Wednesday, July 18, 2007

Motorola Posts Q2 Sales of $8.7 billion, Net Loss

Motorola reported Q2 sales of $8.7 billion and a GAAP net loss from continuing operations of $0.02 per share, which includes net charges of $0.04 per share related to workforce reductions and an insurance litigation matter. The company had earlier warned of a shortfall due to weakness in mobile device sales, particularly in Asia, and the Europe, Middle East and Africa region.

"This was a challenging quarter for Motorola in which revenue fell short of our expectations due to a decline in mobile device unit shipments," said Ed Zander, chairman and chief executive officer. "However, I am pleased with the solid results within our Home and Networks Mobility and Enterprise Mobility Solutions businesses. Our vision of seamless mobility and the mobile Internet continues to resonate with our customers and partners worldwide."

Mobile Devices segment sales were $4.3 billion, down 40 percent compared with the year-ago quarter. Motorola's share of the global handset market for the quarter is estimated to be 13.5%. During Q2, Motorola shipped 35.5 million handsets. The company also noted the shipment of its 100 millionth RAZR.

Home and Networks Mobility, which includes the newly combined Connected Home Solutions and Networks businesses, had segment sales of $2.6 billion, up 9 percent compared with the year-ago quarter. Motorola cited strong demand for high-end HD DVR and IPTV devices, as well as the new digital cable host products.

Enterprise Mobility Solutions, which includes the company's two enterprise businesses - Government and Public Safety and Enterprise Mobility, had segment sales of $1.9 billion, up 42 percent compared with the year-ago quarter.

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