Arris (Nasdaq: ARRS) revenues down, IP focus up as Comcast, Time Warner buy less

In an indicator that cable's hardware demands may be at least temporarily sated--or that cable is making its long-awaited shift into a new era of IP-enabled products--equipment maker Arris (Nasdaq: ARRS) reported that its fourth quarter revenue was down 11.3 percent ($262.2 million versus $300 million) year-over-year and pointed to weaker sales to leading customers Comcast (Nasdaq: CMCSA) and Time Warner Cable (NYSE: TWC-WI) as a reason.

Comcast, which has been aggressively promoting higher commercial broadband speeds with Arris DOCSIS equipment, bought $83.5 million worth of gear, down from $89.8 million; TWC chimed in with only $45.4 million compared to $82.3 million a year ago.

Arris CFO David Potts noted that the vendor is "off to a good start in 2011" and CEO Bob Stanzione promised that Arris would "continue to invest heavily in new IP-based video products as the industry moves towards a convergence of conventional TV and IP-based TV."

For more:
- see this news release

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