EX-99.1 2 d639223dex991.htm EX-99.1 EX-99.1
ARRIS INVESTOR
DAY 2013
DECEMBER 4, 2013
Exhibit 99.1

VIDEO

WELCOME
BOB
PUCCINI

ARRIS INVESTOR CONFERENCE
SAFE HARBOR
Statements in this presentation or made in this meeting, including those related to the outlook for the remainder of 2013
and beyond, the integration of Motorola Home, expected revenues and net income, gross margins, operating expenses,
research and development expenses, cash flows, income taxes, acceptance of certain ARRIS products, our strategy
and
objectives,
the
general
market
outlook,
and
industry
trends,
are
forward-looking
statements.
These
statements
involve
risks
and
uncertainties
that
may
cause
actual
results
to
differ
materially
from
those
set
forth
in
these
statements.
Among other things, projected results are based on preliminary estimates, assumptions and projections that
management believes to be reasonable at this time, but are beyond management’s control; ARRIS is dependent upon
customer
decisions
to
purchase
the
Company’s
products
-
these
decisions
can
be
deferred
and
customers
also
may
select competitor products; and the market in which ARRIS operates is volatile and actions taken and contemplated
may not achieve the desired impact. Other factors that could cause results to differ from current expectations include:
the
uncertain
current
economic
climate
and
financial
markets,
and
their
impact
on
our
customers’
plans
and
access
to
capital; ARRIS’
ability to successfully integrate Motorola Home’s opportunities, technology, personnel, and operations;
the impact of rapidly changing technologies; the impact of competition on product development and pricing; rights to
intellectual property and the current trend toward increasing patent litigation; the adoption of industry standards;
possible acquisitions and dispositions; and consolidations within the telecommunications industry of both the customer
and supplier base. These factors are not intended to be an all-encompassing list of risks and uncertainties that may
affect
the
Company’s
business.
Additional
information
regarding
these
and
other
factors
can
be
found
in
ARRIS’
reports
filed with the SEC, including its Form 10-Q for the quarter ended September 30, 2013. In providing forward-looking
statements, the Company expressly disclaims any obligation to update publicly or otherwise these statements, whether
as a result of new information, future events or otherwise, except as required by law.
4
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
WHO YOU WILL HEAR FROM
TODAY
5
BOB Stanzione
Chairman and CEO
LARRY Robinson
Customer Premises
Equipment
BRUCE McClelland
Network & Cloud
RON Coppock
Sales and
Marketing
LARRY Margolis
HR and Legal
DAVID Potts
Finance and IT
JIM Brennan
Supply Chain
DECEMBER 4, 2013

Diverse, experienced management team
-
Bob S –
25 years with Bell Labs and Lucent, 18 years with ARRIS (founding CEO) and predecessor company ANTEC
-
Dave Potts –
20+ years with Nortel, 18 years with ARRIS (founding CTO)
-
Larry Margolis –
20+ years with ANTEC, ~12 years with ARRIS
-
John Burke –
20+ years with GI and Motorola Home
-
Larry Robinson–
many years with GI and Motorola Home
-
Bruce McClelland -
~12 years with Nortel, ~16 years with ARRIS
-
Rob McLaughlin–
20+ years with GI and Motorola Home
-
Ron Coppock -
~15 years experience with ANTEC and predecessor companies, ~12 years with ARRIS
-
Jim Brennan many years with GI and Motorola Home
Robust professional experience in both telco and cable technologies and business.

ARRIS INVESTOR CONFERENCE
2013 INVESTOR DAY AGENDA
6
8:00 –
8:30
COFFEE, CONTINENTAL BREAKFAST
8:30 –
8:35
Welcome
BOB
Puccini
8:35 –
9:00
ARRIS Vision, Strategy, Direction Forward
BOB
Stanzione
9:00 –
9:40
CPE Business Update
LARRY
Robinson
9:40 –
9:55
BREAK
9:55 –
10:10
Demonstrations
JONATHAN
Ruff
10:10 –
10:50
Network & Cloud Business Update
BRUCE
McClelland
10:50 –
11:20
Financial Update
DAVID
Potts
11:20 –
11:50
Executive Leadership Panel Q&A session
ARRIS
Leadership
Bob Stanzione, Dave Potts, Larry Robinson, Bruce
McClelland, Ron Coppock, Jim Brennan, Larry Margolis
11:50 –
12:00
Wrap up
BOB
Stanzione
DECEMBER 4, 2013

CEO
BOB
STANZIONE

ARRIS INVESTOR CONFERENCE
ARRIS COMPANY OVERVIEW
NASDAQ: ARRS
8
Global Leader in Video Delivery
and Broadband Technology
DECEMBER 4, 2013
25+
$1.1B
2,176 Patents Approved or
Pending
Q3 2013 revenue $1.068 billion
Channel presence in over
85 countries
Direct presence in over 25
countries
HQ Suwanee, GA, Public
1993, ~6,500 employees
85+
2,176

o
Acquisition creates a global leader
in
video delivery and broadband technology
o
The new ARRIS has the scale and expertise to transform the industry
o
We have unique insight into the needs of service/content providers on a global scale
And how they must evolve their networks as they continue to evolve their businesses to deliver the smart,
simple connected home

ARRIS INVESTOR CONFERENCE
ARRIS PRODUCT PORTFOLIO
Set-Top
Box
Gateway
Cable
Modem
E-MTA Voice /
Data Modem
CMTS Edge
Router
Universal
Edge QAM
Flagship Product Lines
Cable Operator Headend Equipment
that communicates with cable modems
to control flow of data; allocates shared
bandwidth and prioritizes and routes
traffic
Combines the functionality of CMTS and
Edge QAM to enable voice, video and
data in a converged IP network
Cable Operator Headend Equipment
that packages video for delivery over the
HFC network to the settop box. Can also
be used for packaging of data packets
sent from the CMTS to the home
A device located at the
subscriber's home and
connects to the Cable
network to receive and
transmit digital information
between subscriber-owned
computers and the CMTS
over the HFC network,
providing Internet
connectivity
A cable modem which also
provides telephone service
from the cable operator
throughout the home
A device installed at the
subscriber's television set
and connects to the
Service Provider network
to decode digital video
signals and render them
as video on the television
set
A device which connects
to the Service Provider
network and provides
voice, data, and video
services throughout the
subscriber's home
CCAP
9
DECEMBER 4, 2013

As many of you know, we have one of the largest product lines in
the industry, providing equipment and services spanning network
to home.
We believe this approach makes us a stronger supplier to our customers, and provides important insight into the interworking of the
technology, leading to superior products.
Video Processing
•
Significant ongoing investment in VOD, AI, and Transcoding
•
Most significant activity and opportunity is around 3-screen support and evolution to CDN network architectures
•
Introduced a new backoffice last year called CMM that was targeted directly at this growing opportunity –
CDN support today
•
Core VOD not growing very rapidly but it a critical asset/control point
•
Several new products focused on MPEG4 transcoding for multi-screen support –
higher growth rate and low share today
Assurance
•
Opex reduction and improved customer satisfaction is high priority for all operators
•
Growing interest in our Assurance products
•
Only real competition is the customer themselves
•
Pursuing several new business models such as cloud hosted service, network mgmt outsourcing, and even cost-sharing collaboration
Wireless
•
Recently announced a new partnership with a company call Ruckus
Wireless
•
Fabulous product line directly focused on WiFi hotspots; compliment existing wired service offering and provider cellular offload
•
Growing focus within the cable operators; significant growth potential
Access and Transport
•
growth in narrowcast bandwidth will drive continued investment in the HFC infrastructure –
node splits or DWDM expansion
•
has been muted due to economy and reduced home construction –
have seen this turn around and start to grow again
•
Investing in PON and deep fiber solutions –
commercial today but eventually residential as well
Pro Services
•
Very pleased in the growth of our Pro Services business
•
Much more than just rack/stack of our own equipment
•
Network design and planning, Cell tower backhaul turnkey project mgmt/execution
•
40% of revenue from outside cable

