Actionable news
0
All posts from Actionable news
Actionable news in ARRS: ARRIS Group, Inc.,

ARRIS Announces Preliminary and Unaudited First Quarter 2016 Results

SUWANEE, Ga., May 4, 2016 /PRNewswire/ -- ARRIS International plc ARRS, -0.13% today announced preliminary and unaudited financial results for the first quarter 2016.

First Quarter 2016 Financial Highlights

  • Revenues were $1,614.7 million
  • GAAP net income (loss) was $(1.06) per diluted share
  • Adjusted net income (a non-GAAP measure) was $0.47 per diluted share
  • End-of-quarter cash resources were $676.2 million
  • Order backlog was $1,335.1 million
  • Book-to-bill ratio was 1.24
  • Repurchased approximately 6.4 million shares for $150 million

"We are off to a good start to 2016. Our first quarter came in stronger than our non-GAAP guidance and we entered the second quarter with positive momentum. With respect to the second quarter 2016, we expect revenues will be in the range of $1,675 million to $1,725 million, with adjusted net income per diluted share in the range of $0.65 to $0.70 and GAAP net income per diluted share in the range of $0.09 to $0.14. We are increasingly confident that we are on track to meet the full year targets we laid out at our recent Investor Day," said Bob Stanzione, ARRIS Chairman and CEO.

On January 4, 2016 the Company completed the acquisition of Pace plc (the "Combination") and, as a result, comparisons to prior periods are materially affected. First quarter 2016 results include several acquisition related items that significantly impact GAAP earnings and cash flow.

Revenues in the first quarter 2016 of $1,614.7 million were up $399.5 million, or 33%, as compared to first quarter 2015 revenues of $1,215.2 million. First quarter revenues were also up $513 million, or 47%, as compared to fourth quarter 2015 revenues of $1,101.7 million.

GAAP net income (loss) in the first quarter 2016 was $(1.06) per diluted share, which includes the impact of various items related to the Combination: 1) withholding tax of $55 million, 2) restructuring costs of $51 million, 3) integration/other deal costs of $40 million, and 4) the impact of revaluing Pace's inventory from historical cost to fair market value as required in purchase accounting of $30 million. First quarter 2015 GAAP net income was $0.13 per diluted share and fourth quarter 2015 GAAP net income was $0.20 per diluted share.

Adjusted net income (a non-GAAP measure) in the first quarter 2016 was $0.47 per diluted share, as compared to $0.44 per diluted share for the first quarter 2015, and the fourth quarter 2015 adjusted net income of $0.62 per diluted share.

A reconciliation of adjusted net income per diluted share to GAAP net income per diluted share is attached to this release and also can be found on the Company's website (www.arris.com).

Cash & Cash Equivalents - The Company borrowed $800 million in the quarter to complete the Combination using $639 million to satisfy the cash portion of the purchase price and retiring $240 million of Pace debt. At close, $298 million of cash was acquired as part of the Combination. $225 million of cash was used for operating activities during the first quarter 2016, primarily the result of reducing the acquired accounts payable from Pace. The Company ended the first quarter 2016 with $676 million of cash resources, while down $203 million from the end of the fourth quarter 2015, the reduction included the repurchase of 6.4 million ordinary shares for $150 million.

Order backlog at the end of the first quarter 2016 was $1,335.1 million as compared to $725.7 million and $715.8 million at the end of the first quarter 2015 and the fourth quarter 2015, respectively. The Company's book-to-bill ratio in the first quarter 2016 was 1.24 as compared to the first quarter 2015 of 1.08 and the fourth quarter 2015 of 1.14.

ARRIS management will conduct a conference call at 5:00 pm EDT, today, Wednesday, May 4, 2016, to discuss these results in detail. You may participate in this conference call by dialing 888-713-4209 or 617-213-4863 for international calls prior to the start of the call and providing the ARRIS International plc name, conference pass code 11922388 and Bob Puccini as the moderator. Please note that ARRIS will not accept any calls related to this earnings release until after the conclusion of the conference call. A replay of the conference call can be accessed approximately two hours after the call through May 11, 2016, by dialing 888-286-8010 or 617-801-6888 for international calls and using the pass code 24260601. A replay also will be made available for a period of 12 months following the conference call on ARRIS' website at www.arris.com.

Forward-Looking Statements

Statements made in this press release, including those related to:

  • revenues and net income for the second quarter 2016, and beyond;
  • integration of the recently acquired Pace business;
  • expected sales levels and acceptance of new ARRIS products; and
  • the general market outlook and industry trends

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,

In addition to the factors set forth elsewhere in this release, other factors that could cause results to differ from current expectations include: rights to intellectual property, including related litigation; the impact of rapidly changing technologies; market trends and the adoption of industry standards. 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 the Company's reports filed with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2015. In providing forward-looking statements, the Company expressly disclaims any obligation to update publicly or otherwise these statements, whether as a result of new information, future events or otherwise.

About ARRIS ARRIS International plc ARRS, -0.13% is a world leader in entertainment and communications technology. Our innovations combine hardware, software, and services across the cloud, network, and home to power TV and Internet for millions of people around the globe. The people of ARRIS collaborate with the world's top service providers, content providers, and retailers to advance the state of our industry and pioneer tomorrow's connected world. For more information, visit www.arris.com.

For the latest ARRIS news:

  • Check out our blog: ARRIS EVERYWHERE
  • Follow us on Twitter: @ARRIS

ARRIS and the ARRIS Logo are trademarks or registered trademarks of ARRIS Enterprises, LLC. All other trademarks are the property of their respective owners. © ARRIS Enterprises, LLC. 2016. All rights reserved.

ARRIS INTERNATIONAL PLC


PRELIMINARY CONSOLIDATED BALANCE SHEETS


(in thousands)


(unaudited)


























March 31,


December 31,


September 30,


June 30,


March 31,



2016


2015


2015


2015


2015












ASSETS






















Current assets:











Cash and cash equivalents


$659,181


$863,582


$673,346


$490,939


$499,482

Short-term investments, at fair value


17,069


15,470


107,777


128,852


129,073

Total cash, cash equivalents and short term investments


676,250


879,052


781,123


619,791


628,555












Accounts receivable, net


972,540


651,893


647,726


785,869


819,918

Other receivables


31,868


12,233


8,684


11,268


15,054

Inventories, net


662,287


401,592


367,536


389,556


372,379

Prepaid income taxes


22,349


25,624


29,071


26,413


13,380

Prepaids


37,285


19,319


26,430


36,746


31,814

Current deferred income tax assets


-


-


104,345


105,384


115,926

Other current assets


123,858


120,490


148,385


102,987


73,842

Total current assets


2,526,437


2,110,203


2,113,300


2,078,014


2,070,868












Property, plant and equipment, net


369,255


...

More