Arris Group Inc.’s ARRS second-quarter 2015 earnings exceeded the Zacks Consensus Estimate while revenues missed the same.
GAAP net income in the second quarter stood at $16.8 million or 11 cents per share compared with $39 million or 26 cents in the prior-year quarter. Moreover, quarterly adjusted (excluding special items) earnings per share of 46 cents surpassed the Zacks Consensus Estimate by a penny.
Quarterly total revenue stood at $1,260.1 million, down 11.8% year over year and also below the Zacks Consensus Estimate of $1,292 million.
Quarterly gross margin came in at 28.9% compared with 29.3% in the year-ago quarter. Operating income, in the reported quarter, was $51.5 million, down 43.8%. Quarterly operating margin stood at 4.1% versus 6.4% in the year-earlier quarter. Total order backlog, at the end of the quarter under review, was $651.3 million compared with $787.6 million at the end of the year-ago quarter. Meanwhile, the book-to-bill ratio stood at 0.94 compared with 0.85 in the prior-year quarter.
At the end of the quarter under review, Arris’ cash from operations totaled $69.2 million compared with $220.3 million in the prior-year quarter. Quarterly free cash flow for the reported quarter was $55.8 million as against $206.9 million in the year-ago quarter.
At the end of the second quarter, Arris had $619.8 million of cash & marketable securities on its balance sheet compared with $692.5 million at the end of 2014. Meanwhile, total debt stood at $1,537.6 million at the end of the reported quarter as against $1,467.4 million at 2014-end.
Notably, Comcast Corp. CMCSA, Time Warner Cable Inc. TWC, Charter Communications Inc. CHTR and AT&T Inc. contribute significant business to Arris and thus the loss of any of these customers will severely impact the company’s business.
Arris currently carries a Zacks Rank #5 (Strong Sell).
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