These numbers arent going to be nearly enough to satisfy the market....
biz.yahoo.com
Motorola Announces Record Third-Quarter Sales
Tuesday October 17, 4:02 pm ET
Third-Quarter Financial Highlights
- Record quarterly sales of $10.6 billion, up 17 percent versus the
year-ago quarter
- GAAP earnings of $0.39 per share, including income of $0.10 per share
from discontinued operations and charges of $0.05 per share from items
highlighted below
- Record handset shipments of 53.7 million units, up 39 percent versus
the year-ago quarter
- Global handset market share estimated at 22.4 percent, up
3.8 percentage points versus the year-ago quarter
- Positive operating cash flow of $1.6 billion
SCHAUMBURG, Ill., Oct. 17 /PRNewswire-FirstCall/ -- Motorola, Inc. (NYSE: MOT - News) today reported sales, on a continuing operations basis, of $10.6 billion in the third quarter of 2006. Net earnings in the third quarter of 2006 were $0.39 per share, including $0.10 per share from discontinued operations and $0.29 per share from continuing operations, which included the items highlighted below:
EPS Impact
Stock compensation expense $ (0.02)
Reorganization of business charges (0.01)
Legal reserve (0.01)
Acquisition-related in-process research & development (0.01)
Charitable contribution to Motorola Foundation (0.01)
Tax benefits (expense) (0.01)
Sprint Nextel derivative gain 0.02
$ (0.05)
During the quarter, the company continued to maintain a very strong balance sheet, generating operating cash flow from continuing operations of $1.6 billion, its 23rd consecutive quarter of positive operating cash flow. In addition, the company repurchased 62 million shares of its stock for $1.5 billion.
"While our third-quarter sales were slightly below our guidance, we are pleased with our earnings. Each of our business segments and total Motorola improved operating margin versus the second quarter of 2006, excluding highlighted items. Mobile Devices again achieved record unit shipments and sequentially improved its market share versus the second quarter," said Ed Zander, chairman and CEO. "During the quarter, GSM infrastructure sales in the Europe, Middle East and Africa region were weaker than anticipated due to customer delays in capital spending. Additionally, sales of iDEN mobile devices were lower, caused by customer inventory reductions in anticipation of new dual-mode device shipments in the fourth quarter. With our strong balance sheet, leadership technologies and proven record of growth, Motorola is well positioned to continue creating value for its shareholders as one of the world's leading technology companies."
Operating Results
Mobile Devices Segment sales were $7.03 billion, up 26 percent compared with the year-ago quarter. Operating earnings increased to $819 million, including a charge of $16 million for acquisition-related in-process research and development, compared with operating earnings of $593 million in the year- ago quarter. Excluding highlighted items, the segment's operating margin improved to 11.9 percent versus 11.2 percent in the second quarter of 2006 and 11.0 percent in the year-ago quarter, as a result of new product launches, supply chain cost reductions and higher technology and platform licensing- related income. During the quarter, Mobile Devices also:
-- Shipped 53.7 million units, up 39 percent compared to the third quarter
of 2005 -- and up 3.6 percent compared to 51.9 million handsets shipped
during the second quarter of 2006.
-- Captured headlines by launching the highly anticipated MOTOKRZR
handset, which is creating excitement among customers and consumers
eager to have the industry's newest ultra-slim and ultra-stylish
handset.
-- Expanded global market share to an estimated 22.4 percent, up
3.8 percentage points from a year ago and up 0.3 percentage points from
the second quarter of 2006.
-- Continued brand strength and market-share leadership in the Americas,
solid No. 2 position in Asia (approximately 23 percent in China and
15 percent in India), while continuing popularity among consumers in
Europe, the Middle East and Africa as new products prepared to launch
and drive demand for the fourth quarter.
-- Signed a five-year supply agreement for iDEN handsets with NII
Holdings, Inc. -- Motorola's largest customer for iDEN technology
outside of the United States.
-- Launched eight new handsets: three for GSM, three for CDMA and two for
iDEN.
Networks and Enterprise Segment sales were $2.78 billion, up slightly compared with the year-ago quarter. Operating earnings were $378 million, including net reorganization of business charges of $51 million, compared to prior-year operating earnings of $465 million, due to a highly favorable product / regional mix of sales in the year-ago quarter. Operating margin, excluding highlighted items, was 15.4 percent versus 14.6 percent in the second quarter of 2006 and 18.7 percent in the prior-year quarter. During the quarter, Networks and Enterprise also:
-- Announced that Sprint Nextel has selected Motorola as one of the key
suppliers for WiMAX; Motorola is now participating in 18 WiMAX trials
globally.
-- Completed the acquisition of NextNet.
-- Announced collaboration with Huawei Technologies, Co., Ltd. to bring an
enhanced and extensive portfolio of UMTS and HSPA infrastructure
equipment to customers worldwide.
-- Signed a contract extension with NII Holdings, Inc. for iDEN
infrastructure.
-- Announced its intention to acquire Symbol Technologies, Inc. which,
upon completion of the acquisition, will become the cornerstone of the
enterprise business within Motorola's Networks and Enterprise segment.
-- Announced the first network contract for Motorola's next-generation
public safety platform with Prince George's County, Maryland, and a
contract with O2 Airwave for the world's first PDA device for use on
TETRA networks.
Connected Home Solutions Segment sales were $812 million, up 9 percent compared with the year-ago quarter. Operating earnings were $21 million, including charges of $42 million for acquisition-related in-process research and development and a legal reserve, compared to prior-year operating earnings of $39 million. Excluding highlighted items, the segment's operating margin improved to 7.8 percent versus 7.0 percent in the second quarter of 2006 and 5.8 percent in the year-ago quarter. During the quarter, the segment:
-- Set a new quarterly record in video, shipping nearly 2.5 million
digital entertainment devices.
-- Subsequent to the close of the quarter, Motorola shipped the
50 millionth digital entertainment device, underscoring the company's
heritage of delivering innovations for the digital cable connected
home.
-- Expanded its next-generation digital video portfolio, completing two
acquisitions during the quarter: Broadbus, Motorola's new On Demand
Solutions business, and Vertasent, a developer of software that manages
the technology elements for switched digital video networks. With these
two acquisitions, Motorola has enhanced its end-to-end, switched
digital video solution and software portfolio, delivering advanced
video services and improved bandwidth management to pay-TV service
operators.
-- During the quarter, Motorola On Demand Solutions (Broadbus) set a
quarterly record, shipping 57,000 video streams across 17 systems.
Fourth Quarter 2006 Outlook
The company's outlook for the fourth quarter of 2006 is for sales of between $11.8 billion and $12.1 billion, an increase of 18 to 21 percent versus the prior-year quarter. |
