The device volumes are even lower than the analyst recent estimates (which were cut from earlier in the quarter).
biz.yahoo.com
Motorola Provides Preliminary Estimates of Second Quarter 2007 Results
Wednesday July 11, 5:03 pm ET
SCHAUMBURG, Ill., July 11 /PRNewswire-FirstCall/ -- Motorola, Inc. (NYSE: MOT - News) today announced preliminary estimates of second quarter 2007 financial results. Although the company has not finalized its financial results for the quarter, the company expects second quarter sales to be in the range of $8.6 billion to $8.7 billion. The company previously estimated that second quarter sales would be essentially flat with first quarter 2007 sales of $9.4 billion. The company expects a second quarter GAAP loss per share from continuing operations in the range of $(0.02) to $(0.04), including estimated net charges of approximately $0.03 - $0.04 per share related to previously announced workforce reductions and other highlighted items.
The company's shortfall in sales and earnings for the second quarter is primarily attributable to lower overall unit volumes in the Mobile Devices business in Asia and Europe. The company expects second quarter Mobile Devices shipments to be approximately 35 to 36 million handsets. The company's Mobile Devices business is expected to have a larger operating loss in the second quarter as compared to the first quarter. For the full year 2007, the company no longer expects the Mobile Device business to be profitable. Second quarter results for Connected Home Solutions and Networks & Enterprise businesses continue to meet the company's expectations. Motorola will provide further perspective on the year during the company's quarterly earnings call.
The company plans to announce its financial results for the second quarter of 2007 and host a conference call on Thursday, July 19, 2007. At that time, Motorola will report its results based on its new financial reporting segments. The company will provide information on the new financial reporting segments in a Form 8-K prior to the release of earnings.
Separately, Motorola today announced that Stu Reed, executive vice president of Motorola's Integrated Supply Chain organization, has been named president of Motorola's Mobile Devices business. Motorola will provide an update on the company's strategy and progress at the company's financial analyst meeting which, as a result of the management changes and other recent business realignments, has been rescheduled to September 2007. |
