Ouch! Motorola only managed to ship 19.2 million handsets in the fourth quarter, down 53 percent from a year ago. Total revenues of $7.14 billion, down 26 percent and $1.56 per share in write-downs contributed to a massive $3.58 billion net loss, or $1.57 per share. Last year, Motorola posted a fourth quarter net income of $100 million or $0.04 per share.
Yesterday’s earnings call was the latest slap in the face for the mobile device maker that at one time ruled the industry with an iron fist. In 2009, Motorola will shift it’s strategy, focusing on Android and Windows Mobile handsets, as it struggles to improve its bottom line. But with 4, 000 layoffs announced recently, three quarters of which are in the mobile devices division, many are wondering if Motorola will have the manpower and cash flow to focus on high-end handsets.
The handset maker said that layoffs and other cost-cutting measures would save the company $1.5 billion in 2009. As part of its cost-cutting plan, Motorola will also suspend dividend payments this quarter, freeze pension plans, suspend matching contributions to its 401k plan, and eliminate salary increases. So much for employee morale.
via wsj
