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Report: Motorola Restructuring Home, Networks Unit

Company will restructure its home and networks mobility unit into three separate businesses the company said Monday.

NEW YORK (AP) -- Motorola Inc. will reorganize its non-handset business into three units, the company said Monday.

Motorola said in March that it plans to separate the handset business, which has been hurt by a two-year-long decline in cell phone sales, from the home and networks unit.

The array of businesses in the home and network business will be organized in these units: TV set-top boxes and modems; voice-oriented cellular network equipment; and wired and wireless broadband network equipment.

The home and networks business division posted a 2 percent increase in fiscal first-quarter sales to $2.4 billion.

The reorganization was first reported by The Wall Street Journal.

Shares of Schaumburg, Ill.-based Motorola have struggled as Wall Street has worried that economic distress will hurt the sale of its cell phones in the second half of the year, despite signs that competitors are thriving.

Analysts have said the company's handset business continued to lose ground in the second quarter. Market share tumbled and the average selling prices for its products declined.

Motorola is scheduled to report its second-quarter financial results Thursday.

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