Motorola Inc. (MOT, Financial) filed Quarterly Report for the period ended 2010-10-02.
Motorola Inc. has a market cap of $18.48 billion; its shares were traded at around $8.02 with a P/E ratio of 32.9 and P/S ratio of 0.8. MOT is in the portfolios of Carl Icahn of Icahn Capital Management LP, NWQ Managers of NWQ Investment Management Co, Private Capital of Private Capital Management, Dodge & Cox, Charles Brandes of Brandes Investment, Richard Pzena of Pzena Investment Management LLC, Jeff Auxier of Auxier Focus Fund, PRIMECAP Management, Bruce Kovner of Caxton Associates, Pioneer Investments, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Bill Frels of Mairs & Power Inc. , Irving Kahn of Kahn Brothers & Company Inc., George Soros of Soros Fund Management LLC, Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.
The Mobile Devices segment designs, manufactures, sells and services wireless mobile devices, including smartphones, with integrated software and accessory products, and licenses intellectual property. In the third quarter of 2010, the segment's net sales were $2.0 billion, representing 42%* of the Company's consolidated net sales. The Home segment designs, manufactures, sells, installs and services set-top boxes for digital video, Internet Protocol ("IP") video, satellite and terrestrial broadcast networks, end-to-end digital video and Internet protocol television ("IPTV") distribution systems, broadband access network infrastructure platforms, and associated data and voice customer premises equipment and associated software solutions to cable television ("TV") and telecommunication service providers. In the third quarter of 2010, the segment's net sales were $912 million, representing 19%* of the Company's consolidated net sales. The Enterprise Mobility Solutions segment designs, manufactures, sells, installs and services analog and digital two-way radios, wireless LAN and security products, voice and data communications products and systems primarily for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of customers, including government and public safety agencies (which, together with all sales to distributors of two-way communication products, are referred to as the "government and public safety market"), as well as retail, energy and utilities, transportation, manufacturing, healthcare and other commercial customers (which, collectively, are referred to as the "commercial enterprise market"). In
Net Sales were $4.9 Billion: Our net sales were $4.9 billion in the third quarter of 2010, up 13% compared to net sales of $4.3 billion in the third quarter of 2009. Compared to the year-ago quarter, net sales increased 20% in the Mobile Devices segment, increased 9% in the Enterprise Mobility Solutions segment and increased 5% in the Home segment. Operating Earnings were $225 Million: We had operating earnings of $225 million in the third quarter of 2010, compared to incurring an operating loss of $11 million in the third quarter of 2009. Operating margin was 4.6% of net sales in the third quarter of 2010, compared to (0.3)% of net sales in the third quarter of 2009. Earnings from Continuing Operations were $7 Million, or $0.00 per Share: We had earnings from continuing operations of $7 million, or $0.00 per diluted common share, in the third quarter of 2010, compared to a loss from continuing operations of $90 million, or $0.04 per diluted common share, in the third quarter of 2009. Operating Cash Flow was $915 million in the first nine months of 2010: We generated cash from operating activities of $915 million in the first nine months of 2010, compared to using $777 million of cash for operating activities in the first nine months of 2009. The cash generated from operating activities was primarily driven by: (i) income from continuing operations (adjusted for non-cash items) of $932 million, and (ii) a $740 million increase in accounts payable and accrued liabilities, partially offset by: (i) a $305 million increase in accounts receivable, and (ii) a $257 million increase in inventories. Highlights for each of our business segments were as follows:
In Mobile Devices: Net sales were $2.0 billion in the third quarter of 2010, an increase of 20% compared to net sales of $1.7 billion in the third quarter of 2009. On a geographic basis, net sales increased in North America, the Europe, Middle East and Africa region ("EMEA") and Asia and decreased in Latin America compared to the year-ago quarter. The increase in net sales was primarily driven by a 78% increase in average selling price ("ASP"), partially offset by a 33% decrease in unit shipments. We shipped 9.1 million handsets in the third quarter of 2010, a 10% increase sequentially compared to shipments of 8.3 million handsets in the second quarter of 2010. We shipped 3.8 million Android-based smartphones in the third quarter of 2010, a 41% increase sequentially compared to shipments of 2.7 million in the second quarter of 2010. In Home: Net sales were $912 million in the third quarter of 2010, an increase of 5% compared to net sales of $866 million in the third quarter of 2009. The increase in net