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Motorola Provides Update on Business Situation – Showed “Modest Profitability” in Q4, Will Introduce “Several” New Products at CES

Since Motorola is in the process of finalizing its merger with Google, they are apparently not ready to give us a full Q4 earnings report and have instead issued a “business situation” update. According to the release, they had sales of $3.4 billion with “modest profitability.” Those sales included 10.5 million mobile devices, 5.3 million of which were smartphones. Thanks to the increased competitive environment and legal costs associated with patent trolling by Apple and others, these results are what they are.

In related news, Motorola at least has plans to introduce “several” new products at CES next week. So far we have not seen any clues as to what those may be, but one would guess that the DROID 4 will likely be one of them. I also would not be surprised if we see WiFi versions of the XYBOARD (XOOM 2) come to the U.S. and maybe even the new RAZR MAXX or a variant of it that is headed to AT&T (Dinara anyone?).

The Google-Motorola merger is still expected to be completed early this year.  

Motorola Mobility Provides Business Update

Jan. 06, 2012

LIBERTYVILLE, Ill., Jan. 6, 2012 – Motorola Mobility Holdings, Inc. (NYSE: MMI) (“Motorola Mobility”) today announced preliminary results for the fourth-quarter 2011. Although the Company has not finalized its financial results for the fourth-quarter, it estimates sales of $3.4 billion with modest profitability on a non-GAAP basis. These estimates include shipments of approximately 10.5 million mobile devices, of which approximately 5.3 million were smartphones. Motorola Mobility’s fourth-quarter results were impacted by the increased competitive environment in the Mobile Device business and higher legal costs associated with ongoing Intellectual Property (IP) litigations. The Company estimates sales of $900 million for the Home business in the fourth-quarter. Motorola Mobility will issue its fourth-quarter 2011 earnings results at approximately 3:00 p.m. U.S. Central Time on Thursday, January 26, 2012.

As previously announced on August 15, 2011, Motorola Mobility and Google Inc. (“Google”) (NASDAQ: GOOG) entered into a definitive agreement for Google to acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion. On November 7, 2011, Motorola Mobility stockholders voted overwhelmingly to approve the proposed merger with Google at the Company’s Special Meeting of Stockholders.

The Company continues to work closely with Google to complete the proposed acquisition of Motorola Mobility as expeditiously as possible. The Company notes that the transaction remains subject to various closing conditions, and currently expects the transaction to close in early 2012 once all conditions have been satisfied. The Company reminds stockholders that it is possible that the failure to timely meet such conditions or other factors outside of the Company’s control could delay or prevent completion of the transaction altogether.

Information on the Google acquisition can be found at investors.motorola.com.

Motorola Mobility also noted that it will be showcasing and introducing several new products at the Consumer Electronics Show (CES) in Las Vegas beginning January 10, 2012. Please visit the Company’s exhibition booth at the Las Vegas Convention Center, Central Hall Booth No. 8644 to see the latest innovative products and experiences from the Mobile Devices and Home businesses.

Business Risks

Motorola Mobility cautions the reader that this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, but are not limited to, the expected closing date of the proposed Google transaction. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements including, but not limited to, fourth quarter performance and the ability of the parties to consummate the proposed transaction and the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory and other approvals at all or in a timely manner; and the other risks and uncertainties contained and identified in Motorola Mobility’s filings with the Securities and Exchange Commission (the “SEC”), any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Motorola Mobility undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances or update the reasons that actual results could differ materially from those anticipated in forward-looking statements, except as required by law.

About Motorola Mobility

Motorola Mobility, Inc. (NYSE:MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people’s lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.

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  • http://www.youtube.com/lordstickmax Lord Stick Max

    honestly they need to stop making so many new devices. look how many came out this year. seriously! i love my moto products but i almost feel no urge to upgrade when i know the next one is only a couple months away.

  • Sporttster

    How bout a UNLOCKED bootloader like everyone else is getting? HMM MOTO?? Unlock!!!!!!!!!!!!!!

  • Anonymous

    How about fix the broken phones that we spent a lot of money on before you release more expensive  broken phones that won’t be fixed

  • Ucit5312

    Please fix the phones you have released before introducing new phones. Fix the Bionic.

  • Azndan4

    Roflcopter motorola

  • http://www.DavidPat.com David Pat

    The RAZR and the Droid 3 show the kind of engineering that is driving them towards profitability. I hope Google helps them flesh out the software picture 

  • http://twitter.com/LeviScene Levi

    Cool, Now unlock your freaking bootloader

  • Anonymous

    I know that if Moto came out with a Nexus phone I would be all over it, I currently have the GNex and love it, so in 2 years whatever Nexus comes out I will get that one too, Moto, Samsung hell even LG, if Google is behind it im down too!

