Menu
Motorola Mobility bringing red ink to Google balance sheets

Motorola Mobility bringing red ink to Google balance sheets

Motorola's mobile phone unit shows a loss

Motorola Mobility, set to be acquired by Google, on Tuesday reported a 3 percent year-over-year increase in net revenue, to US$3.1 billion, for the first quarter of 2012, but suffered a net loss of $86 million.

The company's net loss was 6 percent greater than that of the first quarter of 2011. The company's mobile phone arm, its largest business, was its biggest source of losses, even though sales increased. Net revenue for mobile devices rose 3 percent year over year, to $2.2 billion, as the company shipped a total of 8.9 million mobile devices, including 5.1 million smartphones. The operating loss for the business, however, grew to $121 million from $89 million.

Motorola Mobility's balance sheet was weighed down in part by $17 million in merger-related costs. The company's acquisition by Google, announced last August, is expected to close in the first half of the year after receiving necessary regulatory approval in China.

Excluding one-time charges, Motorola's net loss for the quarter was $10 million, or $0.03 per share. Analysts polled by Thomson Reuters had forecast EPS of $0.01.

Motorola Mobility shares declined by $0.06 to $38.76 in after-hours trading.

Cameron Scott covers search, web services and privacy for The IDG News Service. Follow Cameron on Twitter at CScott_IDG.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.‚Äč

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments