New From Motorola: FUBAR Q3
by John Paczkowski
Posted on October 30, 2008 at 3:13 PM PT
After market close Thursday, tMotorola posted a loss of $397 million, or 18 cents a share, and said it will sack 3,000 employees this quarter and next as it cuts costs, reorganizes its mobile devices business and generally tries to reverse its continued descent into the maelstrom. Worse, it said it will almost certainly miss market forecasts for the fourth quarter and will delay the planned spinoff of its cellphone unit. Oh, and it’s delaying the release of its first handset based on Google’s new Android platform.
During a conference call with analysts, Motorola (MOT) co-CEO and handset division chief Sanjay Jha confirmed earlier reports that the company will simplify cellphone unit operations by focusing on two operating systems: Google’s (GOOG) Android and Windows Mobile. Which means the first half of 2009 will be a challenging one for Motorola, as it phases out devices based on the MOTOMAGX and Symbian platforms. “I think that that will reduce the number of phones that will launch at least in the second or third quarters of next year,” Jha said. “But I think thereafter, we expect that using Android and Windows Mobile, to be able to address larger portion of the mid- and high-tier market.”
He better hope so, in this economy.
“The reality is there is no good fix here,” said Jha. “We have been too focused on bright shiny objects and not on the user experience. Whether we succeed or not, only time will tell.”
Comments
John, It’s like déjà vu all over again and not only because Motorola was used as the example for The Great Dysphemism Contest.
The original paragraph
Shares in Motorola were dragged deep into the mud Friday following the long-suffering telecommunications venture’s announcement that it would release 4,000 more employees into the wild. These in addition to the 26,000 the company plans to sack by year’s end. 30,000 offered up for human sacrifice? Ugly news, especially for a venture whose second-quarter sales have dropped 19 percent in the past year. While Motorola insists it will reach profitability before the year is out, analysts weren’t quick to put their fears of a death spiral behind them. In a further nauseating turn of events for the ill-starred venture, SG Cowen and Bear Stearns both cut earnings estimates for Motorola. Shares in the company plumbed the depths still further on the news.
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My replacement paragraph
Shares in Motorola were made more affordable Friday following the altruistic telecommunications venture’s announcement that it would provide another 4000 employees to bolster the shrinking labor pool. These in addition to the 26,000 the company plans to make available by year’s end. Heartwarming news, especially for a venture that has, in an obvious attempt to create a more level playing field, graciously reduced its sales 19 percent in the past year. While Motorola insists it will reach profitability before the year is out, analysts were not quick to put their optimism on hold with regard to company’s continued generosity. In a further serendipitous turn of events for the munificent venture, SG Cowen and Bear Stearns both cut earnings estimates for Motorola. Shares in the company became more approachable than at anytime in recent memory on the news.
You’re going to need to brush up on your dysphemism skills again.
Posted by Tom Orr at December 10th, 2008 at 7:53 am