Arris Still in Neutral Zone - Analyst Blog
June 22 2011 - 4:15AM
Zacks
We reaffirm our long-term Neutral
recommendation on Arris Group Inc. (ARRS). The
company’s first-quarter 2011 financial results failed to meet the
Zacks Consensus Estimates. Arris is a leading provider of
infrastructure solutions for broadband networks. The company’s
success is mostly dependent on the cable MSOs decision to install
new networks or upgrade the existing networks. If the cable
operators fail to compete effectively with other pay-TV service
providers, then it will significantly affect Arris’ future growth.
Management provided a weak financial outlook for the rest of
2011.
Meanwhile, Arris diversified its
offerings into the digital video market. Several cable TV operators
are increasingly shifting toward an all-IP triple-play converged
architecture offering cost-effective solution to their customers.
In this context, the IP video gateway solutions of Arris may become
its future growth driver. Currently, this IP video gateway is in
deployment with Shaw Communications Inc. (SJR) and
BendBroadband. Moreover, the company is giving trial run with
several other cable operators some of which are expected to start
home gateway deployment in 2011.
Recently, Arris has unveiled an
innovative and upgraded cable modem termination system (CMTS). The
new cable access module (CAM) will be integrated with Arris’
flagship C4 CMTS and will upgrade the C4 CMTS with 24 downstream
ports immediately doubling the speed of the existing 12 downstream
port CMTS. The new upstream card will complement the company’s
recently launched XD CAM that supports 32 downstream ports.
The new CAM will support S-CDMA
technology enabling CMTS to support upstream HFC capability. The
existence of S-CDMA technology will enable Arris’ new cards to
support upstream services in as low as 5 MHz frequency and as high
as 85 MHz. Thus, cable operators can use more spectrums for future
services in a cost effective manner. One of the primary features of
this product is that it can support DOCSIS 3.0 upstream channel
bonding with IPv6 capabilities.
ARRIS GROUP INC (ARRS): Free Stock Analysis Report
SHAW COMMS-CL B (SJR): Free Stock Analysis Report
Zacks Investment Research
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From May 2024 to Jun 2024
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From Jun 2023 to Jun 2024