Motorola reported Q1 2008 sales of $7.45 billion and a net loss from continuing operations of $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.
Some highlights from the report:
- 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.
- 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. Motorola saw 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. Motorola recorded WiMAX wins in Saudi Arabia and Taiwan.
- 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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- In March 2008, Motorola announced plans to split into two independent, publicly-traded companies in 2009. The split would occur as follows: The Mobile Devices business will continue to supply multi-mode, multi-band communications products and technologies. The business designs, manufactures and sells mobile handsets and accessories globally with integrated software solution. It also licenses a portfolio of intellectual property. Motorola is currently searching for a new CEO for this business.
The Broadband & Mobility Solutions business includes Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses manufacture, design, integrate, and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. These businesses also provide end-to-end digital and IP video solutions, cellular and high speed broadband network infrastructure, cable set-top receivers, and associated customer premise equipment for residential and commercial wireless network system access.