Thursday, January 18, 2007

Motorola Post Q4 Results

Motorola reported Q4 2006 sales of $11.8 billion, up 17% compared to fourth-quarter 2005 sales. Net earnings in the fourth quarter of 2006 were $0.25 per share, including $0.04 per share from discontinued operations and $0.21 per share from continuing operations, which includes special items. The company will trim about 3,500 jobs. Motorola now expects full year 2007 sales of between $46 billion and $49 billion.

"As I said earlier this month, we are disappointed with our fourth quarter operating earnings performance. However, the company generated strong revenue growth and met or exceeded our goals in many areas during the quarter. I am confident that we remain well positioned for continued growth and success," said Ed Zander, chairman and CEO.

Some highlights of the quarterly report:

  • Mobile Devices segment sales were $7.8 billion, up 19 percent compared with the year-ago quarter. Shipped a record 65.7 million handsets -- an increase of 47 percent compared to the same period in 2005 -- making it the No.2 player in the global market with an estimated 23.3 percent global market share.

  • Networks & Enterprise segment sales were $3.0 billion, up 6 percent compared with the year-ago quarter.

  • Connected Home Solutions segment sales were $980 million, up 39 percent compared with the year-ago quarter. Motorola noted quarterly and annual record-shipment milestones of digital entertainment devices and modems, and said it set record IP network infrastructure sales, including shipments to Comcast, Time Warner, NET (Brazil) and Starhub. Shipments are underway of IP digital entertainment devices for the AT&T U-verse digital video service deployment.

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