Arris 3Q an Oasis for Tech Vendors


Defying industry trends, Arris reported both sequential-quarter and
year-over-year revenue growth, bolstered by advances in key cable products, in
its third-quarter earnings release Thursday.

The company said revenue hit $197.6 million in the quarter, a jump of 13
percent over last year's $174.2 million and a slight increase over the second
quarter's $194.1 million.

Arris said net income in the quarter was $3.5 million versus a loss of $40.7
million in second-quarter 2002.

Sales of cable telephony and Internet access led the charge, with Arris
reporting $132.3 million in sales in the third quarter versus $124.1 million in
the second quarter.

Sales of transmission, optical and outside plant rose from $42.5 million to
$43.4 million quarter-over-quarter.

'I am very pleased with the outstanding financial results,' Arris president
and CEO Bob Stanzione said in a prepared statement.

But even with the good news, Arris identified a dark cloud on the horizon:
reduced spending by AT&T Broadband after the Comcast Corp. merger.

Arris said it anticipates that revenues and earnings in the fourth quarter
'will be significantly lower' than the third, as AT&T-Comcast cuts back on
telephony spending.