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Motorola Posts Q3, Delays Planned Spinoff

By Staff Author | October 30, 2008

Motorola reported a Q3 loss, delaying its planned spinoff, according to the Wall Street Journal. The handset maker also predicted that the rest of this year wouldn’t look so hot either.

The company posted a net loss of $397 million compared with a net income of $60 million a year earlier. Sales fell 15% to $7.48 billion.

Its mobile devices division posted a wider loss of $840 million, as sales slid 31%. The loss included restructuring charges.

Sanjay Jha, former Qualcomm-exec-turned-Motorola-chief, targeted the struggling handset division as one of his first efforts. Primary to that mission was to reduce the number of separate operating systems used in the company’s devices.

Jha said he still intends to split Motorola into two separate companies but plans to wait until the financial markets are more favorable.

Motorola’s 2009 prospects seem daunting as it needs to hit a home run with its devices, particularly smartphones, especially as devices from Samsung and Apple erode its market share.


Filed Under: Carriers

 

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