Motorola Posts Dismal Q1

From Silicon Alley Insider: Motorola (MOT) had a terrible Q1. Mobile sales dropped 39% year-over-year and the company missed the Street’s already lowered expectations for revenue.

Motorola reported $7.45 billion in Q1 sales, down 21% year-over-year and missing the Street’s $7.75 billion consensus. The struggling mobile phone maker posted a $194 million loss, or 9 cents per share, worse than its $181 million loss during Q1 2007. Excluding costs from job cuts, the company posted a 5 cents per share loss — 2 cents better than the 7 cents per share loss the Street was expecting.

The company sold 27.4 million phones last quarter, down 40% from 45.4 million a year ago. Mobile revenue dropped 39% year-over-year to $3.3 billion, and the division’s Q1 operating loss widened 79% year-over-year to $418 million.

The rest of Motorola’s business did better. Particularly strong: “Enterprise Mobility Solutions,” whose sales increased 5% year-over-year to $1.8 billion, and operating earnings jumped 91% year-over-year to $250 million.

Motorola’s Q2 guidance stinks, too: The company expects to post a 2 cents to 4 cents loss, worse than the 1 cent loss the Street predicted.

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