  • http://www.facebook.com/people/Ab-Gar/538974072 Ab Gar

    while im happy about the fact that they’re actually starting to turn a profit. 
    the only thing that would spark any sort of interest from me from moto would have to be an anouncement of a quad core nexus. 

  • faber

    Moto sucks.

  • Anonymous

    Motorola has completely lost my trust and future business.  They told us they would unlock their boot loaders, or make it easier to and did not.  They support a phone for 3-4 months, sometimes barley 1 month before pumping out a newer version (droid 3/bionic anyone?), and pre load their phone with loads of crapware.

    I love my Gnex, and have no intentions of purchasing anything Moto in the future.

    • Jay

      Again with this? The D3 wasn’t even adjacent to the Bionic, that was the X2. And just because they release a new device doesn’t mean they stop supporting the previous model…for crap’s sake, the DX got gingerbread BEFORE the DX2. You’ve got absolutely no basis to claim they won’t continue to support every model since the Droid X2. And OEM’s don’t put bloatware on phones, carriers do. Moto doesn’t give a damn about VZ Navigator, Verizon does…that isn’t even news.

      • Anonymous

        Let me clarify for you.  The D3 and Bionic were released in tandem,  a month after the Bionic was released it was Razr time, and the D3 is already at end of life status at Verizon.  And the crapware is Blur or whatever they are calling it today.  

        If I spent 200$ on a Bionic, that was marketed as the machine to rule all machines, only to see the Razr rumors start a month later, and released barley 3 months later I would be pissed off.  

        Most people on here would agree bro, look how many people jumped from Moto to Samsung/HTC.  Numbers don’t lie.  Moto is not doing so hot right now.

        • Jay

          The Droid 3 was released in July…the Bionic was released in September. Your grasp of tandem leaves something to be desired if you ask me. Once again EOL doesn’t mean end of support…it means they aren’t making them anymore…why don’t you people understand this?

          Months before the Bionic was released spyshots of the RAZR. If you bought a Bionic you fall into one of three groups; people who didn’t care that the razr was coming, impulse buyers, and idiots. In then end you’ve got no one to blame but yourself. Especially if you did so because of an add campaign…and it’s frankly depressing that you’d even try to use that to rationalize it.

          Yeah numbers don’t lie…but you don’t have any numbers to go on. For one thing you’ve no proof that Motorola sold less devices through 2011 than they did in 2010. For another HTC is DOWN from last year, and just because Samsung is up, doesn’t mean they got conquest sales from Moto. New customers buying samsungs doesn’t mean they traded in their milestone’s and droid X’s…do you even remotely grasp how many devices Samsung’s released? The Galaxy Y, M, W, R, SII, Note, Galaxy Pro versions of the M and the W and possibly the Y? The entire lineup of Bada phones? Guess how many of that array of like 80 phones are in the same category as any of Moto’s releases…if you wanna try to talk numbers, go right on ahead but there’s no way in hell Samsung was gonna come in second with that kind of size. Still it doesn’t reflect badly on moto at all.

          • Jay

            meant to say spyshots of the razr were shown, really gotta get around to making an account so I can edit

          • Anonymous

            Dude I’m not reading three paragraphs to argue with you.  Get a grip.

          • Jay

            Oh I can make it shorter for you then; You plainly don’t know what you’re talking about. Hope that’s easy enough to read for ya

          • Anonymous

            That is why Moto keeps losing market share, continues to post slower and slower growth in sales, continues to lose developer support to other more open phones.  

            Like I said before man, get a grip, you like Moto, good for you, you made your points, even if they were long and rambling.  

                

          • Lgreg64

            OK so you don’t like Moto. Anything else? 

          • Anonymous

            I owned an OG droid and consider it a much better overall phone for its time than my gnex which I love.  I just don’t like the direction moto has taken since then.

          • Lgreg64

            OK I still have and use my OG. I’m glad you have found your next phone and hope it brings you joy but One phone is not right for everyone if that was the case we would be apple owners.

          • http://twitter.com/LeviScene Levi

            My brother had a Droid 2 global and the thing burned his leg while he was sitting and he got a droid 3 as a replacement and it wouldn’t get 3g lol They don’t make phones like the OG Droid anymore sadly :l

          • Jay

            No no it isn’t…this is what I’m talking about. You’re full of crap! Developer support?! Open phones? Damn…just damn…

            You’re the one between the two of us with no perspective and no grip on reality, and I proved that In my last post, cept no one taught you how to skim through paragraphs in middle school so you wouldn’t know that.

            Why don’t you just let your thoughts go unless you can back them up with some actual evidence? Because you mouthing off about a market you clearly know nothing about reflects badly on the rest of us.

          • Anonymous

            Dude you need to get laid.

          • Anonymous

            Dude u need to admit that u got owned….

          • Anonymous

            Maybe in your 14 y/o tween universe.  

