The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from PR Newswire

ARRIS Announces Preliminary and Unaudited Third Quarter 2013 Results

Wednesday, October 30, 2013

ARRIS Announces Preliminary and Unaudited Third Quarter 2013 Results

16:00 EDT Wednesday, October 30, 2013

SUWANEE, Ga., Oct. 30, 2013 /PRNewswire/ -- ARRIS Group, Inc. (NASDAQ: ARRS), today announced preliminary and unaudited financial results for the third quarter 2013.

On April 17, 2013, the Company closed the acquisition of Motorola Home.  As a result, comparisons to prior periods may not be meaningful.

Financial Highlights

  • Revenues in the third quarter 2013 were $1,067.8 million
  • Adjusted net income (a non-GAAP measure) in the third quarter 2013 was $0.39 per diluted share
  • GAAP net income in the third quarter 2013 was $0.13 per diluted share
  • The Company ended the third quarter 2013 with $695.0 million of cash resources
  • Order backlog at the end of the third quarter 2013 was $523.7 million
  • The Company's book-to-bill ratio in the third quarter 2013 was 0.99

"I am very pleased with our third quarter results and our outlook for the balance of the year.  Our customers continue to react positively to our Motorola Home acquisition and we are making good progress in delivering new products to our customers," said Bob Stanzione, ARRIS Chairman and CEO. 

"We posted strong third quarter results which were in line with our previously announced revenue guidance and above our EPS guidance," said David Potts, ARRIS EVP & CFO.  "With respect to the fourth quarter 2013, we now project that revenues for the Company will be in the range of $1,150 to $1,180 million, with adjusted net income per diluted share in the range of $0.42 to $0.46 and GAAP net income per diluted share in the range of $0.00 to $0.04."

Revenues in the third quarter 2013 were $1,067.8 million as compared to third quarter 2012 revenues of $357.4 million. Second quarter 2013 revenues were $1,000.4 million, which excludes the sales of Motorola Home prior to April 17, 2013.  The Company estimates that prior to the close of the acquisition, Motorola Home recorded approximately $66 million of revenue in the second quarter. 

Through the first three quarters of 2013 and 2012, revenues were $2,421.8 million and $1,009.7 million, respectively. 

Adjusted net income (a non-GAAP measure) in the third quarter 2013 was $0.39 per diluted share, compared to $0.22 per diluted share for the third quarter 2012.  Adjusted net income (a non-GAAP measure) for the second quarter 2013, which excludes the Motorola Home operations prior to April 17, 2013, was $0.46 per diluted share.  The Company estimates that prior to the close of the acquisition, Motorola Home  generated an operating loss of approximately $(30) million or  an impact of approximately $(0.15) per diluted share had that result been included in the Company's second quarter results. 

Year to date, adjusted net income was $1.11 per diluted share for 2013 as compared to $0.66 per diluted share in 2012.

GAAP net income in the third quarter 2013 was $0.13 per diluted share, as compared to third quarter 2012 GAAP net income of $0.15 per diluted share and second quarter 2013 GAAP net loss of $(0.35) per diluted share. Year to date, GAAP net loss was $(0.34) per diluted share in 2013 as compared to GAAP net income of $0.33 per diluted share in 2012.  A reconciliation of adjusted net income to GAAP net income per diluted share is attached to this release and also can be found on the Company's website (www.arrisi.com).

Cash & Cash Equivalents - The Company ended the third quarter 2013 with $695.0 million of cash resources, which includes $666.5 million of cash, cash equivalents and short-term investments, and $28.5 million of long-term marketable security investments, as compared to $764.1 million, in the aggregate, at the end of the second quarter 2013.  The Company generated $28.1 million of cash from operating activities during the third quarter 2013, which includes the impact of payments to Google of approximately $125.9 million related to certain post close vendor payments/other activities associated with the acquisition of Motorola Home.  The Company also paid $50M, its capped share, of previously disclosed patent litigation settlements otherwise indemnified by Google. Through the first nine months of 2013, the Company generated $372.1 million of cash from operating activities, which compares to $72.6 million generated during the same period in 2012.   

