ARRIS GROUP, INC.
Filed
by ARRIS Group, Inc.
Commission File No. 0-31254
Pursuant to Rule 425 under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Subject Company:
C-COR Incorporated
Commission File No. 0-10726
Excerpts from ARRIS Conference Call
Set forth below are excerpts from the October 24, 2007 conference call held following the release
of ARRIS earnings for the third quarter of 2007. The following statements were made by Bob
Stanzione, Chairman and Chief Executive Officer of ARRIS, and Jim Lakin, President of ARRIS
Broadband, and relate to the pending merger of ARRIS and C-COR
Incorporated.
Excerpt 1
(Statement by Bob Stanzione)
Right now were ahead of schedule and subject to regulatory and shareholder approvals, we expect
the deal can close in December. That is well ahead of the Q1 of 08 timeframe that we originally
thought. Weve had uniformly positive feedback from our customers. The industry leaders with whom
Ive spoke and see the logic of the deal and are looking forward to the benefits that weve outlined.
The employee reaction has also been positive. Of course, there is the normal nervousness about
specific roles and structure. But I think the management here has done a good job, in fact a great
job of communicating and just staying in touch with the employees throughout the process. And
again, I see the fact that were moving faster than we expected as a positive in making this
integration a success.
The integration planning is well organized and its well underway. We now see our way to
considerably more expense synergy than we originally estimated in our September 24th presentation.
And perhaps more importantly, we found many revenues synergy opportunities that we could pursue
after the deal closes.
So in anticipation of a December close, were planning on a mid to late November roadshow to get
out and meet with many of you face-to-face so that we can talk with as many shareholders as we
reasonably can in anticipation of the deal closing in December.
Excerpt 2
(Statement by Jim Lakin)
We are excited by the opportunities the C-COR acquisition brings. Combining many of their products
with ARRIS products will allow us to participate in four of the five bandwidth creation
alternatives. By creating cross product platforms, enabling preintegrated solutions, we will be
able to offer our customers fully tested end-to-end solutions to fulfill their demand for more
bandwidth in an all on-demand world.
Excerpt 3
Q Brian Coyne: Bob, I think you mentioned better progress in the transaction. I was wondering if
you could just maybe be a little more specific, you know where think the progress has been and also
your sense as to employee retention in some of the key areas like their on-demand solutions that
will really drive prospectively drive the business on the session resource management or switched
digital side?
A Bob Stanzione: Thanks for bringing that up because I was hoping somebody would ask more about
the C-COR progress. First of all, the approvals are just going a lot smoother than we anticipated
and therefore it looks like were going to be able to close this thing in December. And I cant
tell you how pleased I am about that because this interim period is a very uneasy period for
everyone. Theres a lot of work to do. People are chomping at the bit to know what their new role
in the organization is and that sort of thing.
And so moving fast is a great asset to us in terms of having a successful integration. I dont
believe employee retention, key employee retention is going to be a problem. I think were going to
do just fine there. Weve done fine in past acquisitions such as the Cadent and the ARRIS
acquisitions that we did in terms of employee retention. And well make it worth their while to
stay because theyre going to have a great opportunity and a great company that is unlike anything
else in the industry.
Theres a void in our industry right now, for a big multiproduct line player serving the cable
industry. Our employees I think are very enthusiastic about being part of that.
On the synergy piece that I mentioned, the number that we I think we were conservatives and in
fact in hindsight I know we were conservative with the $10 million that we said we thought we could
mine out in terms of expense synergies when we announced the deal a month ago. I now think that
that number will be considerably higher. I dont want to say what we think that number is today but
we will refine it and when we get out there in a couple of weeks on a roadshow, we will have a more
specific number in mind. But its Id say well north of the $10 million that we said.
And then since Im rambling on here, the revenue synergy ideas, Jim has been out, Daves been out,
Ive been out. A number of us have been out meeting with the C-COR folks and Ive been quite
honestly astounded by the number of ideas that our folks have come up with for how we can take a
capability of one company and a capability of the other company and do something that neither of us
could do individually.
And I think the challenge there is that were going to have to prioritize those. We cant go after
all these ideas. Were going to have to pick the three or four best of these ideas and allocate
resources to them and that is how were going to win with the combination. So I am just really
pleased and I think the whole team here is pleased with the progress that we are making.
Excerpt 4
Q Greg Mesniaeff: In terms of OpEx synergies and given the geographic dispersion of C-CORs
operations, I was wondering if you could just kind of give us some color as to how and where the
R&D synergies will come versus the sales and marketing synergies.
