Summary
Motorola, Inc. reported revenues of $22.0 billion for the fiscal year ended December 31, 2009, a decrease of 27% from the previous year, reflecting a challenging global economic environment. The company incurred an operating loss of $148 million, a significant improvement from the $2.4 billion operating loss in 2008, largely due to the absence of substantial goodwill impairment charges and ongoing cost reduction initiatives. The company's Mobile Devices segment continued to struggle, with net sales down 41% and an operating loss of $1.1 billion. However, the segment saw positive signs with the launch of two Android-based smartphones in Q4 2009, which garnered strong consumer reception and contributed to an increase in average selling price. The Home and Networks Mobility segment's net sales decreased by 21%, with operating earnings down 39% due to market softness. The Enterprise Mobility Solutions segment experienced a 13% decline in net sales, with operating earnings falling 29%, also impacted by economic conditions, though it maintained its market leadership and profitability. Despite the revenue decline, Motorola demonstrated improved operating cash flow of $629 million in 2009. The company is also progressing with its plan to separate into two independent, publicly traded companies, targeting completion in the first quarter of 2011, which aims to unlock value and allow each business to focus on its strategic priorities.
Financial Highlights
56 data points| Revenue | $6.95B |
| Cost of Revenue | $3.47B |
| Gross Profit | $3.48B |
| R&D Expenses | $993.00M |
| SG&A Expenses | $1.66B |
| Operating Income | $567.00M |
| Interest Expense | $207.00M |
| Net Income | -$51.00M |
| EPS (Basic) | $-0.16 |
| EPS (Diluted) | $-0.15 |
| Shares Outstanding (Basic) | 327.90M |
| Shares Outstanding (Diluted) | 329.90M |
Key Highlights
- 1Net sales decreased by 27% to $22.0 billion in 2009, primarily driven by a 41% drop in the Mobile Devices segment.
- 2The company reported an operating loss of $148 million, an improvement from a $2.4 billion operating loss in 2008, largely due to reduced impairment charges and cost savings.
- 3The Mobile Devices segment launched its first Android-based smartphones in Q4 2009, which were well-received and led to an 8% increase in the segment's average selling price.
- 4Operating cash flow improved significantly, reaching $629 million in 2009, a 160% increase from $242 million in 2008, driven by inventory reduction and better working capital management.
- 5Motorola continued its plan to separate into two independent companies, targeting completion in Q1 2011, with the aim of creating distinct entities for its Mobile Devices/Home and Enterprise Mobility Solutions/Networks businesses.
- 6The company reduced its workforce by approximately 11,000 employees during 2009 as part of its cost-reduction initiatives.
- 7The Home and Networks Mobility segment experienced a 21% decline in net sales, with the home business impacted by reduced capital spending from North American operators due to economic conditions.