News

Comcast Worries Weigh On Arris

6/20/2004 8:00 PM Eastern

Independent Research Group analyst Erik Zamkoff lowered his rating on Arris Group Inc. to “neutral” amid concerns the equipment provider’s cable-modem termination system business may not be as robust as expected.

Zamkoff wrote in a report that Arris’s CMTS business is unlikely to meet his forecasts for the second quarter, largely because Comcast Corp. has indicated it will evaluate several different vendors for its planned telephony rollout.

Although Arris is in the running to receive cable telephony business from Time Warner Cable and recently signed a three-year purchase agreement with Liberty Media Corp., Zamkoff said the stock is likely to remain under pressure until the Comcast situation is resolved.

September