Arris 8-K Arris Announces Preliminary and Unaudited Second Quarter 2008 Results

EXHIBIT 99.1

FOR IMMEDIATE RELEASE Contact:   Jim Bauer
Investor Relations
(678) 473-2647
jim.bauer@arrisi.com

ARRIS ANNOUNCES PRELIMINARY AND UNAUDITED
SECOND QUARTER 2008 RESULTS

Suwanee, Ga. (July 30, 2008)ARRIS Group, Inc. (NASDAQ:ARRS), a global technology leader in advanced cable telephony and broadband access equipment, next generation high-speed data and video applications, and operations software solutions, today announced preliminary and unaudited financial results for the second quarter 2008.

Second quarter 2008 revenues of $281.1 million increased $7.6 million, or 2.8%, as compared to first quarter revenues of $273.5 million. Second quarter and first half 2008 revenues increased $28.4 million, or 11.2%, and $66.6 million, or 13.6%, respectively, as compared to the same periods in 2007, primarily due to the C-COR acquisition. Second quarter 2008 gross margin was $92.9 million, or 33.0%, as compared to $85.2, or 31.2%, in the first quarter 2008 and $72.4 million, or 28.6%, in the second quarter 2007. Order backlog increased to $206.0 million at the end of the second quarter as compared to $147.0 million at the end of the first quarter. Book-to-bill ratio in the second quarter was 1.21.

GAAP net income in the second quarter 2008 was $0.08 per diluted share, as compared to $0.21 per diluted share for the second quarter 2007. Adjusted (non-GAAP) net income in the second quarter 2008 was $0.15 per diluted share, as compared to $0.22 per diluted share for the second quarter 2007. Items excluded from the computed adjusted (non-GAAP) net income include: amortization of intangibles, certain acquisition gains and expenses, certain tax benefits and costs, equity compensation expense, and adjustments to restructuring accruals. A reconciliation of GAAP to adjusted (non-GAAP) earnings per share is attached to this release and also can be found on the Company’s website (www.arrisi.com).

The Company ended the second quarter 2008 with $297.8 million of cash and short-term investments, which compares to $293.0 million at the end of the first quarter 2008. The Company generated $10.4 million of cash from operating activities in the second quarter 2008.

“I am very pleased that despite the challenging economic climate, we can report that sales, earnings and margins are up quarter over quarter and we look for continuing strength in the second half of 2008 as we enter the third quarter with a healthy backlog,” said Bob Stanzione, ARRIS Chairman & CEO. “The demand for ARRIS products remains strong as our customers see increasing competition and new service demands in their markets. International opportunities continue to unfold as evidenced by our recent CMTS agreement last month with the largest cable operator in Germany and new opportunities in Canada and Mexico. We are well positioned to take advantage of customer and end user demands for high speed data services, VoIP, on-demand video, ad insertion, OSS solutions and network upgrades to accommodate increased high definition channel offerings and streaming video.”

“We enter the second half of 2008 with a strong order book and an improving margin profile,” said David Potts, ARRIS EVP & CFO. “I am also very pleased with the solid progress that we have made with the integration of C-COR and the progress that we have made towards the overall financial goals that we outlined at our Investor Conference in March. At this point, we project that revenues for the Company in the third quarter 2008 will be in the range of $288 to $308 million with GAAP net income per diluted share in the range of $0.13 to $0.18 and adjusted (non-GAAP) net income per diluted share, in the range of $0.19 to $0.24.

ARRIS management will conduct a conference call at 5:00pm EDT, today, Wednesday, July 30, 2008, to discuss these results in detail. You may participate in this conference call by dialing 888-713-4209 or 617-213-4863 for international calls prior to the start of the call and providing the ARRIS Group, Inc. name, conference passcode 38778423 and Jim Bauer as the moderator. Please note that ARRIS will not accept any calls related to this earnings release until after the conclusion of the conference call. A replay of the conference call can be accessed approximately two hours after the call through August 4, 2008 by dialing 888-286-8010 or 617-801-6888 for international calls and using the passcode 25608915. A replay also will be made available for a period of 12 months following the conference call on ARRIS’ website atwww.arrisi.com.

ARRIS is a global communications technology company specializing in the design, engineering and supply of technology supporting triple and quad-play broadband services for residential and business customers around the world. The company supplies broadband operators with the tools and platforms they need to deliver reliable telephony, demand driven video, next-generation advertising and high-speed data services. ARRIS products expand and help grow network capacity with access and outside plant construction equipment, reliably deliver voice, video and data services and assure optimal service delivery for end customers. Headquartered in Suwanee, Georgia, USA, ARRIS has R&D centers in Atlanta, Chicago, Beaverton, State College, Wallingford, Ireland and

China, and operates support and sales offices throughout the world. Information about ARRIS products and services can be found athttp://www.arrisi.com.

