Motorola optimistic about enterprise business

Posted June 4, 2010 at 10:40 a.m.

Dow Jones Newswires | Motorola Inc. expects its enterprise business to post annualized
growth between 5 percent and 8 percent through 2012, with wireless broadband and
“next-generation” public safety helping to drive sales in that time.

Greg Brown, co-chief executive of the company and chief of Motorola
Solutions, said he expects Motorola’s Enterprise Mobility Solutions’
“growth” business, which includes the public safety and wireless
operations, to expand at least 10 percent a year over each of the next
three years.


The segment’s “core” enterprise business, which includes radio systems and mobile computing, will grow at least 5 percent a year, Brown said at the Sanford C. Bernstein Strategic Decisions Conference.

Brown said a renewed focus on security upgrades is helping boost growth in Motorola’s enterprise market. He noted that states are taking advantage of stimulus money, coordinating their local systems and upgrading border protection.

“We just see a continued need and a continuing appetite around public safety deployment, interoperability, security, encryption, and that serves us well given our incumbent position and the width and breadth of our product portfolio,” Brown said.

Enterprise mobility is also growing as large corporations start to replenish inventory, he said.

The enterprise segment has carried Motorola’s operations for years, which concerns many as it is set to separate from the weaker networks unit in early 2011. Network’s sales are expected to fall 10 percent in 2010 from the prior year, though Brown said it’s “still a solid business.”

Brown said the networks business will work to optimize its second- and third-generation operations and try to leverage its fourth-generation operation to drive WiMax to profitability “sooner rather than later.” The unit is also capitalizing on infrastructure investments, particularly in North America.

Shares were off 1.3 percent to $6.78 in recent trading.

 

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