Thursday, April 24, 2008

Motorola Announces First-Quarter Financial Results

- First-quarter sales of $7.45 billion
- First-quarter GAAP loss from continuing operations of $0.09 per share, including net charges of $0.04 per share from highlighted items
- Mobile Devices sales declined 39 percent versus prior-year quarter
- Continued growth in Home and Networks Mobility and Enterprise Mobility Solutions businesses
- Planning underway to create two independent, publicly traded companies

SCHAUMBURG, Ill. � April 24, 2008 � Motorola, Inc. (NYSE: MOT) today reported sales of $7.45 billion in the first quarter of 2008. The net loss from continuing operations in the first quarter of 2008 was $194 million, or $0.09 per share. The net loss from continuing operations includes net charges of $0.04 per share from highlighted items, primarily related to a charge associated with workforce reductions.

The Company had an operating cash outflow of $343 million and ended the quarter with a net cash* position of $3.5 billion.

�During the first quarter, we made an important strategic decision to separate the Company, creating two independent, publicly traded entities," said Greg Brown, president and chief executive officer. �Improving the product portfolio in Mobile Devices and positioning both businesses for future success remains a top priority. Our Home and Networks Mobility and Enterprise Mobility Solutions businesses continue to expand their portfolios of solutions, grow internationally and deliver solid financial results.�

Operating Results

Mobile Devices segment sales were $3.3 billion, down 39 percent compared to the year-ago quarter. The operating loss was $418 million, compared to an operating loss of $233 million in the year-ago quarter. During the quarter, the Company shipped 27.4 million handsets.

Mobile Devices highlights:

Began shipping six new devices during the quarter, including the ROKR U9 music phone and several W-Series devices for the mass market
Introduced and began shipping the HSDPA MOTO Z9, a slider design with innovative features such as Motorola CrystalTalk� audio-enhancing technology, video share and navigation; expanded the MOTO Q family of smartphones, by announcing the MOTO Q� 9c and MOTO Q� 9c lime
Completed the acquisition of Soundbuzz Pte., Ltd., a leading pan-Asian music provider

Home and Networks Mobility segment sales were $2.4 billion, up 2 percent compared to the year-ago quarter. Operating earnings were $153 million, compared to operating earnings of $167 million in the year-ago quarter.

Home and Networks Mobility highlights:

Strong demand for High Definition and DVR devices resulted in shipments of over four million digital entertainment devices during the quarter, including a milestone three millionth IP device to-date
Sales outside North America grew 30 percent compared to the year-ago quarter, led by Europe and Latin America
Continued leadership in WiMAX with significant wins in Saudi Arabia and Taiwan
Announced several portfolio expansions, including a common wireless broadband platform to support both WiMAX and LTE and a family of MPEG-4 capable digital entertainment devices
Announced major GSM awards in Saudi Arabia totaling nearly $500 million
Acquired a leading Chinese digital cable company, Dahua Digital, enabling a broader digital device portfolio for the Chinese market

Enterprise Mobility Solutions segment sales were $1.8 billion, up 5 percent compared to the year-ago quarter. Operating earnings increased to $250 million, compared to operating earnings of $131 million in the year-ago quarter.
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Enterprise Mobility Solutions highlights:
Strong international demand continued in commercial enterprise and public safety markets as sales outside of North America grew by 23 percent compared to the year-ago quarter
Key international systems wins including a digital communications award from the Royal Malaysian Police
Introduced the RFS6000 LAN solution to provide mid-size enterprises a low-cost, all-wireless solution and expanded the wireless broadband portfolio with the introduction of an OFDM-based Canopy 400 solution
Acquired majority ownership of Vertex Standard, which opens up new market opportunities and enables a broader product portfolio for customers worldwide


Second-Quarter 2008 Outlook
The Company�s outlook for the second quarter is a loss from continuing operations of $0.02 to $0.04 per share. 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:
Click for rest of the press release.

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