Arris Expects Sales To Pick Up In Q2
Cable-Equipment Provider Reports 7.3% Decline in Quarterly Revenue
By Todd Spangler -- Multichannel News, 4/29/2009 4:33:54 PM
Arris Group's first-quarter 2009 revenue declined 7.3% from the year-ago period -- in line with previously announced expectations -- but the cable voice and data equipment company said it expects stronger demand to boost results for the current quarter.
Revenue was $253.5 million compared with $273.5 million in the first quarter 2008. Arris told investors in February that sales in the first three months of the year would be weaker than expected, citing the broad economic slowdown and noting that Comcast, its single biggest customer, "took a breather" on network deployments in the period.
Arris projected that second quarter 2009 revenue will be $270 million to $290 million with net income of $0.12 to $0.16 per diluted share.
Net income in the first quarter 2009 was $12.9 million ($0.10 per diluted share), compared with $3.8 million ($0.03 per diluted share) in the year-ago quarter. Arris improved gross margin to 37.7% in the most recent quarter, versus 31.2% in the first quarter 2008.
"Although macroeconomic conditions caused 2009 to start off somewhat slowly, we delivered a solid quarter with significantly higher earnings than a year ago," Arris chairman and CEO Bob Stanzione said in a statement. "During the quarter we have seen positive signs in our business that, coupled with the current plans of our customers, gives me cautious optimism that our business will gain momentum in the second quarter and beyond."
The company said order backlog at the end of the first quarter was $155 million with a "book-to-bill" ratio of 1.16, compared with an order backlog of $114.8 million and book-to-bill ratio of 0.90 for the fourth quarter 2008.
Arris said in the first quarter, it shipped 1.26 million voice modems (embedded multimedia terminal adapters); 58,876 cable modems; 33,598 CMTS upstream ports; and 24,516 CMTS downstream ports.
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