Summary
Motorola, Inc. reported a significant year-over-year decline in net sales for the second quarter and first half of 2009, reflecting the challenging global economic environment. Net sales for Q2 2009 were $5.5 billion, down 32% from $8.1 billion in Q2 2008. The Mobile Devices segment experienced the steepest decline, with sales down 45% in Q2, largely due to a 47% drop in unit shipments. Despite lower sales, the company managed to achieve a slight increase in operating earnings to $10 million for the quarter, a slight improvement from $5 million in the prior year's quarter. However, the first half of 2009 saw a substantial net loss of $205 million attributable to common shareholders, compared to a loss of $190 million in the same period last year. The company is actively engaged in cost-reduction initiatives across all segments, with a particular focus on the Mobile Devices business. These efforts are aimed at improving long-term profitability. Motorola also completed the sale of two businesses, Good Technology and its biometrics unit, during the first half of the year, resulting in a gain from discontinued operations. Liquidity remains a focus, with the company holding $2.9 billion in cash and cash equivalents as of July 4, 2009.
Financial Highlights
52 data points| Revenue | $4.34B |
| Cost of Revenue | $2.90B |
| Gross Profit | $1.44B |
| R&D Expenses | $621.00M |
| SG&A Expenses | $718.00M |
| Operating Income | -$11.00M |
| Interest Expense | $49.00M |
| Net Income | $26.00M |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.04 |
| Shares Outstanding (Basic) | 2.29B |
| Shares Outstanding (Diluted) | 2.31B |
Key Highlights
- 1Net sales declined significantly by 32% year-over-year to $5.5 billion in Q2 2009, driven by a broad economic downturn impacting all business segments.
- 2The Mobile Devices segment saw sales plummet by 45% in Q2 2009, primarily due to a 47% decrease in unit shipments.
- 3Despite declining sales, operating earnings slightly increased to $10 million in Q2 2009, up from $5 million in Q2 2008.
- 4The company incurred a net loss of $205 million for the first six months of 2009, an increase from a loss of $190 million in the comparable period of 2008.
- 5Motorola completed the divestiture of two businesses (Good Technology and biometrics) in the first half of 2009, resulting in a gain from discontinued operations.
- 6Significant cost-reduction initiatives are underway, particularly within the Mobile Devices segment, to drive long-term profitability.
- 7The company maintained a strong liquidity position with $2.9 billion in cash and cash equivalents as of July 4, 2009.