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

To: stockman_scott who wrote (43092)	10/9/2001 7:14:55 PM
From: Dealer	Respond to of 65232

Just goes to show you money is not everything! What a nerd! Oh! I'm sorry "What a rich Nerd!" :-)(eom)

To: stockman_scott who wrote (43092)	10/9/2001 7:19:06 PM
From: Dealer	Read Replies (2) \| Respond to of 65232

MOT--Motorola's Quarter Was as Bad as Expected -- and Then Some By Tish Williams Senior Writer 10/09/2001 07:13 PM EDT Motorola can't sugarcoat its third quarter. Another quarter, another big loss, another huge write-down and semiconductor fiasco for Motorola. The company's third-quarter results came in at the high end of internal estimates and matched the Street's expectation of a 7-cents-a-share loss on the quarter that ended Sept. 30. The communications company fell short of revenue hopes with $7.4 billion, compared with analyst expectations of $7.54 billion, as gathered by Multex.com. Motorola was down 3.85% in Tuesday trading to $16.72 as investors took a seat and waited for the news. That 7-cents-a-share loss is dwarfed by the $2 billion, or 57-cents-a-share charge Motorola took to write down the value of long-term investments, cover layoff costs and pay $1.3 billion on its $2 billion vendor-financing deal to Turkish wireless provider Telsim. Without the charge, Motorola lost 64 cents on the quarter. The company took a $496 million charge in the second quarter related to layoffs and "asset impairment," turning a 35-cents-a-share loss to its announced 11-cents-a-share figure. If you're looking for something sweet in the communications company's third consecutive loss, it'll have to come from its mobile-phone business. Motorola's Personal Communication Segment took another step in revenue and orders in its third quarter reported after market's close Tuesday, moving up to $2.7 billion in sales and $3 billion in orders from the second-quarter's $2.5 billion in sales and orders of $2.9 billion. Motorola happily announced the mobile-phone business returned to the black after two quarters of losses, turning a pro forma profit of $19 million. Motorola's chip business took another expected step down, as sales languished below the second quarter's depressed $1.3 billion to $1.1 billion The chip segment added a monstrous $355 million operating loss to last quarter's $381 million deficit. On a positive note, orders increased from $1 billion last quarter to $1.1 billion in the third quarter. The wireless equipment business took the opposite tack, with sales increasing consecutively from $1.7 billion to $1.8 billion, but orders for infrastructure dropping off sharply from $2 billion to $1.6 billion. Before Sept. 11, dark clouds were swirling over the wireless infrastructure giants that sell equipment to a set of increasingly cash-conservative carriers. Mobile phone companies' reluctance to spend equipment dollars caused Ericsson (ERICY:Nasdaq ADR - news - commentary - research) to caution that it doesn't expect to see growth in its equipment business in 2002. Motorola emphasized the same, saying it would lay off another 2,000 people from its infrastructure segment, bringing total announced companywide layoffs to 32,000 this year. On Sept. 6, Motorola toned down its previous forecasts for the third quarter, saying that instead of 5% revenue growth over the second quarter's $7.5 billion, it would have flat revenues. Motorola got more specific on its prediction for "several cents a share" losses in Q3, advising analysts to expect losses in the range of 5 cents to 8 cents per share. The communications giant's second quarter featured a promising rebound in the Personal Communication Sector that holds the No. 2 spot worldwide in mobile phone market share, and the Sept. 6 warning pointed out "improved profitability" in the PCS segment, along with increased sales. The PCS group lost a whopping $237 million in the second quarter. Following a several-quarter pattern, investors had resigned themselves to poor Motorola results weeks ago, making the communications company's predictions for the fourth quarter the most important data to come out of its results. Motorola will announce its projections at 8 a.m. Eastern time Wednesday morning.