Motorola profit falls as cell phone sales slump
Motorola (MOT) continues to spin its wheels. The wireless giant said its fourth-quarter profit from continuing operations fell to $111 million, or a nickel a share, from the year-ago $523 million, or 21 cents a share. Excluding restructuring charges, the company made 14 cents a share, a penny better than the Wall Street analyst consensus estimate. Motorola cited strong results at its networking businesses, the mellifluously named Home & Networks Mobility and Enterprise Mobility Solutions units, but said its handset division “remains challenged.” The handset business swung to a $388 million operating loss from a year-ago profit of $341 million, as sales plunged 38 percent year-over-year.
Indeed, the handset business is so challenged that Motorola - which has been losing market share to industry leader Nokia (NOK) and others - expects to lose money for the first quarter. The company forecast an operating loss of 5 to 7 cents a share for the quarter, where analysts were looking for a profit of a dime a share. That projection sent the stock - already trading within a dollar of its 52-week low - tumbling 11 percent in early action to just over $11 a share.
“We are focused on aggressively rationalizing the company’s cost structure and working to get Mobile Devices back on track,” said CEO Greg Brown, who was tapped late last year to step in for the departing Ed Zander. “The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done.” Given the poor results at Motorola’s handset business and the sharp decline of the company’s stock, Brown may soon be hearing from restive shareholder Carl Icahn.
Motorola need to quit partnering with INFERIOR companies such as Texas Instruments and get back to their core competency, “Wireless Communications”…
TI is a calculator company for heavens sake… come on Motorola, what were you thinking ?
I’ve noted all the negative remarks about the Razr. I’ve had my V3 for over 2 years, and I’ve been extremely happy with it. Not perfect, but very reliable, lots of terrific features, and great quality. I will buy another Motorola phone.
Mobile phones ring for Qualcomm
GOODBYE TRASH “THROW-AWAY” PHONES from Texas Instruments and MOTO, HELLO Qualcomm.
The first thing Motorola needs to improve is the battery life and power related issues including charging, in which Nokia is far better in any model.
Tom - not sure what you’re expecting from an entry level phone except for entry level features. I’ve switched from an LG to RAZR2 at Verizon and it was, by far, the best decision I’ve ever made. Finally, a durable, good looking handset with all the features that I need.
TI is not to blame for Motorola’s troubles. They are a big supplier for Nokia, which will reach a 40% global market share for the last quarter. Motorola is almost 2 years behind it’s competitors in terms of technology and as it seems they don’t even have any good models in the pipeline. Looks grim for the next two quarters at least.
Motorola’s biggest PROBLEM is their partnership with Texas Instruments, TI(TXN) is the one who is really responsible for Motorola’s woes.
Worst Phones made with Texas Instruments semiconductors.
I remember when Motorola made it’s own Cell Phone Chips ( my goodness Motorola was a Cell Phone PIONEER )
If TXN TI Texas Instruments think their CELL Phone parts are so good, why don’t we see TI puttint out a cell phone rather than ruining the reputations of legitimate CELL PHONE companies like Motorola & HTC ( who has rid themselves of TXN TI Texas Instruments products in favor of Samsung )
Samsung makes much better CELL Phone parts than Texas Instruments, which is why HTC (HighTechComputer) dumped its Texas Instruments based Cell Phones in favor of Samsung…
If you are holding TXN, get rid of it now. Cell Phone manufacturers are dumping their Texas Instruments based products… it’s only a matter of time till Wall Street finds out about this and responds…
I like the Motorola RAZR V3xx and it is rated highly.
I HAVE HAD THREE MOTOROLA PHONES IN THE PAST 6 MONTHS, AFTER REPLACEING SEVERAL BATTERIES AND SENT BACK FOR REPAIR NOTHING CHANGED THE PHONES ARE VERY POOR QUALITY. 2 OLD RAZOR 1 NEW RAZOR. SWITCHED TO LG MUCH BETTER PHONE
After being stuck with a Razor for two years I swore off ever owning another Motorola phone.
I have bought 4 Motorala phones in the past year and they were all terrible. The Razor is the worst phone invented.
Motorola has been putting out some pretty crappy phones — W315 — You have to voice-train?, has Contacts for the provider that you can’t delete?, etc. The E815 (We have 15) — 3 of the 15 went bad within the first week and would not charge - 1 started smelling of ozone!!
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Motorola, quit parterning with that company that makes Calculators (Texas Instruments, hint, hint) and get back to your “CORE COMPETENCY”…
I remember when MOTOROLA was a wireless communications PIONEER. Invest in your R&D and get away from using “Calculator Part spin-offs” to make you phones…