Motorola announced preliminary estimates for the second quarter of 2007 saying it now expects Q2 sales to be in the range of $8.6 billion to $8.7 billion, compared with previously announced guidance that Q2 sales would be essentially flat with first quarter 2007 sales of $9.4 billion. Motorola now expects a second quarter GAAP loss per share from continuing operations in the range of $(0.02) to $(0.04), including estimated net charges of approximately $0.03 – $0.04 per share related to previously announced workforce reductions and other highlighted items.
Motorola cited attributed the shortfall to lower overall unit volumes in the Mobile Devices business in Asia and Europe. The company expects second quarter Mobile Devices shipments to be approximately 35 to 36 million handsets. The company’s Mobile Devices business is expected to have a larger operating loss in the second quarter as compared to the first quarter.
For the full year 2007, Motorola no longer expects the Mobile Device business to be profitable. Second quarter results for Connected Home Solutions and Networks & Enterprise businesses continue to meet the company’s expectations. Motorola will provide further perspective on the year during the company’s quarterly earnings call.
Full results are expected on July 19, 2007.
Separately, Motorola today announced that Stu Reed, executive vice president of Motorola’s Integrated Supply Chain organization, has been named president of Motorola’s Mobile Devices business. http://www.motorola.com
