Arris: CCAP Revenues Start to Trickle In
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