sales in the Home segment reflects higher net sales of video and access infrastructure equipment. Net sales of set-top boxes remained consistent as the 5% increase in shipments of set-top boxes to 3.5 million units was offset by a lower ASP due to competitive pricing pressures. On a geographic basis, net sales increased in Latin America and Asia and decreased in EMEA. Net sales in North America were consistent compared to the year-ago quarter. In Enterprise Mobility Solutions: Net sales were $1.9 billion in the third quarter of 2010, an increase of 9% compared to net sales of $1.8 billion in the third quarter of 2009. The increase in net sales reflects a 21% increase in net sales to the commercial enterprise market and a 1% increase in net sales to the government and public safety market. On a geographic basis, net sales increased in all regions compared to the year-ago quarter. Recent Developments
On July 19, 2010, the Company announced that Nokia Siemens Networks B.V. would acquire the majority of our Networks infrastructure assets for $1.2 billion in cash. This includes our GSM, CDMA, WiMAX and LTE businesses. We will retain our iDEN infrastructure business, substantially all the patents related to the Networks business, and various other assets, including: (i) $150 million of accounts receivable, (ii) cash and (iii) certain customer financing notes. We expect the transaction to close by early 2011, subject to customary closing conditions, including regulatory approvals. On September 30, 2010, the Company filed a Form 8-K to present previously reported selected GAAP financial information of the Company for fiscal years 2007, 2008 and 2009 and for the first half of 2010 in a reclassified format to reflect: (i) the presentation of certain portions of the Company's Networks business as discontinued operations as a result of the Company's announcement of an agreement to sell a majority of the assets and liabilities of its Networks business to Nokia Siemens Networks, (ii) the reclassification of the operating results of previously disposed businesses, which were deemed to be immaterial at the time of their disposition, from the Enterprise Mobility Solutions segment to discontinued operations, and (iii) the resulting revised presentation of the Company's operating business segments.
Read the The complete Report
Motorola Inc. has a market cap of $18.48 billion; its shares were traded at around $8.02 with a P/E ratio of 32.9 and P/S ratio of 0.8. MOT is in the portfolios of Carl Icahn of Icahn Capital Management LP, NWQ Managers of NWQ Investment Management Co, Private Capital of Private Capital Management, Dodge & Cox, Charles Brandes of Brandes Investment, Richard Pzena of Pzena Investment Management LLC, Jeff Auxier of Auxier Focus Fund, PRIMECAP Management, Bruce Kovner of Caxton Associates, Pioneer Investments, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Bill Frels of Mairs & Power Inc. , Irving Kahn of Kahn Brothers & Company Inc., George Soros of Soros Fund Management LLC, Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
On July 19, 2010, the Company announced an agreement to sell certain assets and liabilities of its Networks business to Nokia Siemens Networks B.V. for $1.2 billion in cash (the "Transaction"). The Transaction is expected to close by early 2011. Based on the terms and conditions of the sale agreement, certain assets, including $150 million of accounts receivables, the Company's iDEN infrastructure business and substantially all the patents related to the Company's wireless network infrastructure business, are excluded from the transaction.The Mobile Devices segment designs, manufactures, sells and services wireless mobile devices, including smartphones, with integrated software and accessory products, and licenses intellectual property. In the third quarter of 2010, the segment's net sales were $2.0 billion, representing 42%* of the Company's consolidated net sales. The Home segment designs, manufactures, sells, installs and services set-top boxes for digital video, Internet Protocol ("IP") video, satellite and terrestrial broadcast networks, end-to-end digital video and Internet protocol television ("IPTV") distribution systems, broadband access network infrastructure platforms, and associated data and voice customer premises equipment and associated software solutions to cable television ("TV") and telecommunication service providers. In the third quarter of 2010, the segment's net sales were $912 million, representing 19%* of the Company's consolidated net sales. The Enterprise Mobility Solutions segment designs, manufactures, sells, installs and services analog and digital two-way radios, wireless LAN and security products, voice and data communications products and systems primarily for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of customers, including government and public safety agencies (which, together with all sales to distributors of two-way communication products, are referred to as the "government and public safety market"), as well as retail, energy and utilities, transportation, manufacturing, healthcare and other commercial customers (which, collectively, are referred to as the "commercial enterprise market"). In
