Press Release Source: ARRIS Group, Inc.
ARRIS Announces Share Repurchase Program
Tuesday February 19, 8:08 am ET
SUWANEE, Ga., Feb. 19 /PRNewswire-FirstCall/ -- ARRIS Group, Inc. (Nasdaq: ARRS - News), a global technology leader in the development of advanced cable telephony, next generation high-speed data, demand driven video solutions, operations software and broadband access equipment, today announced that its Board of Directors has authorized the repurchase of up to $100 million of the Company's common stock. Shares will be repurchased in the open market or through block purchases at times and prices considered appropriate by the Company. The timing of any purchases and the exact number of shares to be purchased will depend on market conditions.
3871 Lakefield Drive
Suwanee, GA 30024
Phone - 678-473-2647
Fax - 847-615-8924
Index Membership: S&P 600 SmallCap
Industry: Communication Equipment
Full Time Employees: 1,992
ARRIS is a global communications technology company specializing in the design and engineering of broadband networks. We are a leading developer, manufacturer and supplier of cable telephony, video and high-speed data equipment, as well as outside plant construction and maintenance equipment for cable system operators.
Delivery of Broadband Access Products
The demand for broadband services seems to be insatiable. In nearly every part of the world, consumers are becoming ever more dependent on their local broadband access provider for their entertainment, information and ability to communicate. Those providers, in turn, look to cutting-edge suppliers like ARRIS to deliver the next generation voice, video and high-speed data solutions that their customers demand. Cable companies and other broadband providers worldwide depend on the type of standards-based, tested-to-scale, next-generation voice, video and data solutions at which ARRIS excels:
Cable telephony solutions for all types of network configurations. ARRIS is the world leader in providing cable telephony access equipment for circuit-switched and IP networks, including VoIP cable telephony.
Carrier-grade, high-speed data network solutions to bring Internet applications to subscribers. Solutions include the ability to tier, or charge by bandwidth usage, for Internet access.
Subscriber premise products that are DOCSIS® 2.0 and Euro-DOCSIS 2.0- certified and have met PacketCable™ certification standards. These products enable operators to bring cost-effective, carrier-grade IP data and telephony to their subscribers.
Cable system infrastructure products -- ARRIS is one of the world’s leading suppliers of HFC infrastructure communications and networking equipment, offering customers an array of construction and maintenance products from hundreds of manufacturers.
ARRIS has evolved dramatically over the last decade, bringing the expertise and core business competencies of its earlier incarnations to bear: the LANcity tradition of cable modem pioneering; Arris Interactive’s Cornerstone® Voice cable telephony market leadership; and the relationships forged at system and MSO level operations over the past 30 years, through the Anixter-ANTEC-TeleWire Supply® evolution.
Looking to the future, ARRIS will continue to offer broadband network providers the best technological expertise and advanced voice, video and data product portfolio – drawn from its 3 distinct areas of leadership: undisputed CBR voice expertise; DOCSIS-based voice, video and data IP network expertise; and TeleWire Supply’s 50 plus years of experience in HFC network infrastructure product distribution.
High-Speed Data Innovation
The data roots of ARRIS go back to LANcity, the pioneer of high-speed data products. LANcity’s portfolio of cable modems evolved during the 1990’s, with the introduction of the first residential-use cable modem in 1995.The next year, LANcity was purchased by Bay Networks, which was subsequently purchased by Nortel. In 1999, Nortel Networks sold its Broadband Technology Division to Arris Interactive, one of the key companies comprising the ARRIS of today.
During the late 1990’s, the global cable markets began embracing the emerging standards-based technology known as DOCSIS® (Data Over Cable Service Interface Specification) and Euro-DOCSIS in Europe and moving away from proprietary technologies. ARRIS engineers participated in writing the DOCSIS specification and subsequently developed and introduced a variety of DOCSIS-based products to meet this demand.
