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Cable/Video

Arris Cuts, Divides Following Merger

Arris Group Inc. (Nasdaq: ARRS) has split itself into three "product-focused" groups and shed fewer than 100 employees in the wake of its acquisition of C-COR Corp. on Friday. (See Arris Sews Up C-COR.)

An Arris spokesman did not provide a specific number of employees who were affected by the merger, but acknowledged that less than 5 percent of a combined staff of about 2,000 would be let go.

The deal, announced in late September, involved few product redundancies between the two companies. The most discussed overlap was in the edge QAM department. Arris markets the D5, a product selected by Comcast Corp. (Nasdaq: CMCSA, CMCSK) earlier in the year to support a rollout of switched digital video (SDV) technology. C-COR, meanwhile, unveiled its entry, the CHP eQAM, in June. (See Comcast Taps Arris for Edge QAM Initiative , Arris Adds Edge QAM Muscle, and C-COR Launches Edge QAM.)

Arris did not disclose every personnel move made following the closing of the merger, but the company did note late last week that former C-COR CEO David Woodle would join the Arris board of directors.

Mike Pohl, most recently the president of C-COR's Global Strategies group, confirmed with Cable Digital News that he is leaving the company, but will stay on few a few months to support the transition, primarily for the video-on-demand (VOD) side of the business. Pohl joined C-COR in January 2005 when C-COR completed its $89.5 million acquisition of VOD and digital ad-insertion technology firm nCUBE Corp. (See C-COR Completes nCube Buy.)

On Monday, Arris also detailed how it will break out its trio of product groups -- Broadband Communications; Access, Transport, and Supplies; and Media & Communications Systems -- and who it has tapped to lead each one. (See Arris Reorgs Post C-COR.)

Here's a glance at the new corporate structure:

  • Broadband Communications Group: Covers all Docsis-based headend and customer premises products, including cable modems and embedded multimedia terminal adapters (e-MTAs). The headend portion includes the company's cable modem termination system (CMTS) gear and universal edge QAM products. Bruce McClelland, previously the VP and GM of CPE products at Arris, has been promoted to president, broadband communications.

  • Access, Transport, and Supplies Group: This division will absorb the C-COR access and transport business and the Arris Telewire Supply unit. John Caezza, formerly the president of C-COR's broadband systems solutions unit, is now president of the newly formed group.

  • Media and Communications Systems Group: This unit will include the C-COR OSS Software and On Demand businesses, as well as Arris's fixed mobile convergence (FMC) product line. Bryant Isaacs, previously the president of Arris New Business Ventures, has been named president of the new group.


Ron Coppock, meanwhile, will head up sales and marketing for all three groups as president, worldwide sales.

In other moves, Jim Lakin, formerly the president of Arris Broadband products, is now president of advanced technology and services, where he's tasked with coordinating "areas of major synergy" among the three product groups.

Amid those changes, there are also some non-changes: Bob Stanzione, Arris chairman and CEO; Larry Margolis, Arris EVP and general counsel; and David Potts, EVP and CFO, will remain in their current roles.

In the first trading day since sealing the deal, Arris shares were down $0.24 (2.40%) to $9.94 each in afternoon trading Monday.

— Jeff Baumgartner, Site Editor, Cable Digital News

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