Forward-looking statements:

Statements made in this press release, including those related to:

• third quarter and 2008 revenues, gross margin, and net income;

• full year 2008 outlook, and

• the general market outlook;

are forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among other things,

• projected results for the third quarter as well as the general outlook for 2008 and beyond are based on preliminary estimates, assumptions and projections that management believes to be reasonable at this time, but are beyond management’s control;

• because the market in which ARRIS operates is volatile, actions taken and contemplated may not achieve the desired impact relative to changing market conditions and the success of these strategies will be dependent on the effective implementation of those plans while minimizing organizational disruption.

In addition to the factors set forth elsewhere in this release, other factors that could cause results to differ from current expectations include: the uncertain current economic climate and its impact on our customers’ plans and access to capital; the impact of rapidly changing technologies; the impact of competition on product development and pricing; the ability of ARRIS to react to changes in general industry and market conditions including regulatory developments; rights to intellectual property, market trends and the adoption of industry standards; and consolidations within the telecommunications industry of both the customer and supplier base. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company’s business. Additional information regarding these and other factors can be found in ARRIS’ reports filed with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2007 and its Form 10-Q for the quarter ended March 31, 2008. The Company expressly disclaims any obligation to update publicly or otherwise these statements, whether as a result of new information, future events or otherwise.

ARRIS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)

	June 30,			March 31,						September 30,			June 30,
	2008			2008			December 31,			2007			2007
	(unaudited)			(unaudited)			2007			(unaudited)			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	290,266		$	243,515		$	323,797		$	370,708		$	444,020
Short-term investments, at fair value		7,503			49,513			68,011			217,845			160,315
Total cash, cash equivalents and short-term investments		297,769			293,028			391,808			588,553			604,335
Restricted cash		7,051			7,186			6,977			3,142			3,136
Accounts receivable, net		168,664			159,881			166,953			130,216			120,680
Other receivables		9,067			6,074			4,330			5,000			6,845
Inventories, net		147,716			125,105			131,792			118,227			90,542
Prepaids		5,305			5,680			5,856			3,626			3,250
Current deferred income tax assets		43,749			47,051			44,939			19,602			23,239
Other current assets		15,707			8,209			4,841			13,703			10,773
Total current assets		695,028			652,214			757,496			882,069			862,800
Property, plant and equipment, net		60,823			60,747			59,156			31,251			30,196
Goodwill		452,398			453,454			455,352			150,569			150,569
Intangible assets, net		244,575			257,029			269,893			115			172
Investments		9,937			10,200			6,412			8,916			3,151
Noncurrent deferred income tax assets		3,547			3,688			3,459			16,238			17,294
Other assets		11,383			12,624			10,181			9,084			7,517
	$	1,477,691		$	1,449,956		$	1,561,949		$	1,098,242		$	1,071,699
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	68,476		$	60,490		$	58,852		$	35,540		$	46,015
Accrued compensation, benefits and related taxes		18,072			14,397			26,177			18,857			14,631
Accrued warranty		7,566			7,919			8,298			4,085			4,393
Deferred revenue		28,100			19,901			8,474			6,273			7,195
Current portion of long-term debt		314			310			35,305			—			—
Other accrued liabilities		23,221			27,980			42,121			20,854			20,806
Total current liabilities		145,749			130,997			179,227			85,609			93,040
Long-term debt, net of current portion		276,606			276,686			276,765			276,000			276,000
Accrued pension		11,362			10,905			10,455			11,810			12,778
Noncurrent income tax payable		6,250			6,487			6,322			5,262			4,334
Noncurrent deferred income tax liability		48,725			47,090			45,255			—			—
Other long-term liabilities		18,694			19,704			18,158			8,404			8,724
Total liabilities		507,386			491,869			536,182			387,085			394,876
Stockholders’ equity:
Preferred stock		—			—			—			—			—
Common stock		1,358			1,357			1,356			1,104			1,102
Capital in excess of par value		1,098,581			1,095,716			1,093,498			789,348			782,717
Treasury stock at cost		(76,007	)		(76,007	)		(572	)		—			—
Unrealized gain (loss) on marketable securities		66			151			20			(151	)		—
Unfunded pension liability		(3,358	)		(3,358	)		(3,358	)		(4,462	)		(4,462	)
Accumulated deficit		(50,151	)		(59,588	)		(64,993	)		(74,498	)		(102,350	)
Cumulative translation adjustments		(184	)		(184	)		(184	)		(184	)		(184	)
Total stockholders’ equity		970,305			958,087			1,025,767			711,157			676,823
	$	1,477,691		$	1,449,956		$	1,561,949		$	1,098,242		$	1,071,699

