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Motorola needs more time to revive mobile unit

Posted: 28 Jan 2008     Print Version  Bookmark and Share

Keywords:Motorola mobile unit  Q4 income  revenues 

Motorola Inc. says it needs more time to work on reviving its troubled mobile handset division, which in Q4 helped drive down the company's net income 84 per cent and contributed to a double-digit decline in revenue.

The company posted net income of Rs.394.78 crore ($100 million), or Rs.1.58 (4 cents) per share, for the quarter ended Dec. 31, 2007, versus Rs.2,459.50 crore ($623 million), or Rs.9.87 (25 cents) per share, in the 2006 comparable quarter.

Revenue fell to Rs.38,096.65 crore ($9.65 billion), down 18 per cent, from the Rs.46,545.02 crore ($11.79 billion) the company reported one year earlier, with all the decline coming from the mobile devices division, where sales tumbled 38 per cent to Rs.18,949.63 crore ($4.8 billion).

The handset unit recorded operating loss of Rs.1,531.76 crore ($388 million) for the quarter compared with operating income of Rs.1,346.21 crore ($341 million) in Q4 2006.

"The recovery in mobile devices will take longer than expected and there is a lot more work to be done," said Motorola CEO Greg Brown, in a statement. "Our primary focus is on improving profitability and enhancing our product portfolio in this business."

Motorola said it shipped 4.09 crore mobile phone handsets during the quarter.

The company's other divisions performed much better with sales in the Enterprise Mobility Solutions unit rising 35 per cent. The division also increased its operating income 40 per cent, to Rs.1,780.48 crore ($451 million) from Rs.1,275.15 crore ($323 million).

Sales in the Home and Networks Mobility business also rose 11 per cent although the division's operating earnings dropped 14 per cent, to Rs.757.99 crore ($192 million) from Rs.880.37 crore ($223 million).

- Bolaji Ojo
EE Times




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