ARRIS INVESTOR CONFERENCE
GLOBAL CUSTOMER BASE
10
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
WHAT YOU WILL HEAR TODAY
ARRIS continues to execute well
on our company strategy
ARRIS is ideally positioned in the most exciting
and fast growing segments of our industry
•
Multi-screen Video
•
CPE refresh cycle
•
CCAP and DOCSIS 3.1 network upgrades
•
IP Convergence
Our updated long-term strategy
Believe our December 2012 post-integration target “run rate”
model is achievable
11
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
ARRIS CORPORATE STRATEGY
INVESTOR CONFERENCE AUGUST 2012
Maintain a strong capital structure, mindful of our 2013 debt
maturity, share repurchase
opportunities and other capital
needs including M&A.
Grow our current businesses into a more complete portfolio
including
a
strong
video
product
suite.
Continue
to
invest
in
the evolution toward enabling true network convergence onto
an all IP platform.
Continue to expand our product/service portfolio through
internal developments, acquisitions and partnerships.
Expand our international
business and begin to consider
opportunities in markets other than cable.
Continue to invest in and evolve the ARRIS talent pool to
implement the above…
DECEMBER 4, 2013
12

ARRIS INVESTOR CONFERENCE
KEY ACCOMPLISHMENTS IN 2013
Home acquisition
•
Customer diversification
•
Product diversification
•
Scale
Sound capital structure to support new ARRIS
Integration ahead of schedule
New product launches
•
E6000
•
XG1
•
Various other CPE devices
Strengthening of talent pool, particularly through the
acquisition
DECEMBER 4, 2013
13

ARRIS INVESTOR CONFERENCE
ARRIS REVENUE HISTORY
$M
14
Mot Home
portfolio
2013
excludes
Home
Business
Revenue
from
January
1
–
April
16,
2013
Circuit Switched
Cable Telephony
(Cornerstone)
Cable IP Telephony Build Out
DOCSIS 3.0 CMTS
and CPE Cycle
CCAP, Advanced
Gateways, etc.
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
15
ARRIS R&D INVESTMENTS
2013
excludes
Home
Business
Spending
from
January
1
–
April
16,
2013
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
ARRIS EVOLVING GROWTH STORY
16
STRONG TRACK RECORD OF PURPOSEFUL, SUCCESSFUL CORPORATE DEVELOPMENT
Circuit Switch Cable
Telephony
Voice over IP
DOCSIS CMTS and
CPE Cycle
CCAP and Adv.
Gateways
Forging New
Boundaries
INTERNATIONAL
CLOUD
WIRELESS
APPLICATIONS
ENTERPRISE
RETAIL
Early organic
growth
evolving
from Circuit switch
to IP Telephony
Selected
technology
acquisitions to
address adjacent
markets
Transformative
acquisition to drive
diversification, scale,
market reach, and
development
capabilities
Positioned to
accelerate
growth with
new market
opportunities
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
ARRIS SHARE PRICE GROWTH
17
DECEMBER 4, 2013
EXCELLENT SHAREHOLDER RETURNS
Through November 29, 2013

ARRIS INVESTOR CONFERENCE
POSITIVE CUSTOMER
RESPONSE
N.A. CABLE
“ARRIS commitment to integrating hardware and software
solutions in support of our RDK initiative has been
instrumental in expanding the Comcast X1 experience.”
N.A. TELCO
“With SecureMedia, we can continue to expand our delivery
of premium on demand content to multiple screens, safely
and securely.”
N.A. CABLE
"DreamGallery will allow us to deliver the experience where
customers can enjoy their content whenever and wherever
they want.”
EMEA
CONTENT
AGGREGATOR
“SecureMedia gives us the protection and assurance to
provide a variety of premium video to our customers.”
GLOBAL
PROGRAMMER
"We've worked with ARRIS for years and knew they were
ideal to help us.”
EMEA CABLE
“By consolidating the video and data service over
APEX3000, we've been able to merge traffic in an agile and
flexible way -
increasing network capacity for future growth.”
N.A. CABLE
"ARRIS E6000 CER enables us to deliver popular services.”
18
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
MULTI-SCREEN VIDEO IS
CHANGING CONSUMPTION
HABITS…FAST
DECEMBER 4, 2013
19
•
Total TV Time (N.A.):
•
2010 –
3.9 hours daily
•
2013 –
4.2 hours daily
•
Connected video devices (N.A):
•
2012 –
277.2 M
•
2017 –
537.7 M
Source: eMarketer, MRG, CTAM
AND WATCHING VIDEO IN
MORE WAYS THAN EVER
SP = traditional video Service Provider
CONSUMERS ARE WATCHING
MORE VIDEO THAN EVER
ON MORE DEVICES THAN
EVER
52%
17%
4%
6%
21%
% Average Time Spent Watching
Video in the Home (N.A)
TV/HDTV
SP DVR
SP VOD
SP TV to Other Devices
Over-the -Top Streaming

ARRIS INVESTOR CONFERENCE
CONSUMER BEHAVIOR DRIVING
TRANSITION TO ALL IP
NETWORKS
MIGRATION WILL REQUIRE $ BILLIONS OF
INVESTMENT
20
DECEMBER 4, 2013
DEPLOY TV
EVERYWHERE
IMPROVE SERVICE
VELOCITY, 
INNOVATION
OPERATIONAL
EXCELLENCE
SERVICE PROVIDER
IMPERATIVES
IP
SERVICE
DELIVERY
MULTI-SCREEN,
TV-EVERYWHERE
BANDWIDTH
DEMAND
GROWTH
ENHANCED
QUALITY OF
EXPERIENCE
SCALABLE,
OPEN CLOUD
ADVANCED
HOME
NETWORKING
IMPROVED
MONETIZATION
OTT VIDEO
INTEGRATION

ARRIS INVESTOR CONFERENCE
ARRIS GROWTH STRATEGIES
DECEMBER 4, 2013
21
Deliver next-generation broadband and video solutions
that enable service providers to offer content anytime,
anywhere solutions
Be the leading supplier of in-home solutions enabling rich
media experiences and IP services
Expand and grow the ARRIS service delivery business by
enabling the evolution to next generation networks and
time to market advantage for operators
CUSTOMER PREMISE EQUIPMENT
NETWORK and CLOUD
GLOBAL SERVICES
ARRIS INVESTOR CONFERENCE

KEY FOCUS AREAS FOR 2014
22
DECEMBER 4, 2013
DELIVER ON GROWTH AND EXPANSION ….
MOVE BEYOND INTEGRATION AND FOCUS ON GROWTH
And most importantly invest in and evolve our best-in-industry talent
pool
Maintain a strong capital structure, mindful of our debt & liquidity
Expand our international business including exploring adjacent
market opportunities
Invest
aggressively
to
refresh
and
expand
our
product/service
portfolios through organic development and partnership/acquisition
Capitalize on the evolution toward network convergence and
all IP platforms
to
drive
business
growth
Leverage ARRIS scale
to drive profitable worldwide growth
ARRIS INVESTOR CONFERENCE
EXECUTE ON OUR STRONG FOUNDATION…

THANK YOU
QUESTIONS?

