ARRIS chief : CPE shifting towards broadband
According to Bruce McClelland , CEO of IP with broadband technology specialist ARRIS International , the company expects sales in the CPE segment to continue to shift towards the higher mix of broadband and less video .
Speaking on ARRIS ’ s Q4 2017 Results Earnings Call , McClelland noted that in the CPE segment results benefited from a good mix of higher margin products and continued focus on product cost . “ It was very pleasing to see the new Ruckus enterprise business perform well with a great team effort to hit the ground running and execute on key customer shipments in December ,” he told analysts , suggesting the company was “ very well positioned ” to benefit from the growth in over-the-top traffic and the
|
increasing dependency on the broadband network .
“ In our CPE business , we have two clear goals in 2018 : expanding our broadband portfolio and improving overall profitability . The upgrade cycle supporting the deployment of 4K video gained momentum in 2017 and we announced new products and supported launches with many of our customers .”
“ In 2018 , we ’ re very focused on expanding our broadband CPE portfolio with a full range of DOCSIS fibre , copper , and broadband wireless devices . And we will be at the forefront of new in-home wireless and networking technologies . And the increased focus on growing our international presence paid off in 2017 , with sales increasing by
|
more than 15 per cent , we expect to build on this in 2018 with improved visibility in Latin America and strong momentum in Europe and the enterprise business has good moment in all regions .”
In the CPE segment , sales of broadband devices increased 7 % year-over-year with growing momentum in advance DOCSIS gateways resulting in another record level of DOCSIS devices in the fourth quarter . Video set up sales declined 13 year-over-year on lower volumes and a shift in mix towards lighter-weight client devices .
“ We expect demand for gigabit capable broadband devices to continue to strengthen as service providers increase broadband speeds and further their
|
migration towards IP-delivered video services . We expect continued international growth on the strength of new advanced 4K set-top design wins and as the global refresh cycle accelerates , as an example we just announced the new deployment when with Bell Canada for an advanced Set-Top featuring the latest 4K HDR capabilities with integrated Wi-Fi . And we ’ re seeing continued improvements in the Latin American region as investments begin to return to normal .”
“ We expect sales in the CPE segment to continue to shift towards the higher mix of broadband and less video . And while overall demand remains pretty strong for set-tops , we ’ re being more selective and focused more on profitability than on sales growth . Overall , I think CPE sales will be flat to down 4 per cent year-over-year ,” he advised .
|