Telecom gear company
said its first-quarter earnings increased about six-fold.
The company earned $20.7 million, or 19 cents a share, in the quarter, compared with $3.4 million, or 4 cents a share, a year ago. Adjusted for items, earnings were $23 million, or 21 cents a share in the most recent quarter. On that basis, analysts surveyed by Thomson First Call were expecting on 21 cents a share in the most recent quarter.
First-quarter revenue rose 53.3% from a year-ago period to $208.3 million.
The company expects to earn 20 cents a share to 23 cents a share in the second quarter, including two cents a share of amortization of intangibles and equity compensation expense, on revenue of $210 million to $220 million. Analysts are expecting earnings of 23 cents a share, on revenue of $198.4 million in the second quarter.
"The new, innovative and market leading products that ARRIS is now delivering for data, voice and video transport, help our customers in the growing competition between, cable, telco and satellite. As a result, I am very positive about the outlook for ARRIS in 2006 and beyond," the company said.
First-quarter gross profit rose 53.5% from a year-ago period to $56.5 million. However, gross margin remained flat at 27.1%. Operating income for the quarter rose more than three-fold to $19.6 million and operating margin increased 595 basis points to 9.4%.
Backlog at the end of the first quarter was $168.9 million compared with $166.5 million, a year ago.
Shares drop $1.93 to $11.97.
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