CUSTOMER
PREMISE
EQUIPMENT
BUSINESS
UPDATE
LARRY
ROBINSON

ARRIS INVESTOR CONFERENCE
ARRIS CUSTOMER PREMISES
EQUIPMENT
25
Global Customer Relationships
End-to-End Network Expertise
Extensive R&D Capabilities
Robust Product Portfolio
Operational Excellence
BROADBAND
ACCESS
IP
VIDEO
DIGITAL
VIDEO
DECEMBER 4, 2013
WELL-POSITIONED TO DELIVER THE FUTURE OF HOME ENTERTAINMENT
ARRIS INVESTOR CONFERENCE

MARKET TRENDS
IMPACTING THE HOME
26
26
26
Access
Network
Cloud Solutions
Home Network
Traffic
DECEMBER 4, 2013
CREATING A “CHALLENGED”
CONSUMER EXPERIENCE
ENTERTAINMENT
REDEFINED
GROWING POPULATION
OF DEVICES WITHIN
THE HOME
INCREASED HOME
NETWORK DEMANDS
ARRIS INVESTOR CONFERENCE

DECEMBER 4, 2013
27
39% considering switching TV providers within 6 mos
16% have added/increased services in past 6 mos
14% have dropped/decreased services in past 6 mos
Less than 1% fully “cut the cord”
Source: CTAM, Digitalsmiths, Investor’s Business Daily, websites
CONSUMER BEHAVIOR DRIVING
COMPETITION & SERVICE INNOVATION
CONSUMERS DEMANDING MORE SERVICES
ARRIS INVESTOR CONFERENCE

CPE TECHNOLOGIES
SHAPE THE HOME
Software
Broadband
Video
Processors
Wireless
Networks
Wired
Networks
Storage
Security
28
DECEMBER 4, 2013
ARRIS CONTINUES TO INVEST IN KEY CPE TECHNOLOGIES
ARRIS INVESTOR CONFERENCE

DEPLOY TV
EVERYWHERE
IMPROVE
SERVICE
VELOCITY, 
INNOVATION
OPERATIONAL
EXCELLENCE
INDUSTRY PRIORITIES
DRIVING CPE INVESTMENTS
29
SERVICE
PROVIDER
PROGRAMS
&
INVESTMENTS
SERVICE PROVIDER
IMPERATIVES
ARRIS CAPABILITIES
DECEMBER 4, 2013
•
Enable cloud-based access to content
•
Connecting all IP devices in the home with Cloud and
Gateway
•
Evolve in-home architecture increasing service
delivery flexibility
•
Convergence
for
the
home
–
beyond
3-play
•
Increased consumer engagement with enhanced
interactivity and applications
•
Next Gen compression and screen resolution
•
Enhance initial Wi-Fi install and maintenance
•
Deploy next-gen video gateways
•
Implement cloud and remote based user interface
•
Multiservice IP Gateways
and STB
•
Advanced 802.11ac
•
In-Home Transcoding
•
High MIPS CPU
•
Thin Client Evolution
•
HEVC/4K STB
•
Wi-Fi Assure
•
Hybrid and all-IP
Gateways
•
HTML5
ARRIS INVESTOR CONFERENCE

SIMPLIFY THE CONNECTED
EXPERIENCE
30
Game
Consoles
Traditional TV
/ HDTV’s
Broadband
Access
SMART TV’s /
OTT Boxes
Multi-screen
(Tablets)
Connecting devices in the
home, enabling content
sharing, unifying &
enhancing the consumer
experience
DECEMBER 4, 2013
ARRIS INVESTOR CONFERENCE

ARRIS INVESTOR CONFERENCE
THE
GATEWAY—
MULTI-PURPOSE
PLATFORM
31
DRIVING A CPE REPLACEMENT CYCLE
Industry
Verticals
Audio Entertainment
Services
Apps Platform
Next
Generation TV
Experiences
Gigabit Broadband Access
ARRIS Gateway Portfolio –
Leading The Industry Transition
DECEMBER 4, 2013

THE
GATEWAY—
ENABLING
NEW
EXPERIENCES
32
Video Gateways
Multimedia
Gateways
Advanced WiFi
Gateways
Data Gateways
Voice
Gateways
Multi-Service
IP Gateways
Platforms That Power
the Future of Home
Entertainment
DECEMBER 4, 2013
ARRIS INVESTOR CONFERENCE
PLATFORM
FUNCTIONS
IP Service Translation for In-Home
Device Distribution
Service Provider & Subscriber
Network Demarcation
Managed Device –
Provision
Services, Monitor & Maintain
Quality of Service
In-Home CPE Resource
Aggregation

ARRIS INVESTOR CONFERENCE
FUTURE HOME GATEWAY
ARCHITECTURE
33
Current NA Video CPE / HH
Screens
Set-Tops
3+ TV’s / 7 IP-devices      ~1.8
Refresh Rate
8-11 years
CY'12
CY'17
CAGR
WW Video
Subs
730.2M
921.5M
4.8%
WW
Broadband
Subs
525.6M
635.8M
3.9%
WW DOCSIS
3.0 Subs
13.6M
57.5M
33.4%
DECEMBER 4, 2013
= Trending Up
= Trending Down
Key Trends & New Architecture Demands Creating Robust Market
Source: ARRIS estimates, 2013 Infonetics Research, Inc. (WW Broadband Subs
include DOCSIS & DSL estimates)
Key Trends

ARRIS INVESTOR CONFERENCE
GROWTH DRIVEN BY
MULTIMEDIA & ADVANCED
BROADBAND DEVICES
DECEMBER 4, 2013
Multimedia Home Gateways
Broadband Devices
NEW SERVICES ENABLED BY TECHNOLOGY –
MAINTAINS STRONG BUSINESS MOMENTUM
CAGR
8.4%
CAGR
26.7%
34

SERVICE PROVIDERS –
DRIVING CPE INVESTMENT CYCLES
DECEMBER 4, 2013
35
NEW SERVICES DEMANDING NEW PLATFORMS
ARRIS INVESTOR CONFERENCE

GATEWAY SOLUTIONS –
ALIGNED
WITH INDUSTRY TRENDS
DECEMBER 4, 2013
36
Data /
Voice
Gateway
D3.0 Data/Voice
802.11ac
D3.1 Data/Voice
802.11ac/ad/HEW
Headless 3-play GW
MOXI WHS Platform
Next-Gen
Gateway
Headed Video GW
Flexible Front End
CA / DRM Support
Xcode Support
8x4 D3.0
ARRIS Gateway
Portfolio
Next-Gen
Gateway
Headless 3-play GW
16x4+ D3.0
Video Gateways
Multi-Service Gateways
Data Gateways
Time
ARRIS INVESTOR CONFERENCE

GigE
CPE
SOLUTIONS
–
LEVERAGING
THE LATEST TECHNOLOGY
DECEMBER 4, 2013
37
DOCSIS
Performance
Home LAN
100Mbps
1Gbps
5 Gbps
APU
Security
GigE
G.hn
G.hn
Shift-to-IP Catalyst
D3.0/D3.1 Service Delivery
Wi-Fi performance /
management ultimate
differentiator
VDSL
50Mbps
Bonded Pair
Vectoring
100Mbps
200Mbps
3K DMIPS
10K DMIPS
40K DMIPS
Time
ARRIS INVESTOR CONFERENCE

ARRIS
CPE
–
DRIVING
PLATFORM
DIFFERENTIATION
38
•
Cloud to Home Connectivity
•
Network Interoperability
•
Increased Access Speeds
•
Network Unification
•
Gbps Home LANs
•
Best in Class Wired & Wireless
Network Performance
•
Converged Services
•
Advanced Gateway Platforms
•
Client Devices
•
Flexible Application Ecosystem
•
X-functions
DECEMBER 4, 2013
CONSUMER TRENDS
•
Any Content, Anywhere,
Any Time
•
Personalized Experience
•
Customer-owned Devices
•
Quality of Experience
Access
Network
Connectivity
Home
Network
Performance
Home
Devices
ARRIS INVESTOR CONFERENCE

