Arris announced preliminary and unaudited financial results for the fourth quarter and full year 2008

February 11, 2009

2 Min Read

SUWANEE, Ga. -- ARRIS Group, Inc. (Nasdaq: ARRS - News), a global technology leader in the development of advanced cable telephony, next generation high-speed data, demand driven video solutions, operations software and broadband access equipment, today announced preliminary and unaudited financial results for the fourth quarter and full year 2008.

Fourth quarter 2008 revenues of $292.4 million grew by $42.8 million, or 17%, as compared to the fourth quarter 2007 revenues of $249.6 million. Full year 2008 revenues were $1,144.6 million, up $152.4 million, or 15%, as compared to full year 2007 revenues of $992.2 million. The revenue growth in 2008 was a result of strong market acceptance of both ARRIS products and of new product offerings that resulted from the late 2007 acquisition of C-COR, Inc. ARRIS products benefit from continuing growth of video and data traffic over the internet.

Non-GAAP net income in the fourth quarter 2008 was $0.25 per diluted share, as compared to the fourth quarter 2007 of $0.16 per diluted share, and as compared to the third quarter 2008 of $0.24 per diluted share. Net income per diluted share on a non-GAAP basis for the full year 2008 was $0.77 as compared to $0.79 in 2007.

Preliminary GAAP net loss in the fourth quarter 2008 was $(1.09) per diluted share, as compared to the fourth quarter 2007 net income of $0.08 per diluted share, and as compared to the third quarter 2008 net income of $0.19 per diluted share. The fourth quarter loss is the result of a goodwill impairment (net of a related estimated tax benefit) of approximately $(157) million, or $(1.27) per diluted share resulting from the Company's annual analysis of goodwill impairment in the context of the current and continuing decline in the market value of communications equipment suppliers in general and the impact of deteriorating macro economic conditions. This analysis is not complete and the impairment related estimates may change when the analysis is completed. The goodwill impairment, like intangible amortization, is non- cash in nature and does not affect liquidity or cash flows from operations. Preliminary GAAP net loss for the full year 2008 was $(0.76) per diluted share, as compared to GAAP net income of $0.87 per diluted share in 2007.

Significant non-GAAP items include: preliminary estimate of goodwill impairment, tax impacts associated with the impairment of goodwill, in-process research and development expense, equity compensation expense, amortization of intangibles, restructuring/product line exit accruals and adjustments, certain acquisition-related gains and expenses, and certain tax benefits and costs. A reconciliation of GAAP to non-GAAP earnings per share is attached to this release and also can be found on the Company's website (www.arrisi.com).

Arris Group Inc. (Nasdaq: ARRS)

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