Motorola Mobility sees first quarter loss ahead amid Verizon iPhone, Bionic arrival

Motorola Mobility sees first quarter loss ahead amid Verizon iPhone, Bionic arrival

Summary: Motorola Mobility made its earnings debut with solid fourth quarter results, but projected a loss for the first quarter.

SHARE:
TOPICS: Mobility, Verizon, Wi-Fi
5

Motorola Mobility made its earnings debut with solid fourth quarter results, but projected a loss for the first quarter.

The company, the wireless device half of what used to be Motorola, reported fourth quarter earnings of $80 million, or 27 cents a share, on revenue of $3.4 billion, up 21 percent from a year ago. Non-GAAP earnings were $108 million, or 37 cents a share.

For 2010, Motorola Mobility reported a loss of 29 cents a share on revenue of $11.5 billion. That tally is much better than 2009's loss of $4.56 a share.

While those results are solid, Motorola Mobility projected a first quarter loss of $26 million to $62 million, or 9 cents a share to 21 cents a share. Operating results will be roughly break even, which was in line with estimates.

The loss isn't that much of a surprise given Motorola Mobility CEO Sanjay Jha has alluded to a rocky first quarter. The company is launching its 4G devices---such as the Bionic---late in the first quarter at Verizon Wireless. In addition, Motorola Mobility's Droid devices will battle for shelf space as Verizon rolls out the iPhone. In a statement, Jha said "we are well positioned to grow, and further improve our financial results in 2011."

By the numbers:

  • Mobile device revenue in the fourth quarter was $2.4 billion, up 33 percent from a year ago. Operating earnings were $72 million for the mobile device business.
  • The company shipped 4.9 million smartphones for the fourth quarter and 13.7 million for 2010.
  • Total handset shipments were 11.3 million for the fourth quarter and 37.3 million in 2010.
  • Home revenue, which includes cable set-top boxes, was $1 billion, up 1 percent from a year ago. Operating earnings were $54 million in the fourth quarter.

Related:

Topics: Mobility, Verizon, Wi-Fi

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

Talkback

5 comments
Log in or register to join the discussion
  • Motorola...

    ...is a total loss.
    james347
  • RE: Motorola Mobility sees first quarter loss ahead amid Verizon iPhone, Bionic arrival

    Good days of Motorola are going to fade away. Sanjay has a lot of work to look for alternatives. All these days they got good boost from Verizon and Droid clan, now Verizon is moving into iOS, that means it would slow down Droids' sales if not hurting it badly. But a different report shows there are good sales at Verizon even after iPhone 4 is announced. Motorola now has to fight Apple apart from fellow OHS members aka HTC, Samsung, and LG.
    Ram U
  • Personally I hate their Android "skin".

    I keep wanting to want their hardware, I wanted to like the Defy, but Motoblur just killed it for me. Has anyone seen a Charm live, I mean, it couldn't look worse. If they offered a way to simply turn off motoblur, I would probably have one of their phones.

    Could this be part of the reduction, those who, without a choice will tolerate Motoblur to get their pretty awesome phones but are now content to wait?

    TripleII
    TripleII-21189418044173169409978279405827
  • android handset makers

    motorola is the first of the android hardware makers going out of business. they will have burnt through their cash by the end of the year. sony ericsson and lg will follow. <br><br>i guess there will be mostly integrated players left in 2012 (nokia with megoo, blackberry, apple) and maybe samsung and htc with a working android business.
    banned from zdnet
  • RE: Motorola Mobility sees first quarter loss ahead amid Verizon iPhone, Bionic arrival

    If they offered a way to simply turn off motoblur, I would probably have one of their phones.<a href="http://sazkove-kancelaree.cz">sazkove tipy</a>
    marco5811