ARRIS brings the idea of broadband home. The company makes communications equipment and components used to enable broadband voice and data transmission and to build television broadcast networks. Products include cable network headend gear, Internet protocol switching systems, modems, and other consumer premises products. It also sells such related hardware as cable, connectors, and other supplies used for mounting and installation. ARRIS primarily markets to large cable-network operators. Top customers Comcast and Time Warner Cable together accounted for about 41% of revenues in 2010 and 2011. Outside of North America, the company's key markets are the Asia/Pacific region, Europe, and Latin America.
The company's organizational structure includes three units: broadband communications systems; access, transport, and supplies; and media and communications systems. ARRIS's broadband communications division, which includes cable modems and termination systems, accounts for more than three-quarters of the company's revenues, while the company's access and transport systems make up nearly 20% of sales
ARRIS helps multiple system operators (MSOs) upgrade their networks to better compete with telephone companies and digital broadcast satellite providers. As competitors use technologies such as DSL and last-mile fiber to add additional services, MSOs utilize products from ARRIS to support such functionality as VoIP and on-demand video as more consumers and businesses demand robust streaming video content and services.
ARRIS broke the $1 billion mark in sales in 2008 and the company has since kept its total revenue figure above that level, although sales growth was essentially flat in 2011. Meanwhile, the company's net income fell into negative territory for the year due to higher operating expenses driven partly by restructuring and other costs related to its acquisition of BigBand Networks.
ARRIS has agreed to acquire the Motorola Home business from Google-owned Motorola Mobility for $2.35 billion in cash and stock. The deal is expected to close by mid-2013.
It bought BigBand in 2011 for about $172 million in cash to enhance its digital video content capabilities in an effort to broaden its product selection. The company's strategy also includes expanding internationally into markets outside the cable industry. – less