Look at
our
Focus
Areas
–
centered
around
the
consumer
experience
(that
our
customers
are
delivering)
WAN2LAN –
Leveraging capabilities within Bruce’s team
Home network becomes increasing important (discovery, seamless integration, performance)
Devices…X-funtions

ARRIS INVESTOR CONFERENCE
ARRIS
CPE
–
LEVERAGING
MARKET
TRENDS TO DRIVE GROWTH
39
•
Grow / secure new wins in
DVB (Int’l markets)
•
Expand DSL pursuits
•
Leverage scale; Drive
supply chain efficiencies
•
Exploit design expertise
•
Ensure disciplined mgmt approach
•
Capitalize on diversified portfolio
•
Deliver on product pipeline
•
Cont’d R&D investment
•
Execute in core markets
•
Build upon key customer
engagements
DECEMBER 4, 2013
Regain
Market
Share
Deliver
New
Products
Focus
on
Execution
Expand
Market
Presence
•
Grow / secure new wins in
DVB (Int’l markets)
•
Expand DSL pursuits
•
Leverage scale; Drive
supply chain efficiencies
•
Exploit design expertise
•
Ensure disciplined mgmt approach
•
Capitalize on diversified portfolio
•
Deliver on product pipeline
•
Cont’d R&D investment
•
Execute in core markets
•
Build upon key customer
engagements

THANK YOU
QUESTIONS?

BREAK

DEMONSTRATIONS
JONATHAN
RUFF

•
Gbps High Speed data
•
Voice, Video and Data
with one connector
•
Self Healing non-stop
performance
E6000

•
Video Access Point
•
Whole Home Coverage
•
Multiple simultaneous
HD streams
•
Advanced Quality of
Service Functionality
•
Easy Install Solution
VAP 2500

•
Voice, Video and Data
•
Home Networking & WiFi
•
6 Channel Transcoder
•
DECT Telephony
•
Home Automation-Zigbee
MG2402

DEPLOY TV
EVERYWHERE
IMPROVE SERVICE
VELOCITY,
INNOVATION
OPERATIONAL
EXCELLENCE
SERVICE PROVIDER
IMPERATIVES
•
Wi-Fi Video Access Points
•
Wi-Fi Set Tops
ARRIS CAPABILITIES
•
Self Healing E6000 and CCAP
•
Gbps High Speed Data
•
Applications on Set-top
•
OTT Video Services Support
•
Gateway with Home Automation Connectivity

THANK YOU

NETWORK
&
CLOUD
BUSINESS
UPDATE
BRUCE
MCCLELLAND

EVOLVING CONSUMER DEMANDS
DRIVING NETWORK INVESTMENT
Source: Cisco VNI
Source: ARRIS estimates, eMarketer
The
American
Media
Diet:
2010
vs.
2013
CONSUMER DEMAND FOR TV EVERYWHERE
IS MAJOR CATALYST FOR NETWORK INVESMENT
Global
Consumer
Internet
Traffic
2012
-
2017
DEMAND FOR BANDWIDTH WILL
CONTINUE TO INCREASE
TV
VIEWING
REMAINS
STRONG
EVEN
AS
NEW
DEVICES
EMERGE
DECEMBER 4, 2013
49
ARRIS INVESTOR CONFERENCE
File
Sharing
Web,
email,
and
data
Internet
Video
Daily Consumption  in Hours

DEPLOY TV
EVERYWHERE
IMPROVE SERVICE
VELOCITY,
INNOVATION
OPERATIONAL
EXCELLENCE
•
Improve delivery and support model using
sophisticated tools and analytics
•
Reduce service outage impacts and improve
subscriber experience
•
Expand network capacity with platforms that
provide for future growth and capability
•
Evolve network architecture to provide network-
based capabilities such as remote User
Interfaces and TV On Demand
•
Enhanced recommendations and contextual
advertising
SERVICE PROVIDER PROGRAMS &
INVESTMENTS
SERVICE PROVIDER
IMPERATIVES
•
IP Convergence
•
Assurance
•
Services
•
SaaS
•
CCAP
•
HEVC
•
Network DVR
•
Advanced Advertising
•
Offer Management
ARRIS CAPABILITIES
•
Multi-screen
•
Content Mgmt
•
Video Transcoding
•
HTML5/DRM
STRONG ALIGNMENT WITH
SERVICE PROVIDER MAJOR PRIORITIES
50
DECEMBER 4, 2013
•
Enable multi-screen video distribution
•
Re-fresh main-screen user experience
•
Provide cloud-based access to content with
enhanced interactivity and applications
ARRIS INVESTOR CONFERENCE

NETWORK INFRASTRUCTURE AND
CLOUD SOLUTIONS
51
CLOUD
SOLUTIONS
ACCESS AND
TRANSPORT
CMTS/CCAP
VIDEO
INFRASTRUCTURE
GLOBAL
SERVICES
SERVING THE CABLE, TELCO, AND PROGRAMMER SEGMENTS
DECEMBER 4, 2013
1
2
3
4
5
Multi-Screen
Video
HFC
Advanced
Advertising
QoE
Assurance
PON
ARRIS INVESTOR CONFERENCE

Organized in four Product Lines: Cloud Solutions, Video Infrastructure, CMTS/CCAP, and Access and
Transport.
Global Services spanning all  ARRIS Products.

ARRIS Cloud Solutions
ARRIS CLOUD STRATEGY
SOLVING THE TV EVERYWHERE ‘PINCH POINT’
52
Traditional
Media
New
Aggregators
User
Content
The Subscriber Experience
•
Integrated open-standards
solutions for cloud-based
delivery enabling content
anytime and anywhere
•
Systems integration and end-
to-end solutions expertise
DECEMBER 4, 2013
Cloud
1
•
New media monetization
solutions
•
New customer engagement
models
ARRIS INVESTOR CONFERENCE

Talk to Pain Points
-
Bandwidth
-
Ingest/format
-
Security
-
Multi-screen UE
-
Content search, navigation, transaction
-
QOE, ease of use, etc.

ARRIS INVESTOR CONFERENCE
SERVICE PROVIDERS ARE ADOPTING
CLOUD-BASED ARCHITECTURES
53
TRADITIONAL NETWORKS
CLOUD NETWORKS
DVR
User Interface
HW Security
Storage
Control
Maintenance
Routing
Platform-as-a-Service
TV Everywhere
Service Cloud
Tightly
Integrated
–
Monolithic
–
Proprietary
–
Platform
Dependent
Loosely
Coupled
–
Multi-Vendor
–
Open
–
Platform
Independent
DECEMBER 4, 2013
SERVICE VELOCITY, SCALABILITY, RELIABILITY
Cloud
1
In The Home
On The Go

ARRIS INVESTOR CONFERENCE
MULTI-SCREEN
INFRASTRUCTURE
ASSURANCE
SOLUTIONS
MULTI-SCREEN
CONSUMER
SOLUTIONS
CLOUD SOLUTIONS
•
WorkAssure™
•
ServAssure™
•
DreamGallery™
UI Framework
•
MOXI®
Whole Home Solutions
•
SecureMedia®
DRM
•
MobileTV
•
Multi-screen Video Back Office
•
Recommendation and Offer Management
•
Advertising
54
DECEMBER 4, 2013
Cloud
1

