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Arris Enhances Product Portfolio

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Arris Group Inc. (ARRS - Free Report) – a global technology leader in the development of advanced cable telephony and next-generation high-speed data network – has launched ARRIS SE-7000 encoder. The introduction of SE-7000, a fourth-generation video compression system, will  help content developers to create High Efficiency Video Coding (HEVC) technology.

The encoder will reduce bandwidth requirements by nearly 50% and will also deliver live HEVC streaming over the MPEG2 TS standard. Additionally, the technology will support both HEVC and Advanced Video Coding (AVC) streamings, and  IP and baseband SDI inputs.

Increased demand for high resolution video content has resulted in huge bandwidth requirements. Thus, the launch of SE-7000 will facilitate the delivery of more videos at limited bandwidth through wireless, DSL or DOCSIS networks.

Arris recently acquired the cable set-top box business of Motorola Mobility, a subsidiary of Google Inc. , for a total consideration of $2.35 billion. The acquisition of will help Arris attain a strong foothold in the video offerings market.

In the second quarter of 2013, Arris’ total revenue was $1,000.4 million, up 186.4% year over year. The Customer Premises Equipments (CPE) segment of Arris generated $663 million of total revenue, up by a whopping 344% over the prior-year quarter. The company stated that 90% of its total CPE shipment was for the DOCSIS 3.0 network.

Comcast Corp. (CMCSA - Free Report) and Time Warner Cable are the largest customers of Arris and have together contributed 43% of Arris’ total revenue. Hence, we believe that by launching such innovative products the company will continue to drive its top-line growth.

Currently, Arris Group Inc. carries a Zacks Rank #3 (Hold).

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