Motorola Reports Lower Sales, Bigger LossBy Kathleen A. Martin | Print
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Mobile handset maker Motorola reported lower sales and a bigger loss for its first quarter as handset sales dropped 45 percent year over year and enterprise mobility solutions dropped 11 percent.
Motorola (NYSE: MOT) reported Q1 sales of $5.4 billion, down from $7.4 billion during the same period last year, and a net loss of $231 million compared to a net loss of $194 million for the same period last year.
Total cash reported at the end of the first quarter was $6.1 billion,
down from $7.4 billion at the end of 2008. The cash decline was driven
in large part by a $700 million reduction in accounts receivable sold
and approximately $200 million in restructuring-related payments. The
company says it expects to generate positive cash flows in the second
half of the year through improved earnings and continued working
Greg Brown, president and co-CEO of Motorola and CEO of the company's Broadband Mobility Solutions organization, said in a prepared statement, "Our Broadband Mobility Solutions businesses performed well in a challenging environment, by delivering value for our customers and adding to an already impressive portfolio of products. We will continue to manage our costs to ensure alignment with current market conditions. We are executing with operational and financial discipline while we make targeted investments for our future."
Additional highlights of the earnings statement included the sale of 14.7 million mobile handsets accounting for $1.8 billion in sales down 45 percent compared to the year-ago quarter. The key indicator to a slowing of the freefall in this market was the enterprise mobility solutions segment with sales of $1.6 billion, down only 11 percent compared to the year-ago quarter.