Arris 1Q Earnings Underperform - Analyst Blog
April 25 2013 - 5:10AM
Zacks
Yesterday, after the closing bell,
Arris Group Inc. (ARRS) declared its financial
results for the first quarter of 2013, which fell below the Zacks
Consensus Estimates. As a result, in the after market trade on
NASDAQ, the stock price of Arris was down 33 cents (0.84%) to
$18.31.
However, the company exited the
third quarter with a strong order backlog. Arris currently has a
Zacks Rank #3 (Hold). The company recently acquired the cable
set-top box business of Motorola Mobility, a subsidiary of
Google Inc. (GOOG).
GAAP net loss in the second quarter
of 2013 was $14.7 million or a loss of 13 cents per share compared
with a net income of $5.8 million or 5 cents per share in the
prior-year quarter. However, quarterly adjusted (excluding special
items) earnings per share came in at 17 cents, which fell below the
Zacks Consensus Estimate of 21 cents.
Quarterly total revenue was $353.7
million, up 16.8% year over year but missed the Zacks Consensus
Estimate of $358 million. Quarterly Domestic revenue was 68.3%
while International revenue was 31.7%. Comcast
Corp. (CMCSA) and Time Warner Cable Inc.
(TWC) together constituted 43% of the total first-quarter revenue
of Arris.
Quarterly gross margin came in at
30.7% compared with 36% in the year-ago quarter. Operating
income, in the reported quarter, was $9.5 million compared with
$11.7 million in the prior-year quarter. Quarterly operating margin
was 2.7% compared with 3.9% in the year-ago quarter.
Total order backlog of Arris, at
the end of the reported quarter, was $282.1 million compared with
$277.7 million at the end of the year-ago quarter. Book-to-bill
ratio was 1.17 in the last quarter compared with 1.43 in the
prior-year quarter.
Arris generated $50.1 million of
cash from operations during the first quarter of 2013 compared with
$35.3 million in the prior-year quarter. Quarterly free cash flow
(cash flow from operation-less capital expenditure) was $43.8
million compared with $31.5 million in the year-ago quarter. At the
end of the reported quarter, Arris had $608.4 million of cash &
marketable securities on its balance sheet compared with $530.1
million at the end of 2012. Total debt was $225.4 million at the
end of the reported quarter compared with $222.1 million at the end
of 2012.
Broadband Communications
Systems Segment
Quarterly revenue was $288.3
million, up 17.9% year over year. Quarterly gross margin was 31.6%
compared with 36.6% in the year-ago quarter. Arris shipped a
record-high 2.864 million CPE units, 92% of which are DOCSIS 3.0.
The company also shipped a record-high 122,700 C4 CMTS downstream
ports. The company’s E6000 Cable Edge Router gained market
traction.
Access, Transport, &
Supplies Segment
Quarterly revenue was $52.3
million, up 18.6% year over year. Quarterly gross margin was 20.7%,
compared with 24.1% year over year.
Media & Communication
System Segment
Quarterly revenue was $13 million,
down 9.1% year over year. Quarterly gross margin was 50.5% compared
with 60.8% in the year-ago quarter.
ARRIS GROUP INC (ARRS): Free Stock Analysis Report
COMCAST CORP A (CMCSA): Free Stock Analysis Report
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From May 2024 to Jun 2024
ARRIS International plc (NASDAQ:ARRS)
Historical Stock Chart
From Jun 2023 to Jun 2024