Arris Restructures Reporting Following Acquisition of Motorola Mobility, Creates New Business Units

Posted by Joe Zaller
May 20 2013


Cable technology provider Arris announced that following the acquisition of the home businesses of the Motorola Home business from Google, it will now operate in two business segments, Network & Cloud and CPE (Customer Premises Equipment).


New Arris Segments - May 15 2013



The Network & Cloud segment include the former ARRIS CMTS EMP, ATS and MCS products. It also include the former Home, Video, head-end, CMTS equipment as well as the converged experience products. Bruce McClelland has been named president of the Network & Cloud segment. Previously he was Group President Products and Services, and was also responsible for the CPE business unit as VP & GM.

The CPE segment includes include both cable and DSL modems, EMTAs, gateways and set-top boxes from both companies. Larry Robinson, former Motorola Mobility SVP and GM of Home Devices has been named the president of the CPE business unit.


On an update conference call with equity analysts, Arris chairman & CEO Robert Stanzione said following the acquisition of Motorola’s Home business, Arris is now a “vastly different company from what we were before.”

Stanzione provided an update on the synergy savings from the deal, which Arris has targeted in the range of $100m – $125m. “Programs are well under way, and we’ve — we’re already meeting or beating the timelines. Sales and marketing synergies are essentially complete. Supply chain analysis is confirming our savings estimates, and actions are under way. G&A and R&D integration plans are also well under way. These will take a little longer to achieve.”

Stanzione also gave a frank assessment of the Motorola home business, but also indicated that the recently acquired business will improve now that uncertainty about its future has been resolved.  “As you know, prior to the acquisition, Motorola Home sales had been in decline. Over the past 2 years, the business went through the long process of being acquired by Google and subsequently being auctioned off. Some momentum was lost due to the internal distractions and customer reluctance to expand their business with Motorola Home given the uncertainty around its ultimate disposition. It’s clear that the management teams put a lot of time and effort into the auction process, and the uncertainty throughout the process took its toll on the employees. An executive of one of our largest customers told me very candidly that his company was holding back on new business until they were satisfied that Motorola Home would land in a good place. Over the past few weeks, I’ve met with other major customers who have expressed similar sentiments as well as an eagerness to get on with some of the projects that they’ve been planning for quite some time. Despite these distractions, the team has done a remarkable job in moving forward with several important initiatives that are going to move the needle in the very near future.”



Related Content:

Transcript of Arris Q2 2013 Guidance/Update Call, May 15, 2013

ARRIS Second Quarter 2013 Update Conference Call Presentation

Zacks Equity Research: Arris Restructures Business Model


© Devoncroft Partners. All Rights Reserved.





Comments are closed.

%d bloggers like this: