* First-quarter sales of $5.0 billion
* First-quarter GAAP earnings of .03 per share, compared to a loss from continuing operations of .13 per share in first quarter 2009; first-quarter 2010 GAAP earnings include income of .01 per share from highlighted items
* Total cash* of $8.5 billion, a sequential increase of $455 million
* Enterprise Mobility Solutions sales of $1.7 billion; operating earnings of $141 million
* Mobile Devices sales of $1.6 billion; shipped 8.5 million handsets, including 2.3 million smartphones; operating loss of $192 million
* Networks sales of $896 million; operating earnings of $112 million
* Home sales of $838 million; operating earnings of $20 million
SCHAUMBURG, Ill. – Motorola, Inc. (NYSE: MOT) reported sales of $5.0 billion in the first quarter of 2010. The GAAP earnings in the first quarter of 2010 were $69 million, or .03 per share, which compares to a GAAP loss from continuing operations of $291 million, or .13 per share, in the first quarter of 2009.
First-quarter 2010 GAAP earnings include net income of .01 per share from highlighted items, which are described at the end of the press release. GAAP earnings per share also include non-cash expenses for stock-based compensation and amortization of intangibles totaling .04 per share in the first quarter of 2010. Further details are outlined at the end of this press release.
During the quarter, the Company generated positive operating cash flow of $485 million and ended the quarter with a total cash* position of $8.5 billion.
"We continue to execute on our business strategy, build momentum in smartphones and improve our operating performance. During the quarter, we increased smartphone shipments sequentially and introduced six new devices,” said Sanjay Jha, Motorola co-chief executive officer and CEO of Mobile Devices and Home. "We are in a strong position to improve our share in the rapidly growing smartphone market, particularly in light of our competitive portfolio, strengthened brand and improved carrier relationships.”
Jha added, “The Mobile Devices and Home businesses are uniquely positioned to capitalize on the convergence of mobile experiences and home entertainment. We remain focused on developing next-generation products to capitalize on the opportunities of this dynamic market."
"Our Enterprise Mobility Solutions and Networks businesses performed very well during the quarter, delivering strong operating earnings and excellent cash generation," said Greg Brown, Motorola co-chief executive officer and CEO of Motorola Solutions. "These businesses continue to deliver best-in-class market leadership and financial returns."
Operating Results
Mobile Devices segment sales were $1.6 billion, down 9 percent compared with the year-ago quarter. The GAAP operating loss was $192 million, a significant improvement compared to the operating loss of $545 million in the year-ago quarter.
Mobile Devices highlights:
* Shipped 8.5 million units, including 2.3 million smartphones; continued to strengthen North America position and shipped smartphones to carrier, distributor and retail customers globally
* Introduced six new Android-powered smartphones: BACKFLIP™, QUENCH™/CLIQ XT™, DEVOUR™, as well as three products designed for the Asia market, the MOTO XT701, MT710 and XT800, bringing our smartphone portfolio to eight
* Introduced SHOP4APPS, an application store, currently available for our consumers in China to enhance their Motorola Android experience
Home segment sales were $838 million, down 18 percent compared with the year-ago quarter. GAAP operating earnings were $20 million, compared to $3 million in the year-ago quarter.
Home highlights:
* Shipped 3.1 million digital entertainment devices
* Announced QIP eco-friendly set-top boxes for Verizon FiOS™ customers
* Introduced innovative 3DTV set-tops for cable, significantly enhancing 3D experience for consumers
* Strengthened North America position and secured wins with four customers to support the delivery of ultra-broadband triple play services
Enterprise Mobility Solutions segment sales were $1.7 billion, up 6 percent compared with the year-ago quarter. GAAP operating earnings were $141 million, compared with operating earnings of $66 million in the year-ago quarter.
Enterprise Mobility Solutions highlights:
* Secured one of the single largest TETRA terminal contracts ever awarded in Europe, including more than 50,000 terminals, from the German Federal Ministry of Interior
* Received several North America contracts, including a number of multi-million dollar awards from cities, and three statewide expansion wins, including Michigan and Wyoming
* Announced a series of rugged digital bar code scanners for harsh industrial environments, and launched the first cordless digital imager designed for healthcare
* Continued momentum in retail and in transportation and logistics, including a win with Con-Way, a leader in freight transportation and logistics, for the selection of the MC75 mobile computers
Networks segment sales were $896 million, down 7 percent compared with the year-ago quarter. GAAP operating earnings were $112 million, compared to $62 million in the year-ago quarter.
Networks highlights:
* Announced contract with Zain for the first LTE network deployment in Saudi Arabia
* Achieved first over-the-air TD-LTE data sessions at the Expo Center for World Expo 2010 in Shanghai; selected by China Mobile Communications Corporation to provide indoor TD-LTE coverage at the World Expo
* Shipped 2 millionth WiMAX CPE and dongles, doubling cumulative shipments in just five months
Second-Quarter 2010 Outlook
The Company’s outlook for the second quarter of 2010 is for earnings of .07 to .09 per share. This outlook now excludes stock-based compensation and amortization of intangibles expenses of approximately .04 per share, as well as charges associated with items of the variety typically highlighted by the Company in its quarterly earnings releases.
Consolidated GAAP Results
A comparison of results from operations is as follows:
First Quarter
(In millions, except per share amounts)
2010
2009
Net sales
$5,044
$5,371
Gross margin
1,786
1,496
Operating earnings (loss)
76
(449)
Earnings (loss) from continuing operations **
69
(291)
Net earnings (loss) **
69
(231)
Diluted earnings (loss) per common share: **
Continuing operations
0.03
(0.13)
Discontinued operations
- -
0.03
0.03
(0.10)
Weighted average diluted common
shares outstanding
2,341.3
2,280.5
Highlighted Items, Stock-Based Compensation Expense and Intangibles Amortization Expense
The table below includes highlighted items, stock-based compensation expense and intangibles amortization expense for the first quarter of 2010.
EPS Impact Exp/(Inc)***
Tax-related benefit
(.02)
Legal settlement
(0.01)
Separation-related transaction costs
0.01
Reorganization of business charges
0.01
Impact of Medicare Part D Subsidy tax law change
0.01
Total Highlighted Items
(0.01)
Stock-based compensation expense
0.02
Intangibles amortization expense
0.02
Total
.03
Conference Call and Webcast
Motorola will host its quarterly conference call beginning at 8 a.m. (U.S. Eastern Time) on Thursday, April 29. The conference call will be webcast live with audio and slides at www.motorola.com/investor.
Labels: Motorola
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