Google: Motorola Home Had $820 Million in Q4 SalesInternet Giant Reports Motorola Home as 'Discontinued Operation' with Pending Arris Deal 1/22/2013 11:26 AM Eastern
Motorola Mobility’s Home division, which is in the midst of being acquired by Arris Group, generated about $820 million in sales for the fourth quarter of 2012, according to Google’s earnings announcement Tuesday.
Arris last month announced plans to acquire Motorola Home from Google for $2.35 billion, a deal that would more than triple Arris’s size. The deal, which encompasses Motorola’s set-top, broadband and video infrastructure businesses, is expected to close by the second quarter of 2013, pending regulatory approvals.
In the fourth quarter of 2012, Motorola Home generated $35 million in operating profit, excluding stock-based compensation expense and restructuring and related charges, according to Google. Net loss from Motorola Home, which Google now accounts for as discontinued operations, was $21 million in the fourth quarter of 2012.
Google noted in a blog post last Friday that because of the pending sale to Arris, it would account for Motorola Home as discontinued operations in its 2012 consolidated statements of income. According to the Internet company, the assets and liabilities of the Home business are not being separated from Google's other reported financial and operating measures, such as consolidated cash flow and balance sheet, because the Home business is not material to those measures.
For the fourth quarter 2012, Motorola Mobile revenue was $1.51 billion, or 11% of Google’s consolidated revenue. Over all, Google reported consolidated revenue of $14.42 billion for the quarter ended Dec. 31, 2012, up 36% year over year, and net income (including the net loss from Motorola Home) of $2.89 billion, compared with $2.71 billion in the fourth quarter of 2011.
In May 2012, Google closed the $12.4 billion cash acquisition of Motorola Mobility, driven largely by Google's desire to obtain the latter's patents. Google hired Marwan Fawaz, previously chief technology officer of Charter Communications, as executive vice president of Motorola Home in June 2012.
Earlier this month, Arris said it will sell Comcast approximately $150 million in stock in connection with the Motorola Home transaction, which will result in the cable operator and Google each owning a 7.85% stake in Arris.
Under its agreement with Google, Arris would be responsible for no more than $50 million in damages and royalties in connection with TiVo’s pending patent litigation, Arris disclosed in a regulatory filing.
Last August, Google announced plans to lay off about 20% of Motorola Mobility's entire workforce, eliminating about 4,000 jobs across both the mobile devices and Home divisions.
As of Dec. 31, 2012, Google said there were 16,317 total Motorola Mobility employees (11,113 in Motorola Mobile and 5,204 in Motorola Home) versus 17,428 Motorola employees as of Sept. 30 and 20,293 at the end of June.