A Bon Stanzione: Sure, the R&D synergies are going to occur with were going to set up
teams, were going to have a CTO organization. First of all, Jim Lakin, who is running the
integration process here, has set up integration teams and one of those of course its on R&D. And
those folks are already talking to the extent that they are allowed to on what we might be able to
do in terms of R&D synergies.
And on R&D by the way, Im talking about positive synergy, revenue synergy, new products being able
to get to the market faster and that sort of thing. Im not anticipating any expense synergies in
R&D. And in terms of the dispersion or the diversity of locations, that is becoming less and less
of a barrier in business. We have people working from their homes already. So if I were to count
the number of locations in any day where people are working from, with the new technology that we
have, that is becoming less and less of a factor. So I dont view that as an insurmountable
problem.
Greg Mesniaeff: I was thinking more in terms of savings on bricks and mortar real estate.
Bon Stanzione: I dont think that is going to happen.
Forward-Looking Statements
Any statements made regarding the proposed combination between ARRIS Group, Inc. and C-COR
Incorporated, the expected timetable for completing the merger, benefits or synergies of the
merger, and other statements contained in the following excerpts that are not historical fact are
forward-looking statements, that are based on managements beliefs, certain assumptions and current
expectations. These statements may be identified by the use of forward-looking terminology such as
the words expects, thinks, hopes, believes, anticipates and other terms with similar
meaning indicating possible future events or actions or potential impact on the businesses or
shareholders of ARRIS and C-COR. Such statements include, but are not limited to, statements about
the progress of various regulatory approvals and the likelihood that such approvals will be
obtained, the timing of the transaction, the progress of the integration efforts, future financial
and operating results, ARRIS plans, objectives, expectations and intentions, the markets for
ARRIS and C-CORs products, the future development of ARRIS and C-CORs business, and the
contingencies and uncertainties to which ARRIS and C-COR may be subject and other statements that
are not historical facts. There is no assurance the merger contemplated in the following excerpts
will be completed at all, or completed upon the same terms and conditions described. All
forward-looking statements in the following excerpts are expressly qualified by information
contained in each companys filings with the SEC.
The following factors, among others, could cause actual results to differ materially from those set
forth in the forward-looking statements: the ability to obtain required governmental or third party
approvals of the merger on the proposed terms and schedule; the failure of ARRIS or C-COR
shareholders to approve the merger; the risk that the businesses will not be integrated
successfully; the risk that the cost savings and other expected synergies from the merger may not
be fully realized or may take longer to realize than expected; and disruption from the merger
making it more difficult to maintain relationships with customers, employees or suppliers.
Additional factors that could cause ARRIS or C-CORs results to differ materially from those
described in the forward-looking statements can be found in the periodic reports filed by ARRIS and
C-COR with the SEC and available at the SECs Internet site (http://www.sec.gov). Neither
ARRIS nor C-COR undertakes and each specifically disclaims, any obligation to update or revise any
forward-looking information, whether as a result of new information, future developments or
otherwise.
Additional Information and Where to Find It
In connection with the proposed combination of ARRIS and C-COR, ARRIS has filed with the SEC a
registration statement on Form S-4, which includes a proxy statement of C-COR and a proxy statement
and prospectus of ARRIS. Shareholders are urged to read the joint proxy statement/prospectus
regarding the proposed transaction, because it contains important information. Shareholders may
obtain a free copy of the joint proxy statement/prospectus, as well as other filings containing
information about ARRIS and
C-COR, without charge, at the SECs internet site (http://www.sec.gov). Copies of the joint proxy
statement/prospectus and the filings with the SEC that will be incorporated by reference in the
joint proxy statement/prospectus can also be obtained, without charge, by directing a request to
ARRIS Group Inc, 3871 Lakefield Drive, Suwanee, Georgia 30024, Attention: Investor Relations (678)
473-2647, or to C-COR, 60 Decibel Road, State College, Pennsylvania 16801, Attention: Director of
Investor Relations (800) 233-2267 ext. 4402.
Participants in the Solicitation
ARRIS, C-COR and their respective directors and executive officers and other persons may be deemed
to be participants in the solicitation of proxies in respect of the proposed combination.
Information regarding ARRIS directors and executive officers is available in the Proxy Statement
with respect to ARRIS 2007 Annual Meeting of Stockholders filed by ARRIS with the SEC on April 9,
2007. Information regarding C-CORs directors and executive officers is available in C-CORs Annual
Report on Form 10-K, as amended by C- COR on October 11, 2007. Other information regarding the
participants in the proxy solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the definitive joint proxy
statement/prospectus and other relevant materials to be filed with the SEC when they become
available.