Order backlog at the end of the third quarter 2013 was $523.7 million as compared to $185.8 million and $534.9 million at the end of the third quarter 2012 and the second quarter 2013, respectively. The Company's book-to-bill ratio in the third quarter 2013 was 0.99 as compared to the third quarter 2012 of 0.82 and the second quarter 2013 of 0.95.

ARRIS management will conduct a conference call at 5:00 pm EDT, today, Wednesday, October 30, 2013, to discuss these results in detail. You may participate in this conference call by dialing 888-713-4214 or 617-213-4866 for international calls prior to the start of the call and providing the ARRIS Group, Inc. name, conference pass code 90449404 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 November 4, 2013 by dialing 888-286-8010 or 617-801-6888 for international calls and using the pass code 60317789. A replay also will be made available for a period of 12 months following the conference call on ARRIS' website at www.arrisi.com.

About ARRISARRIS is a premier video and broadband technology company that transforms how service providers worldwide deliver entertainment and communications without boundaries.  Its powerful end-to-end platforms enable service and content providers to improve the way people connect ? with each other and with their favorite content.  The Company's vision and expertise continue to drive the industry's innovations, as they have for more than 60 years. Headquartered north of Atlanta, in Suwanee, Georgia, ARRIS has R&D, sales and support centers throughout the world. For more information: www.arrisi.com

Forward-looking statements:

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

  • growth expectations and business prospects;
  • revenues and net income for the fourth quarter 2013, and beyond;
  • the integration of the Motorola Home 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,

  • projected results for the fourth quarter 2013 as well as the general outlook for 2013 and beyond are based on preliminary estimates, assumptions and projections that management believes to be reasonable at this time, but are beyond management's control;
  • we may encounter difficulties in combining the Motorola Home operations with ours, including difficulties combining personnel, facilities, and other operations or preserving customer relationships;
  • ARRIS' customers operate in a capital intensive consumer based industry, and the current volatility in the capital markets or changes in customer spending may adversely impact their ability or willingness  to purchase the products that the Company offers; and
  • because the market in which ARRIS operates is volatile, actions taken and contemplated may not achieve the desired impact relative to changing market conditions and the success of these strategies will be dependent on the effective implementation of those plans while minimizing organizational disruption.

In addition to the factors set forth elsewhere in this release, other factors that could cause results to differ from current expectations include: the uncertain current economic climate and its impact on our customers' plans and access to capital; the impact of rapidly changing technologies; the impact of competition on product development and pricing; the ability of ARRIS to react to changes in general industry and market conditions including regulatory developments; rights to intellectual property, market trends and the adoption of industry standards; and consolidations within the telecommunications industry of both the customer and supplier base.  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 ARRIS' reports filed with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended June 30, 2013.  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.

 

ARRIS GROUP, INC.

PRELIMINARY CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

September 30,

June 30,

March 31,

December 31,

September 30,

2013

2013

2013

2012

2012

ASSETS

Current assets:

