NEW YORK -(Dow Jones)- Motorola's share of the global handset market fell to 9.5%, according to Chief Executive Greg Brown.
It's a steep fall for the Schaumburg, Ill., company, which a year ago had 17.5% of the market.
Motorola continues to be hurt by gaps in the product portfolio, Brown told analysts during a conference call to discuss the company's first-quarter results. He added that the company would have a broader portfolio next year and that more phones would come out before the end of the year.
The weakness was primarily in centered in North America, which represented 40% of handset sales, Brown said.
Brown said he expects handset sales to be flat to slightly up in the second quarter from the first quarter, and a comparable operating loss. The total addressable market is expected to be slightly higher in the second quarter.
Motorola is also cutting costs, and Chief Financial Officer Paul Liska said he expects general spending expenses to fall by $540 million this year, with research and development costs to fall by $240 million. The company's move to separate its business will lead to other rising costs, he said.
Brown declined to comment on a specific figure for the cost of the separation but noted that "work is well underway for the separation of the company.
"As we move further down the road and understand things better, we'll update you."
Liska said Motorola has sufficient cash to pay its dividend but declined to comment when asked if it would continue paying it in the future.
Shares of Motorola fell 4.7% in recent premarket activity, to $9.10.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 24th April 2008
Posted to: www.cellular-news.com/story/30766.php