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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (35623)	4/10/2001 6:06:18 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

MOT -- Motorola Misses Estimate By Caroline Humer Senior Writer 4/10/01 5:52 PM ET Cell phone maker Motorola (MOT:NYSE - news) on Monday booked a loss of 9 cents a share, missing expectations for its first-quarter results by 2 cents a share. Analysts had expected Motorola to post a loss of 7 cents a share for the first quarter, according to Thomson Financial/First Call, compared with an adjusted profit of 21 cents a share in the year-ago quarter. Revenue was also weaker than expected at $7.75 billion, down from $8.75 billion in the year-earlier quarter. The company attributed the shortfall to weak order growth and a global change in customer requirements. Robert Growney, president and chief operating officer, in a statement, also pointed to the company's balance sheet, saying that cash flow was positive in the first quarter and that "important positive progress was made on key aspects of our balance sheet." Motorola's balance sheet has come under fire. Last week, the stock dropped sharply as the company's annual report sparked investor worries about whether the company was facing a liquidity crunch and whether it would be able to get the credit it may need from banks during upcoming quarters. Motorola denied that it has any serious liquidity problems. Motorola shares rose $1.50, or 13%, to $13 during regular trading on Tuesday. Motorola gave investors a heads up about how weak this quarter would be back in late February. At the time, analysts were expecting earnings to come in at 12 cents a share and were looking for revenue of $8.8 billion. But during the last month, those numbers have come in sharply, with analysts expecting revenue of $7.97 billion for the first quarter. The company has been suffering as demand for cell phones waned. Many customers, especially in Europe, already have cell phones and aren't replacing them with new ones. The macroeconomic slowdown has only worsened that situation.