Arris reports flat revenue in Q3
Thu, 10/28/2010 - 8:35am
Arris Group reported third-quarter revenue that was essentially flat from the comparable quarter a year ago, and down just a smidge from the immediately preceding second quarter.
"Third-quarter financial results came in as we had forecast, with CPE sales during the quarter at the highest level since 2007," said Bob Stanzione, Arris' chairman and CEO. "As a result of our efforts to expand our portfolio with new IP video-based products, as well as the increased demand that we anticipate for our core products, we continue to see our total addressable market growing significantly in the coming years."
Arris' margins dropped more than 4 points to 37.2 percent, an expected result due to a shift in product mix – presumably the increased reliance on CPE Stanzione referred to.
Arris' Q3 2010 sales were $274.3 million, compared with third-quarter 2009 revenue of $275.8 million. Second-quarter 2010 revenue was $280.4 million. Net Q3 income was $14 million, compared with a net of $21.7 million in the third quarter of 2009.
Order backlogs and the company's book-to-bill are both lower than previous quarters. As a result, the company is expecting that fourth-quarter revenues might be lower, but if everything falls into place, Q4 revenue could match that of Q3.
"With respect to the fourth-quarter 2010, we now project that revenues for the company will be in the range of $250 to $275 million, with adjusted net income per diluted share in the range of $0.14 to $0.18, and GAAP net income per diluted share in the range of $0.05 to $0.09," said David Potts, Arris' executive vice president and CFO.