Moto phones in a billion dollar loss
Despite a new CEO, there are no signs yet of a turnaround for Motorola. The company's mobile phone division recorded a shocking quarter, with the unit's revenues down 38 per cent year-on-year, losing $388m along the way. Motorola's mobile division recorded a $1.2bn loss in 2007.
The mobile phone business netted $4.8bn, shifting 40.9 million handsets. For the full year, mobile revenues were down 33 per cent to $19bn.
Overall, the company made a Razr-slim profit of $51m for the final quarter of calender year 2007, on net sales of $9.6bn, down from $623m net income and $11.79bn revenue a year ago.
Performance was helped by Home and Networks earning $192m net income on revenue of $2.7bn - with greater sales but lower profits than a year ago. The enterprise mobility division, buoyed by the acquisition of the Symbol business, rose to $2.1bn sales and $451m net income.
The company spent $557m in the quarter buying back its own shares. Motorola said it expects the grim news to continue, with a loss projected for Q1 2008. ®