ARRIS INVESTOR CONFERENCE
KEY INITIATIVES
CLOUD SOLUTIONS
MARKET OPPORTUNITY
55
’13E / ’17E CAGR: 13%
GLOBAL REVENUE OPPORTUNITY
Multi-screen
Consumer
Solutions
Multi-screen
Video
Infrastructure
Assurance
•
Competitive forces spurring investment in re-fresh of
User Experience
•
Connected Device Digital Rights Management
•
Advanced Video Gateways and Settop Box Software
•
Actionable Intelligence and Proactive Service Mgmt
•
Improved Quality of Experience
•
Field Service Management
•
Multi-screen and connected device video services
•
Expanded cloud-centric applications, e.g. Network DVR
•
Advanced Offer Management and Recommendation
•
Advanced Advertising
•
Cloud-centric applications
SIGNIFICANT GROWTH OPPORTUNITY TO ENABLE
CONTENT ANYTIME, ANYWHERE SOLUTIONS
Sources: ARRIS Views based on Infonetics 1Q13, IHS 2Q13, ABI 2012, F&S 2013, ARC 2013, IDC Research, MRG 2013, TBR 2013 and ARRIS Internal Estimates
DECEMBER 4, 2013
Cloud
1
$ 0.0 
$ 1.0 
$ 2.0 
$ 3.0 
$ 4.0 
2013
2017
$1.7B 
$2.9B 

BEST-IN-CLASS MULTI-SCREEN
CONSUMER SOLUTIONS
56
Whole Home
Solution with MOXI
®
DreamGallery
Multi-Screen Software
MOXI
®
Reference UI
DreamGallery
Framework/ 
Portal
SecureMedia®
DRM
DECEMBER 4, 2013
Cloud
Hide the
complexity
Customer retention
Grow ARPU
ARRIS INVESTOR CONFERENCE
1
TM
TM

ARRIS INVESTOR CONFERENCE
SECUREMEDIA
®
DIGITAL RIGHTS MANAGEMENT
•
Award-winning advanced security and DRM solution to protect
delivery of VOD and linear content to virtually all devices
•
Approved by all major film studios and broadcast networks
•
Available today on market-leading platforms
•
And deployed by Multi-Screen Video Providers worldwide
57
DECEMBER 4, 2013
Cloud
1

Award-winning advanced security and DRM solution to protect delivery of VOD and linear content to virtually
all devices.
Approved by all major film studios and broadcast networks

MULTI-SCREEN VIDEO
INFRASTRUCTURE SOLUTIONS
58
Platform-As-A-Service
•
Enable seamless management and
delivery of content end-to-end across
multiple networks
•
Provide elegant migration from current
broadcast paradigm to full IP distribution
•
Create new revenue stream with robust
advertising solution
Simple solutions and services
Scale with out customers
Grow new markets
DECEMBER 4, 2013
Cloud
1
ARRIS INVESTOR CONFERENCE

ARRIS INVESTOR CONFERENCE
ARRIS END-TO-END
MULTI-SCREEN SOLUTIONS
59
•
ConnectSR
(Billing interface)
•
CMM –
EAM
(Entitlements and
Account Management)
•
Merchandizer
•
DreamGallery
•
DreamGallery  Virtual
•
Moxi
•
Moxi Mobile Client
•
Portal
CONTENT MGMT
CONTENT
PROTECTION
OFFER MGMT
USER EXPERIENCE
•
Secure Media
•
Integration with other
3    Party Systems
SESSION MGMT
•
PlayList Manager and
Packager
•
QAM & IP Session
Management
•
Fulfillment Manager
•
ConvergeMedia Manager
•
AdManager -
SpotAgent
•
VideoFlow
•
Capture Manager (Cloud,
Start-Over for Capture)
•
Policy Manager
ADVERTISING
•
AdManager (PO System,
Router, Enterprise)
•
SkyVision
•
SkyVision ADS
•
AdEdge (IVE)
SERVICES
Multi-screen Integration
and Deployment
Broadband Network
Transformation
Headend Progression
IPTV Evolution
Custom Development
DECEMBER 4, 2013
Cloud
1
rd

ARRIS INVESTOR CONFERENCE
CLOUD SOLUTIONS—
A COMPELLING BUSINESS MODEL
Tightly integrated with Service Provider core business
•
Long term sticky engagement
Recurring revenue stream
•
Both hosted and enterprise operating models
•
Application revenue share opportunities
•
Multi-year agreements with minimum purchase commitments
High Gross Margin software business
•
Per device, per household, per transaction
•
Scales as the business grows
•
Low cost of sales
Significant Professional Service and System Integration components
60
DECEMBER 4, 2013
Cloud
1

ARRIS INVESTOR CONFERENCE
CMTS/CCAP—
A GROWING MARKET
61
•
$1B+ market with 10%+ CAGR over next 3 years
•
Exponential growth in bandwidth demand primarily driven
by IP Video
•
CCAP platforms rapidly consuming CMTS market
–
Need for more bandwidth putting pressure on space, power,
capital
–
Video and Data convergence will grow in importance
•
Important inflection point to gain share and establish base
for future revenue
•
‘Classic’
CMTS platforms will continue to operate for years
and support additional advanced features
•
CCAP platform provides operators a
path to Video and Data convergence
•
Initial priority focused on addressing
Data growth
•
Additional headend simplification will be
achieved as legacy Video traffic is
added to the CCAP platform over time
DECEMBER 4, 2013
CCAP
2
Source: Infonetics Q213
Phase 1: Dense CMTS and IP Video    
Phase 2: Legacy Narrowcast Video (VoD & SDV)     
Phase 3: Legacy Broadcast Video   
Phase 4: EPON/GPON      

•
Converged capabilities of CCAP Platform will be enabled over time as operators simplify headend infrastructure
–
Initial priority focused on meeting HSD exponential growth needs

CCAP ANATOMY
62
•
Continued shift in pricing model towards capacity-
based licenses
•
Currently deploying chassis with less than 25% of
capacity
‘activated’
–
will
result
in
future
stream
of
high
margin revenue
•
Majority of deployments are replacing current “Classic”
CMTS
chassis
–
opportunity
to
gain
share
•
Lower Price/Mbps achieved thru technology advances
Economics of CCAP
Continual Re-fresh Cycle will
drive future upgrades
•
DOCSIS3.1
•
Analog and Digital Optical Interfaces
•
Remote CCAP & C-DOCSIS
•
Remote Phy
•
Software Defined Networking
•
PON
Density Advantages
E6000 -
Platform for the Future
DECEMBER 4, 2013
CCAP
ARRIS INVESTOR CONFERENCE
Initial Chassis Deployment
Card Fill
Capacity License Upgrades
Gen2 Line Card Upgrades
Network-side Interface Upgrades
2
5,000
4,000
3,000
2,000
1,000
0
2009
2011
2013
25
20
15
10
5
0
DS Channels/Chassis
Power/DS Channel (W)
Source: ARRIS estimates

ARRIS INVESTOR CONFERENCE
E6000 CONVERGED EDGE ROUTER
DEPLOYMENT STATUS
63
•
Highly successful market introduction and
product ramp
•
Supporting >1 Million subscribers
•
Replacing
‘classic’
CMTS
platforms
from
all
vendors
•
Platform expected to provide 10+ year life
cycle
•
Both software and hardware upgrades planned to
expand capacity and add new services
•
Technology and Quality leadership
•
Near term roadmap prioritized to gain share
•
Advanced Routing Features
•
Increased density and scalability (less space, lower
power, lower cost)
•
Video Convergence
DECEMBER 4, 2013
TARGETING INCREASED MARKET SHARE AND SALES GROWTH
CCAP
2

