Back to top

Analyst Blog

Arris Group Inc. (ARRS - Analyst Report) – 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 - Analyst Report), Verizon Communications Inc. (VZ - Analyst Report) and Time Warner Cable (TWC - Analyst Report) 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).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.48 +6.04%
BITAUTO HOL… BITA 81.73 +5.15%
CHINA BIOLO… CBPO 47.92 +3.32%
CTPARTNERS… CTP 16.49 +3.19%
STRATTEC SE… STRT 73.90 +3.15%