- Fourth-quarter sales of $5.7 billion
- Fourth-quarter GAAP earnings of $0.06 per share, including net charges of $0.03 per share from highlighted items
- Full-year sales of $22.0 billion; full-year GAAP loss from continuing operations of $0.05 per share, compared to a net loss of $1.87 per share in 2008
- Total cash* of $8.0 billion, a sequential quarterly increase of $839 million
- Completed cost-reduction actions that generated more than $1.9 billion in cost savings for full-year 2009, with $1.5 billion in cost savings from Mobile Devices
- Enterprise Mobility Solutions sales of $2.0 billion; operating earnings of $368 million
- Home & Networks Mobility sales of $2.0 billion; operating earnings of $91 million
- Mobile Devices sales of $1.8 billion, excluding $200 million in deferred revenue on certain smartphones; shipped 12 million handsets, including 2 million smartphones; operating loss of $132 million
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Motorola, Inc. (NYSE: MOT) today reported sales of $5.7 billion in the fourth quarter of 2009. The GAAP earnings in the fourth quarter of 2009 were $142 million, or $0.06 per share. The GAAP earnings include net charges of $0.03 per share from highlighted items, which are outlined at the end of this press release.
For the full year of 2009, sales were $22.0 billion. The full-year GAAP loss from continuing operations was $0.05 per share, which included net charges of $0.07 per share from items highlighted in the Company's quarterly earnings releases. This compares to a GAAP loss from continuing operations of $1.87 per share in 2008, which included net charges of $1.89 per share from items highlighted in the Company's quarterly earnings releases.
Consistent with the Company's previously reported results, GAAP earnings per share include non-cash expenses for amortization of intangibles and stock-based compensation. These expenses totaled $0.04 per share in the fourth quarter and $0.16 per share for full-year 2009.
During the quarter, the Company generated positive operating cash flow of $877 million. For the full year, the Company generated positive operating cash flow of $629 million and ended the year with a total cash* position of $8.0 billion.
"We performed well in the face of a challenging environment in 2009. Our results demonstrate the strength of our market leadership and the resilience of these businesses and our people," said Greg Brown, Motorola co-chief executive officer and CEO of Broadband Mobility Solutions. "As market growth returns, we are well positioned to take advantage of our investments in key global markets with a competitive cost structure."
"We are pleased with the meaningful progress we made in 2009 in further improving our cost structure and strengthening the operations of the Mobile Devices business," said Sanjay Jha, Motorola co-chief executive officer and CEO of Mobile Devices. "Our first Android smartphone devices have been very well received. We look forward to broadening our handset portfolio in 2010 with the launch of at least 20 smartphone devices around the world and continued evolution of our MOTOBLUR™ service. With an aggressive product and brand strategy and our continued focus on operational efficiency, we are building on our momentum to further improve the financial performance of the Mobile Devices business."
Mobile Devices segment sales were $1.8 billion, down 22 percent compared with the year-ago quarter. The GAAP operating loss was $132 million, including $18 million of highlighted items, compared to an operating loss of $595 million in the year-ago quarter. These current quarter results exclude deferred revenue of $200 million and the related gross margin for certain smartphones sold during the quarter. For the full year 2009, sales were $7.1 billion, compared to $12.1 billion in 2008, and the segment incurred a GAAP operating loss of $1.1 billion, compared to an operating loss of $2.2 billion in 2008. During the quarter, the Company shipped 12 million handsets and estimates its share of the global handset market was 3.7 percent.
Mobile Devices highlights:
- Successfully launched two smartphones powered by Android, including TIME magazine's "Best new gadget of 2009" – DROID by Motorola/MILESTONE™, as well as CLIQ™ / DEXT™ with MOTOBLUR™
- Shipped 2 million smartphones to customers globally in more than 20 countries
- Announced four new smartphones powered by Android and shipping in the first quarter, bringing our total number of new Android-powered devices to six:
- CES 2010's "Gadget of the Show" winner – BACKFLIP™ maximizes the multi-tasking potential of MOTOBLUR with a unique reverse-flip design and a stunning 3.1-inch screen
- MT710 with China Mobile, featuring a 3.7-inch FWVGA display screen, the most advanced version of the OPhone platform and 4GB of storage space
- XT800 with China Telecom, featuring a 16 million-color WVGA display, two SIM card slots, a 550MHz processor and Wi-Fi
- MOTOROI™, the first smartphone powered by Android available in Korea, featuring a full-touch screen, an 8-megapixel camera with Xenon flash and a 720p HD camcorder
- Announced SHOP4APPS store in China, offering consumers personalization for mobile experiences and developers a seamless path to market for their Android applications
Enterprise Mobility Solutions segment sales were $2.0 billion, down 12 percent compared with the year-ago quarter. GAAP operating earnings were $368 million, compared with operating earnings of $466 million in the year-ago quarter. For the full year 2009, sales were $7.0 billion, compared to $8.1 billion in 2008, and the segment generated GAAP operating earnings of $1.1 billion, compared to $1.5 billion in 2008.
Enterprise Mobility Solutions highlights:
- Shipped the APX™ 7500 multi-band mobile radios, making Motorola the first and only company to offer a complete family of multiband radios
- Launched MC3100 – a mid-range mobile computer with industry-leading data capture and wireless technologies for indoor applications
- Launched Motorola's first portfolio for voice-directed picking operations with the Voice Only Wearable computer (WT4090) and Rugged Headset (RCH50)
- Expanded integrated voice solutions with the CLP two-way radio, the smallest and lightest push-to-talk radio in its class, and the EWB100 TEAM Badge, a push-to-talk device that runs over wireless LAN (WLAN)
- Continued to broaden distribution channels for WLAN solutions with new strategic partnerships, including Brocade and Extreme Networks
Home & Networks Mobility segment sales were $2.0 billion, down 24 percent compared with the year-ago quarter. GAAP operating earnings were $91 million, compared to $257 million in the year-ago quarter. For the full year 2009, sales were $8.0 billion, compared to $10.1 billion in 2008, and the segment generated GAAP operating earnings of $558 million, compared to $918 million in 2008.
Home & Networks Mobility highlights:
- Shipped 3.4 million digital entertainment devices, reaching milestone of shipping 100 millionth digital entertainment device
- Achieved 1 millionth fiber-to-the-home optical network terminal shipment
- Won contract to power the world's first WiMAX-based electric utility smart metering for SP AusNet; shipped 10,000th WiMAX Access Point Base Site
- Selected to provide indoor TD-LTE broadband coverage at World Expo 2010 in Shanghai
- Announced intent to acquire BitBand Technologies Ltd., a company that specializes in video on demand for IPTV, and in January, acquired SecureMedia, Inc., a developer of software-based digital rights management and security systems for IP video