Motorola Second-Quarter Financial Results
Moto Retains the #3 Slot in Handsets ...
... by shipping 28.1 million units while it was widely assumed that LG, who sold 27.7 million phones had bumped them into 4th.
>> Phone shipments fell 21 percent to 28.1 million units last quarter, a smaller drop than some analysts had predicted. ``It's starting to stabilize,'' Mark Sue of RBC Capital Markets told Bloomberg Radio. ``It's not getting any worse.'' The New York-based analyst has a ``sector perform'' rating for the stock. Motorola was projected to ship 26.1 million phones last quarter, according to the average estimate of six analysts surveyed by Bloomberg. The company kept its spot as the world's No. 3 mobile-phone maker, ahead of LG Electronics Inc., whose shipments soared 45 percent to 27.7 million units last quarter. The loss for Motorola's mobile-phone business widened to $346 million from $332 million a year earlier. Sales at the unit fell 22 percent to $3.3 billion. ###
tinyurl.com
Moto Loses Share ...
... and while they held onto the #3 slot in unit sales and share, they lost share QoQ amd YoY to Nokia, Samsubg, LG, RIM and HTC:
Global Mobile Handset Shipments and Marketshare (Strategy Anaalytics)
Global Handset Units (Millions) Q2 '07 2007 Q1 '08 Q2 '08
------------------------------------------ ------ ------ ------ ------
Nokia 100.8 437.1 115.5 122.0
Samsung 37.4 161.1 46.3 45.7
Motorola 35.5 159.0 27.4 28.1
LG Electronics 19.1 80.5 24.4 27.7
Sony Ericsson 24.9 103.4 22.3 24.4
Others 41.3 181.5 46.5 48.7
------------------------------------------ ------ ------ ------ ------
Total 259.0 1122.6 282.4 296.6
========================================== ====== ====== ====== ======
·
Global Handset Marketshare % Q2 '07 2007 Q1 '08 Q2 '08
------------------------------------------ ------ ------ ------ ------
Nokia 38.9% 38.9% 40.9% 41.1%
Samsung 14.4% 14.4% 16.4% 15.4%
Motorola 13.7% 14.2% 9.7% 9.5%
LG Electronics 7.4% 7.2% 8.6% 9.3%
Sony Ericsson 9.6% 9.2% 7.9% 8.2%
Others 15.9% 16.2% 16.5% 16.4%
------------------------------------------ ------ ------ ------ ------
Total 100.0% 100.0% 100.0% 100.0%
========================================== ====== ====== ====== ======
Total Growth YoY 11.5% 12.0% 14.3% 14.5%
Neil Mawston, Director at Strategy Analytics, stated, "Motorola exceeded expectations and held off LG to maintain the third spot in our global vendor rankings during the second quarter of 2008. Motorola's decline in shipments, at minus 21 percent annually, was its slowest rate since Q1 2007. These represent tentative signs of recovery and if Motorola can slash costs and refresh its handset portfolio over the coming months, then a return to profitability in 2009 is possible."
Shipments, and Market Share, Q2 2008 (IDC)
Vendor Q2'08 Q2'08 Q2'07 Q2'07 2Q08/2Q07
Shipments Share Shipments Share Growth
========= ===== ========= ===== =====
Nokia 122.0m 39.9% 100.8m 38.0% 21.0%
Samsung 45.7m 14.9% 37.4m 14.1% 22.2%
Motorola 28.1m 9.2% 35.5m 13.4% -20.8%
LG Electronics 27.7m 9.1% 19.1m 7.2% 45.0%
Sony Ericsson 24.4m 8.0% 24.9m 9.4% -2.0%
Others 58.1m 19.0% 47.7m 18.0% 21.8%
------ ------ ------ ------ ------
Total 306.0m 100.0% 265.4m 100.0% 15.3%
Motorola weathered another quarter of challenges, with another top executive leaving the company, no new leader for its Mobile Devices division despite several names being rumored to take the position, and another quarter of operating losses. Still, Motorola recorded a slight increase in shipments from the previous quarter, enough to stay ahead of LG Electronics for the No. 3 spot worldwide. New to the company's portfolio were a series of feature phones, including the ROKR E8, two new MING devices, and several new 3G devices. [IDC] ###
>> Motorola To Announce Numerous New Models Late This Year of Which Half Will Be UMTS
Brad Reese
07/31/2008
networkworld.com
RBC Capital Markets on Motorola's 2008 2nd Quarter Financial Results
According to RBC Capital Markets, after releasing 2008 2nd Quarter financial results, Motorola plans to announce numerous new models late this year of which half will be UMTS.
