Motorola's Revenue for Networks
| 2009 | 2010 | |||
| Q1 | Q2 | Q3 | Q4 | Q1 |
| $966 million | $1.0 billion | $1.1 billion | $964 million | $896 million |
Total Revenue for 2009: $4.03 billion (approx)
Network group comprises:
1. Cable Broadband
2. Cellular Networks – includes iDEN
3. LTE – Long Term Evolution
4. Private Broadband Networks
5. Telco Broadband Networks
6. Wireless Broadband Networks - WiMax
7. Wireless LAN
8. Wireless LAN Security
WiMAX revenue in 2009 was $600 million
· Shipped 1 million WiMAX device (CPE and dongles)
· Shipped 10,000 WiMAX Access Point Base Site
Motorola will keep:
· $150 million in accounts receivable, cash and some other assets (assuming it is related to Networks)
· Technology it developed called iDEN. It generated $400 million of the Networks business’
· Wireless infrastructure-related intellectual property (IPR).
1. Net revenue of the group that NSN acquires:
= $4.03 billion - $150 million - $400 million
= 3.48 billion
2. NSN paid $1.2 billion to acquire
3. NSN pays 0.34 times annual revenue
Essentially many products overlap. WiMAX is welcome but paying $1.2 billion for a $600 million revenue business raises questions.
Basically the money spent on this acquisition is for customers, geographical diversity and the opportunity to cross sell in the future. Future developments will give a better picture on the value created.