SUWANEE, Ga. -- ARRIS Group, Inc. (NASDAQ: ARRS), today announced preliminary and unaudited financial results for the third quarter 2013.
On April 17, 2013, the Company closed the acquisition of Motorola Home. As a result, comparisons to prior periods may not be meaningful.
"I am very pleased with our third quarter results and our outlook for the balance of the year. Our customers continue to react positively to our Motorola Home acquisition and we are making good progress in delivering new products to our customers," said Bob Stanzione, ARRIS Chairman and CEO.
"We posted strong third quarter results which were in line with our previously announced revenue guidance and above our EPS guidance," said David Potts, ARRIS EVP & CFO. "With respect to the fourth quarter 2013, we now project that revenues for the Company will be in the range of $1,150 to $1,180 million, with adjusted net income per diluted share in the range of $0.42 to $0.46 and GAAP net income per diluted share in the range of $0.00 to $0.04."
Revenues in the third quarter 2013 were $1,067.8 million as compared to third quarter 2012 revenues of $357.4 million. Second quarter 2013 revenues were $1,000.4 million, which excludes the sales of Motorola Home prior to April 17, 2013. The Company estimates that prior to the close of the acquisition, Motorola Home recorded approximately $66 million of revenue in the second quarter.
Through the first three quarters of 2013 and 2012, revenues were $2,421.8 million and $1,009.7 million, respectively.
Adjusted net income (a non-GAAP measure) in the third quarter 2013 was $0.39 per diluted share, compared to $0.22 per diluted share for the third quarter 2012. Adjusted net income (a non-GAAP measure) for the second quarter 2013, which excludes the Motorola Home operations prior to April 17, 2013, was $0.46 per diluted share. The Company estimates that prior to the close of the acquisition, Motorola Home generated an operating loss of approximately $(30) million or an impact of approximately $(0.15) per diluted share had that result been included in the Company's second quarter results.
Year to date, adjusted net income was $1.11 per diluted share for 2013 as compared to $0.66 per diluted share in 2012.
GAAP net income in the third quarter 2013 was $0.13 per diluted share, as compared to third quarter 2012 GAAP net income of $0.15 per diluted share and second quarter 2013 GAAP net loss of $(0.35) per diluted share. Year to date, GAAP net loss was $(0.34) per diluted share in 2013 as compared to GAAP net income of $0.33 per diluted share in 2012. A reconciliation of adjusted net income to GAAP net income per diluted share is attached to this release and also can be found on the Company's website (www.arrisi.com).
Cash & Cash Equivalents - The Company ended the third quarter 2013 with $695.0 million of cash resources, which includes$666.5 million of cash, cash equivalents and short-term investments, and $28.5 million of long-term marketable security investments, as compared to $764.1 million, in the aggregate, at the end of the second quarter 2013. The Company generated$28.1 million of cash from operating activities during the third quarter 2013, which includes the impact of payments to Google of approximately $125.9 million related to certain post close vendor payments/other activities associated with the acquisition of Motorola Home. The Company also paid $50M, its capped share, of previously disclosed patent litigation settlements otherwise indemnified by Google. Through the first nine months of 2013, the Company generated $372.1 million of cash from operating activities, which compares to $72.6 million generated during the same period in 2012.
Order backlog at the end of the third quarter 2013 was $523.7 million as compared to $185.8 million and $534.9 million at the end of the third quarter 2012 and the second quarter 2013, respectively. The Company's book-to-bill ratio in the third quarter 2013 was 0.99 as compared to the third quarter 2012 of 0.82 and the second quarter 2013 of 0.95.
Arris Group Inc. (Nasdaq: ARRS)