ARRIS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2008			2007			2008			2007
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	281,110		$	252,718		$	554,616		$	487,971
Cost of sales		188,226			180,342			376,484			346,848
Gross margin		92,884			72,376			178,132			141,123
Gross margin %		33.0	%		28.6	%		32.1	%		28.9	%
Operating expenses:
Selling, general, and administrative expenses		37,046			26,455			74,028			50,630
Research and development expenses		27,662			17,791			55,784			35,887
Restructuring and impairment charges		175			—			580			421
Amortization of intangible assets		12,454			58			25,708			116
		77,337			44,304			156,100			87,054
Operating income		15,547			28,072			22,032			54,069
Other expense (income):
Interest expense		1,722			1,652			3,226			3,320
Loss (gain) on investments		171			(1,444	)		173			(1,425	)
Loss (gain) on foreign currency		350			(146	)		(640	)		176
Interest income		(1,702	)		(6,459	)		(4,387	)		(12,942	)
Gain related to terminated acquisition, net of expenses		—			—			—			(22,835	)
Other (income) expense, net		65			51			29			116
Income from continuing operations before income taxes		14,941			34,418			23,631			87,659
Income tax expense		5,504			11,144			8,789			26,741
Net income	$	9,437		$	23,274		$	14,842		$	60,918
Net income per common share:
Basic	$	0.08		$	0.21		$	0.12		$	0.56
Diluted	$	0.08		$	0.21		$	0.12		$	0.55
Weighted average common shares:
Basic		122,741			109,398			126,752			108,935
Diluted		124,651			111,698			128,190			111,340

ARRIS GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2008			2007			2008			2007
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Operating Activities:
Net income	$	9,437		$	23,274		$	14,842		$	60,918
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		5,132			2,648			10,095			5,145
Amortization of intangible assets		12,454			58			25,708			116
Stock compensation expense		2,840			3,378			5,391			6,034
Deferred income tax provision		5,078			4,924			4,572			9,626
Amortization of deferred finance fees		278			278			557			557
Provision for doubtful accounts		9			225			214			596
Gain related to previously written off receivables		—			—			—			(377	)
Gain on disposal of fixed assets		(2	)		—			(2	)		—
Loss on investments		171			(1,444	)		173			(1,425	)
Gain related to terminated acquisition, net of expenses		—			—			—			(22,835	)
Excess tax benefits from stock-based compensation plans		—			(1,676	)		—			(6,531	)
Changes in operating assets & liabilities, net of effects of acquisitions and disposals:
Accounts receivable		(8,272	)		4,851			(770	)		(5,972	)
Other receivables		(2,993	)		3,043			(4,737	)		(4,289	)
Inventory		(21,920	)		(12,356	)		(14,419	)		3,684
Income taxes payable		(3,078	)		(7,024	)		(2,997	)		(5,731	)
Accounts payable and accrued liabilities		14,795			7,033			4,501			(17,809	)
Other, net		(3,509	)		688			(2,193	)		2,158
Net cash provided by operating activities		10,420			27,900			40,935			23,865
Investing Activities:
Purchases of property, plant, and equipment		(5,363	)		(4,768	)		(11,792	)		(7,055	)
Cash proceeds related to terminated acquisition, net of expenses paid		—			(327	)		—			10,554
Cash paid for hedge related to terminated acquisition		—			—			—			(26,469	)
Cash proceeds from hedge related to terminated acquisition		—			—			—			38,750
Cash paid for acquisition, net of cash acquired		(227	)		—			(4,419	)		—
Cash proceeds from sale of property, plant & equipment		13			—			237			—
Cash proceeds from sale of short-term investments		16			—			16			—
Purchases of short-term-investments		—			(69,715	)		(16,887	)		(197,850	)
Disposals of short-term-investments		41,964			44,010			72,464			125,110
Net cash provided by (used in) investing activities		36,403			(30,800	)		39,619			(56,960	)
Financing Activities:
Payment of debt and capital lease obligations		(99	)		—			(35,196	)		—
Treasury stock repurchase		—			—			(75,960	)		—
Excess tax benefits from stock-based compensation plans		—			1,676			—			6,531
Employer repurchase of shares to satisfy minimum tax withholdings		(796	)		(1,690	)		(1,035	)		(1,690	)
Proceeds from issuance of stock and other		823			5,617			(1,894	)		10,656
Net cash provided by (used in) financing activities		(72	)		5,603			(114,085	)		15,497
Net increase (decrease) in cash and cash equivalents		46,751			2,703			(33,531	)		(17,598	)
Cash and cash equivalents at beginning of period		243,515			441,317			323,797			461,618
Cash and cash equivalents at end of period	$	290,266		$	444,020		$	290,266		$	444,020

ARRIS GROUP, INC.
SUPPLEMENTAL NET INCOME RECONCILIATION
(in thousands, except per share data)
(unaudited)

