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Posts Tagged ‘1 Billion’

Mobile porn revenue to reach almost $1 billion by 2015

Friday, May 4th, 2012

Mobile porn revenue to balloon

Juniper Research’s latest report estimates that mobile adult content subscriptions will reach nearly $1 billion by 2015, led by increased growth in the smartphone and tablet markets, along with the availability of increasingly faster mobile data connections. The firm states that tablets offer a “more engaging experience,” allowing users to see content in more detail and delivering more browsing options. The porn industry still faces many hurdles in emerging markets, however, due to the limitations of low-end smartphones, lack of viable payment methods and legal and social barriers. North America and Western Europe are expected to account for over 70% of the total end-user mobile adult revenues, and the numbers of individual who use adult video chat services will more than triple by 2015, accounting for more than half of all mobile porn revenue.

[Via IntoMobile]

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Draw Something begins to lose its appeal

Wednesday, May 2nd, 2012

Draw Something loses appeal

OMGPOP launched Draw Something on February 6th and within seven weeks, the game soared to 35 million users while serving almost 1 billion ad impressions per day. The turn based Pictionary-style game soon became the most popular Facebook Connect game, beating out Zynga’s Words With Friends, and also the No.1 free app and No.1 paid app on both the iOS App Store and the Google Play marketplace for Android. Zynga noticed the success of Draw Something and quickly acquired OMGPOP and its team for more than $200 million. The sale may have been premature, however, as Draw Something’s user base is beginning to decline, The Atlantic Wire reports. The number of users who play the game on a daily basis has dropped from nearly 15 million users to 10 million, although the number of monthly users has stayed consistent, according to information from App Data. The crumbling daily user figures could spell trouble for Zynga, but it looks like the timing couldn’t have worked out better for OMGPOP, which seemingly managed to cash in at precisely the right time.

[Via The Atlantic Wire]

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Motorola posts $86 million Q1 loss, tops revenue estimates

Tuesday, May 1st, 2012

Motorola posts $86 million Q1 loss

Motorola Mobility on Tuesday reported its financial results for the first quarter. The struggling vendor managed $3.08 billion in sales, narrowly topping Wall Street’s $3.03 billion revenue estimates as Motorola continued to work toward the finalization of Google’s $12.5 billion acquisition. Motorola’s loss of $0.28 per share, or $86 million, missed analysts’ consensus by a penny per share, however. Revenue from the company’s mobile division increased 3% as Motorola shipped 5.1 million smartphones in the quarter, but total device shipments slid to 8.9 million units as demand dropped following the holidays. ”The introduction of RAZR MAXX marked another successful addition to the Motorola product family and contributed to our growth in smartphones,” Motorola Mobility CEO Sanjay Jha said. “Our Home business delivered another solid quarter highlighted by improvement in year-over-year profitability. We continue to work closely with Google to complete the proposed merger during the first half of the year.” Motorola’s full press release follows below.

Motorola Mobility Announces First Quarter Financial Results

LIBERTYVILLE, Ill., May 1, 2012 /PRNewswire/ –

First Quarter Financial Highlights

  • Net revenues of $3.1 billion
  • Non-GAAP net loss of $0.03 per share compared to net loss of $0.08 per share in first quarter 2011; GAAP net loss of $0.28 per share compared to net loss of $0.27 per share in first quarter 2011
  • Mobile Devices net revenues of $2.2 billion; Non-GAAP operating loss of $85 million; GAAP operating loss of $121 million
  • Shipped 8.9 million mobile devices, including 5.1 million smartphones
  • Home net revenues of $884 million; Non-GAAP operating earnings of $91 million; GAAP operating earnings of $68 million

Click here for printable press release and financial tables.

Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.1 billion in the first quarter of 2012, up 2 percent compared to the first quarter of 2011. The GAAP net loss in the first quarter of 2012 was $86 million, or $0.28 per share, compared to a net loss of $81 million, or $0.27 per share, in the first quarter of 2011. On a non-GAAP basis, the net loss in the first quarter 2012 was $10 million, or $0.03 per share, compared to a net loss of $25 million, or$0.08 per share, in the first quarter of 2011.

The Company had operating cash outflow of $98 million in the first quarter. Total cash at the end of the quarter was $3.5 billion and includes cash, cash equivalents, and cash deposits.

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 introduction of RAZR™ MAXX marked another successful addition to the Motorola product family and contributed to our growth in smartphones. Our Home business delivered another solid quarter highlighted by improvement in year-over-year profitability,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. “We continue to work closely with Google to complete the proposed merger during the first half of the year.”

