SUWANEE, Ga., July 8 /PRNewswire-FirstCall/ -- ARRIS (Nasdaq: ARRS), a
global technology leader in advanced cable telephony and broadband access
equipment, next generation equipment for high-speed data and video
applications, and operations software solutions, today provided an update to
second quarter guidance.
The Company now anticipates that revenues for the second quarter will be
below previous guidance, that GAAP and non-GAAP earnings per share will be at
or near the lower end of previous guidance and that bookings and backlog will
be much improved as compared to the first quarter. Specifically, revenues in
the second quarter 2008 are expected to be in the range of $278 to $280
million. The Company also anticipates a sequential increase in order backlog
and estimates book-to-bill ratio for the second quarter to be approximately
1.20.
"Our revised guidance for the second quarter is primarily driven by
maturing demand for EMTAs as well as for plant extension and installation
equipment," said Bob Stanzione, ARRIS Chairman & CEO. "On the positive side,
our CMTS demand continued to be strong and we expect to report improved gross
margins as compared to the first quarter. Also, strong order input,
particularly for our next generation DOCSIS 3.0 equipment, indicates
significant improvement in the third quarter and beyond."
Detailed revenue and earnings guidance for the third quarter 2008 and
additional comments on the remainder of 2008 will be disclosed when the
Company formally releases second quarter results after the market close on
July 30, 2008.
ARRIS management will conduct a conference call at 5:00pm EDT, today,
Tuesday, July 8, 2008, to discuss this announcement in detail. You may
participate in this conference call by dialing (866) 356-4441 or
(617) 597-5396 for international calls prior to the start of the call and
providing the ARRIS Group, Inc. name, conference passcode 43265042 and Jim
Bauer as the moderator. Please note that ARRIS will not accept any calls
related to this release until after the conclusion of the 5:00pm EDT
conference call. A replay of the conference call can be accessed
approximately two hours after the call through July 15, 2008 by dialing
(888) 286-8010 or (617) 801-6888 for international calls and using the
passcode 64426745. A replay also will be made available for a period of 12
months following the conference call on ARRIS' website at www.arrisi.com .
ARRIS is a global communications technology company specializing in the
design, engineering and supply of technology supporting triple and quad-play
broadband services for residential and business customers around the world.
The company supplies broadband operators with the tools and platforms they
need to deliver reliable telephony, demand driven video, next-generation
advertising and high-speed data services. ARRIS products expand and help grow
network capacity with access and outside plant construction equipment,
reliably deliver voice, video and data services and assure optimal service
delivery for end customers. Headquartered in Suwanee, Georgia, USA, ARRIS has
R&D centers in Atlanta, Chicago, Beaverton, State College, Wallingford,
Ireland and China, and operates support and sales offices throughout the
world. Information about ARRIS products and services can be found at
http://www.arrisi.com .
Forward-looking statements:
Statements made in this press release, including those related to:
- Revenue, gross margin, net income per share, orders, order backlog and
book-to-bill ratio;
- the outlook for the remainder of 2008;
- the general market outlook and acceptance of ARRIS products; and
- the timing of improvements in industry conditions
are forward-looking statements. These statements involve risks and
uncertainties that may cause actual results to differ materially from those
set forth in these statements. Among other things,
- projected results for the second quarter 2008 as well as the general
outlook for 2008 and beyond are based on preliminary estimates, assumptions
and projections that management believes to be reasonable at this time, but
are beyond management's control;
- because the market in which ARRIS operates is volatile, actions taken
and contemplated may not achieve the desired impact relative to changing
market conditions and the success of these strategies will be dependent on the
effective implementation of those plans while minimizing organizational
disruption;
- several of the substantial participants in our industry, including some
of our customers are in a weakened financial condition which could directly or
indirectly cause a reduced demand for our products or other unexpected
consequences, additionally, we cannot be certain if or when the general
uncertainty in our industry will stabilize or improve.
In addition to the factors set forth elsewhere in this release, other
factors that could cause results to differ from current expectations include:
the uncertain current economic climate and its impact on our customers' plans
and access to capital; the impact of rapidly changing technologies; the impact
of competition on product development and pricing; the ability of ARRIS to
react to changes in general industry and market conditions including
regulatory developments; rights to intellectual property, market trends and
the adoption of industry standards; and consolidations within the
telecommunications industry of both the customer and supplier base. These
factors are not intended to be an all-encompassing list of risks and
uncertainties that may affect the Company's business. Additional information
regarding these and other factors can be found in ARRIS' reports filed with
the Securities and Exchange Commission, including its Form 10-K for the year
ended December 31, 2007 and its Form 10-Q for the quarter ended March 31,
2008. The Company expressly disclaims any obligation to update publicly or
otherwise these statements, whether as a result of new information, future
events or otherwise.
SOURCE ARRIS
07/08/2008
CONTACT: Jim Bauer, Investor Relations, of ARRIS, +1-678-473-2647
jim.bauer@arrisi.com
/Web site: http://www.arrisi.com
(ARRS)
