Arris outlines CPE shift

arrisArris has indicated a significant change in the development of set-top boxes and operators’ in home equipment, one that is having a short term effect on sales.

“We announced a Comcast program a month or so ago and there are three or four other significant programs that we can’t announce the specifics on, but they are well along in the planning process and will have a significant impact in the 4th quarter,” said Bob Stanzione, Arris Chairman and CEO in an investor call.

The refinement of the product line follows the Arris acquisition of the Motorola Home business, which the company says continues to be well received.

Larry Robinson, president, customer services equipment, explained that Arris had half a dozen new video products and gateway devices that were in various stages of field trial.

“Obviously there’s several factors that influence sales and what we find ourselves is in the midst of many operators changing their in-home eco-system, which puts us into a situation where we are developing new platforms that take time to get introduced into the market. And while we’re doing that we’re seeing traditional set-top box sales decline.”

Set-top box sales in the first half of 2013, compared to 2012 are down by between eight and 10 per cent.

Revenues in the second quarter 2013 were $1,000.4 million as compared to second quarter 2012 revenues of $349.3 million and as compared to first quarter 2013 revenues of $353.7 million. The figures are weighted from the Motorola acquisition. The Company estimates that prior to the close of the acquisition, Motorola Home recorded approximately $66 million of revenue in the second quarter.

“When I look at the CPE market in general we are going through a significant inflection point, with a much more complicated in home network,” said Robinson.

He said Arris was working with customers to ensure they did not hit the roadblock.