& 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
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 Interviews
No Stopping Cable's Ethernet Gains

12|9|16   |     |   (0) comments


Vertical Systems' Erin Dunne explains why US cable operators, which now command a record-high 26% of the Ethernet market, will keep boosting their share.
LRTV Interviews
Fixing IoT Security Is an Ecosystem Challenge

12|9|16   |   05:34   |   (1) comment


Level 3 Communications' Chief Security Officer Dale Drew says service providers, manufacturers and even consumers must combine to halt massive DDoS attacks using IoT devices in botnets. The solution he has in mind includes reputation-based routing by the service provider but also more secure endpoint devices and greater consumer awareness.
LRTV Interviews
Cox Clears $2B in Business Revenue

12|8|16   |     |   (0) comments


Cox's Jeff Breaux discusses how the third-largest US MSO will reach the $2 billion revenue mark this year and plans to hit $3 billion by 2021
LRTV Interviews
Can Cable Climb Upmarket?

12|7|16   |     |   (0) comments


Carol Wilson and Alan Breznick assess cable's prospects for winning more enterprises in a landscape rocked by corporate M&A activity.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (1) comment


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BT’s Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
Upcoming Live Events
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Small Arctic ISP Caches Netflix in New Way
Mari Silbey, Senior Editor, Cable/Video, 12/7/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
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
A Mobile Safari Click Here
Literally.
Latest Comment
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.