    Cash and cash equivalents

$             541,114

$             610,502

$             423,551

$             131,703

$             188,653

    Short-term investments, at fair value

125,387

130,723

184,838

398,414

359,753

        Total cash, cash equivalents and short term investments

666,501

741,225

608,389

530,117

548,406

    Restricted cash

1,817

3,801

4,689

4,722

4,665

    Accounts receivable, net

641,445

662,156

206,236

188,581

171,143

    Other receivables 

4,076

11,007

3,743

350

578

    Inventories, net

350,919

318,632

126,530

133,848

137,496

    Prepaid income taxes

49,447

38,186

10,703

9,235

8,300

    Prepaids

18,881

17,296

13,227

11,682

12,408

    Current deferred income tax assets

85,373

141,610

25,927

24,944

20,787

    Other current assets

90,986

282,048

13,674

16,413

10,607

        Total current assets

1,909,445

2,215,961

1,013,118

919,892

914,390

Property, plant and equipment, net 

410,047

404,946

54,109

54,378

54,593

Goodwill

926,826

926,884

193,976

194,115

194,469

Intangible assets, net

1,239,178

1,267,684

86,926

94,529

102,258

Investments

79,894

78,733

55,938

86,164

57,483

Noncurrent deferred income tax assets

12,680

12,513

52,410

47,431

49,589

Other assets

52,300

54,847

11,089

9,385

9,913

$          4,630,370

$          4,961,568

$          1,467,566

$          1,405,894

$          1,382,695

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

    Accounts payable

$             576,553

$             485,291

$               47,783

$               45,719

$               49,061

    Accrued compensation, benefits and related taxes

101,456

88,494

36,791

29,773

35,066

    Accrued warranty

48,619

59,616

2,768

2,882

3,036

    Deferred revenue

77,267

80,254

61,431

44,428

50,859

    Current portion of LT debt

293,399

289,990

225,368

222,124

-

    Current income taxes payable

5,827

5,343

350

853

-

    Other accrued liabilities

188,508

548,907

59,055

24,942

21,768

        Total current liabilities

1,291,629

1,557,895

433,546

370,721

159,790

Long-term debt, net of current portion

1,822,941

1,837,952

-

-

218,943

Accrued pension

61,349

60,216

27,200

26,883

26,172

Accrued severance liability, net of current portion

3,870

3,782

4,262

4,119

3,895

Noncurrent income taxes payable

25,012

35,320

30,168

24,389

24,434

Noncurrent deferred income tax liabilities

76,005

147,850

351

351

334

Other noncurrent liabilities

53,465

48,196

18,836

19,043

20,362

        Total liabilities

3,334,271

3,691,211

514,363

445,506

453,930

Stockholders' equity:

    Preferred stock

-

-

-

-

-

    Common stock

1,729

1,726

1,509

1,488

1,479

    Capital in excess of par value

1,669,667

1,657,383

1,292,971

1,285,575

1,270,561

    Treasury stock at cost

(306,330)

(306,330)

(306,330)

(306,330)

(306,330)

    Unrealized gain (loss) on marketable securities

85

(19)

254

206

74

    Unfunded pension liability

(8,558)

(8,558)

(8,558)

(8,558)

(10,231)

    Unrealized gain (loss) on derivative instruments

(4,277)

-

-

-

-

    Accumulated deficit

(56,189)

(74,148)

(26,459)

(11,809)

(26,604)

    Cumulative translation adjustments

(28)

303

(184)

(184)

(184)

        Total stockholders' equity

1,296,099

1,270,357

953,203

960,388

928,765

$          4,630,370

$          4,961,568

$          1,467,566

$          1,405,894

$          1,382,695

 

 

 ARRIS GROUP, INC.

 PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

For the Three Months

For the Nine Months

Ended September 30,

Ended September 30,

2013

2012

2013

2012

Net sales

$1,067,823

$    357,432

$2,421,835

$1,009,660

Cost of sales

750,831

245,480

1,765,240

670,274

    Gross margin

316,992

111,952

656,595

339,386

Operating expenses:

    Selling, general, and administrative expenses

99,557

37,866

227,457

117,544

    Research and development expenses

128,579

42,978

296,061

130,006

    Acquisition and other costs

6,221

30

32,803

1,076

    Restructuring charges

6,057

213

38,323

6,455

    Amortization of intangible assets

64,606

7,742

127,752

22,565

305,020

88,829

722,396

277,646

Operating income (loss)

11,972

23,123

(65,801)

61,740

Other expense (income):

    Interest expense

25,188

4,479

48,431

13,251

    Loss (gain) on investments

(251)

(878)

(1,544)

(1,483)

    Loss (gain) on foreign currency

(3,752)

(431)

(2,725)

917

    Interest income

(832)

(764)

(2,310)

(2,248)

    Other (income) expense, net

1,676

(129)

13,356

(791)

Income (loss) before income taxes

(10,057)

20,846

(121,009)

52,094

    Income tax expense (benefit)

(28,016)

2,982

(76,629)

13,430

        Net income (loss)

$     17,959

$     17,864

$    (44,380)

$     38,664

Net income (loss) per common share:

    Basic

$        0.13

$         0.16

$       (0.34)

$        0.34

    Diluted

$        0.13

$         0.15

$       (0.34)

$        0.33

Weighted average common shares:

    Basic

138,478

113,709

129,502

114,206

    Diluted

140,605

116,346

129,502

116,348

 

ARRIS GROUP, INC.

PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

For the Three Months

For the Nine Months

Ended September 30,

Ended September 30,

2013

2012

2013

2012

Operating Activities:

Net income (loss)

$         17,959

$         17,864

$      (44,380)

$       38,664

Depreciation

19,706

6,788

41,824

20,965

Amortization of intangible assets

64,606

7,742

127,751

22,565

Amortization of deferred finance fees and debt discount

2,762

159

4,999

479

Non-cash interest expense

3,374

3,120

9,926

9,177

Deferred income tax provision (benefit)

(13,355)

(1,184)

(54,551)

(10,904)

Stock compensation expense

10,729

6,678

24,653

21,194

Reduction in revenue related to Comcast investment in ARRIS

-

-

13,182

-

Mark-to-market fair value adjustment related to Comcast investment in ARRIS

-

-

13,189

-

Provision for doubtful accounts

5

-

5

54

Loss on sale of product line

-

-

-

337

Loss on disposal of fixed assets

1,332

34

1,294

40

Gain on investments

(251)

(877)

(1,544)

(1,482)

Excess tax benefits from stock-based compensation plans

(2,745)

(154)

(8,515)

(2,614)

Changes in operating assets & liabilities, net of effects of acquisitions and disposals:

Accounts receivable

20,706

8,228

4,192

(19,515)

Other receivables

8,222

794

1,095

8,187

Inventory

(32,287)

(35,135)

60,345

(25,139)

Income taxes payable/recoverable

(21,085)

(6,509)

(37,720)

1,943

Accounts payable and accrued liabilities

(66,618)

(2,522)

184,681

2,614

Other, net

15,050

1,716

31,693

6,043

Net cash provided by operating activities

28,110

6,742

372,119

72,608

Investing Activities:

Purchases of investments

(46,526)

(94,995)

(104,547)

(235,348)

Disposals of investments

35,213

88,898

393,234

172,059

Purchases of property & equipment, net

(26,139)

(5,264)

(47,541)

(14,520)

Sale of property & equipment

-

13

90

13

Cash paid for acquisition, net of cash acquired

(48,352)

-

(2,208,114)

-

Sale of product line

-

-

-

3,249

Net cash provided used in investing activities

(85,804)

(11,348)

(1,966,878)

(74,547)

Financing Activities:

Proceeds from issuance of debt

-

-

1,925,000

-

Cash paid for debt discount

-

-

(9,853)

-

Payment of debt obligations

(15,812)

-

(31,625)

-

Early redemption of long-term debt

(10)

-

(89)

-

Deferred financing costs paid

-

-

(42,207)

-

Repurchase of common stock

-

(10,370)

-

(51,921)

Excess income tax benefits from stock-based compensation plans

2,745

154

8,515

2,614

Repurchase of shares to satisfy employee tax withholdings

(115)

(132)

(12,522)

(8,184)

Fees and proceeds from issuance of common stock, net

1,498

4,212

166,951

12,208

Net cash provided (used) in financing activities

(11,694)

(6,136)

2,004,170

(45,283)

Net increase (decrease) in cash and cash equivalents

(69,388)

(10,742)

409,411

(47,222)

Cash and cash equivalents at beginning of period

610,502

199,395

131,703

235,875

Cash and cash equivalents at end of period

$       541,114

$       188,653

$      541,114

$      188,653

 

 

  

ARRIS GROUP, INC.

