Motorola Inc. (MOT) reorganized its operations from existing three reporting segments to four reporting segments. In a recent filing with the SEC, the company announced that it will report according to its new structure from the first quarter of 2010. The decision is a part of management strategy to split the company into two publicly traded and independent entities in the first quarter of 2011.
After reorganization, The Home and Networks Mobility segment will be split into Home Business and Networks Business. The Home Business will include digital video, IP video and broadcast network interactive set-top boxes, as well as voice and data-related customer-premises equipment primarily for the cable TV industry. The Networks Business will provide mobile broadband infrastructure system to the wireless service providers and cable operators. Other two existing segments — e.g. Mobile Devices and Enterprise Mobility Solutions — will remain the same.
Finally the company will restructure itself into two separate entities by early 2011. In last February, Motorola declared that the new segments will be (1) Mobile Devices and Home Businesses and (2) Enterprise Mobility Solutions and Networks Businesses.
The Mobile Devices and Home businesses will retain the Motorola brand and will license it royalty-free to the Enterprise Mobility Solutions and Networks Businesses. Motorola’s entire outstanding debt at the time of separation will be assumed by the Enterprise Mobility Solutions and Networks Businesses.
Business restructuring will enable the Mobile Devices and Home Businesses to provide advanced mobile media solutions and multi-screen technologies leveraging on the converged platform of seamless mobility, end-to-end video content delivery capabilities, and the Internet. On the other hand, the Enterprise Mobility Solutions and Networks Businesses will leverage the overall state-of-the art wireless broadband mobility solutions architecture of Motorola.
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