The broadband and video networking technologist reported adjusted earnings of $0.47 per diluted share on $1.22 billion in sales. Analysts were expecting $0.45 per share and $1.18 billion, respectively.
Both revenue and earnings jumped dramatically year-over-year, with the caveat that Arris acquired Motorola Home Solutions in the second quarter of 2013, reducing the value of direct year-ago comparisons at this point. Sales increased by 2%, compared to the fourth quarter of 2013. Earnings saw a 13% sequential drop.
Arris also recorded an order backlog of $1 billion, up from $513 million in the previous quarter. The book-to-bill ratio jumped from 1.01 to 1.37 in three months, giving the company more visibility on future revenue growth. As a reminder, book-to-bill ratios above 1.0 are generally seen as indicators of short-term sales growth.
On that basis, Arris set the midpoint of its second-quarter revenue guidance at $1.43 billion. Earnings guidance centered on $0.67 per share. These projections are much higher than the current Street view, which only calls for second-quarter earnings of $0.50 per share on $1.22 billion in sales.
"2014 is shaping up to be our best year so far," said Arris CEO Bob Stanzione in a prepared statement. "Continued product deployments, new product acceptances, and an expanding international interest will continue to drive overall improved performance."