Motorola Q3 2008 results...

Publié le par Hamdouni Mohamed

Motorola Announces Third-Quarter Financial Results
  • Third-quarter sales of $7.5 billion
  • Positive operating cash flow of $180 million; total cash position of $7.6 billion
  • Separation of the businesses targeted beyond 2009
  • Implementing further cost reductions with an estimated annual savings of $800 million in 2009
  • Mobile Devices sales of $3.1 billion; shipped 25.4 million handsets
  • Home and Networks Mobility sales of $2.4 billion; operating earnings increased to $263 million, an increase of 65 percent compared to the third quarter of last year
  • Enterprise Mobility Solutions sales of $2.0 billion; operating earnings increased to $403 million, an increase of 23 percent compared to the third quarter of last year

Operating results

Mobile Devices segment sales
were $3.1 billion, down 31 percent compared to the year-ago quarter. The segment reported an operating loss of $840 million, compared to an operating loss of $248 million in the year-ago quarter. The loss this quarter includes significant charges, primarily related to decisions and plans to consolidate silicon and software platforms and simplify the product portfolio.

Mobile Devices highlights:

  • Shipped 25.4 million handsets and began shipping 16 new products to key markets, including three new 3G devices
  • Launched Motorola KRAVE™ ZN4, which features two layers of touch - on an interactive clear flip outside and a full touch-screen inside
  • Expanded our ROKR portfolio with three new music-optimized devices, the MOTOROKR EM30, MOTOROKR EM28 and MOTOROKR EM25
  • Delivered several additional CDMA and companion products, including Motorola Rapture™ VU30, MOTO™ VU204 and MOTOPURE™ H15 Universal Bluetooth® Headset
  • Announced AURA™, a high-tier mobile device with timeless, classic design

Sanjay Jha, Motorola’s co-chief executive officer and CEO of Mobile Devices, said, “While our strategic intent to separate the company remains intact, we are no longer targeting the third quarter of 2009, primarily due to the macro-economic environment, stresses in the financial markets and the changes underway in Mobile Devices. We have made progress on various elements of the separation plan and will continue to prepare for a potential transaction at the appropriate timeframe that serves the best interests of the company and its shareholders.

Jha added, “As part of our plan to rebuild Mobile Devices, we have announced significant actions to accelerate the consolidation of our product platforms and refocus our investment and market priorities. These efforts will result in a leaner organization with a more competitive and cost-effective product portfolio."

Source: Motorola Press Release

Publié dans Reports

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