Bob Stanzione, ARRIS Chairman and CEO, was answering questions following the announcement of the company’s first quarter results.
Last week the company announced it was purchasing the Pace business, following an earlier acquisition of Active Video Networks.
“There’s a transition going on from video set-top boxes to advanced servers or gateways. That question was asked when we were buying Motorola and since then our stock has gone up two and a half times what it was as a result of ‘this old business that is going away’. We don’t think it is. I can’t see how you can deliver all those services without an advanced gateway.”
Stanzione expressed confidence that Arris will be able to clear any regulatory hurdles required for the recently announced purchase of Pace. Five countries are involved included the UK and the United States.
Revenues in the first quarter 2015 of $1,215.2 million were down $9.8 million on the equivalent quarter in 2014.
It’s expected shipments of the new video gateway to Liberty Global will begin during the third quarter.