ARRIS International plc, together with its subsidiaries, provides media entertainment and data communications solutions in the United States and internationally. It operates through two segments, Customer Premises Equipment and Network & Cloud. The Customer Premises Equipment segment offers various product solutions, including set-top boxes, gateways, digital subscriber lines and cable modems, and wireless connectivity or other wired connectivity products that enable service providers to offer voice, video, and high-speed data services to residential and business subscribers. The Network & Cloud segment provides cable modem termination system, converged cable access platform, passive optical network, service provider and programmer equipment, Ad insertion technologies, and equipment in the ground or on transmission poles, as well as equipment used to initiate the distribution of content-carrying signals. This segment also offers technical support, professional services, and systems integration capabilities; software products that enable providers to deliver content and advertising services; network management products that collect information from the broadband network; and customer experience management solutions, as well as network surveillance and issue correlation software and services. The company was formerly known as ARRIS Group, Inc. and changed its name to ARRIS International plc in January 2016. ARRIS International plc was founded in 1969 and is headquartered in Suwanee, Georgia.
Business Analysis of Arris International
The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Arris International compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Arris International to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Arris International with an interactive chart.
- Revenue Growth: Arris International reported a revenue growth of 42.3% year-on-year during 2016. Communication Equipment Industry grew at 18.7% in the same period
- COGS share of Revenues: As a percentage of revenue, Arris International spent 75.0% of its total revenues on COGS. Communication Equipment industry average (COGS share of revenue) in the same period was 57.5%
- R&D share of Revenues: As a percentage of revenue, Arris International spent 8.6% of its total revenues on R&D. Communication Equipment industry average R&D spending in the same period was 5.6%
- SG&A share of Revenues: As a percentage of revenue, Arris International spent 6.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Communication Equipment industry average SG&A spending in the same period was 15.2%
- Inventory share of Revenues: As a percentage of revenue, Arris International spent 8.1% of its total revenues on Inventories. Communication Equipment industry average Inventory spending in the same period was 7.6%
- Accounts Payable share of Revenues: As a percentage of revenue, Arris International invested 15.4% of its total revenues on Accounts Payable (A/P) Communication Equipment industry average Accounts Payable investment in the same period was 9.0%
- Accounts Receivable share of Revenues: As a percentage of revenue, Arris International invested 21.0% of its total revenues on Accounts Receivable (A/R). Communication Equipment industry average Accounts Receivable investment in the same period was 18.1%
- PP&E share of Revenues: As a percentage of revenue, Arris International invested 5.2% of its total revenues on Property, Plants, and Equipments (PP&E). Communication Equipment industry average PPE investment in the same period was 48.2%
- Intangibles share of Revenues: As a percentage of revenue, Arris International invested 54.1% of its total revenues on Intangibles. Communication Equipment industry average Intangibles investment in the same period was 90.9%
- Net Margins: Arris International Net Margins in the year 2016 were 0.3%. Communication Equipment industry average Net Margins in the same period were 5.0%
Sector and Industry Association of Arris International
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.
Arris International is associated with Telecommunications Sector and Communication Equipment Industry.
Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:
- Telecom Services industry includes providers of fixed-line and mobile telephone services.
- Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.
Industry Ranking of Arris International
With $6.8 billion revenues, Arris International ranked number 2 of all the companies in the US Communication Equipment industry. There were a total of 27 public companies in the US Communication Equipment industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Communication Equipment industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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- Get free data, charts, and analysis of Arris Internationaland its peers on select key performance indicators by clicking the reports provided below