Motorola posts Q1 loss, despite rise in smartphones shipments

Motorola posts Q1 loss, despite rise in smartphones shipments

Summary: Motorola's smartphone sales are up in the first-quarter, despite posting a net loss of $86 million, or 2 percent in the same quarter a year ago.

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Motorola Mobility's first-quarter results show a slight net loss, despite the company reporting a rapid rise in smartphone sales.

The smartphone maker reported a net loss of $86 million, or 28 cents per share, compared to a net loss of $81 million a year earlier, or 27 cents a share. Revenue was higher than Wall Street estimates, growing to $3.08 billion, up 1.5 percent on $3.03 billion from last year's first quarter.

Motorola shipped 8.9 million mobile devices, of which 5.1 million were smartphones. During 2011, the company shipped 9.3 million mobile devices, including 4.1 million smartphones.

It noted in its operating results that net revenues in its mobile devices unit were $2.2 billion, up 3 percent. Even though its operational costs have risen, Motorola is just about making a profit, but faces stiff competition from rivals such as Samsung and Apple.

Motorola's total cash pile stands at $3.5 billion.

Motorola split into two companies early this year: a mobile device unit, and a home segment.

Motorola's mobile device unit accounted for 71 percent of its total sales, marking a boom in its smartphone and tablet business. The company did not disclose how many tablets it sold during the quarter. Boosted by the Droid Razr and the Droid Razr Maxx, which has a larger battery life, the two smartphones practically carried the company through the first few months of the year, just as it did on the previous quarter.

Latest comScore figures show Motorola has just shy of 13 percent of the mobile OEM market share between December and March, though it dropped by 0.5 percent.

Its home business, which includes television set-top boxes, showed net revenues falling by 2 percent to $884 million, but overall saw improvement on previous earnings. Its operating costs were $91 million on a non-GAAP basis compared to $81 million a year ago.

Following Google's $12.5 billion acquisition bid for the company last year, the merger still faces regulatory approval in China. Motorola accepted the terms following board approval. U.S. and European regulators passed the deal subject to conditions earlier this year.

Subject to China's approval, the deal could be completed by the end of the second-quarter, making this quarter's earnings likely to be Motorola's last as its own company.

ZDNet's Charlie Osborne contributed to this report.

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Topics: Enterprise Software, Mobility, Smartphones

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7 comments
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  • will get better once Google aquires it

    and it gets M$ and apple off moto's back!
    The Linux Geek
    • The blind leading the blind?

      Google has demonstrated repeatedly that it doesn't know how to make money by any means, other than by ads. Now a company who doesn't know anything about hardware, is going to lead a hardware company who doesn't know very well, how to make money in its line of business. It is the extremely blind leading the fairly blind. My guess is that (and this is a shocker) they will both fall into a pit.
      P. Douglas
    • Given Motorola sued Apple first...

      Apple is on Motorola's back because of Motorola.
      Bruizer
  • ComScore results are no use for actual sales measure, it is just the trend

    So instead of ComScore, results for Motorola's *sales* share, rather than total marketshare, would fit here much better.
    DDERSSS
  • Well "IF" margins on a given product are slim an uptick in

    sales won't help unless it's a real surge and even then it can cause issues depending on warranties and or returns.

    Pagan jim
    James Quinn
  • Look what happened when Google branded a phone

    The Nexus hasn't sold as well as it's competition. Now they brand an entire company's product line.

    What did they expect?
    William Farrel
  • Hehehe

    Google must be happy. Not.
    Gisabun