- First-quarter sales of $7.45 billion
- First-quarter GAAP loss from continuing operations of $0.09 per share, including net charges of $0.04 per share from highlighted items
- Mobile Devices sales declined 39 percent versus prior-year quarter
- Continued growth in Home and Networks Mobility and Enterprise Mobility Solutions businesses
- Planning underway to create two independent, publicly traded companies
SCHAUMBURG, Ill. – April 24, 2008 – Motorola, Inc. (NYSE: MOT) today reported sales of $7.45 billion in the first quarter of 2008. The net loss from continuing operations in the first quarter of 2008 was $194 million, or $0.09 per share. The net loss from continuing operations includes net charges of $0.04 per share from highlighted items, primarily related to a charge associated with workforce reductions.
The Company had an operating cash outflow of $343 million and ended the quarter with a net cash* position of $3.5 billion.
“During the first quarter, we made an important strategic decision to separate the Company, creating two independent, publicly traded entities," said Greg Brown, president and chief executive officer. “Improving the product portfolio in Mobile Devices and positioning both businesses for future success remains a top priority. Our Home and Networks Mobility and Enterprise Mobility Solutions businesses continue to expand their portfolios of solutions, grow internationally and deliver solid financial results.”
Operating Results
Mobile Devices segment sales were $3.3 billion, down 39 percent compared to the year-ago quarter. The operating loss was $418 million, compared to an operating loss of $233 million in the year-ago quarter. During the quarter, the Company shipped 27.4 million handsets.
Mobile Devices highlights:
Began shipping six new devices during the quarter, including the ROKR U9 music phone and several W-Series devices for the mass market
Introduced and began shipping the HSDPA MOTO Z9, a slider design with innovative features such as Motorola CrystalTalk™ audio-enhancing technology, video share and navigation; expanded the MOTO Q family of smartphones, by announcing the MOTO Q™ 9c and MOTO Q™ 9c lime
Completed the acquisition of Soundbuzz Pte., Ltd., a leading pan-Asian music provider
Home and Networks Mobility segment sales were $2.4 billion, up 2 percent compared to the year-ago quarter. Operating earnings were $153 million, compared to operating earnings of $167 million in the year-ago quarter.
Home and Networks Mobility highlights:
Strong demand for High Definition and DVR devices resulted in shipments of over four million digital entertainment devices during the quarter, including a milestone three millionth IP device to-date
Sales outside North America grew 30 percent compared to the year-ago quarter, led by Europe and Latin America
Continued leadership in WiMAX with significant wins in Saudi Arabia and Taiwan
Announced several portfolio expansions, including a common wireless broadband platform to support both WiMAX and LTE and a family of MPEG-4 capable digital entertainment devices
Announced major GSM awards in Saudi Arabia totaling nearly $500 million
Acquired a leading Chinese digital cable company, Dahua Digital, enabling a broader digital device portfolio for the Chinese market
Enterprise Mobility Solutions segment sales were $1.8 billion, up 5 percent compared to the year-ago quarter. Operating earnings increased to $250 million, compared to operating earnings of $131 million in the year-ago quarter.
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Enterprise Mobility Solutions highlights:
Strong international demand continued in commercial enterprise and public safety markets as sales outside of North America grew by 23 percent compared to the year-ago quarter
Key international systems wins including a digital communications award from the Royal Malaysian Police
Introduced the RFS6000 LAN solution to provide mid-size enterprises a low-cost, all-wireless solution and expanded the wireless broadband portfolio with the introduction of an OFDM-based Canopy 400 solution
Acquired majority ownership of Vertex Standard, which opens up new market opportunities and enables a broader product portfolio for customers worldwide
Second-Quarter 2008 Outlook
The Company’s outlook for the second quarter is a loss from continuing operations of $0.02 to $0.04 per share. This outlook excludes any reorganization of business charges associated with the Company’s operating expense reduction initiatives, as well as any other items of the variety highlighted by the Company in its quarterly earnings releases.
Consolidated GAAP Results
A comparison of results from operations is as follows:
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