reported a stunning net loss on tumbling revenue for the fourth
quarter. The net loss for the phone maker in the quarter, which ended
December 31, was $3.6 billion, or $1.57 per share, compared with
positive earnings of $100 million (4 cents per share) for the same
period a year earlier.
All but one penny of the per-share loss stemmed from net charges
related to the impairment of goodwill and an increase in deferred tax
asset valuation reserves. The loss had been widely expected after
Motorola in January announced plans for layoffs and said revenue would
come in below analysts' expectations, on weaker-than-expected handset
sales.
Revenue for the fourth quarter was $7.1 billion, down 26 percent from
$9.6 billion year over year. Motorola stressed Tuesday that it is
doing everything it can to keep costs under control amid a faltering
economy. Co-CEOs Greg Brown and Sanjay Jha said in a statement:
In light of the economic climate and challenges we face, we have
implemented aggressive measures to reduce costs and improve financial
flexibility, particularly in Mobile Devices. The cost-reduction
actions underway are expected to generate aggregate savings of
approximately $1.5 billion in 2009.
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