Motorola Announces Fourth-Quarter and Full-Year Sales and EarningsWednesday, January 23rd, 2008
- Fourth-quarter sales of $9.65 billion
- Fourth-quarter GAAP earnings from continuing operations of $0.05 per share, including net charges of $0.09 per share from items highlighted below
- Mobile Devices remains challenged; sales declined 38 percent versus prior-year quarter
- Home & Networks Mobility and Enterprise Mobility Solutions continue to deliver strong results
- Fourth-quarter positive operating cash flow of $470 million and cash conversion cycle improved by 10 days
SCHAUMBURG, Ill. — Motorola, Inc. (NYSE: MOT) today reported sales of $9.65 billion in the fourth quarter of 2007. Net earnings in the fourth quarter of 2007 were $0.04 per share, which include $0.05 per share from continuing operations and a net loss of $0.01 per share from discontinued operations. Earnings from continuing operations include net charges of $0.09 per share related to a legal settlement, charges associated with previously announced workforce reductions and a write-down of assets, partially offset by tax benefits.
During the quarter, the company generated operating cash flow of $470 million. For the full year, the company generated operating cash flow of $785 million and ended the year with a net cash position of $4.3 billion.
For the full year 2007, sales were $36.6 billion. The net loss was $0.02 per share, which included a net loss of $0.05 per share from continuing operations and earnings of $0.03 per share from discontinued operations. The net loss from continuing operations included net charges of $0.29 per share from items highlighted in the company’s quarterly earnings releases.
Operating Results – Home and Networks Mobility
Home and Networks Mobility segment sales were $2.7 billion, up 11 percent compared with the year-ago quarter. Operating earnings decreased to $192 million, compared with operating earnings of $223 million in the year-ago quarter. For the full year 2007, sales were $10.0 billion, a 9 percent increase compared to 2006, and the segment generated operating earnings of $709 million, compared to $787 million in 2006.
Home and Networks Mobility highlights:
- Shipped 3.4 million digital entertainment devices during the quarter, with a record quarter for IP set tops
- Shipped its 50 millionth cable/voice modem during the quarter
- Introduced several new products at CES, including the DCX series of MPEG-4 HD set tops, capable of advanced video services, media storage, and usable as a home multimedia hub; the DH01 Mobile TV, a pocket sized and a DVB-H device for multimedia entertainment on the go
- Continued momentum in WiMAX – ending the year with 47 active trials and 15 commercial contracts globally
- Completed the sale of the embedded computing business to Emerson for $350 million