          • Jay

            I get laid on  regular basis kid, you however still need to come up with some facts or just go away.

  • Emilio Figueroa

    The way I see it going. Droid 3 and Razr Maxx are discussed at CES, then several months later, two new designs, they are released as Droid 4g and Droid Impossible. just saying. 

  • guest

    How bout fixin my DX, before I leave you forever!

  • Anonymous

    Do they really need to introduce more phones?  How many models did they put out in 2011? About 400?

    • Gugizx10

      Name one that doesn’t have issues…..

  • Anonymous

    New blur (Bionic, Razr) > Sense 3.5/4.0/Touchwiz

    • Alexander Garcia

      1,000 Likes!  =)

    • Tony Allen

      How about No BLUR?

  • fartbubbler

    Motorola can suck it.  I have my Nexus, AND I’M NOT COMING BACK!!!!

    • Lgreg64

      Can we please stop all the bashing on this site. We all love android and want to see it grow. That goes for Moto, HTC, Sam, LG and all the rest. I’m am glad you love your nex, but it may  not be for everyone.  

  • YourFriend

    Speaking of Motorola, has there been any news on those two quad core phones rumored all the way back in April?
    http://www.droid-life.com/2011/04/22/rumor-motorola-prepares-the-jet-and-bullet-as-its-first-tegra-3-devices-headed-for-q1-2012/ 

    • Andrew

      i remember those! the Jet would be a great upgrade from my OG Droid

      • YourFriend

        Hell yeah. Maybe Moto dished the Droid 4 in favor of the Jet? Sounds unlikely, and most likely they’ll just showcase some low-end phones like the LUXE, and Defy-Mini and some others like the Droid 4 and Razr MAXX.

  • Anonymous

    The problem appears for android oems only make money off hardware so their goal is to push out the latest spec phone to out do each other and worry about customer experience second. That’s where Apple has the advantage of selling hardware and getting iTunes money. Unless these guys find another revenue stream or get a price of the market they’re just going to keep dumping ort incomplete phones.
    This is why I’m afraid oem support will diminish over time with the Motorola purchase regardless of what Google says.

    • Anonymous

      I read recently that while Apple hardware accounts for the vast majority of their sales numbers, Itunes accounts for such a large chunk of profit, that without it, Apple couldn’t sustain research and development costs to year.

  • Zachary

    but nothing about the unlocked BL..

    • Anonymous

      Because it isn’t going to happen.

  • Anonymous

    And continues to offer the greatest feature of all on their phones: Blur and locked bootloaders.

  • Anonymous

    I really hope Motorola takes advantage of Google and offers us Nexus style Moto device.

    • Anonymous

      Would be nice to see Motorola’s take on a Nexus, but we won’t see that for at least a year, which is a bummer. 

      I just hope Moto changes their design up a bit, they’ve gone all in with this angular look and it just isn’t working. 

      • Lgreg64

        It’s not up to Moto if they get a Nex that is controlled by Google and with them buying Moto an trying to keep the other OEM from freaking out they probably will not give them one any time soon.

    • Anonymous

      Easy fix for Moto’s woes:

      1. Get rid of Jha
      2. Get rid of Blur
      3. Get rid of Pentile screens
      4. Follow HTC and offer unlockable bootloaders
      5. Bring expandable storage back to their tablets
      6. Stop forcing 4G carrier tablets down our throats.  Launch new tablets in wi-fi form FIRST, then bring a carrier version out if there’s demand for it
      7. Make a clear and concise commitment to OS updates (not just ICS).  Guarantee a mimimum of X number of OS updates after a device’s launch and/or offer 12 months of free updates and then allow users to pay a nominal fee for a new ROM if they want to stick with their legacy device.
      8. Get a “Nexus” or at least another Google Experience device out ASAP
      9. Stop trying to force overpriced accessories (laptop docks, HD docks etc) down users’ throats.  Offer a handful of nicely-designed, realistically priced accessories that are universally compatible whenever possible.
      10. The RAZR is fine but let’s not have fixed internal batteries the start of a trend.  Not everyone thinks mimicking Apple is “cool”. 

      • Anonymous

         While I agree with EVERYTHING you said, I believe moto did stop using the pentile screens and is now in an agreement with samsung to user superamoled (the razr has one)

        • http://twitter.com/Scores87 Ed

          it is pentile 

        • Anonymous

          Pentile is not necessarily bad, the GNex has a pentile and so does the RAZR but because they also has awesome pixel density it doesn’t make you want to break your phone (like the bionic). 

      • ShopDroid

        And the lack of SD slot on the Nexus is not mimicking Apple?

        • Anonymous

          Newsflash: Android itself is a mimick of Apple….

      • http://twitter.com/55938 MrSix

        Most of your “easy fixes” are half-baked, don’t make sense from a business perspective, are just your preferences, or just you regurgitating drivel…I don’t even know where to begin.