Arris Takes Flight on Outlook

The cable gear company jumps 20%.
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Arris (ARRS) - Get Report shares jumped 20% Thursday after the company provided a sunny outlook on the first quarter.

The Suwanee, Ga., cable TV equipment maker posted solid fourth-quarter numbers, with an adjusted profit of 24 cents a share excluding one-time items, on sales of $181.3 million. Analysts were looking for pro forma net income of about 18 cents on revenue of $183 million.

Looking ahead, the company raised guidance for the current quarter ending March 31. Arris expects to post pro forma earnings of about 21 cents a share on revenue somewhere near $192.5 million.

That forecast was well above analysts' expectations for an adjusted profit of 16 cents on sales of $179 million, according to Thomson First Call.

"I am most pleased that Arris' results for 2005 reflect outstanding growth in both company earnings and revenue," CEO Bob Stanzione said in a press release.

The company sees strong demand for its phone-over-cable and VoIP gear as cable companies like

Comcast

(CMCSA) - Get Report

and

Time Warner

(TWX)

move into the calling business.

"We are very pleased with our performance in 2005, in particular our strong position in the accelerating VoIP market, and we are off to a good start in 2006," CFO Dave Potts said in a statement.

Arris shares rose $2.23, or 20%, to $13.42 in premarket trading Thursday.