RBC Capital Markets Managing Director - Mark Sue commented to yours truly:
• "Things are starting to stabilize for the beleaguered wireless company and Motorola shipped 28M mobile devices units suggesting the company maintained global market share at ~9.5%."
• "The stock is cheap, in our view, trading at just 0.4x our CY09E revenues net cash and with Motorola having reached break-even, near term focused investors may drive the shares to our new price target of $10."
• "Revenues during the quarter were $8.1B vs. expectations of $7.5B with better trends from Home & Networks Mobility."
• "Motorola, despite the risks and the costs, is continuing with its planned separation scheduled now for 3Q09."
• "We're not sure what the two separate companies will be called however."
• "In terms of the outlook, Motorola is looking for slightly down sequential Mobile Devices revenues in a product transition quarter with modest share loss; ASPs should be stable at $119."
• "Motorola is guiding to continuing operations profit of $0.00-$0.02 in 3Q08 and $0.06-$0.08 in FY08."
• "The loss on the mobile devices segment narrowed from $347M to $340M with further cost cutting planned."
• "Motorola plans to announce numerous new models late this year of which half will be UMTS."
• "More touch and smartphones are slated for the holidays as well."
• "People are still buying RAZRs and MOT sold 3M units during the quarter and 1M RAZR2s."
• "The W Series hit 12M units while ROKR was 1M."
• "North America was 48% for devices; Latin America was 27%, while Asia Pacific and EMEA remain challenged at 14% and 11% respectively."
• "Home and Networks Mobility revenues were strong at $2.7B and operating margins of 9.1%."
• "Enterprise Mobility Solutions were $2.0B with healthy operating margins of 18.6%."
• "Overall GMs were 28.8% and further mobile devices enhancements may enable gross margins to improve modestly by year end."
• "Overall operating margins were 1.0%; device operating margins narrowed from -10.5% to -10.2%."
• "Global unit growth remains healthy with at least 10% YoY growth endorsed by Nokia, Samsung and now Motorola."
• "And Motorola's channel inventories remain low heading into the back half."
• "Challenges remain and Motorola will soon split off its handset division from the other segments, which are showing stable and cushioning financials."
• "Increased execution risk keeps us at Sector Perform." ###
Motorola Q2 Results (SEC Exhibit: Edgar)
tinyurl.com
Company Highlights from Above
• Second-quarter sales of $8.1 billion
• Second-quarter results exceed expectations
• Positive operating cash flow of $204 million; ended the quarter with a net cash position of $3.6 billion
• Home and Networks Mobility sales growth of 7 percent and operating earnings growth of 28 percent as compared to the second quarter of last year
• Enterprise Mobility Solutions sales growth of 6 percent and operating earnings growth of 24 percent as compared to the second quarter of last year
• Mobile Devices segment sales were $3.3 billion
Mobile Devices highlights:
• Mobile Devices segment sales were $3.3 billion, down 22 percent compared to the year-ago quarter. The segment reported an operating loss of $346 million, compared to an operating loss of $332 million in the year-ago quarter.
• Shipped 28.1 million handsets, and maintained its share of the global handset market [Actually lost share maeginally QoQ]
• Launched ten new products to key markets around the globe, which included new 3G devices and the ROKR E8 that strengthened our music franchise with its innovative, ModeShift™ morphing technology
• Refreshed the highly successful MING series, which has already sold 8 million handsets, by launching three touch screen handsets — MING A1600 and MING A1800, as well as the MOTO A810
• Continued market share leadership in North America, with strong performance from W755
• Continued strength in Latin America, maintaining a leading market position due to the strong performance within our music portfolio
• Earlier this week began shipping the MOTOZINE ZN5, a superior imaging experience developed collaboratively with Kodak, which enables consumers to easily shoot, edit and share their pictures ###
- Eric - |