A current major growth area for ARRIS in high-speed data equipment is the Cable Modem Termination System (CMTS) product line. Initially, this product line included DOCSIS 1.0 and DOCSIS 1.1 single rack unit CMTSs for small to mid size operators. With the acquisition of Cadant® and the CMTS assets of Com21, this portfolio has expanded to chassis-designed units for larger operators as well as a full DOCSIS 2.0-qualified product line to meet the needs of any size operator.
Today, ARRIS is the undisputed leader in supplying global cable telephony equipment, with nearly 5 million lines deployed worldwide.
The first trials of the ARRIS Cornerstone® Voice system began in late 1995 with commercial deployments during 1996. Initial marketplace acceptance of HFC telephony was tentative. Along with its competitors, ARRIS faced numerous obstacles, such as convincing customers of the technological viability of delivering lifeline telephone service over an HFC network; and the lack, at that time, of a system upgrade sufficient to deliver reliable two-way service. Even after the technology had been proven, customers were still faced with the task of managing and operating a two-way network that was far more complex than a one-way downstream system.
Ultimately, large operators such as Cox and AT&T Broadband in the U.S., Jupiter Communications in Japan and others, were successful, with ARRIS’ assistance, in deploying a highly-reliable and profitable telephone service at parity with the incumbent local exchange carriers. This resulted in a rapid increase in ARRIS market share and sales.
At the time, ARRIS was focused on circuit-switched, Constant Bit Rate (CBR) voice products and services. However, ARRIS knew that to remain successful it would have to invest in the then-emerging IP transport protocol. Since early 1999, ARRIS has blended its CBR technological expertise along with IP research and product development to become the world’s leading provider of Telephony over IP (ToIP™) networks – the ARRIS carrier-grade version of Voice over IP (VoIP). ARRIS carrier-grade standards reflect five 9’s (99.999%) reliability and offer service that meets or exceeds that available from incumbent local exchange carriers. ARRIS carrier-grade standards are exemplified in the PacketCable™ 1.0 Certified Cadant C4 CMTS which provides operators the ability to provide both voice and tiered data over IP networks.
Today, cable telephony is the fastest growing new revenue segment for U.S. MSOs. When combined with cable modem service and digital video-enabling products like the ARRIS Q5 DMTS, it presents a compelling triple-play offering that enables cable to favorably compete with telcos.
ARRIS Future: The Growth of Broadband Access
Demand for ARRIS products has been fueled by the deregulation of, and ensuing competition within, the global telecommunications industry. Traditional long-distance carriers, local phone companies, satellite companies and multiple system cable companies can now all compete directly with each other in any market. All this competition forces providers, cable operators especially, to expand channels, services and features. For cable operators, this means having to upgrade their systems to be able to offer bundled packages of voice and data options along with traditional video channels and enhanced video options, like video-on-demand, high definition signals, interactive channels and personal recorder devices.
Rapid growth in the number of Internet users and the demand for high-speed, high-volume interactive services has strained the existing communications networks. Employing a combination of fiber optic and coaxial cable, modern cable systems provide far greater bandwidth than traditional networks designed to carry only voice and data signals. Innovative solutions are needed to carry more high-volume interactive services to more customers. The line of ARRIS IP-based product offerings positions it well to meet these industry challenges. Product innovation and a continued commitment to research and development remain critical focuses for ARRIS as the ever-increasing demand for bandwidth pushes technologies and solutions forward.
The ARRIS Vision
ARRIS continues to develop new revenue-producing technologies for the telecommunications industry. The ARRIS vision is one of voice, video and data traveling over integrated broadband networks from the headend to the home, and then throughout the home. The convergence of multimedia over one common IP platform will allow providers to create innovative crossover services, as well as unleashing many new consumer-friendly applications, such as videophone, appliance monitoring and control, security, meter reading and everything-on-demand.
