Motorola Reports $3.6B Loss as Phone Sales Fall by Half
Motorola reported a net loss of US$3.6 billion, or $1.57 per share, for the fourth quarter, attributing much of it to tax charges and goodwill write-downs.
The company reported revenue for the quarter of $7.14 billion, down 26 percent from a year earlier, with the biggest decline in its mobile phone division, where revenue fell 51 percent to $2.35 billion.
Of the $1.57 per share loss for the quarter, deferred taxes accounted for $0.91, goodwill impairment $0.71 and investment impairments 0.09.
Charges relating to business reorganization accounted for a loss of $0.05 per share. Motorola says it expects these and other reorganization measures will help it save around $1.5 billion this year.
Looking ahead, Motorola said that through the first quarter it expected losses to continue at between $0.10 and $0.12 per share, excluding the cost of reorganization, but did not comment on the period after that. Analysts polled by Thomson Reuters expected a per share loss $0.06 for the first quarter.
The company has suspended the payment of dividends until further notice.
Motorola also said it is looking for a new CFO, after the previous post holder, Paul J. Liska, resigned. The company has appointed its corporate controller Edward J. Fitzpatrick as interim CFO.
For comprehensive coverage of the Android ecosystem, visit Greenbot.com.