VIDEO INFRASTRUCTURE
A SOLID PROFITABLE BUSINESS
DECEMBER 4, 2013
64
Video
3
ANALOG
DIGITAL
HD / DVR
BROADBAND &
MULTI-SCREEN
Encoders /
Transcoders
Rate Shaping
Multiplexing
Switched
Digital Video
Encryption /
Authentication
Integrated Receiver
/ Decoder
Encoder
Uplink
Digital Accessable
Controller
EdgeQAM
VOD Storage/
Streaming
Network
DVR
•
Broad portfolio of products that are at the foundation of providing high quality Pay TV
Services
•
Large $1.5B+ Addressable Market
•
Key opportunities include HD/Ultra-HD, Network DVR, HEVC compression
Source: ARRIS estimates, Frost &Sullivan, ABI and Infonetics
ARRIS INVESTOR CONFERENCE

ARRIS INVESTOR CONFERENCE
VIDEO INFRASTRUCTURE
NEW GROWTH OPPORTUNITIES
65
Video Processing
•
–
Encoding, Transcoding, Encryption,
Packaging
•
•
–
MPEG2/MPEG4 video compression
efficiency improvements
–
Adaptive Bitrate IP video streaming
–
HEVC and UltraHD/4K
Programmer Infrastructure
•
•
–
Increased HD content; keen interest
in UltraHD –
4K/8K
–
IP Distribution and Multi-screen
services
Programmer
Uplink
Service Provider
Satellite Receivers
Satellite
DECEMBER 4, 2013
Video
3
Source: Frost &Sullivan
Strategic product segment
Sizable market ~ $800M
Primary growth drivers
Leading provider of compression
and encryption technology to the
leading Programmers
Programmers continue to invest in
upgrades to their distribution
network

ARRIS INVESTOR CONFERENCE
ACCESS AND TRANSPORT
POISED FOR GROWTH
DECEMBER 4, 2013
66
•
Cable MSO’s investing $1B+ annually in HFC
equipment
•
Significant installed base of aging
equipment to be replaced
•
Technology upgrade cycle required to
address increased bandwidth needs
•
Evolving network architectures focused on
driving fiber deeper
•
Metro WiFi deployments expanding worldwide
•
Multiple new products in the pipeline:
•
All-digital optics
•
Expanded frequency range support
•
Deep Fiber, PON, RFoG, FTTH
•
Advanced WiFi performance
Source: ARRIS estimates
Headend Optics
Fiber Nodes
RF Amps and
Passives
4
Access

ARRIS INVESTOR CONFERENCE
GLOBAL SERVICES—
A SIGNIFICANT GROWTH OPPORTUNITY
67
MULTI-SCREEN
INTEGRATION &
DEPLOYMENT
ENABLING THE EVOLUTION TO NEXT GENERATION NETWORKS
AND TIME TO MARKET ADVANTAGE FOR OPERATORS
BROADBAND
NETWORK
TRANSFORMATION
HEADEND
PROGRESSION
IPTV EVOLUTION
CUSTOM
DEVELOPMENT
Personalized,
multi-device,
promotion / ad
enabled
Value added
applications for
widely deployed
IPTV environments
Secure flawless
video delivery
Cable plant
evolution, Metro
WiFi, Metro
Ethernet
Customer-driven
uniquely product
and service
development
DECEMBER 4, 2013
Services
5

ARRIS NETWORK AND CLOUD
ENTERING PROFITABLE GROWTH CYCLE
68
DECEMBER 4, 2013
•
Broadband
•
IP Video
•
Multi-screen
•
Professional Services
•
Technology Leadership
•
Software-as-a-Service
•
Technical Services
•
E6000 Converged Edge Router
•
MPEG4/HEVC Compression
•
Programmer Distribution
•
Multi-screen
•
HFC and PON
•
Next Gen Platforms
•
Multi-screen
•
Customer Relationship
=  Early Access
Deliver
New
Products
Increase
Market
Share
Growing
Markets
Focus on
Execution
ARRIS INVESTOR CONFERENCE

THANK YOU
QUESTIONS?

FINANCIAL
UPDATE
DAVE
POTTS

ARRIS INVESTOR CONFERENCE
FIRST SIX MONTHS –
POST ACQUISITION
DECEMBER 4, 2013
71
Q3 2013
Actual
Q4 2013
Guidance
December 2012 Post-
Integration Target
Annual “Run Rate”
Model
Revenues
$1,068M
$1,150M -
$1,180M
$4,800M -
$5,100M
-
New Products Providing Growth
-
Customer Diversification
-
International Expansion
Gross margin
29.7%
29% -
30%
-
In line with Target Model
Operating Expense
$228M
$930M -
$980M
-
At or Below Target Model
EPS
GAAP EPS
$0.13
$0.00 -
$0.04
$0.48 -
$0.63
Non-GAAP EPS
(1)
$0.39
$0.42 -
$0.46
$2.00 -
$2.15
-
Good Progress
Strong Cash Generation -
$380M from operating activities through Q3 2013
-
Excludes Home Business Cash from January 1 –
April 16, 2013
(1)
See GAAP to Non-GAAP EPS Reconciliation
EXCELLENT PROGRESS

POST ACQUISITION
SYNERGY UPDATE
72
EXCELLENT PROGRESS, AHEAD OF SCHEDULE
DECEMBER 4, 2013
ARRIS INVESTOR CONFERENCE
COST SYNERGIES
R&D Restructuring & Alignment
G&A Restructuring & Alignment
S&M Restructuring & Alignment
CoGS Synergies
INTEGRATION ACTIONS
Simplification/Optimization
Google/Motorola Separation
“Back Offfice”
Systems
Complete –
ahead of schedule
STATUS
COMMENTS
Underway –
targeted Q3, 2014
Complete –
ahead of schedule
On track, initial savings in Q4, 2013
Manufacturing & Real Estate on track
On track to complete majority by YE
Underway –
targeted Q3 2014

ARRIS INVESTOR CONFERENCE
TARGET ANNUAL “RUN RATE”
MODEL UPDATE
DECEMBER 4, 2013
73
Revenue
$4.8 B -
$5.1B
GAAP EPS
(1)
$0.72 -
$0.87
Non-GAAP EPS
(2)
$2.00 -
$2.15
(1)
Reflects updated estimates for amortization of intangibles and equity compensation expense
(2)
See GAAP to Non-GAAP EPS Reconciliation
Believe target model is achievable

ARRIS INVESTOR CONFERENCE
74
CAPITAL ALLOCATION PRIORITIES
•
Ensure liquidity
-
Target ~$300M of cash buffer
-
Have $250M Revolver in reserve, undrawn
•
De-lever
-
$232M Convertible Note will be paid off in December 2013
-
A key priority is to reduce debt
-
Our target model should yield robust EBITDA to do so
•
Acquisition
-
Continue to evaluate alternatives
•
Share Repurchases
-
Lower priority given leverage
DECEMBER 4, 2013

ARRIS INVESTOR CONFERENCE
CASH + DEBT POST CONVERTIBLE
NOTE REDEMPTION
DECEMBER 4, 2013
75
9/30/2013
9/30/2013
Adjusted for
Note
Redemption
Cash
and
Cash
Equivalents
(1)
$695 M
$463 M
Debt
Convertible Notes
$232 M
$0M
Term Loan A/B
$1,893 M
(2)
$1,893 M
(2)
$2,125 M
$1,893 M
(1)
Includes cash and cash equivalents, marketable securities, and long term investments
(2)
Net of $32M mandatory pre-payments
($ in millions)
•
Convertibles will be redeemed in December 2013
•
Significant liquidity post-redemption

THANK YOU
QUESTIONS?