Net Sales were $4.9 Billion: Our net sales were $4.9 billion in the third quarter of 2010, up 13% compared to net sales of $4.3 billion in the third quarter of 2009. Compared to the year-ago quarter, net sales increased 20% in the Mobile Devices segment, increased 9% in the Enterprise Mobility Solutions segment and increased 5% in the Home segment. Operating Earnings were $225 Million: We had operating earnings of $225 million in the third quarter of 2010, compared to incurring an operating loss of $11 million in the third quarter of 2009. Operating margin was 4.6% of net sales in the third quarter of 2010, compared to (0.3)% of net sales in the third quarter of 2009. Earnings from Continuing Operations were $7 Million, or $0.00 per Share: We had earnings from continuing operations of $7 million, or $0.00 per diluted common share, in the third quarter of 2010, compared to a loss from continuing operations of $90 million, or $0.04 per diluted common share, in the third quarter of 2009. Operating Cash Flow was $915 million in the first nine months of 2010: We generated cash from operating activities of $915 million in the first nine months of 2010, compared to using $777 million of cash for operating activities in the first nine months of 2009. The cash generated from operating activities was primarily driven by: (i) income from continuing operations (adjusted for non-cash items) of $932 million, and (ii) a $740 million increase in accounts payable and accrued liabilities, partially offset by: (i) a $305 million increase in accounts receivable, and (ii) a $257 million increase in inventories. Highlights for each of our business segments were as follows:
In Mobile Devices: Net sales were $2.0 billion in the third quarter of 2010, an increase of 20% compared to net sales of $1.7 billion in the third quarter of 2009. On a geographic basis, net sales increased in North America, the Europe, Middle East and Africa region ("EMEA") and Asia and decreased in Latin America compared to the year-ago quarter. The increase in net sales was primarily driven by a 78% increase in average selling price ("ASP"), partially offset by a 33% decrease in unit shipments. We shipped 9.1 million handsets in the third quarter of 2010, a 10% increase sequentially compared to shipments of 8.3 million handsets in the second quarter of 2010. We shipped 3.8 million Android-based smartphones in the third quarter of 2010, a 41% increase sequentially compared to shipments of 2.7 million in the second quarter of 2010. In Home: Net sales were $912 million in the third quarter of 2010, an increase of 5% compared to net sales of $866 million in the third quarter of 2009. The increase in net sales in the Home segment reflects higher net sales of video and access infrastructure equipment. Net sales of set-top boxes remained consistent as the 5% increase in shipments of set-top boxes to 3.5 million units was offset by a lower ASP due to competitive pricing pressures. On a geographic basis, net sales increased in Latin America and Asia and decreased in EMEA. Net sales in North America were consistent compared to the year-ago quarter. In Enterprise Mobility Solutions: Net sales were $1.9 billion in the third quarter of 2010, an increase of 9% compared to net sales of $1.8 billion in the third quarter of 2009. The increase in net sales reflects a 21% increase in net sales to the commercial enterprise market and a 1% increase in net sales to the government and public safety market. On a geographic basis, net sales increased in all regions compared to the year-ago quarter. Recent Developments
On July 19, 2010, the Company announced that Nokia Siemens Networks B.V. would acquire the majority of our Networks infrastructure assets for $1.2 billion in cash. This includes our GSM, CDMA, WiMAX and LTE businesses. We will retain our iDEN infrastructure business, substantially all the patents related to the Networks business, and various other assets, including: (i) $150 million of accounts receivable, (ii) cash and (iii) certain customer financing notes. We expect the transaction to close by early 2011, subject to customary closing conditions, including regulatory approvals. On September 30, 2010, the Company filed a Form 8-K to present previously reported selected GAAP financial information of the Company for fiscal years 2007, 2008 and 2009 and for the first half of 2010 in a reclassified format to reflect: (i) the presentation of certain portions of the Company's Networks business as discontinued operations as a result of the Company's announcement of an agreement to sell a majority of the assets and liabilities of its Networks business to Nokia Siemens Networks, (ii) the reclassification of the operating results of previously disposed businesses, which were deemed to be immaterial at the time of their disposition, from the Enterprise Mobility Solutions segment to discontinued operations, and (iii) the resulting revised presentation of the Company's operating business segments.
Read the The complete Report
