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Motorola announces 23% increase for Q1

Motorola continued to strengthen its balance sheet, generating operating cash flow of approximately US$ 700 million, its 21st consecutive quarter of positive operating cash flow. In addition, the company significantly accelerated its stock repurchase program during the quarter and repurchased approximately 37 million shares of its stock for approximately US$ 815 million.

“We are very pleased about our results, which set a record for first-quarter sales and, excluding the significant items highlighted above, would have also been a record for first-quarter earnings. The company continues to profitably grow revenue and market share,” said Ed Zander, chairman and CEO. “Our compelling products and solutions are advancing our vision of seamless mobility. In order to further build on this success, we announced a streamlined corporate structure to improve efficiency and reduce costs as well as an agreement to sell Motorola’s automotive business. With a sharpened strategic focus, Motorola is well-positioned for growth and success.”

Operating Results Mobile Devices Segment sales were US$ 6.4 billion, up 45 percent compared with the year-ago quarter. Operating earnings increased to US$ 702 million, compared with operating earnings of $440 million in the year-ago quarter. Motorola’s portfolio of market-leading innovations - “must have” designs that deliver “must do” experiences such as mobile music and mobile video - is enabling the company’s steady momentum in the global marketplace.

  • Shipped 46.1 million units, up 61% compared to the first quarter of 2005 - and up 3% compared to 44.7 million handsets shipped during Q4 2005.
  • Expanded global market share to an estimated 21%, further narrowing the gap vs. the industry’s market share leader. This is up 4.8 points from a year ago and up more than 2 points from Q4 2005 -- with particularly strong year-over-year performance in China, India and Africa.
  • Increased brand strength and market share leadership in the Americas and remained the solid No. 2 with growing brand momentum in Europe, North Asia and the high-growth markets (Middle East, Africa, India and Southeast Asia).
  • Launched six new handsets: 2 for GSM networks, 3 for CDMA and 1 for iDEN.
  • Expanded sales in the candy-bar form factor category with the SLVR L7 and L6.
  • Rejoined the Sprint line-up in North America with the Motorola C290 clamshell, enabling consumers to choose Motorola at all of the region’s largest wireless operators.
  • Added new colours and features in the RAZR suite -- including the exclusive Dolce & Gabbana gold edition and music and mega-pixel cameras.
  • Doubled sales versus the prior quarter of the ultra-stylish PEBL U6 clamshell, and introduced an array of fashionable colours for Spring.
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