Feeds

Moto says hello to disappointment with Q2 warning

End of Zandr line cheers gloomy investors

Build a business case: developing custom apps

Motorola is forecasting another dreary quarter, citing poor sales in Asia and Europe for its lower-than-expected outlook.

Meanwhile, Motorola shares have risen almost 3 per cent on speculation that CEO Ed Zander may be ousted under the heat of a new campaign by an activist investor.

The company's profit warning today declared it now expects second quarter sales between $8.6bn to $8.7bn. The company had previously forecast sales would be flat with Q1 '07 results of $9.4bn. The company has also changed its outlook on the mobile market from the first quarter, and no longer expects the business to be profitable for the full year 2007.

This week, Motorola investor Eric Jackson published a statement entitled "Motorola Plan B" that called for Zander's head.

"What has been Ed Zander's mark on Motorola?" Jackson asked in his statement. "He came with a Silicon Valley background, but how has that experience or those past ties translated into tangible results for the Schaumburg, IL-based Motorola?

"What has he brought to Motorola that is really unique in the last 3 1/2 years? If it's difficult to answer that question, we find it hard to image what he'll bring moving forward, which is why we suggest a change is needed now."

Jackson had previously stirred up dissatisfied stockholders at Yahoo! by asking then-CEO Terry Semel to apologize to shareholders during the company's annual meeting. Semel was replaced one week later.

This year, Motorola has replaced its CFO and acquired an operations chief to help with company restructuring. The company slashed 3,500 jobs in January, followed by an additional 4,000 layoffs in May.

In addition to the forecast, Motorola announced that Stu Reed, head of integrated supply chain operations, would become the company's new executive VP of mobile devices. Reed takes the job vacated by Ron Garriques, who left the company in February to become an executive at Dell. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
PwC says US biz lagging in Internet of Things
Grass is greener in Asia, say the sensors
Ofcom sees RISE OF THE MACHINE-to-machine cell comms
Study spots 9% growth in IoT m2m mobile data connections
O2 vs Vodafone: Mobe firms grab for GCHQ, gov.uk security badge
No, the spooks love US best, say rival firms
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.