Arris Group Inc (ARRS, Financial) filed Quarterly Report for the period ended 2009-03-31.
Arris Group Inc. is an international communications technology company serving the broadband information transport industries. Arris specializes in the manufacturing and distribution of products for hybrid fiber coax broadband networks as well as the design and engineering of these networks. Arris Group Inc has a market cap of $1.33 billion; its shares were traded at around $10.84 with a P/E ratio of 14.5 and P/S ratio of 1.2.
Intangibles amortization expense for the three months ended March 31, 2009 and 2008 was $9.3 million and $13.3 million, respectively. Our intangible expense in 2009 and 2008 is related to the acquisitions of Auspice Corporation in August of 2008 and C-COR Incorporated in December of 2007. The decline reflects the completion of the amortization of the C-COR order backlog in 2008.
Goodwill impairment for the three months ended March 31, 2009 and 2008 was $0 for each period. We recorded a noncash goodwill impairment charge of $128.9 million and $80.4 million related to the ATS and MCS reporting units, respectively, during the fourth quarter of 2008. We continue to monitor our assessments of goodwill, particularly in light of the current economic climate, most notably with respect to the ATS segment. For the first quarter of 2009, we concluded that indicators of potential impairment did not exist. As the ongoing expected cash flows and carrying amounts of our remaining goodwill are assessed, changes in the economic conditions, changes to our business strategy, changes in operating performance or other indicators of impairment could cause us to realize additional impairment charges in the future.
Interest expense for the first quarter 2009 and 2008 was $4.5 million and $4.0 million, respectively. Interest expense reflects interest and the amortization of a portion of the deferred finance fees primarily associated with
During the first quarter 2009, we recorded a foreign currency loss of approximately $1.0 million. During the first quarter 2008, we recorded a foreign currency gain of approximately $1.0 million. The gains and losses are primarily driven by the fluctuation of the value of the euro, as compared to the U.S. dollar, as we had several European customers whose receivables and collections are denominated in euros. We have implemented a hedging strategy to mitigate the monetary exchange fluctuations from the time of invoice to the time of payment, and have occasionally entered into forward contracts based on a percentage of expected foreign currency receipts.
In the three months ended March 31, 2009 and 2008, we recorded income tax expense of $8.4 million and $2.3 million, respectively. See Note 16 of the Notes to the Consolidated Financial Statements for additional information about income taxes.
Read the The complete ReportARRS is in the portfolios of PRIMECAP Management.
Arris Group Inc. is an international communications technology company serving the broadband information transport industries. Arris specializes in the manufacturing and distribution of products for hybrid fiber coax broadband networks as well as the design and engineering of these networks. Arris Group Inc has a market cap of $1.33 billion; its shares were traded at around $10.84 with a P/E ratio of 14.5 and P/S ratio of 1.2.
Highlight of Business Operations:
On a quarterly basis, we review our existing restructuring accruals and make adjustments if necessary. For the first three months of 2009 and 2008, we recorded increases to the accruals $0.1 million and $0.4 million, respectively. The $0.4 million recorded in the first quarter 2008 related to severance for the C-COR acquisition and changes in estimates associated with real estate leases.Intangibles amortization expense for the three months ended March 31, 2009 and 2008 was $9.3 million and $13.3 million, respectively. Our intangible expense in 2009 and 2008 is related to the acquisitions of Auspice Corporation in August of 2008 and C-COR Incorporated in December of 2007. The decline reflects the completion of the amortization of the C-COR order backlog in 2008.
Goodwill impairment for the three months ended March 31, 2009 and 2008 was $0 for each period. We recorded a noncash goodwill impairment charge of $128.9 million and $80.4 million related to the ATS and MCS reporting units, respectively, during the fourth quarter of 2008. We continue to monitor our assessments of goodwill, particularly in light of the current economic climate, most notably with respect to the ATS segment. For the first quarter of 2009, we concluded that indicators of potential impairment did not exist. As the ongoing expected cash flows and carrying amounts of our remaining goodwill are assessed, changes in the economic conditions, changes to our business strategy, changes in operating performance or other indicators of impairment could cause us to realize additional impairment charges in the future.
Interest expense for the first quarter 2009 and 2008 was $4.5 million and $4.0 million, respectively. Interest expense reflects interest and the amortization of a portion of the deferred finance fees primarily associated with
During the first quarter 2009, we recorded a foreign currency loss of approximately $1.0 million. During the first quarter 2008, we recorded a foreign currency gain of approximately $1.0 million. The gains and losses are primarily driven by the fluctuation of the value of the euro, as compared to the U.S. dollar, as we had several European customers whose receivables and collections are denominated in euros. We have implemented a hedging strategy to mitigate the monetary exchange fluctuations from the time of invoice to the time of payment, and have occasionally entered into forward contracts based on a percentage of expected foreign currency receipts.
In the three months ended March 31, 2009 and 2008, we recorded income tax expense of $8.4 million and $2.3 million, respectively. See Note 16 of the Notes to the Consolidated Financial Statements for additional information about income taxes.
Read the The complete ReportARRS is in the portfolios of PRIMECAP Management.
