Arris Group’s third quarter revenues fell more than 13 percent annually, or $184 million, to $1.22 billion.
The drop, along with shrinking fourth quarter guidance, caused a sharp decline in Arris’s stock on Wednesday.
During Wednesday afternoon’s earnings call, Arris CEO Robert Stanzione attributed much of the fall to AT&T’s shift away from its U-verse TV product toward DirecTV’s satellite video offering following the successful completion of the companies’ merger.
Arris was the primary video product provider for U-verse so the shift “definitely hurt.”
But Stanzione had reason to be encouraged because Pace has much more of a foothold in the satellite TV CPE business. Both Arris’s and Pace’s boards have already approved the companies’ proposed $2.1 billion merger.
Stanzione also saw other opportunities within the telco space. He expects Verizon FiOS investment to be strong going forward, particularly in the footprint Verizon just sold to Frontier Communications, according to a Seeking Alpha transcript.