Motorola announced a 4Q07 net loss of $100m, an operating loss of $19m, on sales of $9.7bn, down 18%. Most of the decline is due to weak mobile phone sales. The mobile phone division reported revenues of $4.8bn, down 38%, and an operating loss of $388m (vs a profit of $341m last year). Motorola shipped 41m units in the quarter, a 38% drop on 4Q06. Enterprise Mobility Solutions segment sales were $2.1bn, up 35%, while the Home and Networks Mobility segment sales were $2.7bn, up 11%, and the Enterprise Mobility revenues was $2.1bn, up 35%.. "The recovery in mobile devices will take longer than expected, there is a lot more work to be done." said Motorola's CEO Greg Brown. Motorola slipped to a 13% market share with Sony Ericsson on the heels.
For the year, the company net loss was $49m (vs a profit of $3.7bn), operating loss of $553m, on revenues of $36.6bn, down 14%. The Mobile Devices segment operating loss amounted to $1.2bn (vs earnings of $2.7bn in 2006) on revenues of $19bn, down 33%.
Motorola has been taking steps to re-invigorate its products and get its Mobile devices division back on track. But it will be longer than anticipated. In addition, the company forecasts to lose around 5-7 cents per share in the first quarter of this year.
At no surprise, Motorola' stock plunged 18% Wednesday.