Motorola Flops Q4, Cost Cuts Coming

Motorola’s Q4 revenue was as expected–terrible–with the critical handset division shrinking 38% year over year and losing $388 million. The company says the handset turnaround will take longer than expected, and it is now “rationalizing its cost structure” to compensate. The Q1 guidance was lousy.

Overall, the company slightly exceeded Street revenue and EPS expectations–$9.65 billion vs. $9.0, $0.14 vs. the $0.13 expected (the company reported $0.04 before one-time items).

On the positive side, the $2.8 billion cable box business grew modestly–11%–and the enterprise mobility business jumped 35% thanks to the Symbol acquisition. The company also generated $330 million of free cash flow.

Motorola’s stock is now trading at the same level as in 1993.

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