-TV vendor's CPE division to $1.17 billion, with the company reporting improvements across its video CPE product spectrum. Arris' network and cloud sales grew 33 percent, meanwhile, to $564 million.
On the CPE side, sales were particularly in the video area, where revenue grew 85 percent year-over-year. Arris executives specifically called out the deployment of the ZD4500 set-top as part of NOS' 4K service in Portugal. Arris' VIUOP2262v2 IPTV DVR set-top was also deployed in the quarter by Oman's Omantel.
On the network and cloud side, broadband speed increases by cable operators produced a 33 percent year-over-year sales increase for Arris' access equipment business.
Finally, paying homage to the Pokemon phenomenon, Arris CEO Bob Stanzione remarked, "I've said many times that the fundamental driver of our business is the growth of internet traffic. This augmented reality experience is just the beginning of a surge in demand for networks over the next few years."
Stanzione also credited the growth on the improved "macro-economic" climate — more specifically on a settling U.S. pay-TV market, with consolidation among operators ebbing, at least for now, and Verizon's strike ended.
In telling investors that Arris now plans to hit the high end of its full-year revenue guidance of $6.6 billion to $6.8 million, Stanzione declared that "the U.S. cable market is stable."
"Obviously, Charter buying Time Warner Cable is a big deal, but Comcast is going gangbusters," he said. "What we've seen in the U.S. telco and satellite business is, as the year goes on, DirecTV is gaining some momentum, and Verizon is coming back after its strike and doing more. And we think we'll see Frontier doing some things, as well. The outlook for the second half of the year is really bright."
Remarking on the NCTA's "Ditch the Box" counter-proposal to the FCC, Stanzione remarked, "Set-top boxes are not going away. We've said that before, and we've had trouble getting folks to believe that. But we're designing new next-generation set-tops for major cable operators around the world as we speak. We believe video set-tops will be a major component of our business into the future."
Summing up Arris' strong quarter, Stanzione implored investors to "go play Pokemon Go."
- visit this Arris investor relations page
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