Motorola Mobility expects to miss Q4 forecasts

Motorola Mobility has said it expects to miss its earlier forecasts for its Q411 revenues and profits. Although the company has not finalised its financial results for the fourth quarter, it estimates sales of US$3.4 billion with modest profitability on a non-GAAP basis.

These estimates include shipments of approximately 10.5 million mobile devices, of which approximately 5.3 million were smartphones.

Motorola Mobility’s fourth quarter results were impacted by the increased competitive environment in the mobile device business and higher legal costs associated with ongoing intellectual property (IP) litigations.

The company estimates sales of US$900 million for the Home business in the fourth quarter. Motorola Mobility will issue its Q4 earnings results on January 26, 2012.

The company continues to work with Google to complete the proposed acquisition of Motorola Mobility as expeditiously as possible. The company notes that the transaction remains subject to various closing conditions, and currently expects the transaction to close in early 2012 once all conditions have been satisfied.