Motorola continues to bleed a rotten economy

Motorola continues to lose money during the first quarter of 2009 as goods for wireless phones has dropped by a sick economy.

The company was already in pretty bad condition when the world economy beginning in the tank last year. Since then, the situation continues to deteriorate. Without any new cool phones, and reduced demand from customers, Motorola phone in a troubled business continues to drag us down.

During the first quarter, which ended April 4, Motorola announced that deliveries of mobile phones fell about 46 percent to 14.7 million as compared to the same quarter a year earlier. And supplies declined by about 23 per cent compared to the fourth quarter of 2008. In mobile devices, the Department of the operating loss widened to $ 509 million of sales per unit decreased by about 45 per cent to 1.8 billion dollars. But the loss was an improvement over the $ 595 million lost in the Division for the fourth quarter of 2008.

Motorola two other major divisions, home networking and communications in emergencies, helped buoy the overall company revenue. But even in these units was affected by the dragging economy in the first quarter. As a result, Motorola reported a net loss of $ 231 million, or 10 cents per share. In the year ago period, the company reported a loss of $ 194 million, or 9 cents per share. Revenue fell about 28 percent to $ 5.37 billion compared with $ 7.45 billion a year ago.

Motorola took a series of steps to reduce costs. It suspended its dividend, and its reduction by approximately 6 percent of its workforce. The company also plans to highlight in the back of the mobile business, because at this point it can not survive alone.

Company managers said that the cost reduction makes the difference. And the company has predicted that he would only lose between 3 cents and 5 cents per share has been adjusted for the items in the second quarter of 2009. She expects to be cash in the second half of this year.

Currently, Motorola of about $ 6.1 billion in cash, compared with 7.4 billion U.S. dollars at the end of 2008.

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