- Fourth-quarter GAAP earnings from continuing operations of $0.05 per share, including net charges of $0.09 per share from items highlighted below
- Mobile Devices remains challenged; sales declined 38 percent versus prior-year quarter
- Home & Networks Mobility and Enterprise Mobility Solutions continue to deliver strong results
- Fourth-quarter positive operating cash flow of $470 million and cash conversion cycle improved by 10 days
Click here to view the financial tables which are an integral part of this release
Click here to view additional financial informationSCHAUMBURG, Ill. – January 23, 2008 – Motorola, Inc. (NYSE: MOT) today reported sales of $9.65 billion in the fourth quarter of 2007. Net earnings in the fourth quarter of 2007 were $0.04 per share, which include $0.05 per share from continuing operations and a net loss of $0.01 per share from discontinued operations. Earnings from continuing operations include net charges of $0.09 per share related to a legal settlement, charges associated with previously announced workforce reductions and a write-down of assets, partially offset by tax benefits.
During the quarter, the company generated operating cash flow of $470 million. For the full year, the company generated operating cash flow of $785 million and ended the year with a net cash position of $4.3 billion.
For the full year 2007, sales were $36.6 billion. The net loss was $0.02 per share, which included a net loss of $0.05 per share from continuing operations and earnings of $0.03 per share from discontinued operations. The net loss from continuing operations included net charges of $0.29 per share from items highlighted in the company’s quarterly earnings releases.
“We are focused on aggressively rationalizing the company’s cost structure and working to get Mobile Devices back on track,” said Greg Brown, chief executive officer of Motorola. “The recovery in Mobile Devices will take longer than expected and there is a lot more work to be done. Our primary focus is on improving profitability and enhancing our product portfolio in this business. At the same time, we are very pleased with the continued strong performance of our Home and Networks Mobility and Enterprise Mobility Solutions businesses.”
“During the fourth quarter, we completed several cost actions to improve efficiencies in Mobile Devices and across our organization,” said Tom Meredith, acting chief financial officer of Motorola. “We remain focused on further improving our operating cash flow and cash conversion cycle, while continuing to drive cost savings opportunities.”
During the fourth quarter, the company repurchased 33.7 million shares for $557 million. Since the implementation of its first repurchase program in 2005, Motorola has repurchased a total of 385 million shares for $7.7 billion. The company has $3.8 billion remaining under its current share repurchase authorization.
Mobile Devices segment sales were $4.8 billion, down 38 percent compared with the year-ago quarter. The operating loss was $388 million, compared with operating earnings of $341 million in the year-ago quarter. For the full year 2007, sales were $19.0 billion, a 33 percent decrease compared to 2006, and the segment incurred an operating loss of $1.2 billion, compared to operating earnings of $2.7 billion in 2006. During the quarter, the company shipped 40.9 million handsets.
Mobile Devices highlights:
- Announced nine new phones during the quarter, including: the U9, featuring a rich music experience with external touch-sensitive music controls; seven new W-Series handsets; and the luxury edition RAZR2
- At the International Consumer Electronics Show (CES): introduced the MOTO Z10, the ROKR E8, which won four Best of CES awards, including CNET’s “People’s Voice” award, and new companion products; and announced the Soundbuzz acquisition
- Completed an agreement with Qualcomm to include chipsets for 3G devices
Home and Networks Mobility segment sales were $2.7 billion, up 11 percent compared with the year-ago quarter. Operating earnings decreased to $192 million, compared with operating earnings of $223 million in the year-ago quarter. For the full year 2007, sales were $10.0 billion, a 9 percent increase compared to 2006, and the segment generated operating earnings of $709 million, compared to $787 million in 2006.
Home and Networks Mobility highlights:
- Shipped 3.4 million digital entertainment devices during the quarter, with a record quarter for IP set tops
- Shipped its 50 millionth cable/voice modem during the quarter
- Introduced several new products at CES, including the DCX series of MPEG-4 HD set tops, capable of advanced video services, media storage, and usable as a home multimedia hub; the DH01 Mobile TV, a pocket sized and a DVBH device for multimedia entertainment on the go
- Continued momentum in WiMAX - ending the year with 47 active trials and 15 commercial contracts globally
- Completed the sale of the embedded computing business to Emerson for $350 million
Enterprise Mobility Solutions segment sales were $2.1 billion, up 35 percent compared with the year-ago quarter, driven by sales from the Symbol business acquired in early 2007. Operating earnings increased to $451 million, compared with operating earnings of $323 million in the year-ago quarter. For the full year 2007, sales were $7.7 billion, a 43 percent increase compared to 2006, and the segment generated operating earnings of $1.2 billion, compared to $958 million in 2006.
Enterprise Mobility Solutions highlights:
- Aquired majority ownership of Vertex Standard, enabling both companies to deliver an enhanced product portfolio to customers worldwide
- Awarded contracts from the city of Atlanta and the Colombian Ministry of Defense
- Announced the CA50 VOIP-enabled wireless bar code scanner
- Introduced integrated GPS functionality for the market-leading MC70 enterprise digital assistant
First-Quarter 2008 Outlook
The Company’s outlook for the first quarter is a loss from continuing operations of $0.05 to $0.07 per share. This outlook excludes any reorganization of business charges associated with the Company’s operating expense reduction initiatives, as well as any other items of the variety highlighted by the Company in its quarterly