Updated from 11:26 a.m. EDT

Motorola

(MOT)

will reorganize its home and networks mobility unit into three separate businesses as part of the embattled company's turnaround plan.

The Schaumburg, Ill., company said the single unit will now comprise three businesses in order for Motorola to remain "agile, focused, and ideally aligned to realize its growth potential. We are confident that this change will position the home & networks mobility business for even greater success in the future," spokesperson Jennifer Erickson said.

Motorola said the three new units will be broadband home solutions, broadband access solutions, and cellular networks. Broadband home solutions will include Motorola's cable and IPTV set top boxes, DSL and cable modems, and so-called digital gateways. The broadband access solutions arm will include wireless and mobile broadband, including long-term evolution, or LTE, and WiMax. The cellular networks business will deal with CDMA, iDEN, and GSM products.

Motorola is working to split its operations into two separate publicly traded companies. On March 26, the company announced it would seek to splinter off its troubled handset unit. The company's woes, which began two years ago with the Razr's fall from fashion, have become even more dire given the backdrop of a slowing economy and cooling growth in mobile-phone sales.

The company is set to post quarterly results Thursday, with many analysts expecting mobile device sales to continue to slide. During its first-quarter earnings report, Motorola said it expected to book a loss in a range of 2 cents to 4 cents a share, before items, in the second quarter. The Thomson Reuters average estimate is for a loss of 3 cents a share.

"We expect Motorola's other divisions to report in-line results," writes Tero Kuittinen, analyst with Global Crown Capital, in a note. "Unfortunately, the handset division accounts for more than 40% of Motorola's revenues. As such, we believe the good performance of the rest of the company will not rescue the ailing giant."

Shares of Motorola finished down 17 cents, or 2.3%, to $7.08. Competing phone maker

Nokia

(NOK) - Get Report

was off 1.9% while

Ericsson

(ERIC) - Get Report

slipped 2.2%. Wireless technology firm

Qualcomm

(QCOM) - Get Report

fell 1.9%.

Among smartphone makers,

Palm

(PALM)

was flat,

Research In Motion

(RIMM)

slipped 3.3%, and

Apple

(AAPL) - Get Report

slid 4.8%.

Motorola also announced Monday the acquisition of AirDefense, a privately held wireless security provider founded in 2001. Terms of the deal were not disclosed