Motorola has reported a net loss of $231m for the first quarter 2009, compared to a loss of $190m in the year-ago quarter, on revenue down 28% at $5.4 billion. It attributed the loss to cost reduction initiatives and weak mobile device sales.
It made an operating loss of $288m compared to a loss of $190m in the same period last year. Diluted net loss per share was $0.13 compared to diluted net loss of $0.09 a year ago. The company shipped 14.7 million handsets. Cash and cash equivalents at the end of the quarter was $3.3 billion.
Mobile device revenue fell 45% to $1.8 billion, home and networks mobility revenue declined 16% to $2 billion, and enterprise mobility solutions revenue declined 11% to $1.6 billion.
During the quarter, the company sold its Good Technology email unit, acquired in 2007, to eliminate the expense of fighting patent litigation initiated by Visto against Good in 2006.
Sanjay Jha, co-chief executive and chief executive of Motorola’s Mobile Devices division, said: We implemented aggressive actions to reduce costs and also gained solid traction on improving operational effectiveness. Customer feedback on our smartphone roadmap remains very positive. We significantly reduced the operating loss compared with the fourth quarter of 2008 and have increased the 2009 annual cost-reduction target to more than $1.3 billion.
For the second quarter the company expects a net loss per share in the range of $0.03 to $0.05.