ARRIS International (ARRS) saw its loss narrow to $39.10 million, or $0.21 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $202.57 million, or $1.06 a share.
Revenue during the quarter dropped 8.15 percent to $1,483.10 million from $1,614.71 million in the previous year period. Gross margin for the quarter contracted 104 basis points over the previous year period to 22.74 percent. Operating margin for the quarter stood at negative 0.28 percent as compared to a negative 5.36 percent for the previous year period.
Operating loss for the quarter was $4.08 million, compared with an operating loss of $86.49 million in the previous year period.
"We had a solid finish to Q1 on good order flow and shipments. We expect the key technology trends that underpin our business - fiber deep, DOCSIS® 3.1, advanced wireless home networking, and 4K video - to gain momentum and result in second-half growth. We believe that we remain on track to achieve our full year targets. With respect to the second quarter 2017, we expect revenues will be in the range of $1.64 billion to $1.69 billion, GAAP net income per diluted share in the range of $0.02 to $0.07, and adjusted net income per diluted share in the range of $0.55 to $0.60,” said Bruce McClelland, ARRIS chief executive officer. “We are making great progress with integration planning for our upcoming Ruckus Networks acquisition, and continue to work towards a third quarter close."
For the second-quarter 2017, ARRIS International expects revenue to be in the range of $1,637 million to $1,687 million. The company expects adjusted revenue to be in the range of $1,640 million to $1,690 million. The company projects diluted earnings per share to be in the range of $0.02 to $0.07 for the second-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.55 to $0.60 for the second-quarter.
For financial year 2017, ARRIS International expects revenue to be in the range of $6,600 million to $6,800 million for financial year 2017. The company expects adjusted revenue to be in the range of $6,615 million to $6,830 million for financial year 2017. The company projects diluted earnings per share to be in the range of $0.70 to $0.90. The company projects diluted earnings per share to be in the range of $2.40 to $2.60 on adjusted basis.
Operating cash flow turns positive
ARRIS International has generated cash of $249.98 million from operating activities during the quarter as against cash outgo of $222.54 million in the last year period.
Cash flow from investing activities was $14.96 million for the quarter as against cash outgo of $350.32 million in the last year period.
The company has spent $119.42 million cash to carry out financing activities during the quarter as against cash inflow of $368.46 million in the last year period.
Cash and cash equivalents stood at $1,126.25 million as on Mar. 31, 2017, up 70.86 percent or $467.07 million from $659.18 million on Mar. 31, 2016.
Debt comes down marginally
ARRIS International has recorded a decline in total debt over the last one year. It stood at $2,242.07 million as on Mar. 31, 2017, down 4.03 percent or $94.12 million from $2,336.19 million on Mar. 31, 2016.
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