PANEL
ARRIS LEADERSHIP

ARRIS INVESTOR CONFERENCE
ARRIS SENIOR LEADERSHIP
TEAM
78
BOB Stanzione
Chairman and CEO
LARRY Robinson
Customer Premises
Equipment
BRUCE McClelland
Network & Cloud
RON Coppock
Sales and
Marketing
LARRY Margolis
HR and Legal
DAVID Potts
Finance and IT
JIM Brennan
Supply Chain
DECEMBER 4, 2013

Diverse, experienced management team
-
-
-
-
-
-
-
-
-
Robust professional experience in both telco and cable technologies and business.
Bob S –
25 years with Bell Labs and Lucent, 18 years with ARRIS (founding CEO) and predecessor company ANTEC
Dave Potts –
20+ years with Nortel, 18 years with ARRIS (founding CTO)
Larry Margolis –
20+ years with ANTEC, ~12 years with ARRIS
John Burke –
20+ years with GI and Motorola Home
Larry Robinson–
many years with GI and Motorola Home
Bruce McClelland -
~12 years with Nortel, ~16 years with ARRIS
Rob McLaughlin–
20+ years with GI and Motorola Home
Ron Coppock -
~15 years experience with ANTEC and predecessor companies, ~12 years with ARRIS
Jim Brennan many years with GI and Motorola Home

CEO
BOB
STANZIONE

ARRIS INVESTOR CONFERENCE
THINGS TO REMEMBER FROM
TODAY
ARRIS continues to execute well
on our company strategy
ARRIS is ideally positioned in the most exciting
and fast growing segments of our industry
•
Multi-screen Video
•
CPE refresh cycle
•
CCAP and DOCSIS 3.1 network upgrades
•
IP Convergence
Our updated long-term strategy
Continue to believe our December, 2012 post-integration target
“run rate”
model is achievable
81
DECEMBER 4, 2013

CLOSE

BACKUP

ARRIS INVESTOR CONFERENCE
DECEMBER 2012 TARGET ANNUAL
MODEL POST-INTEGRATION
GAAP TO NON-GAAP EPS RECONCILIATION
84
(1)
Purchase accounting impacts reflect current estimates. Amortization and other items may change
(2)
Assumes no share repurchases and normal course equity grants
(3)
Non-GAAP EPS excludes stock based compensation, amortization of acquired intangibles
DECEMBER 4, 2013
84

ARRIS INVESTOR CONFERENCE
UPDATED TARGET ANNUAL “RUN
RATE”
MODEL
GAAP TO NON-GAAP EPS RECONCILIATION
DECEMBER 4, 2013
85
GAAP to Non-GAAP EPS
Reconciliation
GAAP Net Income
$106
<->
$128
Amortization
(1)
$240
$240
Stock Based Compensation
$50
$50
Tax Effect on Above Items
($102)
($102)
Estimated Non-GAAP Net Income
$294
<->
$316
Shares Outstanding
(2)
147
147
GAAP EPS
$0.72
<->
$0.87
Non-GAAP EPS
(3)
$2.00
<->
$2.15
(1)
Purchase accounting impacts reflect current estimates. Amortization and other items may change
(2)
Assumes no share repurchases and normal course equity grants
(3)
Non-GAAP EPS excludes stock based compensation, and amortization of acquired intangibles
($ in millions)

ARRIS INVESTOR CONFERENCE
Q4 2013 GUIDANCE
GAAP TO ADJUSTED NON-GAAP EPS GUIDANCE
RECONCILIATION
DECEMBER 4, 2013
86
Q4 2013
Guidance
Estimated GAAP EPS
$ 0.00 -$ 0.04
Reconciling Items (after tax):
Amortization of Intangibles
0.34
Acquisition
accounting
impacts
related
to
Motorola
Home
deferred
revenue
0.01
Stock Compensation Expense
0.05
Acquisition Costs
0.02
Subtotal
0.42
Estimated Adjusted (Non-GAAP) EPS
$ 0.42 -$ 0.46

GAAP EPS
(1)
/ADJUSTED EPS
RECONCILIATION Q3 2013
(PRELIMINARY & UNAUDITED)
DECEMBER 4, 2013
87
See the Notes to GAAP / Adjusted Non-GAAP Financial Measures slide
(in thousands, except per share data)
Amount
Amount
Amount
Amount
Sales
357,432
$  
1,067,823
$  
1,009,660
$  
2,421,835
$ 
Highlighted items:
Acquisition accounting impacts related to Motorola Home and BigBand deferred revenue
546
          
1,556
          
2,467
          
3,973
         
Reduction in revenue related to Comcast investment in ARRIS
-
           
-
              
-
              
13,182
       
Sales excluding highlighted items
357,978
$  
1,069,379
$  
1,012,127
$  
2,438,990
$ 
Per Diluted
Per Diluted
Per Diluted
Per Diluted
Amount
Share
Amount
Share
Amount
Share
Amount
Share
Net income (loss)
17,864
$    
0.15
$           
17,959
$       
0.13
$           
38,664
$       
0.33
$           
(44,380)
$     
(0.34)
$          
(2)
Highlighted items:
Impacting gross margin:
Acquistion accounting impacts related to Motorola Home fair value of inventory
-
            
-
              
-
              
-
              
-
               
-
              
57,600
       
0.44
            
Product rationalization
-
            
-
              
-
              
-
              
-
               
-
              
13,582
       
0.10
            
Acquisition accounting impacts related to Motorola Home and BigBand deferred revenue
546
          
0.00
            
1,006
          
0.01
            
2,467
          
0.02
            
2,478
         
0.02
            
Fair value impacts related to Comcast investment in ARRIS
-
           
-
              
-
              
-
              
-
              
-
              
13,182
       
0.10
            
Stock compensation expense
808
          
0.01
            
1,248
          
0.01
            
2,367
          
0.02
            
2,945
         
0.02
            
Impacting operating expenses:
Acquisition costs and other
30
            
0.00
            
6,221
          
0.04
            
739
             
0.01
            
32,804
       
0.25
            
Restructuring
213
          
0.00
            
6,057
          
0.04
            
6,455
          
0.06
            
38,323
       
0.29
            
Amortization of intangible assets
7,742
       
0.07
            
64,606
        
0.46
            
22,565
        
0.19
            
127,751
      
0.97
            
Loss off sale of product line
-
           
-
              
-
              
-
              
337
             
0.00
            
-
             
-
              
Stock compensation expense
5,870
       
0.05
            
9,481
          
0.07
            
18,827
        
0.16
            
21,708
       
0.16
            
-
              
Impacting other (income) / expense:
-
              
-
              
Non-cash interest expense
3,120
       
0.03
            
3,374
          
0.02
            
9,177
          
0.08
            
9,926
         
0.08
            
Impairment of investment
-
           
-
              
-
              
-
              
466
             
0.00
            
-
             
-
              
Credit facility - ticking Fees
-
           
-
              
-
              
-
              
-
              
-
              
865
            
0.01
            
Mark-to-market FV adjustment related to Comcast investment in ARRIS
-
           
-
              
-
              
-
              
-
              
-
              
13,189
       
0.10
            
Net Tax Items
(10,545)
    
(0.09)
           
(54,998)
       
(0.39)
           
(25,415)
       
(0.22)
           
(143,034)
     
(1.08)
           
Total highlighted items
7,784
       
0.07
            
36,995
        
0.26
            
37,985
        
0.33
            
191,319
      
1.45
            
Net income excluding highlighted items
25,648
$    
0.22
$           
54,954
$       
0.39
$           
76,649
$       
0.66
$           
146,939
$    
1.11
$           
Weighted average common shares - Basic
113,709
       
138,478
       
114,206
       
129,502
       
Weighted average common shares - diluted
116,346
       
140,605
       
116,348
       
132,169
       
(1) Excludes Motorola Home results prior to April 17, 2013
(2) Basic shares used for YTD 2013 as a loss was reported for that periods and the inclusion of dilutive shares would be anti-dilutive
Q3 2012
Q3 2013
YTD 2012
YTD 2013
Q3 2012
Q3 2013
YTD 2012
YTD 2013
(1)
ARRIS INVESTOR CONFERENCE

