Motorola Mobility loses $86 million in Q1, device shipments way down
Motorola Mobility loses $86 million in Q1, device shipments way down
Well, the first quarter of 2012 is officially over Motorola Mobility, and the financial news is rather sobering for the company. While revenues were up, the climb was modest, to just $ 3.1 billion. And that small bump in incoming cash was not enough to stave off another quarter of loses. In fact, after losing $ 80 million in Q4 of 2011, Moto lost $ 86 million in Q1 of 2012. The company continued to bleed cash in large part because shipments of mobile devices dropped off dramatically. Only 8.9 million devices were shipped in the quarter, down from 1 0.5 million in the last part of 2011. With 5.1 million of those being smartphones however, the phone division did manage to increase revenues by three percent. The one bright spot was the home segment which, thanks to its home gateways and broadcast goods, managed to make (that's right, not lose) $ 68 million, up from $ 53 million a year ago. For more numbers and charts check out the source link.
Show full PR textMotorola Mobility Announces First Quarter Financial Results
LIBERTYVILLE, Ill., May 1, 2012 /PRNewswire/ --
First Quarter Financial Highlights
Net revenues of $ 3.1 billion
Non-GAAP net loss of $ 0.03 per share compared to net loss of $ 0.08 per share in first quarter 2011; GAAP net loss of $ 0.28 per share compared to net loss of $ 0.27 per share in first quarter 2011
Mobile Devices net revenues of $ 2.2 billion; Non-GAAP operating loss of $ 85 million; GAAP operating loss of $ 121 million
Shipped 8.9 million mobile devices, including 5.1 million smartphones
Home net revenues of $ 884 million; Non-GAAP operating earnings of $ 91 million; GAAP operating earnings of $ 68 million
Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $ 3.1 billion in the first quarter of 2012, up 2 percent compared to the first quarter of 2011. The GAAP net loss in the first quarter of 2012 was $ 86 million, or $ 0.28 per share, compared to a net loss of $ 81 million, or $ 0.27 per share, in the first quarter of 2011. On a non-GAAP basis, the net loss in the first quarter 2012 was $ 10 million, or $ 0.03 per share, compared to a net loss of $ 25 million, or $ 0.08 per share, in the first quarter of 2011.
The Company had operating cash outflow of $ 98 million in the first quarter. Total cash at the end of the quarter was $ 3.5 billion and includes cash, cash equivalents, and cash deposits. Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this press release and in the financial tables.
"The introduction of RAZR™ MAXX marked another successful addition to the Motorola product family and contributed to our growth in smartphones. Our Home business delivered another solid quarter highlighted by improvement in year-over-year profitability," said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. "We continue to work closely with Google to complete the proposed merger during the first half of the year."
Operating Results
Mobile Devices net revenues in the first quarter were $ 2.2 billion, up 3 percent compared with the year-ago quarter. The GAAP operating loss was $ 121 million compared to an operating loss of $ 89 million in the year-ago quarter. The non-GAAP operating loss was $ 85 million compared to an operating loss of $ 61 million in the year-ago quarter. The Company shipped a total of 8.9 million mobile devices in the first quarter, including 5.1 million smartphones.
Mobile Devices highlights:
Launched RAZR™ MAXX, the longest-lasting 4G LTE smartphone, allowing customers to talk for over 21 hours on a single charge, and DROID 4 by Motorola, the thinnest and most powerful 4G LTE QWERTY smartphone.
Expanded budget-friendly smartphone portfolio in China, Europe, and Latin America with the introduction of MOTOLUXE™, a slim touchscreen device and Motorola DEFY™ MINI, the ideal "life proof" device for the active consumer.
Teamed up with Bubba Watson, four time PGA Tour winner, including the 2012 Masters to introduce MOTOACTV™ Golf Edition, a cutting-edge GPS golf tracker, virtual caddy and online clubhouse.
Home segment net revenues in the first quarter were $ 884 million, down 2 percent compared with the year-ago quarter. GAAP operating earnings improved to $ 68 million, compared to $ 53 million in the year-ago quarter. Non-GAAP operating earnings were $ 91 million compared to $ 81 million in the year-ago quarter.
Home highlights:
Introduced Connected Home Gateway, the industry's first plug-and-play solution for home monitoring and control services.
Provided equipment and services to Asian Broadcasting Network for launch of Malaysia's most advanced digital cable TV network.
Industry recognition of our Medios multi-screen software portfolio including SecureMedia® named "Best Rights and Asset Management Solution" at 2012 IPTV World Forum.
Announced global distributor and integrator agreement with Edgecast's Content Delivery Network platform, enabling advanced multi-screen service delivery to consumers.
Merger Update
As previously announced on August 15, 2011, Motorola Mobility and Google Inc. ("Google") (NASDAQ: GOOG) entered into a definitiv e agreement for Google to acquire Motorola Mobility for $ 40.00 per share in cash, or a total of approximately $ 12.5 billion.
Motorola Mobility and Google continue to work closely with the authorities in China for approval on the acquisition. The transaction has been investigated and cleared without conditions in all other jurisdictions with pre-closing clearance requirements. We continue to expect the transaction to close during the first half of 2012.
For more information on the proposed merger, please visit http://investors.motorola.com.
Conference Call and Webcast
In light of the pending acquisition of the Company by Google, the Company does not conduct a financial analyst conference call or webcast following the release of its earnings information nor provide financial guidance. To access the first quarter results and other financial information, please visit http://investors.motorola.com.
Engadget