Start the Zander countdown: Motorola warns (again)

Start the Zander countdown: Motorola warns (again)

Summary: Motorola issued a profit warning Wednesday and the latest misstep can't be good for the tenure of CEO Ed Zander. The latest stumble: Motorola sees second quarter sales of $8.

TOPICS: Mobility

Motorola issued a profit warning Wednesday and the latest misstep can't be good for the tenure of CEO Ed Zander.

The latest stumble: Motorola sees second quarter sales of $8.6 billion to $8.7 billion. The company had predicted $9.4 billion. Meanwhile, Motorola sees a loss from continuing operations of 2 cents a share to 4 cents a share. That includes charges of 3 to 4 cents a share due to layoffs. According to Thomson Financial Motorola was expected to report a profit of 2 cents a share on revenue of $9.26 billion.

We'll let Motorola tell the story:

The company's shortfall in sales and earnings for the second quarter is primarily attributable to lower overall unit volumes in the Mobile Devices business in Asia and Europe. The company expects second quarter Mobile Devices shipments to be approximately 35 to 36 million handsets. The company's Mobile Devices business is expected to have a larger operating loss in the second quarter as compared to the first quarter. For the full year 2007, the company no longer expects the Mobile Device business to be profitable. Second quarter results for Connected Home Solutions and Networks & Enterprise businesses continue to meet the company's expectations.

Simply put, a mobile device business that was in trouble is even more of a problem today. Motorola's handset bets continue to haunt the company

In addition, Motorola announced that Stu Reed, executive vice president of Motorola's supply chain group, is now president of the company's mobile devices business. Good luck Stu. More details on Motorola's issues are expected when the company reports earnings July 19.

Topic: Mobility

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  • Well if Motorola is having problems , they should get rid of ZANDER .

    This is just a test .
  • Campaign to remove Ed Zander from Motorola

    I wanted to alert you to the shareholder action campaign on YouChoose, that, among other things, requests the removal of Ed Zander:

    Our first campaign, also launched by Eric Jackson, was successful in getting Terry Semel removed from yahoo!
  • Ed Zander OUT, Chris Galvin IN

    Chris Galvin had almost all of the products in the works (RAZR, etc.) when he was removed as CEO and Ed Zander was put in. This made Zander look like a genius when the products finally hit the market, but now he is clueless. I think it is time to put Chris Galvin back in, you know, the man with the ideas. Also, the board of directors at Motorola need to be replaced with people from the technology industry, not all financial bean counters.
    • Ed Zander out, Cris Galvin in

      What are you all crazy? I was working at Motorola mobile devices during the "good" years. Then they let Cris in. He dropped the ball on digital as well as customer requests for add on items such as camera phones. According to him they were just "fads" not anyting that would last long enough to warrent looking into.
      • Ed Zander OUT, Chris Galvin IN

        When I talk to Chris again, I'll have to ask him about dropping the ball. In any case, can we all say... "Zander Out." Sort of reminds me of the saying at the end of a popular show.
    • Hah! Try Mike Zafirovski

      The Motorola board picked the wrong Z. They went with Zander over the in-house by way of GE pick of Mike Zafirovski(who then went to Nortel).

      Not only did they miss a chance at a better CEO (for Motorola) but they lost the guy that helped pull them out of the toilet.

      Notice they are having problems per their guidance in Asia and Europe.

      Motorola has sucked win in Europe for over a decade. They pissed off their customers in Europe a decade ago and have never regained that lost ground.

      The Asia market has been their investment blackhole for decades and its not paying off. They are having their products and technology stolen out from under them, knocked off and canibalizing the meager sales they could of had.

      Motorola seriously lost their way. They forgot who they were and what they were capable of and sold themselves on the idea that they were an engineering company instead of say a Mobile Phone company or a Network company or a consumer electronics company. They thought they could sit back and 'invent' things day in and day out and the world would come to them. They forgot how to find out what the world wanted and then deliver with consistency and efficiency.

      Zander is not a bad guy, but he's not the right person for the job.

      (Disclaimer. I worked for Motorola during the toilet years (2000 - 2003) before I was spun off with a Motorola division to an extremely corrupt Singapore held company located in China involved in more shady business than you can shake a stick at. They eventually threatened to kill my kids and I lost my job. The US authorities couldn't / wouldn't touch them even though their US offices are still open for business today.)
  • Both Need to Go, Plus ....

    History of Motorola -- blown opportunity. I can't find decent specifications at their Web site, no real Web browsers in any of their "fancy" phones.

    I don't see why eitehr executive is being considered -- both should be fired since the company has been mis-managed for 20 years straight. Between Apple, RIM, HTC and Nokia, I don't see Motorola getting enough market share of the future to pay either one of these losers. Sorry, but they are the GM of the wireless industry. They are now a big dead corpse in the middle of the road, like an elephant, blocking progress, blocking other companies, and messing up people's personal and business communications.

    Motorola executive management -- you're fired!
    • HUH?

      [b]History of Motorola -- blown opportunity. I can't find decent specifications at their Web site, no real Web browsers in any of their "fancy" phones. [/b]

      Opera Mini isn't a real web browser??? Since when?

      Opera Mini is included in the Motorola A1200 and ALL other Linux based Moto phones.

      But... I will agree, to a degree, that there have been blown opportunities. The previously mentioned A1200 phone was released in November of 2005. It has many of the features of the "Jesus phone" (Apple iPhone) a year and a half BEFORE the iPhone was released. It was NOT released in the US in 2005.

      In fact, it was only released a year later AFTER word of mouth advertising managed to drum up a LOT of interest in the US. In fact, it was the #2 search item among cell phones during the 2006 Christmas season behind the black Moto RAZR. It only wound up on the US Motorola home page in January of 2007. And still, there's NO fanfare, no hype, no contract with any US carriers.

      The A1200 has, as a feature set, a touch screen, a 2 MP camera that does both stills AND video, quad band GSM, a built in FM radio, the usual PIM features found in most phones, Bluetooth mono AND stereo, Opera Mini for browsing, email, a voice recorder, Real Media player for DRM free MP3 and AAC files, a transflash slot that can handle up to 2 GB chips, runs Java apps and games, and a really unique feature that NO other phone has: a business card scanner. The camera takes a picture of the card and then the built in software uses OCR to read the info directly into your card's address book. Neat, isn't it?

      Note the A1200 has features built into it that are lacking in the Jesus phone - most notably, a replacable battery, the removable transflash chip, the ability to make videos, and Bluetooth stereo and the ability to <gasp> add new programs. It also shares some of the "flaws" of the Jesus phone - notably, the lack of 3G. It also lacks the "gee-wiz" interface of the Jesus phone. It also has a relatively small amount of built in memory.

      So what we've got here is a phone that's ahead of the iPhone curve and yet, Motorola dropped the ball on marketing the A1200 in the US. WTF were they thinking?
  • Motorola

    This isn't technology news - it's business and should be there, not here.