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.
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