Motorola Announces Second-Quarter Financial Results

- Second-quarter sales of $8.1 billion - Second-quarter results exceed expectations - Positive operating cash flow of $204 million; ended the quarter with a net cash position of $3.6 billion - Home and Networks Mobility sales growth of 7 percent and operating earnings growth of 28 percent as compared to the second quarter of last year - Enterprise Mobility Solutions sales growth of 6 percent and operating earnings growth of 24 percent as compared to the second quarter of last year - Mobile Devices shipped 28.1 million handsets, and maintained handset market share

SCHAUMBURG, Ill., July 31 /PRNewswire-FirstCall/ -- Motorola, Inc. (NYSE: MOT) today reported sales of $8.1 billion in the second quarter of 2008. GAAP net earnings from continuing operations in the second quarter of 2008 were $4 million, or $0.00 per share. This included net charges of $0.02 per share from highlighted items which are listed in the table at the end of the press release.

The Company had positive operating cash flow of $204 million and ended the quarter with a net cash* position of $3.6 billion and a total cash** position of $7.8 billion.

"Motorola's Home and Networks Mobility and Enterprise Mobility Solutions segments delivered strong results in the second quarter, driven by sales growth and operating margin expansion. These segments are well positioned to continue generating year-over-year sales and margin growth during the second half," said Greg Brown, Motorola president and chief executive officer. "In the Mobile Devices segment, we launched ten new products and maintained market share, compared with the first quarter, while continuing to invest in our product portfolio. We also made progress on our plans to separate Motorola into two independent, publicly traded companies, generated positive operating cash flow and reduced our cost structure."

Operating Results

Mobile Devices segment sales were $3.3 billion, down 22 percent compared to the year-ago quarter. The segment reported an operating loss of $346 million, compared to an operating loss of $332 million in the year-ago quarter.

     Mobile Devices highlights:

     *    Shipped 28.1 million handsets, and maintained its share of the
          global handset market
     *    Launched ten new products to key markets around the globe, which
          included new 3G devices and the ROKR E8 that strengthened our music
          franchise with its innovative, ModeShift(TM) morphing technology
     *    Refreshed the highly successful MING series, which has already sold
          8 million handsets, by launching three touch screen handsets -- MING
          A1600 and MING A1800, as well as the MOTO A810
     *    Continued market share leadership in North America, with strong
          performance from W755
     *    Continued strength in Latin America, maintaining a leading market
          position due to the strong performance within our music portfolio
     *    Earlier this week began shipping the MOTOZINE ZN5, a superior
          imaging experience developed collaboratively with Kodak, which
          enables consumers to easily shoot, edit and share their pictures

Home and Networks Mobility segment sales were $2.7 billion, up 7 percent compared to the year-ago quarter. Operating earnings were $245 million, which represents an increase of 28 percent as compared to operating earnings of $191 million in the year-ago quarter.

     Home and Networks Mobility highlights:

     *    Operating margin expansion year-over-year from 7.4 percent of sales
          to 8.9 percent of sales
     *    Record sales in Home, driven by shipments of 4.9 million digital
          entertainment devices, due to continued strong demand for HD, HD/DVR
          and IPTV devices
     *    Consumer demand for HD content continued to drive the uptake of
          MPEG-4. This quarter we added DirectTV, HBO LatAM and Starz to the
          lineup of programmers and service providers transitioning from
          MPEG-2
     *    DOCSIS(R) 3.0 momentum with certification for multiple Motorola
          cable modems, bronze qualification for the BSR 64000 cable modem
          termination system edge route, as well as customer deployment with
          J-Com in Japan
     *    Momentum in WiMAX continued and Motorola now has 19 contracts for
          commercial WiMAX systems in 16 countries

Enterprise Mobility Solutions segment sales were $2.0 billion, up 6 percent compared to the year-ago quarter. Operating earnings increased to $377 million, which represents an increase of 24 percent as compared to operating earnings of $303 million in the year-ago quarter.

     Enterprise Mobility Solutions highlights:

     *    Operating margin expansion year-over-year from 15.8 percent of sales
          to 18.5 percent of sales
     *    Strong international demand continued in the enterprise and public
          safety markets, as sales outside of North America grew by
          approximately 21 percent compared to the year-ago quarter
     *    Launched the MC75 Rugged Enterprise Digital Assistant, the first
          size-optimized rugged mobile computer with 3G WAN (HSDPA and EVDO
          rev A) and integrated GPS navigation
     *    Key international systems wins, including digital communications
          awards from Shanghai Metro and Beijing Police
     *    After the end of the quarter, signed a definitive agreement to
          acquire AirDefense, a leading wireless LAN security provider

Third-Quarter and Full Year 2008 Outlook

The Company expects to report earnings from continuing operations in the range of $0.00 to $0.02 per share in the third quarter of 2008 and earnings from continuing operations of $0.06 to $0.08 per share for the full year. This outlook excludes any reorganization of business charges associated with the Company's operating expense reduction initiatives, as well as any other items of the variety highlighted by the Company in its quarterly earnings releases.



    Consolidated GAAP Results
    A comparison of results from operations is as follows:

                                                         Second Quarter
                                                      ----------------------
    (In millions, except per share amounts)                     2008                      2007
        ------------------------------------------------------------------------

        Net  sales                                                                                  $8,082                  $8,732
        Gross  margin                                                                              2,325                    2,453
        Operating  earnings  (loss)                                                            5                      (158)
        Earnings  (loss)  from  continuing  operations                          4                        (38)
        Net  earnings  (loss)                                                                        4                        (28)
        Diluted  earnings  (loss)  per  common  share:
            Continuing  operations                                                        $0.00                  $(0.02)
            Discontinued  operations                                                            -                      0.01
                                                                                                            ----------------------
                                                                                                              $0.00                  $(0.01)
                                                                                                            ----------------------

        Weighted  average  diluted  common  shares
          outstanding                                                                          2,269.5                2,296.3
        ------------------------------------------------------------------------


        Highlighted  Items

                                                                                                        EPS  Impact
                                                                                                          Exp/(Inc)
        ------------------------------------------------------------
        Investment  impairment                                                            $0.03
        Legal  settlement                                                                        0.01
        Separation-related  transaction  costs                                0.01
        Reorganization  of  business  charges                                    0.01
        Gain  on  the  sale  of  an  investment                                    (0.01)
        Tax-related  benefit                                                                (0.03)
                                                                                                            ----------
                                                                                                              $0.02
        ------------------------------------------------------------


 


1 | 2 | 3  Next Page »



Review Article Be the first to review this article
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy