Motorola Mobility Announces Fourth-Quarter and Full-Year 2010 Financial Results
Fourth Quarter Financial Highlights
Jan. 26, 2011
* Revenues of $3.4 billion, up 21 percent from fourth quarter 2009
* GAAP earnings of .27 per share; non-GAAP earnings of .37 per share
* Mobile Devices net revenues of $2.4 billion, up 33 percent from fourth quarter 2009; shipped 4.9 million smartphones; GAAP operating earnings of $72 million; non-GAAP operating earnings of $56 million
* Home net revenues of $1.0 billion; GAAP operating earnings of $54 million; non-GAAP operating earnings of $90 million
* Operating cash flow generation of $225 million
Click here for printable press release and financial tables.
LIBERTYVILLE, Ill. – Jan. 26, 2011 – Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.4 billion in the fourth quarter of 2010, up 21 percent from the fourth quarter of 2009. The GAAP earnings in the fourth quarter of 2010 were $80 million, or .27 per share, compared to a loss of $204 million, or .69 per share, in the fourth quarter of 2009. On a non-GAAP basis, earnings in the fourth quarter of 2010 were $108 million, or .37 per share, compared to a loss of $70 million, or .24 per share, in the fourth quarter of 2009.
For the full year, 2010 net revenues were $11.5 billion, up 4 percent compared to 2009. For the full year, the GAAP loss was reduced to .29 per share from a loss of $4.56 per share in 2009. On a non-GAAP basis, the loss was reduced to .28 per share from a loss of $2.95 per share in 2009.
Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this press release and in the financial tables.
The Company generated positive operating cash flow of $225 million and $606 million in the quarter and full year, respectively. As planned, subsequent to the end of the quarter, the Company received $3.2 billion in cash related to its separation from Motorola, Inc.
"The improvement in our financial results last year, including profitability in the fourth quarter, is indicative of the progress we have made in delivering innovative smartphones and improving the Mobile Devices business," said Sanjay Jha, chairman and chief executive officer of Motorola Mobility. "Our Home business performed well and remains a premier provider of digital set-tops and end-to-end video solutions. With the global opportunities ahead, along with our diversified portfolio, our brand, and our people, we are well positioned to grow, and further improve our financial results in 2011."
Mobile Devices segment net revenues in the fourth quarter were $2.4 billion, up 33 percent compared with the year-ago quarter. GAAP operating earnings were $72 million compared to an operating loss of $166 million in the year-ago quarter. Non-GAAP operating earnings were $56 million compared to an operating loss of $117 million in the year-ago quarter. For the full year 2010, net revenues were $7.8 billion, an increase of 9 percent compared to 2009. The 2010 GAAP operating loss was reduced to $76 million from an operating loss of $1.2 billion in 2009. The 2010 non-GAAP operating loss was reduced to $198 million from an operating loss of $923 million in 2009.
The Company shipped 4.9 million and 13.7 million smartphones in the quarter and full year, respectively, compared to 2.0 million in the fourth quarter and full year 2009. The Company shipped total handsets (including smartphones) of 11.3 million and 37.3 million in the quarter and full year 2010, respectively.
Mobile Devices highlights:
* Launched seven new smartphones in the fourth quarter, including the DROID PRO, DROID 2 Global, Motorola DEFY™, and Motorola BRAVO™, bringing our total smartphone launches for the year to 23.
* In the first quarter 2011, announced three new smartphones and the Company's first tablet which are garnering numerous accolades. Products include:
o Motorola ATRIX™ 4G, winner of CNET's Best Smartphone at CES (Consumer Electronics Show) award, featuring a dual-core processor, qHD pentile display and Motorola Mobility's proprietary webtop application that powers an ecosystem of accessories, enabling users to have an enhanced and more interactive computer-like experience with their device.
o Named "Best of Show" at CES 2011, Motorola XOOM™ is the first device to incorporate Android 3.0 Honeycomb, Google's powerful new operating system developed specifically for tablets; XOOM features a dual-core processor and high-definition 10.1 inch widescreen display.
o DROID™ BIONIC features a sleek design, and delivers the fastest mobile Internet experience with 4G LTE speeds that are up to 10 times faster than current 3G speeds.
o Motorola CLIQ 2™ with MOTOBLUR™, the follow-up to Motorola Mobility's first smartphone, features a 3.7-inch touch-screen display, a 1GHz processor and a new slide-out QWERTY keypad.
* Acquired Zecter, Inc., a leading start-up with synchronization and streaming technologies for on-demand digital media consumption.
Home segment net revenues in the fourth quarter were $1.0 billion, up 1 percent compared with the year-ago quarter. GAAP operating earnings were $54 million, compared to an operating loss of $30 million in the year-ago quarter. Non-GAAP operating earnings increased to $90 million from $71 million in the year-ago quarter. For the full year 2010, net revenues were $3.6 billion, compared to $3.9 billion in 2009. GAAP operating earnings increased to $152 million from $11 million in 2009. The 2010 non-GAAP operating earnings increased to $272 million from $197 million in 2009.
* Increased shipments of DVR set-tops reflecting consumer desire for personalized viewing experiences.
* Acquired 4Home, a leading provider of managed home solutions, to expand our cloud-based Motorola Medios service management software portfolio.
* Launched RX48 CMTS module, the industry's highest-density upstream DOCSIS solution.
* Launched a next-generation IP set-top for the EMEA market, extending our leadership position in IPTV.
First-Quarter 2011 Outlook
The Company's outlook for the first quarter of 2011 is the following:
* Consolidated operating earnings in a range around breakeven
* Non-operating costs of approximately $10 million
* Income tax provision of approximately $25 million
* Net loss of $26 million to $62 million
* Net loss per share of .09 to .21
* Basic shares outstanding of approximately 294 million shares
* Excludes charges associated with items of the variety typically highlighted by the Company in its quarterly earnings results, stock-based compensation expense and intangible assets amortization expense