Arris CEO Bob Stanzione says the company sees optimism for broadband delivery products, but has warned of a short-term decline in demand for CTMS units. “We’re seeing more of a product mix than we expected and that’s going to have an impact in the current quarter,” Stanzione told a second quarter investor call.
The company shipped close to 1.4 million DOCSIS 2 and DOCSIS 3 CPE units in Q2, up 18.4% quarter-on-quarter to the highest level of the last six quarters. Stanzione said the highest promotion of customer premises equipment (CPE) sales was for DOCSIS 3 that represented 14% in Q1 and 24% in Q2.
“A few operators who have a DOCSIS 3 infrastructure in place seem to have shifted some of their high speed data capex investments from the network to the home and as a result we now expect a short term slowdown in our CMTS sales along with a sharp increase in DOCSIS 3 CPE sales.” Stanzione said the company was confident the decline was a temporary phenomenon.
International remains a solid growth area with sales up more than 26% year-over-year.
Income at Arris Group edged up in the second quarter, orders from US MSOs Comcast and Time Warner helped the cable technology supplier increase earnings by $1.9 million to $280.4m year-on-year. First half revenues were $547.1m, up from $532m.