Arris Rises on Increased Guidance1/11/2004 7:00 PM Eastern
Arris shares rose nearly 22% ($1.66) to $9.25 between Jan. 5 and Jan. 7 after the high-speed data and telephony equipment maker said it would beat its fourth-quarter guidance because of increased demand.
Late on Jan. 5, Arris said it expects fourth quarter revenue to be $126 million to $129 million, compared with guidance of $105 million to $115 million.
Net losses, once expected to be 12 cents to 20 cents per share, also improved to 11 cents to 16 cents.
Arris added $1.01 (13%) to its share price, to $8.58, the first full day of trading after that. The rally continued after Arris chairman and CEO Bob Stanzione told an investor conference in North Carolina on Jan. 6 that telecom equipment demand was up across all product lines.
Stanzione cited cable operators' investing more in plant extensions, maintenance and construction to fight off high-speed data competitors.