Motorola Ships 4.2 Million Set-Tops In Q2
Vendor Posts Small Net Profit; Targets Handset Spinoff For Q3 2009
By Todd Spangler -- Multichannel News, 7/31/2008 4:35:00 AM
Motorola’s cable-dominated Home & Networks Mobility segment continued to perform well, booking record sales for the second quarter led by shipments of 4.9 million set-tops and other digital entertainment devices.
For the quarter ended June 30, Home & Networks Mobility sales were $2.7 billion, up 7% from the year-ago quarter, and operating earnings were $245 million, up 28%.
Meanwhile, the Mobile Devices segment continued its downward spiral, with sales of $3.3 billion, down 22% from the year-ago quarter, and an operating loss of $346 million.
Over all, Motorola reported quarterly revenues of $8.1 billion and net income of $4 million, beating previous expectations of a small loss.
Motorola also updated its plans to spin off the money-losing mobile devices unit, telling investors it expects to complete the split in the third quarter of 2009.
In a separate move, Motorola is realigning Home & Networks Mobility into three product groups, putting cable consumer-premises equipment and broadband access gear in separate units.
Under the new structure, the data and video CPE products group -- called Broadband Home Solutions -- will be headed by John Burke, who previously was senior vice president and general manager of digital video solutions.
The two other groups are Broadband Access Solutions and Cellular Networks businesses. Motorola said there were no layoffs associated with the restructuring.
“This organizational change will ensure Home & Networks Mobility remains agile, focused and ideally aligned to realize its growth potential,” the company said in a statement.
Motorola created Home & Networks Mobility in May 2007, merging its wireless-infrastructure unit into the former Connected Home Solutions division. The operating unit, headed by president Dan Moloney, is focused on all network service provider customers.
Goodbye Moto?
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11/15/2009Goodbye Moto? Set-Top Unit May Be on Block
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