Light Reading

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
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
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
Que Sera Sarah
Growth of the 5G Ecosystem

3|6|15   |   1:15   |   (0) comments


Use cases and industry collaborations dominated 5G discussions during Mobile World Congress 2015.
LRTV Custom TV
Sonus NaaS IQ Real-Time Demo

3|6|15   |   4:03   |   (0) comments


Compass Networks Chairman and CEO Matt Bross and Ray Dolin, CEO of Sonus Networks, demonstrate their Sonus IQ SDN solution using a live video conference connection.
LRTV Custom TV
LRTV Talks Carrier WiFi & WiFi Calling With Aptilo Networks

3|6|15   |   4:53   |   (0) comments


We stopped by Aptilo Networks, a market leader in WiFi service management and offloading, to discuss the new possibilities with next-generation WiFi calling and why WiFi should be a natural part of any operator strategy.
LRTV Interviews
NGMN Chairman Outlines His 5G Vision

3|6|15   |   5:10   |   (0) comments


Bruno Jacobfeuerborn, chairman of the NGMN Alliance and Deutsche Telekom CTO, shares his thoughts on the challenges, opportunities and costs of 5G.
LRTV Interviews
In the Cloud With Telecom Italia

3|5|15   |   7:10   |   (0) comments


Light Reading CEO Steve Saunders sits down with Telecom Italia's Simone Battiferri at Mobile World Congress to discuss virtualization, agility and the economic advantages of the cloud.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Verizon Takes Radio Dot to Detroit, VoLTE Overseas
Sarah Thomas, Editorial Operations Director, 2/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.