ARRIS International plc (ARRS) has reported an 188.77 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $86.75 million, or $0.45 a share in the quarter, compared with $30.04 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $152.91 million, or $0.79 a share compared with $93.49 million or $0.62 a share, a year ago.
Revenue during the quarter surged 59.69 percent to $1,759.22 million from $1,101.68 million in the previous year period. Gross margin for the quarter contracted 780 basis points over the previous year period to 24.76 percent. Total expenses were 95.59 percent of quarterly revenues, up from 95.20 percent for the same period last year. That has resulted in a contraction of 39 basis points in operating margin to 4.41 percent.
Operating income for the quarter was $77.60 million, compared with $52.91 million in the previous year period.
"We ended the year with a strong fourth quarter, delivering results ahead of both our quarterly and annual guidance." said Bruce McClelland, ARRIS chief executive officer. "I'm proud of the work the ARRIS team has done in 2016, completing the integration of Pace and strengthening our relationship with customers. With respect to the first quarter 2017, we are estimating revenues in the range of $1.435 billion to $1.485 billion and adjusted revenues in the range of $1.440 billion to $1.490 billion. We expect GAAP net loss per diluted share in the range of $(0.13) to $(0.09) and adjusted net income per diluted share in the range of $0.36 to $0.40. With regards to the remainder of 2017, we expect the year to follow a similar trend to 2016. Guidance does not include the pending acquisition of the Ruckus Wireless and ICX Switch business announced today." ARRIS will host its 2017 Investor Day on Thursday, March 23 at The Westin New York at Times Square. Registration for the event can be found at the Company's website: www.arris.com in the Investor Relations section.
For the first-quarter, ARRIS International plc projects revenue to be in the range of $1,435 million to $1,485 million. It projects adjusted revenue to be in the range of $1,440 million to $1,490 million. It forecasts diluted loss per share to be in the range of $0.13 to $0.09. It forecasts diluted earnings per share to be in the range of $0.36 to $0.40 on an adjusted basis for the same period.
Operating cash flow improves
ARRIS International plc has generated cash of $366.83 million from operating activities during the year, up 6.68 percent or $22.95 million, when compared with the last year.
The company has spent $516.19 million cash to meet investing activities during the year as against cash outgo of $45.95 million in the last year. It has incurred net capital expenditure of $61.23 million on net basis during the year, up 480.42 percent or $50.68 million from year ago.
Cash flow from financing activities was $274.22 million for the year as against cash outgo of $0.13 million in the last year period.
Cash and cash equivalents stood at $988.44 million as on Dec. 31, 2016, up 14.46 percent or $124.86 million from $863.58 million on Dec. 31, 2015.
Debt increases substantially
ARRIS International plc has witnessed an increase in total debt over the last one year. It stood at $2,262.74 million as on Dec. 31, 2016, up 46.95 percent or $722.91 million from $1,539.83 million on Dec. 31, 2015. Interest coverage ratio improved to 3.70 for the quarter from 3.68 for the same period last year.
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