Motorola is still struggling with its mobile devices business. Global 1Q08 sales amounted to $7.5bn, down 20%, with an operating loss of $269m and at the end a net loss of $194m. Gross margin was below 29%, not enough to offset SG&A and R&D expenses, but improving. The mobile Devices division had sales of $3.3bn, down 39% and an operating loss of $418m (79% more than a year ago). Motorola shipped 27.4m units in the quarter, down 39%. Some good news, however, in the division is the launch of six new devices during the quarter, including the ROKR U9 music phone, several W-Series devices, or the HSDPA MOTO Z9, for the mass market. Home and Networks Mobility segment reported sales of $2.4bn (+2%) and an operating income of $153m. Enterprise Mobility Solutions had sales of $1.8bn (+5%) and an operating income of $250m (+100%).
Motorola confirmed top priorities are improving the handset portfolio and preparing splitting the company into two publicly-traded entities.
Motorola continues to see a loss in 2Q08 of 2 cents to 4 cents per share.