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Function
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Male cats are neutered primarily to prevent breeding; however a secondary benefit of neutering male cats is that their behavior changes and they're much calmer than before.
Spraying
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Prior to neutering, male cats would spray to mark their territory. This can be a major nuisance, as this spraying smells very bad. Neutered males do not spray as much or often at all.
Aggression
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Because recently neutered male cats are no longer completely focused on breeding, they will be less aggressive. This lack of aggression is noticeable because they no longer feel as compelled to defend their territory. They are also less likely to roam looking for females, and will stay closer to home if allowed outside.
Risks
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While neutering a male is less invasive surgery than spaying a female, it is still surgery and an incision is made. The cat may lick its incision as well as bite at any stitches. This should be prevented because it can cause infection as well as loosen or cut the stitches; special funnel collars are available that will stop the cat from being able to lick itself.
Another Benefit
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After neutering, male cats emit a different scent than they did before. Other cats who live with the recently neutered male may behave funny around him, as if they don't recognize him. This is only temporary.
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The Behavior of a Newly Neutered Cat
Owners of male cats that have been recently neutered or "fixed" will notice a drastic improvement in their behavior, often for the better. Before neutering, male cats only have breeding on their mind, which dominates their behavior.