Arris, China Network System Pen Deal - Analyst Blog
March 21 2014 - 7:34PM
Zacks
Arris Group Inc. (ARRS) – a leading video and
broadband gear manufacturer – has recently entered into a deal with
a major Taiwanese MSO, China Network System Co. Ltd. (CNS). Per the
contract, Arris will supply high-definition set-tops (HMC3000) and
a middleware platform (KreaTV) to China Network System.
Nationwide, China Network serves more than one million subscribers.
So converting its basic video subscriber base into a fully
digitalized format will create considerable opportunities for Arris
going forward.
By installing Arris’s two-way applications over its IP network and
digital TV service, CNS will not only be able to trim down costs
but will also deliver high-quality video services. Moreover, CNS
can support value-added services over the enhanced network.
Arris will also offer HFC solutions, DOCSIS3.0 cable modems (the
SB6141) & gateways (the SBG6580) to CNS. The modems and
gateways will support two-way applications on KreaTV.
In the fourth quarter of 2013, Arris’ total revenue stood at
$1,199.1 million, up a whopping 248.6% year over year. The
company’s Customer Premises Equipments (CPE) segment generated
$865.4 million of total revenue, up by a substantial 434.9% over
the prior-year quarter. Quarterly Domestic revenues accounted for
68.9% of the total revenue while International revenues contributed
the remaining 31.1%.
Comcast Corp. (CMCSA), Verizon
Communications Inc. (VZ) and Time Warner
Cable (TWC) have together contributed 38% of Arris’ total
revenue in the fourth quarter of 2014. Hence, we believe that a
strong product portfolio and continuous contract wins will
significantly boost the company’s top line moving ahead.
Currently, Arris Group Inc. carries a Zacks Rank #3 (Hold).
ARRIS GROUP INC (ARRS): Free Stock Analysis Report
COMCAST CORP A (CMCSA): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From Jun 2024 to Jul 2024
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From Jul 2023 to Jul 2024