Arris upbeat on 2016 targets despite net loss

Arris said it is “increasingly confident” it will meet full year targets after getting off to “a good start” in 2016, despite reporting a massive first quarter net loss.

Announcing results for the three months ending March 31, Arris reported revenues of US$1.61 billion (€1.4 billion), up 33% from US$1.22 billion a year earlier.

However, the company also said it made a US$202.6 million net loss for the quarter, compared to US$19.1 million in profit a year earlier.

Arris closed its acquisition of set-top box rival Pace on January 4 and said that US$40 million of its net loss was due to integration and other deal costs, and US$30 was due to revaluing Pace’s inventory from “historical cost to fair market value as required in purchase accounting”.

Restructuring costs of US$51 million and a US$55 million tax withholding were also contributed to the net loss, according to the firm.

Despite this, adjusted net income in the first quarter was US$0.47 per diluted share, compared to US$0.44 per diluted share for the first quarter 2015.

Arris CEO Bob Stanzione said: “We are increasingly confident that we are on track to meet the full year targets we laid out at our recent Investor Day”.