& cplSiteName &

Arris: CCAP Revenues Start to Trickle In

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
2/7/2013
50%
50%

Arris Group Inc. said the first revenues tied to its next-generation cable access platform, the E6000, should start to creep in during the current quarter. But sales won't be a barn-burner right away. "We now have live traffic running on the E6000 and we expect to score our first revenues this quarter," Arris Chairman and CEO Bob Stanzione said on Wednesday's fourth quarter earnings call. He said field trials of the E6000 are expanding and that Arris has begun to ramp-up production. But don't expect the E6000 to be a big contributor just yet. An analyst asked if he could expect the product to bring in less than $5 million in the current quarter. Stanzione wouldn't give a number, but said revenues would be "pretty modest." Arris also didn't identify who will be responsible for those first-ever E6000 revenues, but Comcast Corp. and Time Warner Cable Inc. have both championed the new architecture and are Arris's two biggest customers. The E6000 is starting out as a super-dense cable modem termination system (CMTS), but Arris will evolve it into a full-fledged Converged Cable Access Platform (CCAP), which will integrate both the CMTS and edge QAM functions and help cable operators support all services on a unified space- and power-saving platform. (See Arris Unleashes a Monster CMTS.) Cisco Systems Inc., Casa Systems Inc., Harmonic Inc. and CommScope Inc. will also be chasing after a CCAP market that's expected to be worth more than $1 billion. Motorola Mobility LLC is pushing a CCAP strategy as well, but the fate of it likely won't be known until after Arris completes the acquisition of Motorola's Home business. (See Sizing Up the CCAP Players.) Motorola update
Speaking of that deal, Stanzione said Arris still expects to close it in the second quarter, noting that Arris has received the debt ratings it wanted and that "the financing commitments are nearly finalized." Integration teams are drawing up the transition plans. He also downplayed the suggestion that Comcast's recent decision to buy a 7.85 percent stake in Arris will give it a built-in advantage over other vendors. "I don't think [the investment] is going to sway their purchasing decisions one bit," Stanzione said. "They have a multi-supplier policy and I think they will stick to it." (See Comcast to Plow $150M Into Arris.) He acknowledged that Comcast's investment served as an endorsement for the deal. As for other motivations, "they [Comcast] were interested in the Motorola Home business winding up in a good place," the Arris CEO added. Financial snapshot
Arris earned $0.28 per share on revenues of $344 million in the fourth quarter. The profit met Wall Street expectations, but revenues were short of the anticipated $354 million. Arris expects first quarter revenues of $350 million to $370 million, above the $338 million anticipated by analysts. Downstream CMTS shipments rose to 105,246 ports in the third quarter, while modems and other consumer premises equipment (CPE) dipped to 2.26 million units, off 14 percent from the previous quarter. About 87 percent of the CPE shipped in the period had that distinct Docsis 3.0 flavor.

— Jeff Baumgartner, Site Editor, Light Reading Cable



(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
2/8/2013 | 10:58:23 AM
re: Arris: CCAP Revenues Start to Trickle In
Well, it's a start. If revenues for this product are indeed less than $5M, then it's probably hard for investors to get too excited about it yet, but it does at least mark an important milestone.-á It appears that rollouts for CCAP-based gear should accelerate a bit in the second half of the year, with 2014 viewed as CCAP's first significant rollout year. JB-á
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
UPCOMING COURSE SCHEDULE
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
Friday, October 21, 1:00PM EDT
Security: Evolving the Data Center
Rasool Kareem Irfan, Head, Telecom & Infrastructure Security Practice, Tata Communications Transformation Services Ltd (TCTS)
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
From Philly, With Love

9|30|16   |     |   (5) comments


Join Alan Breznick, cable's answer to the Italian Stallion, as he runs through the highlights of SCTE Cable-Tec Expo, lumbers along in Rocky Balboa's footsteps and searches for the perfect Philadelphia cheesesteak.
LRTV Interviews
CenturyLink: SD-WAN Customers Looking for Value Not Cost Savings

9|30|16   |   5:31   |   (0) comments


At NFV & Carrier SDN in Denver, CenturyLink's Eric Nowak told Light Reading that when customers launch SD-WAN, they aren't necessary looking to save money, but instead they are looking for more value from what they're spending. He also shared some unique case studies and lessons learned from launching SD-WAN services.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments


For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments


Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
AT&T CEO Backs Black Lives Matter
Dan Jones, Mobile Editor, 9/30/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
From Philly, With Love
Alan Breznick, Cable/Video Practice Leader, Light Reading, 9/30/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.