Mobile phone maker Motorola reported what was perhaps the company’s most challenging third quarter yet with a 94pc drop in net income and a considerable drop in device sales and loss of market share.
Motorola’s sales fell 36pc from a year ago to US$4.5 billion. The loss this year was US$138 million compared with US$843 million in earnings in the year-earlier quarter.
During the third quarter Motorola shipped 37.2 million handsets, including more than 900,000 RAZR 2 devices.
It also introduced a new range of ROKR music devices as well as an ultra-high speed WiMax chip set.
Despite the bad news, Motorola’s stock increased 4pc on an optimistic outlook for the fourth quarter by CEO Ed Zander.
“We have strengthened our leadership position in broadband video, WiMAX, next generation government and public safety and the enterprise mobility markets,” said Zander.
“With our focus on these key opportunities and the initiatives we are taking in mobile devices we will further improve our performance and create long-term shareholder value.”
“During the third quarter, we maintained our focus on increasing cash flow, enhancing profitability and driving growth,” said Tom Meredith, chief financial officer.
“We are beginning to see improvements in our cash conversion cycle and operating cash flow which will lead to increased financial flexibility,” Meredith added.
By John Kennedy