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Motorola Mobility Holdings, Inc. (MMI) |
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WIKI ANALYSIS
Motorola Mobility Holdings (NYSE: MMI) Motorola Mobility is the former Mobile Devices division of Motorola (MOT), spun off in a restructuring that left Motorola Mobility as a public independent company, officially listed on January 4th, 2011. The company oversees the mobile device and set-top box business, while its sister company, Motorola Solutions (MSI), looks after the former company's government and commercial clients and manages products such as police radios and bar-code scanners, as well as the division that makes iDEN equipment. The valuable Motorola brand will be owned by MMI, and licensed to MSI.
Motorola first announced its plan to spin-off the Mobiles Devices segment in March 2008. The decision to spin off Motorola's subsidiaries began when activist investor Carl Icahn began building his stake in 2007, as he thought it was "inordinately cheap."[1].
Company Overview
MMI was created when parent company Motorola split into two independent companies, Motorola Mobility and Motorola Solutions. From this transaction Motorola shareholders received 1 share of MMI for every 8 shares of MOT held.
-20,000 employees.
Business and Financial Metrics
MMI witnessed revenues of $11.5 billion for its FY2010, up 4% relative to FY2009. It also generated positive operating cash flow of $606 million, finishing the year with cash and cash equivalents amounting to 3.5 billion (0.3 of which was deferred by its parent as part of the restructuring agreement), and almost no debt.
| Annual Financial Data, in millions[2] | FY2008 | FY2009 |
| $17,099.0 | $11,050.0 | |
| $2,819.0 | $2,153.0 | |
| $(2,040.0) | $(1,211.0) | |
| $(2,969.0) | $(1,342.0) | |
Business Segments
Mobile Devices Segment (7.8 billion in net revenue for FY2010)
Within its Mobile Devices segment, MMI shipped 11.3 million and 37.3 million handsets in the 4Q2010 and FY2010, respectively. Of these, 4.9 million and 13.7 million, respectively, were smartphones. To keep up with competitors like Apple and Research in Motion, an increasingly greater portion of its product portfolio is made up by smartphones, with the company launching 23 in 2010. Its smartphones incorporate the fast-growing Android mobile operating system and have the second highest consumer satisfaction in the industry, according to J.D. Power[3]. In the first quarter of 2011, the company launched its first tablet as well as the Motorola ATRIX 6 smartphone, which was named "Best Smartphone" at CNET's Consumer Electronics Show. It also acquired start-up comapny Zecter to boost its on-demand digital media consumption[4].
Home Segment (xxxx)
MMI's Home segment is a provider of digital set-tops and end-to-end video solutions. It reported net revenues in 4Q2010 of $1.0 billion, a 1% QoQ increase. Through strong relationships with service providers and a deep basket of intellectual property (1,900 granted patents and 1,300 patents as of December 2010). For FY2010, net revenues were $3.6 billion, a decrease of 7.7% from FY2009's $3.9 billion. FY2010 also saw a considerable increase in MMI's GAAP operating earnings from $11 million to $152 million[4].
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