	Q1 2008						Q2 2008						YTD 2008
				Per Diluted						Per Diluted						Per Diluted
	Amount			Share			Amount			Share			Amount			Share
Net income	$	5,405		$	0.04		$	9,437		$	0.08		$	14,842			0.12
Highlighted items:
Impacting gross margin:
Stock compensation expense		201			—			245			—			446			—
Impacting operating expenses:
Integration costs		427			—			—			—			427			—
Restructuring charges — adjustments to existing accruals		405			—			175			—			580			—
Amortization of intangible assets		13,254			0.10			12,454			0.10			25,708			0.20
Stock compensation expense		2,350			0.02			2,595			0.02			4,945			0.04
Tax related to highlighted items above		(6,294	)		(0.05	)		(5,732	)		(0.05	)		(12,026	)		(0.09	)
Total highlighted items		10,343			0.08			9,737			0.08			20,080			0.16
Net income excluding highlighted items	$	15,748		$	0.12		$	19,174		$	0.15		$	34,922		$	0.27
					131,981						124,651						128,190

	Q1 2007						Q2 2007						YTD 2007
				Per Diluted						Per Diluted						Per Diluted
	Amount			Share			Amount			Share			Amount			Share
Net income	$	37,644		$	0.34		$	23,274		$	0.21		$	60,918			0.55
Highlighted items:
Impacting gross margin:
Stock compensation expense		165			—			229			—			394			—
Impacting operating expenses:
Gains related to previously written off receivables		(377	)		—			—			—			(377	)		—
Restructuring charges — adjustments to existing accruals		421			—			—			—			421			—
Amortization of intangible assets		58			—			58			—			116			—
Stock compensation expense		2,491			0.02			3,149			0.03			5,640			0.05
Impacting net income (loss) from continuing operations:
Gains related to terminated acquisition, net of expenses		(22,835	)		(0.21	)		—			—			(22,835	)		(0.21	)
Gain on deferred compensation assets		—			—			(1,345	)		(0.01	)		(1,345	)		(0.01	)
Impacting income tax expense:
Adjustments of income tax valuation allowances and research & development credits and other		(3,246	)		(0.03	)		—			—			(3,246	)		(0.03	)
Tax related to highlighted items above		7,754			0.07			(670	)		(0.01	)		7,084			0.06
Total highlighted items		(15,569	)		(0.14	)		1,421			0.01			(14,148	)		(0.13	)
Net income excluding highlighted items	$	22,075		$	0.20		$	24,695		$	0.22		$	46,770		$	0.42
					110,988						111,698						111,340

With respect to stock compensation expense, ARRIS records non-cash compensation expense related to grants of options and restricted stock. Depending upon the size, timing and the terms of the grants, this non-cash compensation expense may vary significantly. In prior periods, ARRIS recognized a gain in Q1 of 2007 associated with previously written off receivables. With respect to amortization of intangibles, the intangibles being amortized relate to our recent acquisition of C-COR. The restructuring charge adjustments reflect items that, although they or similar items might recur, are of a nature and magnitude that identifying them separately provides investors with a greater ability to project ARRIS’ future performance. In the second quarter of 2007, ARRIS realized a gain before tax of $1.3 million on its deferred compensation asset that had been previously recorded as an unrealized gain on the balance sheet. During the first quarter of 2007, ARRIS announced that it entered into a transaction agreement with TANDBERG Television ASA, in which ARRIS was to buy all the outstanding shares of TANDBERG. ARRIS was subsequently outbid by another buyer and the transaction agreement was terminated during the first quarter 2007. ARRIS recorded gains, net before tax, of $22.8 million related to the termination of the transaction (termination fee, foreign exchange gains, and expenses). The net termination fee resulted in a capital gain which provided greater access to prior tax capital losses that had previously been viewed as more likely than not unrealizable. As a result, net income tax valuation allowances totaling $3.2 million were reversed in the first quarter 2007. During the first quarter of 2008, ARRIS recorded incremental costs of $0.4 million as a result of the C-COR integration.

In assessing operating performance and preparing budgets and forecasts, ARRIS’ management considers performance after making these adjustments and believes that providing investors with the same information provides greater transparency and insight into management’s analysis. ARRIS expects to continue providing similar information in the future with schedules reconciling the differences between GAAP and non-GAAP financial measures.

ARRIS GROUP, INC.
Supplemental Third Quarter
Net Income Reconciliation (unaudited)
Q3 EPS 2008 Guidance

Estimated GAAP EPS — diluted	$0.13 - $0.18
Reconciling Items
Amortization of intangibles, after tax	0.05
Stock compensation expense, after tax	0.01
Subtotal	0.06
Estimated adjusted (non-GAAP) EPS — diluted	$0.19 - $0.24

See the Supplemental Net Income Reconciliation for a discussion regarding management’s reasoning for providing this non-GAAP financial measure