Arris Shares Surge On Q1 Results

Quarterly Revenues, Net Income Beat Expectations
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Arris shares closed down for the day on Tuesday, but were up more than 10% in after-hours trading following the release of first quarter results and a second quarter forecast that beat Wall Street estimates.

Arris, which closed its acquisition of Motorola Home just over a year ago, posted first quarter revenues of $1.23 billion, up 2% from the $1.19 billion posted in the previous quarter, and earnings of 47 cents per share. Analysts were expecting earnings of 45 cents on revenues of $1.18 billion.

Arris ended the quarter with $521 million of cash resources and an order backlog of $996.1 million.

"We had a strong first quarter achieving record revenue levels. As we had anticipated last quarter, 2014 is shaping up to be our best year so far.  Continued product deployments, new product acceptances, and an expanding international interest will continue to drive overall improved performance," said Arris chairman and CEO Bob Stanzione, in a statement.

Arris is forecasting second quarter revenues in the range of $1.41 billion to $1.45 billion, adjusted net income per diluted share in the range of $0.64 to $0.70, and GAAP net income per diluted share in the range of $0.27 to $0.33. Wall Street was anticipating revenues of $1.22 billion and adjusted net income of 50 cents.

The company is scheduled to shed more detail on its first quarter results this afternoon.

Arris shares closed down 63 cents (2.39%) to $25.72 each on Tuesday, but, at last check, were up $2.68 (10.42%) to $28.40 each in after-hours trading Tuesday afternoon.