Motorola Mobility experienced a loss in the fourth quarter, primarily due to expenses associated with the impending acquisition by another company. The mobile devices and set-top box manufacturer reported a loss of $80 million, contrasting with a profit of $80 million in the same period the previous year. Revenue saw a slight increase to $3.44 billion. Excluding merger costs and other charges, the company earned 20 cents per share, showing a significant decline from the previous year, with 5.3 million smartphones and 200,000 tablets shipped during the quarter.

FAQs

  1. What were the key factors contributing to Motorola Mobility’s fourth-quarter loss?
    Motorola Mobility incurred a loss primarily due to expenses related to an impending takeover.

  2. How did Motorola Mobility’s financial performance compare to the previous year?
    The company’s financial performance showed a notable decline compared to the previous year, with a shift from profit to loss.

  3. What were the earnings per share reported by Motorola Mobility?
    Excluding certain charges, the company earned 20 cents per share in the fourth quarter.

  4. How many smartphones and tablets did Motorola Mobility ship during the period?
    Motorola Mobility shipped 5.3 million smartphones and 200,000 tablets in the fourth quarter.

  5. What was the impact of the pending acquisition on Motorola Mobility’s operations?
    The pending acquisition had a significant impact on the company’s operations, leading to certain expenses and restructuring.

  6. What was the rationale behind Google’s acquisition of Motorola Mobility?
    Google’s acquisition of Motorola Mobility was largely driven by the desire to access the company’s patent portfolio.

  7. How did Motorola Mobility’s mobile devices unit perform in terms of revenue and operating loss?
    The mobile devices unit saw a 5% increase in revenue, with an operating loss of $70 million.

  8. What were the challenges faced by Motorola Mobility in the tablet market?
    Motorola Mobility faced challenges in the tablet market, with criticism over the pricing of its products and competition with other tablet brands.

  9. How did Motorola Mobility’s home business segment fare in terms of earnings and revenue?
    The home business segment reported a slight increase in operating earnings, despite a decline in revenue.

  10. What was the performance of Motorola Mobility’s Droid Razr smartphone?
    The Droid Razr smartphone received positive attention and was positioned as a flagship product by Verizon Wireless.

Summary

Motorola Mobility faced financial challenges in the fourth quarter, largely due to expenses related to an impending acquisition. The company reported a loss of $80 million, with revenue reaching $3.44 billion. Despite shipping 5.3 million smartphones and 200,000 tablets, the company’s earnings per share declined significantly. The pending acquisition by Google added complexities to the company’s operations. The mobile devices unit saw a rise in revenue but reported an operating loss, while the home business segment experienced mixed results. Moving forward, Motorola Mobility aims to navigate these challenges and close the acquisition transaction smoothly. For more information on Motorola Mobility’s latest developments, visit the company’s official website for updates and announcements.