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Motorola Posts Higher Set-Top, Voice Modem Sales

Motorola Inc. has more than Razr cell phones to thank for its huge surge in sales and profits during the spring. Although the popular, ultra-slim mobile handsets accounted for most of the gains by the consumer electronics giant, digital cable set-tops and cable voice modems played a smaller but contributing role. In its second quarter earnings release issued earlier this week, Motorola reported that it shipped a record-high 2.4 million digital cable boxes worldwide in the second quarter, up from just under 2 million in the same period a year earlier and slightly over 2 million units in the first quarter. The latest total includes 680,000 set-tops equipped with digital video recorders (DVRs), up from 644,000 DVR-enabled boxes a year ago. Motorola also hit new heights with its sales of embedded multimedia terminal adapters (E-MTAs), otherwise known as voice modems. The company reported that it shipped a record 900,000 voice-enabled modems in the spring as cable operators continued to accelerate their rollouts of VOIP service. That total easily smashes the vendor's previous shipment record of 623,000 E-MTAs in the first quarter. Largely as a result, Motorola's Connected Home Solutions unit registered sales of $803 million in the spring quarter, up from $718 million a year ago and $710 million in the first three months of 2006. Likewise, the Home Solutions division's operating earnings jumped to $56 million in Q2, up from $33 million in the year-ago quarter and reversing an operating loss of $11 million in Q1.
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