(RTTNews) - ARRIS Group Inc.(ARRS: News ), a communication technology company, Monday, released its preliminary results for the third quarter, expecting a decline in profit due primarily to lower revenues.

The company expects third quarter net income of $21.69 million or $0.17 per share, compared to $22.43 million or $0.18 per share in the year-ago period.

Excluding items, net income for the quarter is expected to increase to $31.97 million or $0.25 per share from $30.69 million or $0.24 per share in the same quarter last year, reflecting higher gross margins.

Revenue for the quarter is expected to decline to $275.8 million from $297.6 million in the year-ago period.

On average, nine analysts polled by Thomson Reuters estimates that the company will earn $0.24 per share on revenues of $273.81 million. Analysts' estimates typically exclude special items.
The gross margin for the third quarter is expected to increase to $41.9% from $35.7% in the comparable period last year, primarily due to strong cable modem termination system sales.

Operating expense increased to $76.57 million from $69.83 million in the year-ago period, according to the company's preliminary results. The expected operating income for the quarter rose to $38.89 million from $36.30 million in the same quarter last year.

The company anticipates an increase in income-tax expense to $12.65 million from $10.66 million in the comparable quarter last year.

For the nine month period, the company expects net income of $57.49 million or $0.45 per share compared with $34.09 million or $0.27 per share for the same period last year. Excluding items, expected net income is $88.33 million or $0.69 per share compared to $65.72 million or $0.52 per share last year. Anticipated revenue for nine-months is $807.81 million compared to $852.16 million in the year-ago period.

ARRIS closed Monday's regular trade at $11.37,down $0.02 or 0.18% on a volume of2.25 million shares on the Nasdaq.

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by RTT Staff Writer

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