Increased sales to Time Warner Cable boost Q4 revenue at Arris

Cable technology vendor Arris (Nasdaq: ARRS) reported $284.1 million in fourth-quarter sales, up nearly $19 million from this time last year, which it attributed in part to increased sales to Time Warner Cable (NYSE: TWC).

Arris is benefiting from demand from cable subscribers using connected devices in the home, CEO Bob Stanzione told analysts Wednesday. "This plethora of connected devices that are being sold right now are putting more and more Wi-Fi traffic up on the network, and that's an exciting proposition for us because our customers are demanding more of these higher value CPE [customer premise equipment] devices," Stanzione said.

Arris sells cable modem termination systems, Wi-Fi routers, set-tops and ad-insertion technology. While Stanzione said that sales to Time Warner Cable were "up sharply" compared to the third quarter, he said sales to top MSO Comcast (Nasdaq: CMCSA) had decreased during the quarter. Arris reported $274.4 million in sales during the third quarter.

Arris is beginning to see more demand for its Moxi Gateway product line, which includes a Moxi Gateway Player containing six tuners capable of allowing viewers to record six programs simultaneously from multiple rooms in a home. Stanzione said cable overbuilder WideOpenWest began deploying the Moxi Gateway this week, and the company also expects Ohio cable operator Buckeye CableSystem to launch the product "very soon."

Arris, which acquired digital ad insertion technology company BigBand Networks last year, also saw increased sales of ad-insertion gear to a tier 1 cable MSO.

"The outlook for 2012 is bright, and we believe we have the program in place to achieve our goals of 10 percent revenue growth," Stanzione said.

Arris projects that it will generate revenue in the range of $285 million to $305 million during the first quarter.

For more:
- see the earnings release

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