- Third-quarter sales of $5.5 billion
- Third-quarter GAAP earnings from continuing operations of .01 per share, including net charges of .01 per share from highlighted items
- Total cash* of $7.2 billion, a sequential increase of $700 million
- Increased cost reduction plan by $100 million; now expect total cost savings of $1.9 billion for 2009
- Home and Networks Mobility sales of $2.0 billion; operating earnings of $199 million
- Enterprise Mobility Solutions sales of $1.8 billion; operating earnings of $306 million
- Mobile Devices sales of $1.7 billion; shipped 13.6 million handsets; operating loss of $183 million
A- nnounced new smartphones powered by Android OS
SCHAUMBURG, Ill. � Motorola, Inc. (NYSE: MOT) reported sales of $5.5 billion in the third quarter of 2009. The GAAP earnings from continuing operations in the third quarter of 2009 were $12 million, or .01 per share. The GAAP earnings from continuing operations include net charges of .01 per share from highlighted items, which are outlined at the end of this press release.
Total cash* at the end of the third quarter was $7.2 billion, an increase of $700 million compared to the end of the second quarter. The Company generated $616 million of positive operating cash flow during the quarter and expects to continue to generate positive cash flow in the fourth quarter.
Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, said, �We delivered on our commitment to improve the financial performance of Mobile Devices and to commercially launch two smartphones in time for the fourth- quarter holiday season. The introductions of our new products powered by Android are important milestones as we begin to address the mobilization of the Internet and the growing demand for modern smartphones. Next year, we will continue to expand our smartphone portfolio and deliver improved financial results.�
Greg Brown, co-CEO of Motorola and CEO of Broadband Mobility Solutions, said, �Broadband Mobility Solutions performed well during the quarter. We continued to manage our cost structure and also delivered solid operating margins. We secured additional contract wins and launched new devices, including the MC9500, the industry�s most rugged mobile computer. As the economic environment improves, we believe our businesses are well positioned for continued success.�
Operating Results
Mobile Devices segment sales were $1.7 billion, down 46 percent compared to the year-ago quarter. The GAAP operating loss was $183 million, compared to an operating loss of $840 million in the year-ago quarter. The segment reduced its operating loss by 28 percent sequentially from $253 million in the second quarter of 2009.
Mobile Devices highlights:
Shipped 13.6 million handsets; estimated global handset market share of 4.7 percent
Announced Motorola�s first two smartphones powered by Android:
CLIQ� & DEXT�, a 3G device powered by Android with Motorola�s innovative MOTOBLUR� solution that automatically syncs and streams communications, contacts and content from today�s most popular sources like Facebook�, MySpace�, Twitter�, Last.FM�, Gmail� and Yahoo!� Mail, and synchronizes work email from Microsoft Exchange� servers
DROID�, the world�s first smartphone to feature Android 2.0. Features include high-speed browsing and voice-activated search, 3.7� wide screen, high-resolution display and the industry�s thinnest full-QWERTY slider
Extended Android product experience through announcement of new partners for the Android ecosystem, including Accuweather, Amazon MP3, Barnes & Noble, CardStar, Comcast Entertainment Group, Hands On Mobile, Howcast.com, Midomi, MySpace, QuickOffice, QuickPlay Media, RJDJ, Superpages.com and Travel Channel
Launched Debut�, the first iDEN� push-to-talk slider
Home and Networks Mobility segment sales were $2.0 billion, down 15 percent compared to the year-ago quarter. GAAP operating earnings were $199 million, compared to operating earnings of $263 million in the year-ago quarter.
Home and Networks Mobility highlights:
Shipped 3.3 million digital entertainment devices
Launched next-generation video platform for dynamically managing bandwidth, format and resolution to enable high-quality viewing experience on any device
Shipped 1 millionth WiMAX device; expanded WiMAX CPE product portfolio
Conducted world�s first live 2.6GHz TD-LTE mobile demonstration for China Mobile
Enterprise Mobility Solutions segment sales were $1.8 billion, down 13 percent compared to the year-ago quarter. GAAP operating earnings were $306 million, compared to operating earnings of $403 million in the year-ago quarter.
Enterprise Mobility Solutions highlights:
Announced the MC9500, Motorola�s most rugged mobile computer and the first to provide 3.5G WAN with support for GSM-HSDPA and EVDO Rev A wireless broadband connectivity
Launched the MT2000 series of mobile terminals to provide the power of a mobile computer in a handheld, rugged bar code scanner � the industry�s first device of this kind
Celebrated the 20th anniversary of the Project 25 (P25) standard and secured P25 public safety awards from Pima County in Arizona, Baltimore County in Maryland, the City of Philadelphia, and the City of Virginia Beach
Received TETRA awards in key developing countries� major airports and metros including Mumbai Metro, New Delhi Airport Express Link, and Urumqi Airport in the Xinjiang province in China
Fourth-Quarter 2009 Outlook
The Company�s outlook for fourth-quarter earnings from continuing operations is .07 to .09 per share. This outlook excludes charges associated with the Company�s operating expense reduction initiatives, as well as any other items of the variety typically highlighted by the Company in its quarterly earnings releases.
Consolidated GAAP Results
A comparison of results from operations is as follows:
Third Quarter
(In millions, except per share amounts)
2009
2008
Net sales
$5,453
$7,480
Gross margin
1,808
1,803
Operating earnings (loss)
128
(452)
Net earnings (loss)**
12
(397)
Diluted earnings (loss)** per common share:
Continuing operations
.01
$(0.18)
Weighted average diluted common shares outstanding
2,319.5
2,265.9
Highlighted Items
Highlighted items totaling .01 per share in net expense include a charge for an environmental reserve and costs associated with ongoing efforts to prepare for separation into two independent public companies.
Conference Call and Webcast
Motorola will host its quarterly conference call beginning at 8:00 a.m. Eastern Time (USA) on Thursday, October 29, 2009. The conference call will be webcast live with audio and slides at www.motorola.com/investor.
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