Arris Misses Q2 Revenue Target
Cable-Equipment Vendor Cites ‘Maturing Demand’ for Voice Modems
By Todd Spangler -- Multichannel News, 7/8/2008 10:34:00 AM
Arris said Tuesday that revenue for its second quarter will be as much as 8% below its previous guidance—citing “maturing demand” for cable voice modems—and said earnings per share will be “at or near the lower end of previous guidance.”
The equipment maker expects revenue for the second quarter 2008 to be in the range of $278 million to $280 million. The company also said it anticipates a sequential increase in order backlog and estimates its book-to-bill ratio for the second quarter will be approximately 1.20.
Arris had previously projected second-quarter sales in the range of $288 million to $303 million with net income per diluted share in the range of $0.04 to $0.08.
“Our revised guidance for the second quarter is primarily driven by maturing demand for eMTAs [embedded multimedia terminal adapters] as well as for plant extension and installation equipment," Arris chairman and CEO Bob Stanzione (pictured) said, in announcing the revised revenue guidance.
Stanzione noted that demand for cable modem termination systems (CMTSs) “continued to be strong” in Q2 and that Arris expects orders for its DOCSIS 3.0 equipment to provide “significant improvement in the third quarter and beyond."
Arris expects to release second-quarter results after market close on July 30.
In February, Arris warned investors that the first quarter of 2008 would be “very disappointing,” pointing to a drop in demand for eMTAs from its single-biggest customer, Comcast.
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