Motorola Reports First-Quarter Financial Results

April 30, 2009
source: http://mediacenter.motorola.com/

SCHAUMBURG, Ill. – April 30, 2009 – Motorola, Inc. (NYSE: MOT) today reported sales of .4 billion in the first quarter of 2009. The total GAAP net loss in the first quarter of 2009 was 1 million, or .10 per share, which includes net income of .03 per share from discontinued operations. The GAAP net loss from continuing operations was 1 million, or .13 per share. The GAAP net loss from continuing operations includes net charges of .05 per share from highlighted items, primarily related to cost-reduction initiatives.

Total cash* at the end of the first quarter was .1 billion, down from .4 billion at the end of 2008. The cash decline was driven in large part by a 0 million reduction in accounts receivable sold and approximately 0 million in restructuring-related payments. The Company expects to generate positive cash flows in the second half of the year through improved earnings and continued working capital improvements.

Greg Brown, president and co-CEO of Motorola and CEO of Broadband Mobility Solutions, said, "Our Broadband Mobility Solutions businesses performed well in a challenging environment, by delivering value for our customers and adding to an already impressive portfolio of products. We will continue to manage our costs to ensure alignment with current market conditions. We are executing with operational and financial discipline while we make targeted investments for our future."

Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, added, "In the quarter at Mobile Devices, we implemented aggressive actions to reduce costs and also gained solid traction on improving operational effectiveness. Customer feedback on our smartphone roadmap remains very positive, and we plan to have differentiated Android-based devices in stores in time for the fourth-quarter holiday season. We significantly reduced the operating loss in Mobile Devices compared with the fourth quarter of 2008 and have increased the 2009 annual cost-reduction target to more than .3 billion."

Operating Results

Mobile Devices segment sales were .8 billion, down 45 percent compared to the year-ago quarter. The GAAP operating loss was 9 million, compared to an operating loss of 8 million in the year-ago quarter. The segment reduced its operating loss sequentially from 5 million in the fourth quarter of 2008. During the quarter, Mobile Devices shipped 14.7 million handsets and estimates its share of the global handset market was 6.0 percent.

Mobile Devices highlights:

* Continued progress on differentiated smartphone devices targeted to launch in the fourth quarter of 2009
* Launched seven new phones, including three GSM devices, two 3G devices and two CDMA devices
* Launched MOTOSURF A3100, featuring 3G and Wi-Fi; and Evoke QA4, Motorola’s latest social networking feature phone
* Introduced and began shipping MOTO™ W233 Renew, the world’s first phone made with recycled plastics

Home and Networks Mobility segment sales were .0 billion, down 16 percent compared to the year-ago quarter. GAAP operating earnings were 5 million, compared to operating earnings of 3 million in the year-ago quarter.

Home and Networks Mobility highlights:

* Shipped more than 4.3 million digital entertainment devices
* Introduced industry’s first commercial receiver/decoder (IRD) to deliver three-channel MPEG-4 to MPEG-2 High Definition TV
* Developed DVR solution with Time Warner using Tru2Way™ software that enables consumers to share content throughout the home
* Announced major GSM network expansion awards with Mobily in Saudi Arabia and MTN Ghana
* Continued momentum with launch of WiMAX network in Jordan and introduction of first WiMAX outdoor customer premise equipment (CPE) with integrated VoIP


read more.

Other Mobile Phone News