Motorola Q1 Sales Beat Expectations - But Losses Worse
Published on: 29th Apr 2009
Note -- this news article is more than a year old.
Motorola has reported sales of USD5.4 billion in the first quarter of 2009, down on the USD7.5 billion a year ago but above most analyst expectations of around USD5.6 billion. The net loss was USD231 million, higher than the USD194 million a year ago, although that was better than analysts expected.
The company also shipped 14.7 million mobile phones - just beating Ericsson's 14.5 million handset sales in the same period.
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 $1.3 billion."
Mobile Devices segment sales were $1.8 billion, down 45 percent compared to the year-ago quarter. The operating loss was $509 million, compared to an operating loss of $418 million in the year-ago quarter. During the quarter, Mobile Devices shipped 14.7 million handsets and estimates its share of the global handset market was 6 percent.
Home and Networks Mobility segment sales were $2.0 billion, down 16 percent compared to the year-ago quarter. Operating earnings were $115 million, compared to operating earnings of $153 million in the year-ago quarter.
Enterprise Mobility Solutions segment sales were $1.6 billion, down 11 percent compared to the year-ago quarter. Operating earnings were $156 million, compared to operating earnings of $250 million in the year-ago quarter.
Second-Quarter 2009 Outlook
The Company's outlook for the second quarter is a net loss from continuing operations of .03 to .05 per share. This outlook excludes charges associated with the Company's operating expense reduction initiatives, as well as any other items of the variety typically highlighted by the Company in its quarterly earnings releases.