Motorola Mobility ships more than 250,000 Xooms in Q1

Summary:Motorola Mobility managed to do slightly better than Wall Street predicted for the first quarter with less losses than expected.

Motorola Mobility managed to do slightly better than Wall Street predicted for the first quarter but reported a loss.

Motorola Mobility reported a GAAP net loss of $81 million, or 27 cents a share. Non-GAAP losses were 8 cents a share on a revenue of $3.0 billion. Wall Street was expecting a loss of 12 cents a share on revenue of $2.82 billion.

What seemed to have saved Motorola this quarter were two new and very anticipated Android-based mobile devices: the Atrix 4G smartphone and the Xoom tablet. Net revenues for mobile devices were $2.1 billion, up 30 percent compared with Q1 2010. Motorola Mobility's chairman and chief executive officer Sanjay Jha said in a statement:

In the first quarter, we reached a major milestone in our history by becoming a new independent, public company.  We enhanced our product portfolio by delivering compelling experiences with the launch of Motorola ATRIX and Motorola XOOM, as well as offering unique end-to-end video solutions for the home.

Motorola shipped 9.3 million mobile devices during the first quarter, including 4.1 million smartphones and more 250,000 Motorola XOOM tablets. However, that shipment tally does not mean that Motorola has sold all of these units to end users yet. These units have shipped to retailers.

For the second quarter, Motorola Mobility is expecting to break even with net earnings of $35 million and a range of $0.00 to $0.12 earnings per share. That projection means that Motorola will have to stretch to hit Wall Street estimates that call for a profit of 12 cents a share on revenue of $3 billion.

Key points:

  • Acquired Three Laws Mobility, Inc. for integrating and licensing its mobile enterprise security and device management software to other Android smartphone providers
  • Announced four new mobile devices specific to China
  • Launched VAP2400 wireless video bridge solution for enabling content distribution
  • Chosen by HBO Latin America for upgrading its satellite network with MPEG-4 equipment for HD video

By the numbers:

  • Net revenue is up 22 percent from Q1 2010
  • Positive operating cash flow of $107 million
  • Total cash of $3.3 billion at the end of the quarter includes cash, cash equivalents and cash deposits
  • Home segment net revenues were $904 million, up 8 percent compared with Q1 2010

Related coverage on ZDNet:

Topics: Banking, Mobility

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.