Motorola Solutions, a business unit of Motorola Inc. (MOT), tied up Kopin Corporation (KOPN) to manufacture a hands-free computer and communications headset. Based on Kopin's advanced system and micro-display technologies, this head worn device will support simulation software, streaming video on-demand and other large-screen enterprise applications. 

Motorola has been struggling to survive in the market due to stiff competition from the smartphone manufacturers and hence is splitting up into two separate entities. Mobile Devices and Home Division will be known as Motorola Mobility (which will sell mobile handsets and television set-top boxes) and the Enterprise Mobility Solutions and Networks businesses will be known as Motorola Solutions (which will supply wireless technology to governments and enterprises).

During the third quarter of 2010, Motorola reported GAAP net income of $109 million or 5 cents per share compared with a net income of $12 million or 1 cent per share in the prior-year quarter. This includes the Network Infrastructure business of Motorola that will be acquired by Nokia Siemens Networks, a joint venture between Nokia Corp. (NOK) and Siemens AG (SI).

We are highly optimistic about Motorola's rejuvenated smartphone business betting on the Android software. The proposed split-off of the company is expected to add more value to the mobile devices segment. However, it remains to be seen how Motorola faces the challenge from Apple Inc. (AAPL), once Verizon Wireless, which significantly promoted the DROID portfolio of Motorola, and starts selling the legendary iPhone 4. Thus, we maintain our long-term Neutral recommendation on Motorola.