In the same way that the DOCSIS® cable modem ushered in a new era of connectivity and convenience for high-speed data services and PacketCable™ is helping accelerate VoIP, new standards-based initiatives such as PacketCable Multimedia and DOCSIS Set-top Gateway capabilities will pave the way for triple play IP-based services over HFC networks. Simultaneously, multimedia consumer devices will drive broadband operators to deliver multimedia content in a variety of new ways.
As has been the case with broadband data and voice, multimedia IP networking drives down costs for both network and subscriber equipment, creating new product opportunities for vendors. Lowering costs allows adoption rates to rise and new services to emerge. ARRIS has been working closely with standards bodies and major broadband operators around the world to address these emerging needs by preparing existing and emerging products to support them. Our leadership in providing the highest value edge products for HFC networks will continue into the new IP multimedia paradigm with continued feature enhancements for our CMTS product lines and extensions of these technologies into new applications.
Testing, Certification and Quality of Service
To ensure the highest quality of product it is necessary to prove interoperability with a variety of different vendors’ solutions. ARRIS maintains 3 world-class testing labs in Atlanta. These facilities represent a significant investment and are built to test IP solutions at scale, using a multitude of different vendor components. The ARRIS captive HFC network is over 180 km, about the size of an 180,000 home cable system allowing ARRIS solutions and software to be tested at scale for performance and interoperability.
In addition to this major commitment to interoperability testing, ARRIS works closely with global standards-setting bodies, like CableLabs® in the U.S. and tComLabs in Europe. ARRIS is an active participant in, and contributor to, several CableLabs projects, including DOCSIS®, PacketCable™ and CableHome™, and continues to provide full-time engineering personnel on-site at CableLabs to support the continued development of these standards.
ARRIS TeleWire Supply
ARRIS TeleWire Supply is a full-line supplier of broadband communications infrastructure and customer premise equipment offering customers a broad selection of products from hundreds of manufacturers. In addition to its distributed products, TeleWire Supply also markets proprietary products under its Regal®, MONARCH® and Digicon® brand names.
For more than 50 years, TeleWire Supply has established and maintained its full-service, “one-stop” reputation due, in large part, to the personal and professional relationships developed over the course of the cable industry’s emergence as the country’s primary source of communications, information and entertainment. The company has leveraged its broad inventory with the highest levels of customer support and a wide variety of value-added services. These services have become increasingly important to system operators—and TeleWire Supply continuously engages its customers to identify solutions that reduce costs and enhance their own abilities to service their subscribers.
Through the years, advances in broadband technology have created new applications—most recently, cable telephony, high-speed data and high-definition television. TeleWire has established a leadership role in providing implementation and networking solutions for these services, including a full line of DOCSIS 2.0-certified Embedded Multimedia Terminal Adapters (E-MTAs) and DOCSIS 2.0-certified cable modems—plus all of the connectivity products necessary to install these devices. As broadband providers continue to pursue additional RGUs, TeleWire has introduced its Integrated Commercial Services Platform (ICSP)™ to assist operators in extending their data services into new markets. ICSP allows operators to offer revenue-generating applications today— such as wireless DOCSIS plant extensions, wireless hotspots and WLAN/VPN services—while providing for future technology and service advancements.
ARRIS TeleWire Supply has two distribution centers—one in Cary, North Carolina, and the other in Ontario, California. Combined, these facilities provide TeleWire Supply with more than 200,000 square feet of warehousing capacity, extensive logistics and supply chain management capabilities and on-time delivery anywhere in the United States.
ARRIS Group was founded in 1969 and is headquartered in Suwanee, Georgia.
OFFICERS OF THE COMPANY
Stanzione, Robert J. 58 1998 Chairman of the Board, Chief Executive
Potts, David B 48 2001 Chief Financial Officer, Executive Vice President, Chief Information Officer
Lakin, James D. 62 2001 President, Broadband
Isaacs, Bryant K 46 2000 President, New Business Ventures
Pucinni, Robert 44 1999 President, TeleWire Supply
Coppock, Ronald M 51 1997 President, ARRIS Worldwide Sales
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