|Motorola Mobility Q4 and CY2011 Earnings ... |
>> Motorola Mobility Announces Fourth Quarter and Full-Year Financial Results
January. 26, 2012
Fourth Quarter Financial Highlights:
• Net revenues of $3.4 billion
• Non-GAAP net earnings of $0.20 per share compared to net earnings of $0.37 per share
in fourth quarter 2010; GAAP net loss of $0.27 per share compared to net earnings of
$0.27 per share in fourth quarter 2010
• Mobile Devices net revenues of $2.5 billion, up 5 percent from fourth quarter 2010
• Non-GAAP operating loss of $19 million; GAAP operating loss of $70 million
• Shipped 10.5 million mobile devices, including 5.3 million smartphones
• Home net revenues of $897 million, down 11 percent from fourth quarter 2010; Non-
GAAP operating earnings of $84 million; GAAP operating earnings of $57 million.
Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.4 billion in the fourth quarter of 2011, comparable to the fourth quarter of 2010. The GAAP net loss in the fourth quarter of 2011 was $80 million, or $0.27 per share, compared to net earnings of $80 million, or $0.27 per share, in the fourth quarter of 2010.
On a non-GAAP basis, net earnings in the fourth quarter 2011 were $61 million, or $0.20 per
share, compared to net earnings of $108 million, or $0.37 per share, in the fourth quarter of
For the full year, 2011 net revenues were $13.1 billion, up 14 percent compared to 2010. For
the full year, the GAAP net loss was $0.84 per share compared to a loss of $0.29 per share in
2010. On a non-GAAP basis, net earnings were $0.33 per share compared to a loss of $0.28
per share in 2010.
The Company generated positive operating cash flow of $225 million and $357 million in the
fourth quarter and full year, respectively. Total cash at the end of the quarter was $3.6 billion
and includes cash, cash equivalents, and cash deposits.
Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this
press release and in the financial tables.
“In the fourth quarter, we received very positive consumer response to Motorola RAZR, which
combined an iconic brand with ultra-thin in an innovative smartphone. Our Home business
continues to be a leader in the industry’s transformation to all IP, with unique solutions that
enable rich media experiences across any screen,” said Sanjay Jha, chairman and chief
executive officer, Motorola Mobility. “We remain energized by the proposed merger with Google
and continue to focus on creating innovative technologies.”
Mobile Devices net revenues in the fourth quarter, impacted by the increased competitive
environment, were $2.5 billion, up 5 percent compared with the year-ago quarter. The GAAP
operating loss was $70 million compared to operating earnings of $72 million in the year-ago
quarter. The non-GAAP operating loss was $19 million compared to operating earnings of $56
million in the year-ago quarter. For the full year 2011, net revenues were $9.5 billion, an
increase of 22 percent compared to 2010. The 2011 GAAP operating loss was $285 million
compared to an operating loss of $76 million in 2010. The 2011 non-GAAP operating loss was
$126 million compared to an operating loss of $198 million in 2010.
The Company shipped a total of 10.5 million and 42.4 million mobile devices in the fourth
quarter and full year 2011, respectively. This included 5.3 million and 18.7 million smartphones
and approximately 200 thousand and 1 million tablets in the fourth quarter and full year,
Mobile Devices Highlights:
• Launched Motorola RAZR™ extending the iconic RAZR brand around the world
• Announced DROID RAZR MAXX™, featuring twice as much battery life as the leading
competitor and measuring only 8.99 millimeters
• Unveiled the award-winning DROID 4 by Motorola, the thinnest and most powerful 4G
LTE QWERTY smartphone featuring a five-row keyboard and edge-lit keys
• Introduced two new 4G LTE tablets, the DROID XYBOARD 10.1™ and XYBOARD 8.2™.
• Announced the “life proof” Motorola DEFY™ MINI and slim MOTOLUXE™, two new value
priced additions to Motorola’s growing budget-friendly portfolio
• Shipped award-winning MOTOACTV™, the world’s first combined GPS fitness tracker
and MP3 player
• Launched two flagship devices in China – the TD-SCDMA Motorola MT917 and the
Motorola XT928, a dual-core, dual-mode, dual-standby smartphone
• Launched DreamGallery next-generation HTML-5 video navigation software in North
America with Shaw Communications
• Expanded video leadership and paved the way for Canada's move to all-MPEG-4
broadcast and On-Demand HD services with Eastlink
• Demonstrated market leadership with introduction of new carrier Ethernet product line
for the deployment of cost-effective commercial services
• Introduced Motorola APEX3000, which delivers market-leading density to cost-effectively
add greater demand for narrowcast services such as VOD and DVR
• Selected by Altibox AS in Norway to provide VAP 2400 HD wireless video bridge to
enable multi-room TV services
As previously announced on August 15, 2011, Motorola Mobility and Google Inc. ("Google")
(NASDAQ: GOOG) entered into a definitive agreement for Google to acquire Motorola Mobility
for $40.00 per share in cash, or a total of approximately $12.5 billion. On November 17, 2011,
Motorola Mobility stockholders voted overwhelmingly to approve the proposed merger with
Google at the Company’s Special Meeting of Stockholders. The Company continues to work
closely with Google to complete the proposed acquisition of Motorola Mobility as expeditiously
The Company notes that the transaction remains subject to various closing conditions. Antitrust
clearances, or waiting period expirations, are required by the U.S. Department of Justice (DOJ),
by the European Commission, and in Canada, China, Israel, Russia, Taiwan and Turkey.
Requisite filings have been submitted to the appropriate regulatory body in each of these
jurisdictions. Clearances have been received in Turkey and Russia. In Canada and the United
States, the statutory waiting period for the transaction has expired although the parties have
been informed that the reviewing agencies have not closed their respective investigations. In
December 2011, the Chinese Ministry of Commerce proceeded to phase two of its investigation.
In February, the European Commission is expected to announce whether it will close its
investigation or proceed to a phase two investigation.
The Company currently expects the transaction to close in early 2012 once all conditions have
been satisfied and reminds stockholders that it is possible that the failure to timely meet such
conditions or other factors outside of the Company's control could delay or prevent completion
of the transaction altogether.
For more information on the proposed merger, please visit investors.motorola.com
Conference Call and Webcast
In light of the pending acquisition of the Company by Google, the Company does not conduct a
financial analyst conference call or webcast following the release of its earnings information nor provide financial guidance. To access the fourth quarter results and other financial information, please visit investors.motorola.com
See tables at opening link above. ###
- Eric -