Arris’ Q1 results fueled by sales to TWC, Charter
Arris reported its first-quarter results yesterday, which were bolstered by increased sales to Time Warner Cable (TWC) and Charter Communications.
For the three months ended March 31, Arris reported a profit of $5.4 million, or 4 cents per share, which was down from a profit of $37.6 million, or 34 cents per share, in the same quarter a year ago. Arris’ adjusted earnings were 12 cents per share for the first quarter.
Arris’ first-quarter 2008 revenues of $273.5 million represented an increase of $38.2 million, or 16 percent, when compared with first-quarter 2007 revenues of $235.3 million. Arris said the increase was primarily due to the acquisition of C-Cor.
Arris CEO Bob Stanzione said that the company’s business with Comcast was down by roughly $62 million in the first quarter, mainly due to slower sales in embedded multimedia terminal adapters (EMTAs), but he expects the Comcast sales to “bounce back nicely,” particularly when the company’s DOCSIS 3.0 products are deployed by Comcast.
First-quarter sales to TWC were a combined $71 million, compared with $46.6 million in the same time frame a year ago. Combined first-quarter sales to Charter were $29 million, compared with $18.5 million in 2007.
Aside from the record sales to TWC and Charter, Stanzione said he expects increased sales of EMTAs in Latin America in the coming months.
Stanzione said that sales of Arris’ D5 Universal EdgeQAM have been slower than expected because switched digital video (SDV) implementations have slowed.
Arris completed its purchase of C-Cor on Dec. 14, and Stanzione was upbeat about the progress of integrating the two companies. He said work still needs to be done on integrating the two companies’ backoffice systems, but he expects most of the work to be completed by the third quarter of this year, with the rest finished off before year’s end.
Arris forecasted second-quarter earnings of 4 cents to 8 cents per share, with adjusted earnings of 13 cents to 17 cents per share on sales of $303 million.
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