PRELIMINARY SUPPLEMENTAL SALES & NET INCOME RECONCILIATION

(in thousands, except per share data) (unaudited)

(in thousands, except per share data)

Q3 2012

Q3 2013

YTD 2012

YTD 2013(1)

Amount

Amount

Amount

Amount

Sales 

$ 357,432

$ 1,067,823

$ 1,009,660

$ 2,421,835

Highlighted items:

Acquisition accounting impacts related to Motorola Home and BigBand deferred revenue

546

1,556

2,467

3,973

Reduction in revenue related to Comcast investment in ARRIS

-

-

-

13,182

Sales excluding highlighted items

$ 357,978

$ 1,069,379

$ 1,012,127

$ 2,438,990

Q3 2012

Q3 2013

YTD 2012

YTD 2013

Per Diluted

Per Diluted

Per Diluted

Per Diluted

Amount

Share

Amount

Share

Amount

Share

Amount

Share

Net income (loss)

$   17,864

$       0.15

$      17,959

$       0.13

$      38,664

$       0.33

$     (44,380)

$      (0.34)

(2)

Highlighted items:

Impacting gross margin:

Acquisition accounting impacts related to Motorola Home fair value of inventory

-

-

-

-

-

-

57,600

0.44

Product rationalization

-

-

-

-

-

-

13,582

0.10

Acquisition accounting impacts related to Motorola Home and BigBand deferred revenue

546

0.00

1,006

0.01

2,467

0.02

2,478

0.02

Fair value impacts related to Comcast investment in ARRIS

-

-

-

-

-

-

13,182

0.10

Stock compensation expense

808

0.01

1,248

0.01

2,367

0.02

2,945

0.02

Impacting operating expenses:

Acquisition costs and other

30

0.00

6,221

0.04

739

0.01

32,804

0.25

Restructuring

213

0.00

6,057

0.04

6,455

0.06

38,323

0.29

Amortization of intangible assets

7,742

0.07

64,606

0.46

22,565

0.19

127,751

0.97

Loss off sale of product line

-

-

-

-

337

0.00

-

-

Stock compensation expense

5,870

0.05

9,481

0.07

18,827

0.16

21,708

0.16

-

Impacting other (income) / expense:

-

-

Non-cash interest expense

3,120

0.03

3,374

0.02

9,177

0.08

9,926

0.08

Impairment of investment

-

-

-

-

466

0.00

-

-

Credit facility - ticking Fees

-

-

-

-

-

-

865

0.01

Mark-to-market FV adjustment related to Comcast investment in ARRIS

-

-

-

-

-

-

13,189

0.10

Net Tax Items

(10,545)

(0.09)

(54,998)

(0.39)

(25,415)

(0.22)

(143,034)

(1.08)

Total highlighted items

7,784

0.07

36,995

0.26

37,985

0.33

191,319

1.45

Net income excluding highlighted items

$   25,648

$       0.22

$      54,954

$       0.39

$      76,649

$       0.66

$    146,939

$       1.11

Weighted average common shares - Basic

113,709

138,478

114,206

129,502

Weighted average common shares - diluted

116,346

140,605

116,348

132,169

(1) Excludes Motorola Home results prior to April 17, 2013

(2) Basic shares used for YTD 2013 as a loss was reported for that periods and the inclusion of dilutive shares would be anti-dilutive

See Notes to GAAP and Adjusted Non-GAAP Financial Measures

 

 

Notes to GAAP and Adjusted Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP" or referred to herein as "reported"). However, management believes that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the factors management uses in planning for and forecasting future periods.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company's reported results prepared in accordance with GAAP.  Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

Acquisition Accounting Impacts Related to Deferred Revenue:  In connection with our acquisitions of Motorola Home and BigBand, business combination rules require us to account for the fair values of arrangements for which acceptance has not been obtained, and post contract support in our purchase accounting.  The non-GAAP adjustment to our sales and cost of sales is intended to include the full amounts of such revenues.  We believe the adjustment to these revenues is useful as a measure of the ongoing performance of our business.  We have historically experienced high renewal rates related to our support agreements and our objective is to increase the renewal rates on acquired post contract support agreements; however, we cannot be certain that our customers will renew our contracts. 