ARRIS INVESTOR CONFERENCE
DECEMBER 4, 2013
88
NOTES TO GAAP/ADJUSTED NON-GAAP
FINANCIAL MEASURES
(PRELIMINARY & UNAUDITED)
Acquisition Accounting Impacts Related to Deferred Revenue:
Product
Rationalization:
Reduction
in
Revenue
Related
to
Comcast
Investment
in
ARRIS:
Stock-Based
Compensation
Expense:
Restructuring,
Acquisition
and
Integration
Costs:
Loss
on
Sale
of
Product
Line:
Amortization
of
Intangible
Assets:
Non-Cash
Interest
on
Convertible
Debt:
Impairment
of
Investment:
Inventory Valuation:
In connection with our acquisition of Motorola Home, business combinations rules require the inventory be recorded at fair value on the opening balance sheet.  This is different 
from historical cost.  Essentially we were required to write the inventory up to end customer price less a reasonable margin as a distributor.  This resulted in an increase in the value of inventory and 
will result in higher cost of goods sold as it is sold.  
In conjunction with the integration of Motorola Home, we have identified certain product lines which overlap.  In the second quarter of 2013, we made the decision to eliminate 
certain products.  As a result, we recorded expenses related to the elimination of inventory and certain vendor liabilities.  We believe it is useful to understand the effects of this item on our total cost 
of goods sold.      
In connection with our acquisition of Motorola Home, Comcast purchased shares of ARRIS common stock to fund a portion of the 
acquisition price.  The accounting guidance requires that we record the implied fair value of benefit received by Comcast as a reduction in revenue. Until the closing of the deal, changes in the value 
of the investment were marked to market and flowed through other expense (income).  We have excluded the effect of the implied fair value in calculating our non-GAAP financial measures. We 
believe it is useful to understand the effects of these items on our total revenues and other expense (income). 
We have excluded the effect of stock-based compensation expenses in calculating our non-GAAP operating expenses and net income measures. Although 
stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We record non-cash 
compensation expense related to grants of options and restricted stock. Depending upon the size, timing and the terms of the grants, the non-cash compensation expense may vary significantly 
but will recur in future periods. 
We have excluded the effect of acquisition related and other expenses and the effect of restructuring expenses in calculating our non-GAAP 
operating expenses and net income measures. We will incur significant expenses in connection with our recent acquisition of Motorola Home, which we generally would not otherwise incur in the
periods presented as part of our continuing operations. Acquisition related expenses consist of transaction costs, costs for transitional employees, other acquired employee related costs, and 
integration related outside services. Restructuring expenses consist of employee severance, abandoned facilities, and other exit costs. We believe it is useful to understand the effects of these items 
on our total operating expenses.  
We have excluded the effect of a loss on the sale of a product line in calculating our non-GAAP operating expenses and net income measures.  We believe it is 
useful to understand the effects of these items on our total operating expenses.  
We have excluded the effect of amortization of intangible assets in calculating our non-GAAP operating expenses and net income measures. Amortization of 
intangible assets is non-cash, and is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible 
assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of intangible assets will recur in future periods. 
We have excluded the effect of non-cash interest in calculating our non-GAAP operating expenses and net income measures. We record the accretion 
of the debt discount related to the equity component non-cash interest expense. We believe it is useful to understand the component of interest expense that will not be paid out in cash. 
We have excluded the effect of an other-than-temporary impairment of a cost method investment in calculating our non-GAAP financial measures. We believe it is useful 
to understand the effect of this non-cash item in our other expense (income).   
In connection with our acquisitions of Motorola Home and BigBand, business combination rules require us to account for the fair 
values of arrangements for which acceptance has not been obtained, and post contract support in our purchase accounting.  The non-GAAP adjustment to our sales and cost of sales is intended to 
include the full amounts of such revenues.  We believe the adjustment to these revenues is useful as a measure of the ongoing performance of our business.  We have historically experienced high 
renewal rates related to our support agreements and our objective is to increase the renewal rates on acquired post contract support agreements; however, we cannot be certain that our customers 
will renew our contracts. 
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that
certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our
management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among
the factors management uses in planning for and forecasting future periods.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported results
prepared in accordance with GAAP.  Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

NOTES TO GAAP/ADJUSTED NON-GAAP
FINANCIAL MEASURES (CON’T)
(PRELIMINARY & UNAUDITED)
DECEMBER 4, 2013
89
ARRIS INVESTOR CONFERENCE
 
We have excluded the tax effect of the non-GAAP items mentioned above.  Additionally, we have excluded the effects of certain tax adjustments related to state
valuation allowances, research and development tax credits and provision to return differences. 
Income
Tax
Expense
(Benefit):
In connection with our acquisition of Motorola Home, the cash portion of the consideration was funded primarily through debt financing commitments. A ticking fee is a
fee paid to our banks to compensate for the time lag between the commitment allocation on a loan and the actual funding. We have excluded the effect of the ticking fee in calculating our 
non-GAAP financial measures. We believe it is useful to understand the effect of this non-cash item in our other expense (income).  
Credit
Facility
-
Ticking
Fees:
Mark
To
Market
Fair
Value
Adjustment
Related To
Comcast
Investment in
ARRIS:
:
In connection with our acquisition of Motorola Home, Comcast  purchased shares of ARRIS common stock. 
The accounting guidance requires we mark to market the changes in the value of the investment and flow through other expense (income).  We have excluded the effect of the implied fair value in
calculating our non-GAAP financial measures. We believe it is useful to understand the effects of these items on our total other expense (income).

ARRIS INVESTOR CONFERENCE
BSR –
Broadband Services Router
CCAP –
Converged Cable Access Platform
CE –
Converged Experiences Business Unit /
Consumer Electronics
CMS –
Content Management System
CMTS –
Cable Modem Termination System
CPE –
Customer Premises Equipment
DCT –
Digital Consumer Terminal
DOCSIS –
Data Over Cable Service Interface
Specification  (Version 3.0 is the latest
specification)
DRM –
Digital Rights Management
DSL –
Digital Subscriber Line
DTA –
Digital Television Adapter
DVB –
Digital Video Broadcasting
DVR –
Digital Video Recorder
E-MTA –
Embedded Multimedia Terminal
Adapter
EPON –
Ethernet over Passive Optical Network
FTTH –
Fiber to the Home
HD –
High Definition
HD-DVR –
High Definition Digital Video Recorder
HDTV –
High Definition Television
HEVC –
High Efficiency Video Coding / H.265 /
MPEG-H Part 2
HFC –
Hybrid Fiber Coaxial
HSD –
High-Speed Data
IP –
Internet Protocol
IPR –
Intellectual Property Rights
IPTV –
Internet Protocol Television
IRD –
Integrated Receiver/Decoder
LAN –
Local Area Network
MPEG –
Motion Picture Experts Group
MSO –
Multisystem Operator
MSP –
Media Services Platform
nDVR –
Network Digital Video Recorder
OEM –
Original Equipment Manufacturer
OSS –
Operations Support System
OTT –
Over-the-Top
QAM –
Quadrature Amplitude Modulation
RFOG –
Radio Frequency over Glass
SD –
Standard Definition
SDV –
Switched Digital Video
STB –
Set-Top Box
Triple Play –
Bundled Offering of Internet (data),
Telephone and TV
VOD –
Video on Demand
VolP –
Voice over Internet Protocol
VSP –
Video Services Platform / Video Service
Provider
Glossary of Terms
90
DECEMBER 4, 2013