Moto Shuffles Ahead of Split

Motorola Inc. (NYSE: MOT) has realigned its four primary business lines as it prepares to split into two publicly traded companies by the first quarter of next year.

According to an 8-K document filed with the SEC today, Motorola has realigned its business as of the first quarter of 2010, and will report its financial performance under these four operating business segments:

  • Mobile Devices: Handles design, manufacturing, sales, and services of wireless handsets, including smart phones, and licenses mobile-related intellectual property.

  • Home: This segment includes Motorola's digital video, IP and broadcast network set-tops, distribution systems, broadband access infrastructure platforms, and other data and voice customer premises equipment (CPE) for cable operators and telcos.

  • Enterprise Mobility Solutions: Manufactures, sells, and installs digital two-way radios, wireless LAN and security products for private networks, wireless broadband systems, and "end-to-end mobility solutions."

  • Networks: This unit heads up wireless network systems, including cellular infrastructure systems and wireless and wireline cable and cellular broadband systems, for wireless service providers.

Motorola said it went ahead and made the move now to help investors make comparisons of the company's historic financial info with the way the company will be segmented and operated later on.

As for the historic part, the filing provided revised financials for Moto's 2007, 2008, and 2009 fiscal years, applying financial data to each of the company's newly divided business lines.

Motorola announced its intentions to separate into two independent, publicly traded companies back in February. That official plan, expected to take effect in the first quarter of next year, followed rumors that Motorola tried to sell its Home & Networks Mobility division outright, but couldn't get the $4.5 billion it was asking for. (See Moto Wants to Do the Splits , Huawei Seen as Likely Moto Suitor, Moto May Be Mulling Set-Top Sale, Is Moto Having Second Thoughts? , and What's Moto's Next Move?)

Under the new approach, Moto co-CEO Dr. Sanjay Jha will head up the company's Mobile Devices and Home business, with Greg Brown set to helm the Enterprise Mobility Solutions and Networks unit.

— Jeff Baumgartner, Site Editor, Light Reading Cable

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