Summary
Motorola, Inc. reported a net loss of $231 million for the first quarter of 2009, compared to a net loss of $194 million in the same period of the previous year. This widening loss was primarily driven by a significant 28% decrease in net sales, totaling $5.4 billion, down from $7.4 billion in Q1 2008. The decline was broad-based, with the Mobile Devices segment seeing a sharp 45% drop in sales, followed by Home and Networks Mobility (-16%) and Enterprise Mobility Solutions (-11%). The company experienced an operating loss of $449 million, a substantial increase from the $269 million operating loss in Q1 2008. This deterioration was exacerbated by increased reorganization charges totaling $204 million, primarily related to employee separation costs, indicating ongoing restructuring efforts. Despite these challenges, the company generated positive net cash from investing activities, largely due to proceeds from sales of Sigma Fund investments, and managed its financing activities to reduce net cash outflow compared to the prior year. Motorola also completed the sale of two businesses, Good Technology and its biometrics unit, resulting in earnings from discontinued operations.
Financial Highlights
27 data points| Revenue | $4.55B |
| Cost of Revenue | $3.18B |
| Gross Profit | $1.37B |
| R&D Expenses | $634.00M |
| SG&A Expenses | $750.00M |
| Operating Income | -$74.00M |
| Net Income | -$231.00M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 2.28B |
| Shares Outstanding (Diluted) | 2.28B |
Key Highlights
- 1Net sales declined significantly by 28% to $5.4 billion in Q1 2009, compared to $7.4 billion in Q1 2008.
- 2Operating loss widened to $449 million from $269 million year-over-year, reflecting operational pressures and restructuring costs.
- 3The Mobile Devices segment experienced a substantial sales decrease of 45%, highlighting significant challenges in this core business.
- 4The company incurred $204 million in reorganization charges related to employee severance and exit costs, underscoring restructuring efforts.
- 5Net loss attributable to Motorola, Inc. increased to $231 million ($0.10 per share) from $194 million ($0.09 per share) in the prior year.
- 6Positive net cash from investing activities was driven by $1.3 billion in proceeds from Sigma Fund investments.
- 7Motorola completed the sale of two businesses, Good Technology and its biometrics unit, contributing $60 million in earnings from discontinued operations.