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Thursday, March 22, 2007 7:41:55 AM
MOT Short Opportunity - Chart and News
Wireless
Shake-Up At Motorola
Brian Caulfield 03.21.07, 6:06 PM ET
Motorola announced the departure of its chief financial officer Wednesday and told investors to expect a surprise first quarter loss.
The revision marks the second consecutive quarter that Motorola (nyse: MOT - news - people ) has told Wall Street that it would underperform expectations. Once again, Motorola blamed disappointing sales and operating earnings in the company's core mobile device business.
The Schaumburg, Ill.-based company said it expects to report a first quarter net loss of between 7 and 9 cents per share, including one-time charges of roughly 9 cents per share, on sales of between $9.2 and $9.3 billion. Analysts had expected the company to report earnings of 17 cents a share, excluding one-time items, on sales of $10.44 billion.
The company also announced that Chief Financial Officer David Devonshire is out, effective April 1, to be replaced by Thomas J. Meredith, who will become acting CFO. Motorola also named Greg Brown as president and chief operating officer, effective immediately. Previously, Brown had led the company's networks and enterprise business.
Motorola continues to struggle amid tough competition from rival Nokia (nyse: NOK - news - people ) on the low end and BlackBerry-maker Research in Motion (nasdaq: RIMM - news - people ) on the high end as activist investor Carl Icahn pushes for a seat on the company's board of directors. The company has been unable to come up with a successor to its iconic Razr phones, which once sold for a healthy premium but are now approaching commodity status.
Since October, Motorola shares have fallen more than 25%, to $18.74, from $26.20.
The shake-up comes just days after it was first reported that chief executive Ed Zander has canceled plans to speak at the annual CTIA Wireless 2007 conference in Orlando, Fla., next week.
Wireless
Shake-Up At Motorola
Brian Caulfield 03.21.07, 6:06 PM ET
Motorola announced the departure of its chief financial officer Wednesday and told investors to expect a surprise first quarter loss.
The revision marks the second consecutive quarter that Motorola (nyse: MOT - news - people ) has told Wall Street that it would underperform expectations. Once again, Motorola blamed disappointing sales and operating earnings in the company's core mobile device business.
The Schaumburg, Ill.-based company said it expects to report a first quarter net loss of between 7 and 9 cents per share, including one-time charges of roughly 9 cents per share, on sales of between $9.2 and $9.3 billion. Analysts had expected the company to report earnings of 17 cents a share, excluding one-time items, on sales of $10.44 billion.
The company also announced that Chief Financial Officer David Devonshire is out, effective April 1, to be replaced by Thomas J. Meredith, who will become acting CFO. Motorola also named Greg Brown as president and chief operating officer, effective immediately. Previously, Brown had led the company's networks and enterprise business.
Motorola continues to struggle amid tough competition from rival Nokia (nyse: NOK - news - people ) on the low end and BlackBerry-maker Research in Motion (nasdaq: RIMM - news - people ) on the high end as activist investor Carl Icahn pushes for a seat on the company's board of directors. The company has been unable to come up with a successor to its iconic Razr phones, which once sold for a healthy premium but are now approaching commodity status.
Since October, Motorola shares have fallen more than 25%, to $18.74, from $26.20.
The shake-up comes just days after it was first reported that chief executive Ed Zander has canceled plans to speak at the annual CTIA Wireless 2007 conference in Orlando, Fla., next week.
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