Attributes the loss to goodwill impairment charges and weak mobile device sales
Motorola has reported a net loss of $3.57 billion for the fourth quarter 2008, compared to net income of $100m in the year-ago quarter, on revenue down 26% at $7.13 billion. It attributed the loss to goodwill impairment charges and weak mobile device sales.
It made an operating loss of $1.6 billion compared to a loss of $19m in the same period last year. Diluted net loss per share was $1.57 compared to diluted EPS of $0.04 a year ago. The company shipped 19.2 million handsets and had operating cash inflow of $201m.
Mobile device revenue fell 51% to $2.35 billion, home and networks mobility revenue declined 5% to $2.59 billion, and enterprise mobility solutions revenue increased 4% to $2.21 billion.
For fiscal 2008 the company reported a net loss of $4.16 billion compared to a $49m loss a year ago, on revenue down 18% at $30.14 billion.
The Illinois-based company suspended its quarterly cash dividends. It also appointed its current senior vice president and corporate controller, Edward Fitzpatrick, to the additional role of acting CFO effective immediately. He will replace Paul Liska.
Greg Brown, president and co-chief executive of Motorola and chief executive of Broadband Mobility Solutions, and Sanjay Jha, co-chief executive and chief executive of Mobile Devices, said: In light of the economic climate and challenges we face, we have implemented aggressive measures to reduce costs and improve financial flexibility, particularly in Mobile Devices. The cost-reduction actions underway are expected to generate aggregate savings of approximately $1.5 billion in 2009.
For the first quarter the company expects a net loss per share in range of $0.10 to $0.12.