Traditional cable TV equipment continues to be a strong business segment for Motorola Mobility (NYSE: MMI) even as the company prioritizes its R&D investments "for growth in new market segments such as software, services and media experiences," Chairman-CEO Sanjay Jha said during a first quarter earnings conference call.
Longer term, Motorola is looking to the day when its cable customers join the rest of the world following an IP path and "investing in the transformation to an all-IP network and cloud-based multi-screen consumer experiences," said Jha.
Motorola sees two audiences for its new approach. "For operators this means developing next-generation infrastructure and software solutions to provide more bandwidth capacity, IP-based content distribution, cloud-based service management and processing and delivery of content to multiple screens."
The company's consumer focus is to create IP-based home networks and devices to "provide a broad range of video experiences including multi-room DVRs, streaming TV and sync and go mobility," Jha added.
Revenues for cable TV gear were up 8 percent to $904 million and operating incomes were $53 million, a huge advance on the $20 million that was earned a year ago. And, to make things even sweeter, set-top box shipments were up more than 20 percent year over year.
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