Moto's Stumble (Bumble?)
<< Motorola misses by a billion in revenue and the handset division loses money....I guess that's what Nokia meant when they said they would "turn up the heat". >>
Sacré bleu! Sacré sacré! I hope Ron's enjoying life at Dell. Eddie Z. probably has a contract on him.
Taking a share hit is one thing but taking a nargin hit like they have after enjoying low double digits for about 6 quarters is sureal. One would almost think impossible.
>> Motorola now expects sales for the first quarter of 2007 to be in the range of $9.2 to $9.3 billion. First quarter GAAP results are expected to be a loss in the range of $0.07 to $0.09 per share, including charges of approximately $0.09 from the items highlighted below.
The estimated loss on a GAAP basis includes acquisition-related charges and in-process R&D expenses associated with the acquisitions of Symbol Technologies, Good Technology and Netopia, totaling approximately $0.06 per share. Also included are business reorganization charges of approximately $0.03 per share related to the previously announced workforce reduction of approximately 3,500. Additional charges for this reduction in force will be recorded in subsequent quarters.
The revised guidance is attributable to lower than anticipated sales and operating earnings in the Mobile Devices business due to lower overall unit volumes, a difficult pricing environment, particularly for low-tier products and a limited 3G product portfolio. The Mobile Devices business expects to report an operating loss for the first quarter of 2007.
The lower volume is due largely to a shift in the Mobile Devices business to focus on long-term gross margin improvement rather than focusing primarily on market share growth. In emerging markets, particularly India, Africa and South Asia, competitors lowered prices at a faster rate than anticipated. Given the renewed focus on gross margin improvement, the company chose not to match prices in all instances. The company noted that the business continues to show strength in the Americas and North Asia. <<
Pretty dismal. Change is in the air.
>> Greg Brown Named President and COO of Motorola
Batwing PR
Schaumburg, IL
March 21, 2007
tinyurl.com
Motorola, Inc. (NYSE: MOT) today announced that Greg Brown, President of the Company's Networks and Enterprise business, has been named President & Chief Operating Officer of Motorola, effective immediately. Brown will be responsible for overseeing Motorola's Mobile Devices, Networks & Enterprise, Connected Home Solutions businesses and supply-chain operations. In this new role, Brown will report to Ed Zander, Chairman and Chief Executive Officer.
"Greg brings a wealth of experience to Motorola and has demonstrated success in all facets of management," said Zander. "His keen understanding of Motorola's strategy and customer requirements will be invaluable as we execute our revitalized operating plan for the benefit of our customers, partners, employees and shareholders."
"Motorola is a great company with tremendous assets and talented people," said Brown. "I look forward to continuing to work with Ed and other members of Motorola's leadership team to deliver the products, solutions and quality our customers demand."
Brown, 46, has more than 25 years of high-tech experience, including leadership positions in the telecommunications, software and wireless industries. Brown has been an executive officer at Motorola since 2003 and most recently served as President of Motorola's Networks and Enterprise business. With revenues of approximately $13 billion, Networks and Enterprise is focused on providing market-leading end-to-end network infrastructure solutions to private, public and enterprise customers worldwide.
Prior to joining Motorola in 2003, Brown was Chairman and Chief Executive Officer of Micromuse, a publicly traded network management software company. Before that he held a variety of senior management positions at Ameritech and AT&T. ###
>> Motorola Names Thomas J. Meredith as Acting CFO: David Devonshire to Retire
Batwing PR
Schaumburg, IL
March 21, 2007
tinyurl.com
Motorola, Inc. (NYSE: MOT) today announced Thomas J. Meredith as acting Chief Financial Officer, effective April 1, 2007. The Company also announced that David Devonshire, 61, Executive Vice President and Chief Financial Officer will retire from his current position, effective April 1. He will continue with the company to ensure a smooth transition.
Motorola chairman and CEO, Ed Zander, said, "On behalf of our Board of Directors and the Company, I want to thank Dave for his years of service to Motorola. As a valued member of the senior management team, Dave has played a key role in bringing tighter financial controls to our business, strengthening our balance sheet and leading the first stock repurchase program in the company's history. I appreciate his commitment to ensuring a seamless transition."
"The Board and I are delighted Tom will serve as acting CFO. Tom is a seasoned professional with tremendous financial expertise, including in-depth knowledge of Motorola, having joined our Board in 2005. I look forward to working with him more closely as we continue to move this company forward," added Zander.
Meredith, 56, is a general partner of Meritage Capital, L.P., an investment management firm specializing in multi-manager hedge funds that he co-founded. He is also chief executive officer of MFI Capital.
Previously, he was the managing director of Dell Ventures and senior vice president of business development and strategy of Dell Inc., a computer manufacturer, from 2000 to 2001, and was senior vice president and chief financial officer of Dell Inc. from 1992 to 2000.
Meredith serves as a board member for Motorola, Motive, Surgient, and VoxPath Networks. He is also an adjunct professor at the McCombs School of Business at the University of Texas and serves on the advisory boards of both the Wharton School at the University of Pennsylvania and the LBJ School at the University of Texas.
Meredith received his master's of law degree in taxation from Georgetown University, Washington, D.C.; his Juris Doctor from Duquesne University of Law; and his bachelor's degree in political science from St. Francis University (PA). He has received honorary PhDs from St. Francis and Duquesne. ###
- Eric - |
