Yesterday, after the closing bell,
Arris Enterprises Inc.
) declared excellent financial results for the second quarter of
2013, significantly beating the Zacks Consensus Estimate. As a
result, in the after market trade on NASDAQ, the stock price of
Arris was up by $1.03 (6.59%) to $16.65. Acquisition of the home
business of Motorola Mobility, a subsidiary of
), contributed to the company's performance. Arris currently has
a Zacks Rank #3 (Hold).
GAAP net loss in the second quarter of 2013 was $50.3 million
or a loss of 37 cents per share compared with a net income of $15
million or 13 cents per share in the prior-year quarter. However,
quarterly adjusted (excluding special items) earnings per share
came in at 41 cents, significantly above the Zacks Consensus
Estimate of 18 cents.
Quarterly total revenue was $1,000.4 million, up 186.4% year
over year and well above the Zacks Consensus Estimate of $989
million. Quarterly Domestic revenues were 65.8% while
International revenues were 34.2%. Segment wise, Network and
Cloud segment accounted $340 million of total revenue, up 70%
year over year. CPE segment generated $663 million of total
revenue, up by a whopping 344% year over year.
Time Warner Cable Inc.
) together constituted 28.8% of the total second-quarter 2013
Quarterly gross margin came in at 23.1% compared with 33.9% in
the year-ago quarter. Operating loss, in the reported
quarter, was $89.9 million compared with an operating income of
$26.9 million in the prior-year quarter. Quarterly operating
margin was a negative 9% compared with 7.7% in the year-ago
Total order backlog of Arris, at the end of the reported
quarter, was $534.9 million compared with $251.9 million at the
end of the year-ago quarter. The book-to-bill ratio was 0.95 in
the last quarter compared with 0.93 in the prior-year
Arris generated $294 million of cash from operations during
the second quarter of 2013 compared with $30.6 million in the
prior-year quarter. Quarterly free cash flow was $278.8 million
compared with $25.1 million in the year-ago quarter. At the end
of the reported quarter, Arris had $741.2 million of cash &
marketable securities on its balance sheet compared with $530.1
million at the end of 2012. Total debt was $2,127.9 million at
the end of the reported quarter compared with $222.1 million at
the end of 2012. The debt-to-capitalization ratio, at the end of
the last quarter, was 0.59.
Future Financial Outlook
Management expects third-quarter 2013 total revenue of $1,050
- $1,080 million. GAAP earnings per share will be (12 cents) to
(7 cents). Non-GAAP earnings per share will be 32 cents - 37
ARRIS GROUP INC (ARRS): Free Stock Analysis
COMCAST CORP A (CMCSA): Free Stock Analysis
GOOGLE INC-CL A (GOOG): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
To read this article on Zacks.com click here.