Motorola reported Q3 2008 sales of $7.5 billion and a GAAP net loss from continuing operations of $397 million, or a loss of $0.18 per share (including special charges of $0.23 per share).
Greg Brown, Motorola's co-chief executive officer and CEO of Broadband Mobility Solutions, said, "The company had positive operating cash flow of $180 million and ended the quarter with a total cash* position of $7.6 billion. Our balance sheet and liquidity position give us agility and flexibility in today's weakened global economy and turbulent financial markets. In addition, we benefit from a global customer base and a broad portfolio of products and solutions that meet the needs of our customers."
Sanjay Jha, Motorola's co-chief executive officer and CEO of Mobile Devices, said, "While our strategic intent to separate the company remains intact, we are no longer targeting the third quarter of 2009, primarily due to the macro-economic environment, stresses in the financial markets and the changes underway in Mobile Devices. We have made progress on various elements of the separation plan and will continue to prepare for a potential transaction at the appropriate timeframe that serves the best interests of the company and its shareholders."
Some highlights for the quarter:
Mobile Devices
- Mobile Devices segment sales were $3.1 billion, down 31 percent compared to the year-ago quarter. The segment reported an operating loss of $840 million, compared to an operating loss of $248 million in the year-ago quarter.
- Shipped 25.4 million handsets and began shipping 16 new products to key markets, including three new 3G devices
Home and Networks Mobility
- Home and Networks Mobility segment sales were $2.4 billion, down 1 percent compared to the year-ago quarter. Operating earnings increased to $263 million, which represents an increase of 65 percent compared to operating earnings of $159 million in the year-ago quarter.
- Expanded operating margin year-over-year from 7 percent of sales to 11 percent of sales
- Shipped 4.1 million digital entertainment devices, compared to 2.7 million in the year-ago quarter, due to continued strong demand for HD, HD/DVR and IPTV devices
- Signed multiple contracts worth $431 million with China Mobile Communications Corporation for its GSM network upgrades and expansion
- Announced the multimedia set-top platform and its first implementation with KDDI, an operator in Japan
- Won IPTV contract with Deutsche Telekom in Germany
Enterprise Mobility Solutions
- Enterprise Mobility Solutions segment sales were $2.0 billion, up 4 percent compared to the year-ago quarter. Operating earnings increased to $403 million, which represents an increase of 23 percent compared to operating earnings of $328 million in the year-ago quarter.
- Expanded operating margin year-over-year from 17 percent of sales to 20 percent of sales
- Continued to realize strong international demand in the government and public safety markets
- Launched APX, the industry's first Project 25 multi-band radio with multi-agency interoperability, dual-sided portable operation and integrated GPS
- Completed acquisition of AirDefense, a leading wireless LAN security provider, subsequent to the end of the quarter
- Signed a definitive agreement to sell the biometrics business to SAFRAN, subsequent to the end of the quarter.
