Photo: Dylan Love
We’ve got good news and bad news for Google’s soon-to-be phone division, Motorola.The good news: It beat analyst expectations for sales last quarter, booking about $3.08 billion in revenue. On average, Wall Street expected $2.96 billion.
It also grew sales 2% from last year, probably thanks to the introduction of the Raxr Maxx on Verizon.
The bad news: it still looks like a pretty crummy business.
- It missed on earnings, reporting a loss (0.03), non-GAAP. Analysts expected non-GAAP EPS of positive $0.01.
- The mobile phone business lost $121 million, which is quite a bit more than last year’s loss of $89 million.
- It’s missing out on the smartphone explosion. Motorola sold 8.9 million phones, including 5.1 million smartphones. That’s about the same as a year ago, when it sold 9.1 million phones, including 4.3 million smartphones. The smartphone market is growing like crazy — look at what Apple and Samsung are doing — but Motorola hasn’t been able to capture much of that growth.
- Tablet sales were (presumably) too weak to mention. A year ago, Motorola announced it had sold 250,000 units of its then-new Android tablet, the Xoom. Last quarter, Motorola said it had sold 1 million for the entire year of 2011. This quarter, tablets didn’t even make the press release.
Fortunately for Google, investors seem to have priced Motorola’s mediocrity into its stock price — the stock has barely moved after hours.
Also, this is probably the last quarter Motorola Mobility will report as an independent company, meaning that Google can bury these losses in its financial reporting starting next quarter, if it wants to.