ARRIS' Subsidiary Introduces SmartZone Network Controllers

ARRIS International plc’s (NASDAQ:ARRS) subsidiary, Ruckus Networks, recently announced the availability of SmartZone network controllers — enhanced versions of its SmartZone WLAN controllers. The SmartZone network controllers are powered by the company’s newly released SmartZoneOS software. Notably, the latest SmartZone network controller family incorporates physical and virtual appliances developed for managed service providers.

Launched in 2015, SmartZoneOS powered controllers helps in combining scalability, architectural flexibility, tiered multi-tenancy and extensive APIs into a single centrally-managed element. With the help of these capabilities, managed service providers can implement complex, multi-tier and as-a-service business models. Also, these controllers facilitate management of subscriber data traffic on a huge scale. Furthermore, with the help of SmartZone network controllers, enterprises can simplify network management through consolidation, and use of built-in troubleshooting and analytics tools.

Existing Business Scenario

Consumer demand for high speed Internet with more capacity continues to accelerate, courtesy of increasing consumption of video. ARRIS aims to enable customers to manage this exponential bandwidth growth cost effectively through steady investments in state-of-the-art technologies.

Moreover, the company is transforming the entertainment experience through a holistic approach toward content delivery, leveraging its expertise in the cloud, network, and home, to help providers anticipate high demand for personalized, relevant, and mobile experiences. ARRIS also collaborates with its global customers to transform the entire delivery chain from content creation to consumption. All these augurs well for the company’s solid long-term growth.

However, in the past six months, this Zacks Rank #3 (Hold) company’s shares have lost 3.1% against the industry’s 1.1% rise. Further, the company’s international operations are significantly exposed to foreign currency exchange rate risk. High R&D costs for technology-driven products remain another significant challenge.

Key Picks

Some better-ranked stocks in the same space include AudioCodes Ltd. (NASDAQ:AUDC) , Motorola Solutions, Inc. (NYSE:MSI) and NetApp, Inc. (NASDAQ:NTAP) . All these three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AudioCodes surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 16.16%.

Motorola Solutions outpaced estimates in the preceding four quarters, with an average earnings surprise of 12.09%.

NetApp exceeded estimates in the preceding four quarters, with an average earnings surprise of 11.02%.

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