Motorola Deals for RiverDelta
The move did not leave an enormous impression on Motorola investors. Motorola shares this morning stock fell 0.09 (0.47%) to 18.94.
RiverDelta will give Motorola a largely complementary set of products, including a next-generation cable modem termination system (CMTS) with routing capability and wide area network (WAN) interfaces. Motorola's CMTS products are targeted toward small to mid-sized cable head ends, but RiverDelta's product is made for the larger signal origination points in cable TV networks.
RiverDelta will become part of Motorola's Internet Protocol Network Systems group, a unit of its Broadband Communications Segment that has suffered from slowing sales and orders. During Motorola's most recent quarterly conference call, the Broadband Communications Segment reported that its sales increased 7 percent to $820 million but orders fell 16 percent to $760 million from its year-ago results.
RiverDelta has 200 employees based in Massachusetts, in close proximity to Motorola's existing CMTS business unit. The company was founded in 1999 and has raised $46 million in funding to date from Charles River Ventures, Battery Ventures, and Pequot Capital Management Inc.
- Phil Harvey, Senior Editor, Light Reading