Motorola reported disappointing results for 2007 and forecast a loss for the first quarter of this year as the company released its fourth quarter earnings yesterday. Investors punished Motorola shares after it reported earnings.
Motorola’s mobile devices revenues in the fourth quarter of 2007 were down 38 percent to $4.8 billion, compared to the same quarter last year. The division recorded an operating loss of $388 million in the fourth quarter, compared to operating earnings of $341 million in the same quarter last year.
For the full-year 2007, Motorola reported mobile devices revenues of $19 billion, which is down 33 percent compared to 2006. The device business made an operating loss of $1.2 billion in 2007, compared to operating earnings of $2.7 billion in 2006.
Motorola shipped 40.9 million handsets in the fourth quarter. Chief Executive Greg Brown said Motorola would cut costs in an effort to save $500 million as quickly as possible and that the emphasis of the reductions would be in mobile devices.
Nokia, the world’s biggest maker of mobile phones, fell 6% in Helsinki trading after Motorola posted its first-quarter handset sales.
Apple declared its fiscal first quarter, the greatest in its history. Sales of Apple’s iPhone reached 2.3 million units for the quarter. iPhone sales have apparently accelerated during the quarter, reports RCR News, perhaps as a result of the device’s launch in the United Kingdom, Germany and France in November, midway through the quarter. Still, the company issued a tepid outlook for the current quarter, and Apple’s stock lost about 12% of value to dip under $137 per share shortly after the news.