Motorola Q4 As Bad As Expected, CFO Out After Less Than A Year (MOT)

We already knew that struggling mobile phone maker Motorola (MOT) had a forgettable Q4, thanks to a warning a few weeks ago. So the more interesting news this morning is:

  • Q1 will be worse than expected. Motorola expecting adjusted EPS loss of -$0.10 to -$0.12 per share, below -$0.06 consensus.
  • Motorola’s “dealmaker” CFO Paul Liska is out after less than a year. Corporate Controller Edward J. Fitzpatrick will take his place temporarily while a new CFO is found. No explanation given for the departure, other than a canned quote: “We appreciate the contributions Paul made toward the Company’s planned separation and in managing our cost-reduction activities.”
  • The company is (smartly) scrapping its dividend.

Overall, Motorola lost -$0.01 adjusted per share, roughly in line with the $0.00 analysts expected. And sales came in at $7.14 billion, roughly in line with the $7.15 billion Street consensus, based on Motorola’s mid-January forecast of $7.0-7.2 billion in sales.

Motorola’s non-mobile phone businesses seem to have done OK: Home and networks mobility — set-top boxes, etc. — sales were $2.6 billion, down 5% year-over-year but ahead of Citi analyst Jim Suva’s expectations. Enterprise mobility sales were $2.2 billion, up 4% year-over-year, and in line with expectations.

Update: Here’s a few stories based on this morning’s earnings call:

  • Motorola mobile phone Spinoff Still Happening… Someday
  • Motorola Betting On ‘Social Networking’ Software To Sell Android Phones
  • Motorola: Google Android Better Than Microsoft Windows Mobile

See Also:
Motorola Earnings Preview: How’s That mobile phone Spinoff Going?
Motorola Blows Q4, Firing 4,000 More
Motorola Demotes Windows Mobile, Fires Staff

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