Arris Enterprises Inc.
), a leading video and broadband gear manufacturer, recently
retrenched about 700 employees, which accounts for around 7% of
its total workforce. The company is restructuring its business
model, after acquiring the Home businesses of Motorola Mobility,
a subsidiary of
This was necessary after the acquisition was made in April
2013. The merged entity is expected to generate a cost synergy of
$100 - $125 million per annum.
From the second quarter of 2013, Arris will report in two
business segments instead of the current three business segments.
The new segments will be Network & Cloud and CPE (Customer
Premises Equipments). The Network & Cloud segment will
include Arris' existing CMTS EMP, Access, Transport &
Supplies, Media & Communication Systems products.
This segment will also include Arris' Home, Video, head-end,
CMTS and the converged products. On the other hand, the CPE
segment will comprise Cable and DSL modems, EMTAs, gateways and
set-top boxes of both Arris and Motorola Mobility.
With Motorola Mobility's Cable Home business in its portfolio,
Arris is likely to become a formidable player in the video
infrastructure and CPE for the cable TV industry. A report of
Infonetics Research Inc. stated that the combined Arris/Motorola
constituted 45% of the DOCSIS 3.0 CPE market share in 2012. This
figure is well above the second-ranked
Cisco System Inc.
) 15% market share.
Last month, Arris received a boost from its largest customer,
) as the latter has started commercially deploying the company's
E6000 Converged Edged Router. Furthermore, Comcast will be
launching Arris' XG1 gateway for its innovative X1 TV service
from the third quarter of 2013. Arris currently has a Zacks Rank
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