Summary
Motorola Inc.'s 2007 Form 10-K filing reveals a challenging year, primarily driven by a significant downturn in its Mobile Devices segment. Net sales for the year decreased by 15% to $36.6 billion, largely due to a 33% drop in Mobile Devices revenue, which resulted in an operating loss for that segment. The company experienced a consolidated operating loss of $553 million, a stark contrast to the $4.1 billion operating earnings in 2006. While the Home and Networks Mobility and Enterprise Mobility Solutions segments showed growth in net sales (9% and 43% respectively), this was insufficient to offset the substantial decline in the core mobile phone business. Despite the overall financial struggles, Motorola made strategic moves, including significant acquisitions in the Home and Networks Mobility and Enterprise Mobility Solutions segments, notably the acquisition of Symbol Technologies. The company also continued its investment in research and development, though the effectiveness of these investments, particularly in the Mobile Devices segment, was called into question by declining market share. Looking ahead, Motorola announced it was evaluating strategic alternatives for its Mobile Devices business, including a potential separation, indicating a significant restructuring effort to address ongoing challenges and improve shareholder value.
Financial Highlights
30 data points| Revenue | $36.62B |
| Cost of Revenue | $26.67B |
| Gross Profit | $9.95B |
| R&D Expenses | $4.43B |
| SG&A Expenses | $5.09B |
| Operating Income | -$553.00M |
| Net Income | -$49.00M |
| EPS (Basic) | $-0.02 |
| EPS (Diluted) | $-0.02 |
| Shares Outstanding (Basic) | 2.31B |
| Shares Outstanding (Diluted) | 2.31B |
Key Highlights
- 1Consolidated net sales declined 15% year-over-year to $36.6 billion.
- 2The Mobile Devices segment experienced a significant 33% decrease in net sales, contributing to an operating loss of $1.2 billion for the segment.
- 3The company reported a consolidated operating loss of $553 million for the year, a substantial decrease from $4.1 billion in operating earnings in the prior year.
- 4Enterprise Mobility Solutions segment saw strong growth with a 43% increase in net sales, largely driven by the acquisition of Symbol Technologies.
- 5Home and Networks Mobility segment sales grew 9%, supported by strong performance in digital entertainment devices.
- 6Motorola repurchased $3.0 billion of its common stock during 2007 as part of its ongoing share repurchase program.
- 7The company announced it is evaluating strategic alternatives for its Mobile Devices business, potentially including a separation.