Tuesday, March 20, 2007

Motorola Cuts Guidance, Names President and Replaces CFO

Citing lower than anticipated sales and operating earnings for its Mobile Devices business, Motorola cut its first quarter 2007 guidance and provided a revised perspective on the full year. Motorola's Network & Enterprise and Connected Home Solutions businesses continue to perform in line with the company's expectations.

Motorola now expects sales for the first quarter of 2007 to be in the range of $9.2 to $9.3 billion. First quarter GAAP results are expected to be a loss in the range of $0.07 to $0.09 per share, including charges of approximately $0.09 from special items.

Greg Brown, President of the Company's Networks and Enterprise business, has been named President & Chief Operating Officer of Motorola, effective immediately. Brown will be responsible for overseeing Motorola's Mobile Devices, Networks & Enterprise, Connected Home Solutions businesses and supply-chain operations. In this new role, Brown will report to Ed Zander, Chairman and CEO. Prior to joining Motorola in 2003, Brown was Chairman and Chief Executive Officer of Micromuse.

Motorola named Thomas J. Meredith as acting Chief Financial Officer. He will replace David Devonshire, 61, who is retiring. Meredith is a general partner of Meritage Capital, L.P., an investment management firm specializing in multi-manager hedge funds that he co-founded. He is also chief executive officer of MFI Capital.


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