Motorola Mobility posts net profit in Q410 and slashes annual losses

Motorola Mobility, the standalone handset division of Motorola, reported a 21 percent rise in its fourth-quarter revenues to US$3.4 billion. Net profits were US$80 million, compared to a loss of US$204 million in the fourth quarter of 2009.

For the full year, 2010 net revenues were US$11.5 billion, up four per cent compared to 2009, while the net loss was reduced to US$86 million from US$1.34 billion in 2009.

The company generated positive operating cash flow of US$225 million and US$606 million in the quarter and full year, respectively. As planned, subsequent to the end of the quarter, the company received US$3.2 billion in cash related to its separation from Motorola.

"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 CEO of Motorola Mobility. "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."

Jha says, "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 US$2.4 billion, up 33 per cent compared with the year-ago quarter. GAAP operating earnings were US$72 million compared to an operating loss of US$166 million in the year-ago quarter. For the full year 2010, net revenues were US$7.8 billion, an increase of nine per cent compared to 2009. The 2010 GAAP operating loss was reduced to US$76 million from an operating loss of US$1.2 billion in 2009.

The company shipped 4.9 million and 13.7 million smartphones in the quarter and full year, respectively, compared to two million in the fourth quarter 2009. Motorola shipped total handsets (including smartphones) of 11.3 million and 37.3 million in the quarter and full year 2010, respectively.

Home segment net revenues in the fourth quarter were US$1 billion, up one per cent compared with the year-ago quarter. GAAP operating earnings were US$54 million, compared to an operating loss of US$30 million in the year-ago quarter. For the full year 2010, net revenues were US$3.6 billion, compared to US$3.9 billion in 2009.

Motorola Mobility expects to make a net loss of between US$26 – US$62 million in the quarter, although consolidated operating earnings should roughly breakeven.