Feeds

Motorola handset profits still MIA

Posts $3.6bn loss in Q4

Remote control for virtualized desktops

The fact that nobody seems to want a Motorola phone these days wasn't terrific for the handset maker's bottom line in 2008.

Motorola reported today that it shipped 19.2 million handsets in the fourth quarter last year. That's 6.2 million units fewer than it did the previous quarter and 16.3 million fewer than the same quarter in 2007.

Along with the gloomy results, the company also booted its financial chief Paul Liska, who had been with Moto for less than a year. Moto tapped senior veep Edward Fitzpatrick to fill the CFO role until it finds a permanent replacement.

In two years, Moto's share of the global market has fallen from 23 per cent to just 6.5 per cent, according to industry bean-counter Technology Business Research. Problem is that the Illinois-based company hasn't had a popular handset since the Razr, which debuted more than three years ago. The global recession certainly isn't helping its ailing coffers either.

Motorola's net loss in Q4 was $3.6bn, down from a $100m profit in the same quarter last year.

Revenues were $7.1bn in the quarter, down 26 per cent from a year ago.

Broken down, the mobile devices business was unsurprisingly the biggest drain with sales down 51 per cent last year to $2.35bn. Operating loss in the handset unit was $595m.

The company's Home and Networks Mobility unit reported sales of $2.5bn in Q4, down five per cent year-over-year.

A bright spot was Moto's enterprise division, which saw sales increase four per cent from Q4 last year to $2.2bn.

For the full year, Motorola posted sales of $30.1bn, compared to $36.6bn in 2007. Its operating loss for 2008 was $2.4bn compared to a loss of $553m the previous year.

Moto also said it has suspended a five cents per share investor dividend as part of its $1.5bn cost-cutting plan for 2009. The company didn't say what additional measures were a part of the plan — but these things usually involve layoffs.

Last month, the company said it would eliminate 4,000 jobs, with 3,000 coming from its handset businesses. The cuts were on top of 3,000 layoffs made in the last quarter of 2008. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?