We’ve known for some time that Motorola (NYSE: MOT) will formally divide into two businesses, Motorola Mobility and Motorola Solutions, in the first quarter of 2011. Now Greg Brown, who will be the CEO the of Solutions unit, has spelled it out a bit more: the split will happen in January next year.
January was mentioned by Brown as the separation date during a presentation to analysts on Monday, notes Bloomberg.
Previous plans to spin off Mobility from Solutions had been put on hold because of bad market conditions, but last quarter, the company reported its first revenue increase in four years, on sales of $5.8 billion. Smartphones were a big driver in that growth: their sales volume had grown by 40 percent over the last quarter to reach 3.8 million units. Motorola Mobility, which will be run by CEO Sanjay Jha, will include the company’s devices and its set-top box business.
Brown noted that the Solutions unit – which includes products like safety radios, bar-code scanners and devices for governments and corporations (although Mobility too will have enterprise devices) – will focus more on acquisitions in January, when it will no longer have to invest in the mobile device business.
He said he expects revenue growth for the unit to be between four and five percent in 2011, although sales at the company’s IDEN business, which supplies network to Sprint (NYSE: S) Nextel, will likely reduce to $300 million in 2011 from $400 million in 2010, as the technology matures.