Motorola Profit Plunges 84%
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The company warned that the recovery in its struggling cell phone unit will take longer than expected. Its shares fell more than 8 percent in premarket trading.
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(InfoWorld) - Two days after it restructured operations, MotorolaÂ on Thursday reported that flagging sales of mobile devices were a factor in its second-quarter loss of $28 million, or $0.01 per share. The telecommunications device maker posted income of $1.38 million, or $0.55 cents a share, one year earlier. Revenue declined by 19 percent to $8.73 billion from $10.82 billion one year earlier. The drop was expected: Motorola issuedÂ preliminary financialsÂ last week, warning that its results would be lower than had been forecast. The company said Thursday that excluding one-time costs, it would have earned $0.02 per share. Analysts surveyed by Thomson Financial, who revised estimates lower after last week's warning, were forecasting break-even results on sales of $8.64 billion. Layoffs and other one-time charges were responsible for losses amounting to $0.04 per share. But the loss for the quarter underscores the company's beleaguered mobile device business, which has been outflanked by rivals including Apple. The pressure will continue. Motorola announced that it expects earnings in the third quarter to be equal to or slightly higher than the second quarter, and that its mobile devices unit will probably not be profitable this year. The company saw a drop in mobile device sales in Asia, a hot market where vendors are trying to get a big share of the market in fast growing economies, as North American and European markets become saturated with mobile phones. Motorola has taken steps to address its problems. The vendor announced Tuesday that it's restructuring into three business divisions: Mobile Devices, Home and Networks Mobility, and Enterprise Mobility Solutions. It also has a new chief of its mobile unit, Stu Reed. Motorola CEO Ed Zander has beenÂ under pressureÂ to resign. He attracted criticism from big-name investor Carl Icahn earlier this year, and recently has been attacked by activist shareholder Eric Jackson for the way he's running the company. Although Motorola has taken steps to cut costs, a core challenge for the company is product design in the competitive handset arena. ItsÂ Razr deviceÂ was praised for its design, but in a fast-paced market quickly became an also-ran, under a barrage of products from rivals that in addition to Apple include Nokia, Samsung Electronics, and LG Electronics. Despite expecting mobile phone sales to be under increasing pressure, Motorola did say that it expected its overall financial results to improve during the second half of the year. Thursday morning, Motorola shares were trading at $18.18, up $0.18 from its opening. Â
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The smartphone maker said Tuesday that it swung to a loss in its fiscal second quarter as revenue fell and expenses rose.
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The company said profit from continuing operations fell to $614 million as weak demand for calculators outweighed improving sales of advanced phones that use its chips.
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Stocks fell on Wednesday after some  quarterly earnings reports failed to impress investors,  including a disappointing outlook from Motorola Inc. MOT.N,  which stoked concerns about lackluster technology spending.
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Motorola Inc.  warned investors of a second-quarter loss on Wednesday and said it no longer expected its mobile phone business to be profitable this year, blaming weak sales in Asia and Europe.
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Motorola Inc. , the world&#39;s  second-biggest mobile phone maker, said it expects to cut an  additional 4,000 jobs, bringing the total to 7,500 this year,  as it works to reduce costs to return to profit.
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(InfoWorld) - A troubled Motorola has realigned itself as its criticalÂ cell-phone business slows down. The company sketched out the reorganization in a U.S. Securities and Exchange Commission filing Tuesday, two days before it is set to announce its second-quarter financial results. Last week, Motorola slashed its earlier revenue forecast for the quarter and predicted a larger loss, blaming lower phone sales. It also named a new chief of its mobile unit, Stu Reed. Other recent changes in the executive ranks have also rocked the company. Motorola is now split into three divisions: Mobile Devices, Home and Networks Mobility, and Enterprise Mobility Solutions. The company is moving its Good Technology mobile e-mail software business from the Mobile Devices division into Enterprise Mobility Solutions. Its carrier equipment business has been combined with home broadband products in the Home and Networks Mobility segment with the new enterprise unit focusing on private network products. The Home and Networks Mobility group is responsible for set-top boxes and digital video systems for carriers, home DSL and cable modems, and wired and wireless broadband network gear. The Enterprise group encompasses analog and digital two-way radio and other voice and data communications systems for government, businesses and Motorola's large public safety customer base. Good Technology, whichÂ Motorola acquiredÂ in a deal completed in February, is a mobile messaging platform with enterprise features like centralized lockdown of unwanted applications on the phone. It competes against Research in Motion's BlackBerry system and Nokia's Intellisync technology. After the rousing success of the slim Razr handset, which started out as a premium-priced bauble and quickly became a mass-market commodity, Motorola has had trouble coming out with an encore. A Razr 2 is expected later this year. New handsets from Nokia, Samsung, and LG Electronics had stolen the spotlight even before Apple's iPhone, which debuted June 29, became the talk of the industry. Meanwhile, sales for all makers have stagnated in higher-priced markets like North America and Europe while rising in lower-priced India and China, according to industry analysts. Last Wednesday, Motorola said it expected to report 35 million to 36 million handset sales in the second quarter, down from 45.5 million in the previous quarter. Its revenue forecast dropped from $9.4 billion to between $8.6 billion and $8.7 billion. The company now expects to lose between $0.02 and $0.04 in the quarter.
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Motorola Inc.  on Thursday posted a quarterly loss as revenue fell amid weak phone sales, as it loses market share.
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Motorola will cut an additional 4,000 jobs as the mobile phone maker tries to cope with tough global competition.
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End of Zandr line cheers gloomy investors Motorola is forecasting another dreary quarter, citing poor sales in Asia and Europe for its lower-than-expected outlook.â¦
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The cellphone-network equipment maker said that it would cut up to 4,000 jobs, about 5.4 percent of its work force, after profit plunged 42 percent in the fourth quarter.
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com. AT&amp;T Wireless announced a drop in sales and profits, as it moved closer to its planned acquisition by Cingular Wireless. The firm earned $117 million on revenues of $4.
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The company reported fourth-quarter profit of $85 million on weakness in its risk and insurance services business.
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Motorolaâs third-quarter earnings fell 94 percent, but the company beat expectations and forecast stronger sales in the fourth-quarter as new products start hitting the market.
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Motorola Inc.  posted its second straight quarterly loss on Thursday as a lack of advanced mobile phones cost the company market share and dropped it into third place in the industry behind Nokia  and Samsung Electronics .
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The US plane maker announces an 84% drop in quarterly profits but beats market expectations.