Sunday, February 13, 2005

ARRIS Reports Q4 Revenue of $129.5 million

ARRIS reported $129.5 million for the fourth quarter of 2004, up from third quarter 2004 revenues of $128.4 million. Full year 2004 revenues were $490.0 million, an increase of 13% over 2003 revenues of $434.0 million. On a U.S. GAAP basis, net income (loss) was $(0.6) million or $(0.01) per share in the fourth quarter.

Gross margins of 26.1% were down approximately 170 basis points as compared to third quarter 2004 margins of 27.8%. This decrease is the result of product introduction costs related to new CMTS products and a change in product mix within the Broadband product category. Gross margins of Broadband products were 34.6% in the fourth quarter as compared to 41.5% in the third quarter. Gross margins of the Supplies & CPE products were 13.4% in the fourth quarter as compared to 10.6% in the third quarter.

"Our performance during the fourth quarter of 2004 reflects the major changes underway in our industry and our success in positioning the Company for anticipated new product demands related to VoIP, high speed data and for IP Video," said Bob Stanzione, ARRIS Chairman & CEO. "Of special note is that during the fourth quarter, approximately 40 percent of our revenues came from new ARRIS products introduced during the past twelve months. We are most gratified to see the success of our market leading VoIP customer premises E-MTA products and early market acceptance of the Q5, our new IP Video product."

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