Inventory Valuation:  In connection with our acquisition of Motorola Home, business combinations rules require the inventory be recorded at fair value on the opening balance sheet.  This is different from historical cost.  Essentially we were required to write the inventory up to end customer price less a reasonable margin as a distributor.  This resulted in an increase in the value of inventory and will result in higher cost of goods sold as it is sold. 

Product Rationalization:  In conjunction with the integration of Motorola Home, we have identified certain product lines which overlap.  In the second quarter of 2013, we made the decision to eliminate certain products.  As a result, we recorded expenses related to the elimination of inventory and certain vendor liabilities.  We believe it is useful to understand the effects of this item on our total cost of goods sold.     

Reduction in Revenue Related to Comcast Investment in ARRIS:  In connection with our acquisition of Motorola Home, Comcast was given an opportunity to invest in ARRIS.  The accounting guidance requires that we record the implied fair value of benefit received by Comcast as a reduction in revenue. Until the closing of the deal, changes in the value of the investment will be marked to market and flow through other expense (income).  We have excluded the effect of the implied fair value in calculating our non-GAAP financial measures. We believe it is useful to understand the effects of these items on our total revenues and other expense (income).

Stock-Based Compensation Expense: We have excluded the effect of stock-based compensation expenses in calculating our non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We record non-cash compensation expense related to grants of options and restricted stock. Depending upon the size, timing and the terms of the grants, the non-cash compensation expense may vary significantly but will recur in future periods.

Restructuring, Acquisition and Integration Costs:  We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses in calculating our non-GAAP operating expenses and net income measures. We will incur significant expenses in connection with our recent acquisition of Motorola Home, which we generally would not otherwise incur in the periods presented as part of our continuing operations. Acquisition related expenses consist of transaction costs, costs for transitional employees, other acquired employee related costs, and integration related outside services. Restructuring expenses consist of employee severance, abandoned facilities, and other exit costs.  We believe it is useful to understand the effects of these items on our total operating expenses.

Loss on Sale of Product Line:  We have excluded the effect of a loss on the sale of a product line in calculating our non-GAAP operating expenses and net income measures.  We believe it is useful to understand the effects of these items on our total operating expenses.

Amortization of Intangible Assets: We have excluded the effect of amortization of intangible assets in calculating our non-GAAP operating expenses and net income measures. Amortization of intangible assets is non-cash, and is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods.

Non-Cash Interest on Convertible Debt: We have excluded the effect of non-cash interest in calculating our non-GAAP operating expenses and net income measures. We record the accretion of the debt discount related to the equity component non-cash interest expense. We believe it is useful to understand the component of interest expense that will not be paid out in cash.

Impairment of Investment: We have excluded the effect of an other-than-temporary impairment of a cost method investment in calculating our non-GAAP financial measures. We believe it is useful to understand the effect of this non-cash item in our other expense (income). 

Credit Facility - Ticking Fees:  In connection with our acquisition of Motorola Home, the cash portion of the consideration is funded through debt financing commitments.  A ticking fee is a fee paid to our banks to compensate for the time lag between the commitment allocation on a loan and the actual funding. We have excluded the effect of the ticking fee in calculating our non-GAAP financial measures. We believe it is useful to understand the effect of this non-cash item in our other expense (income). 

Mark To Market Fair Value Adjustment Related To Comcast Investment in ARRIS: :  In connection with our acquisition of Motorola Home, Comcast was given an opportunity to invest in ARRIS.  The accounting guidance requires we mark to market the changes in the value of the investment and flow through other expense (income).  We have excluded the effect of the implied fair value in calculating our non-GAAP financial measures. We believe it is useful to understand the effects of these items on our total other expense (income).

Income Tax Expense (Benefit): We have excluded the tax effect of the non-GAAP items mentioned above.  Additionally, we have excluded the effects of certain tax adjustments related to state valuation allowances, research and development tax credits and provision to return differences.

 

SOURCE ARRIS Group, Inc.

For further information: Bob Puccini, Investor Relations, (720) 895-7787, bob.puccini@arrisi.com

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections