Motorola Mobility ships more than 250,000 Xooms in Q1

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.

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TOPICS: Banking, Mobility
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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

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Topics: Banking, Mobility

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6 comments
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  • One data point, still no line

    OK, now we know they moved 250,000 XOOMs into the channel. We'll have to wait another three months before we have a definite handle on the sell-through. The guys who have been saying "around 100,000" for sell-through may not be all that far off.
    Robert Hahn
    • RE: Motorola Mobility ships more than 250,000 Xooms in Q1

      @Robert Hahn
      From memory, other articles have suggested that Motorola was hoping for sales of 100,000 in the first quarter and 150,000 in the second quarter. If so, then it is possible that Motorola exceeded their expectations. Nonetheless, those expected numbers really are quite small and I cannot see how the Xoom could continue if sales were to continue to be so small. Afterall, even the Samsung Galaxy Tab sold a couple of million in a few months.
      Wakemewhentrollsgone
  • RE: Motorola Mobility ships more than 250,000 Xooms in Q1

    More iPad 2's sold in the first few HOURS of release.<br><br>What I want to know, are Xoom sales "smooth"?
    alsobannedfromzdnet
    • Expensive, but worth it

      Hey, it's better than I thought: they have $3 billion in cash. Even if they do end up dumping a half-million XOOMs at a hundred bucks each just to get rid of 'em, it won't sink the company.
      Robert Hahn
  • RE: Motorola Mobility ships more than 250,000 Xooms in Q1

    So, wonder where are the 200,000 XOOMs sitting? I sure hope the 50,000 owners do not return it, it would be disaster for the company which is already sinking
    browser.
  • RE: Motorola Mobility ships more than 250,000 Xooms in Q1

    Motorola is indeed declining turnover, which can not be ignored. It must quickly find a way out of this situation.Just like <a href="http://www.pelletmillguide.com/invest_in_alternative_energy_companies.html">alternative energy wood pellets </a>
    martyi