Summary
Motorola Solutions, Inc. (MSI) filed an 8-K on July 6, 2006, to announce significant operational and financial reporting changes, effective the second quarter of 2006. The company is realigning its business segments into three core areas: Mobile Devices, Networks and Enterprise, and Connected Home Solutions. This restructuring aims to enhance the company's ability to offer end-to-end network infrastructure solutions and better leverage technology across its customer base. Investors should note that financial information for prior periods (2005 and Q1 2006) has been reclassified to conform with these new segment definitions and to present the automotive electronics business as a discontinued operation. In addition to the business realignment, MSI has agreed to sell its automotive electronics business. The revised segment structure integrates the aftermarket accessories and iRadio businesses into Mobile Devices, while the Networks and Enterprise segment consolidates several former units, excluding certain automotive electronics and Wireline Access Networks. The Connected Home Solutions segment is adjusted by the removal of the iRadio business. These changes are intended to facilitate clearer comparisons of historical and future financial performance for investors, with detailed adjusted financial statements provided as exhibits.
Key Highlights
- 1Motorola Solutions is realigning its business segments into three main areas: Mobile Devices, Networks and Enterprise, and Connected Home Solutions, effective Q2 2006.
- 2The company aims to strengthen its position in providing end-to-end network infrastructure solutions and leverage technology across its customer base.
- 3Motorola Solutions has agreed to sell its automotive electronics business, which will be presented as a discontinued operation.
- 4Financial information for 2005 and the first quarter of 2006 has been reclassified to reflect the new business structure and discontinued operations.
- 5The 'Mobile Devices' segment will now include aftermarket accessories and the iRadio business.
- 6The 'Networks and Enterprise' segment will consolidate several former units, with specific exclusions related to automotive electronics and Wireline Access Networks.
- 7Adjusted Condensed Consolidated Statements of Operations and Segment Information for prior periods are provided as exhibits to aid investor comparisons.