Operating Results

Mobile Devices net revenues in the first quarter were $2.2 billion, up 3 percent compared with the year-ago quarter. The GAAP operating loss was $121 million compared to an operating loss of $89 million in the year-ago quarter. The non-GAAP operating loss was $85 million compared to an operating loss of$61 million in the year-ago quarter. The Company shipped a total of 8.9 million mobile devices in the first quarter, including 5.1 million smartphones.

Mobile Devices highlights:

  • Launched RAZR™ MAXX, the longest-lasting 4G LTE smartphone, allowing customers to talk for over 21 hours on a single charge, and DROID 4 by Motorola, the thinnest and most powerful 4G LTE QWERTY smartphone.
  • Expanded budget-friendly smartphone portfolio in China, Europe, and Latin America with the introduction of MOTOLUXE, a slim touchscreen device and Motorola DEFY MINI, the ideal “life proof” device for the active consumer.
  • Teamed up with Bubba Watson, four time PGA Tour winner, including the 2012 Masters  to introduce MOTOACTV Golf Edition, a cutting-edge GPS golf tracker, virtual caddy and online clubhouse.

Home segment net revenues in the first quarter were $884 million, down 2 percent compared with the year-ago quarter. GAAP operating earnings improved to$68 million, compared to $53 million in the year-ago quarter. Non-GAAP operating earnings were $91 million compared to $81 million in the year-ago quarter.

Home highlights:

  • Introduced Connected Home Gateway, the industry’s first plug-and-play solution for home monitoring and control services.
  • Provided equipment and services to Asian Broadcasting Network for launch of Malaysia’s most advanced digital cable TV network.
  • Industry recognition of our Medios multi-screen software portfolio including SecureMedia® named “Best Rights and Asset Management Solution” at 2012 IPTV World Forum.
  • Announced global distributor and integrator agreement with Edgecast’s Content Delivery Network platform, enabling advanced multi-screen service delivery to consumers.

Merger Update

As previously announced on August 15, 2011, Motorola Mobility and Google Inc. (“Google”) (NASDAQ: GOOG) entered into a definitive agreement for Google to acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion.

Motorola Mobility and Google continue to work closely with the authorities in China for approval on the acquisition. The transaction has been investigated and cleared without conditions in all other jurisdictions with pre-closing clearance requirements. We continue to expect the transaction to close during the first half of 2012.

For more information on the proposed merger, please visit http://investors.motorola.com.

Conference Call and Webcast
In light of the pending acquisition of the Company by Google, the Company does not conduct a financial analyst conference call or webcast following the release of its earnings information nor provide financial guidance. To access the first quarter results and other financial information, please visithttp://investors.motorola.com.

Consolidated GAAP Results
A comparison of results from operations is as follows:

First Quarter
(In millions, except per share amounts) 2012 2011
Net revenues $3,078 $3,032
Gross margin 754 755
Operating loss (70) (36)
Loss before income taxes (69) (51)
Net loss ($86) ($81)
Basic loss per common share ($0.28) ($0.27)
Diluted loss per common share ($0.28) ($0.27)
Weighted average common shares outstanding
    Basic 302.4 294.7
    Diluted 302.4 294.7

Non-GAAP Adjustments for first quarter 2012 and 2011

First Quarter
Per Share Impact 2012 2011
GAAP Loss per Common Share ($0.28) ($0.27)
Merger-related costs * 0.06 ——
Stock-based compensation expense 0.16 0.14
Intangible assets amortization expense 0.04 0.05
Total Non-GAAP Adjustments ** 0.25 0.19
Non-GAAP Loss per Common Share ($0.03) ($0.08)

Definitions

*  Merger-related costs primarily consisting of legal and banking fees.

** Earnings or loss per share (EPS) impact may not add up due to rounding.

Use of Non-GAAP Financial Information
In addition to the GAAP results included in this presentation, Motorola Mobility also has included non-GAAP measurements of results. Motorola Mobility has provided these non-GAAP measurements to help investors better understand Motorola Mobility’s core operating performance, enhance comparisons of Motorola Mobility’s core operating performance from period to period, and allow better comparisons of Motorola Mobility’s operating performance to that of its competitors. Among other things, the Company’s management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results, excluding these items, because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the Company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.

Non-GAAP adjustments are comprised of the following items:

Merger-related costs: The Company has excluded the effects of merger-related costs from its non-GAAP operating expenses and net income measurements because the Company believes that this item does not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the Company’s current operating performance or comparisons to the Company’s past operating performance.

Stock-based compensation expense: The Company has excluded stock-based compensation expense from its non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our employees and the Company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues – the Company continues to evaluate its performance excluding stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-based compensation expense will recur in future periods.

Intangible assets amortization expense: The Company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net income measurements, primarily because it represents a significant non-cash expense and because the Company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the Company’s acquisitions. Investors should note that the use of intangible assets contributed to the Company’s revenues earned during the periods presented and will contribute to the Company’s future period revenues as well. Intangible assets amortization expense will recur in future periods.

Details of the above non-GAAP adjustments and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found in the financial tables.

Business Risks

Motorola Mobility cautions the reader that this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements include, but are not limited to, the expected closing date of the proposed Google transaction and the expected timeframe for regulatory decisions. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements including, but not limited to, the ability of the parties to consummate the proposed transaction and the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory and other approvals at all or in a timely manner; and the other risks and uncertainties contained and identified in Motorola Mobility’s filings with the Securities and Exchange Commission (the “SEC”), any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Motorola Mobility undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances or update the reasons that actual results could differ materially from those anticipated in forward-looking statements, except as required by law.

 

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Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays

Friday, April 27th, 2012

Sharp posts $1.4 billion extraordinary loss for 2011 - 2012, sees writing on wall in high definitionSharp has reported an extraordinary loss of 117.1 billion yen ($1.4 billion) for the financial year ending March 2012. The company has cited restructuring costs and inventory losses as the causes for the write-down, but also projected that its TV business would lose a further 18.7 percent of its projected sales in the current year. The company has decided to convert some of its big-screen LCD production lines into mobile LCDs as it tries to reassert its dwindling display business. It’s yet more bad news after the company sold part of its LCD manufacturing business to Hon Hai, Sony withdrew from a joint venture and refused to deal with Sharp in the future, plus an 86 percent collapse in profits.

Continue reading Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays

Sharp posts $1.4 billion extraordinary loss, refocuses on mobile displays originally appeared on Engadget on Fri, 27 Apr 2012 04:20:00 EDT. Please see our terms for use of feeds.

Permalink Reuters  |  sourceSharp  | Email this | Comments

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Apple and Greenpeace Trade Blows in Data Center Grudge Match [Apple]

Thursday, April 19th, 2012

Introducing the original iPAD, Proview’s late ’90s iMac-like desktop

Saturday, February 18th, 2012
iPAD

So, have you been following the iPad dispute in China? Wondering exactly who or what this Proview company is and what they’re doing with a trademark on the iPad name? Well, wonder no more friends. The company actually stylized the name as iPAD, and it stood for Internet Personal Access Device. They hit the market way back in 1998 and weren’t tablets, but all-in-one PCs that looked an awful lot like another machine that debuted that year — the iMac. Over the course of a decade Proview produced between 10,000 and 20,000 of he 15-inch CRT desktops, before collapsing in 2010 and abandoning its Shenzhen plant, thanks in part to the economic crisis engulfing the globe. Most of its assets, including the iPAD trademark are now the property of eight different banks and it’s debts exceed $1 billion, which probably explains why the company is demanding so much money from Apple. For more details about the original iPAD and a photo tour of the deserted factory hit up the source links.

Introducing the original iPAD, Proview’s late ’90s iMac-like desktop originally appeared on Engadget on Sat, 18 Feb 2012 09:37:00 EDT. Please see our terms for use of feeds.

Permalink MIC Gadget 1, 2  |  sourceNetEase (Translated), WSJ, Sina (translated)  | Email this | Comments

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Foxconn owner Hon Hai reports huge revenue growth in January

Wednesday, February 15th, 2012

Hon Hai Precision Industry Company, Ltd., parent company of original device manufacturer Foxconn, reported huge revenue growth of nearly 50% for the month of January, Taiwan Economic News reports. The manufacturing giant enjoyed performance that beat forecasts last month, with revenue ballooning 47.9% year-on-year to NT$274.6 billion, or approximately $9.1 billion USD. Revenue was down 13.3% sequentially after a big December capped off a hot holiday quarter, but the seasonal decline was expected and well below the average 20% fall off Hon Hai typically sees between December and January. Hon Hai’s nearest competitor Quanta Computer saw revenue grow 2% to NT$78.3 billion in January, and rival Compal Electronics reported a dip of 22% to NT$43.7 billion in January.

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Tablet sales expected to reach 248.6 million units by 2015, smartphones sales to hit 1 billion

Friday, February 10th, 2012

Global tablet sales reached 67 million units in 2011 and are expected to grow 38.8% annually to 248.6 million by the end of 2015, according to a new market report from Transparency Market Research. Led by Apple’s iPad, tablet sales increased 275.5% in 2011 from 17.8 million units sold in 2010. Smartphone sales in 2011 hit 468.9 million units, a 66.7% increase over 2010 sales of 282 million units, and sales are expected to reach 1.05 billion in 2015 with Asia accounting for 39.5% of the market. Smartphone sales in the fourth quarter of 2011 beat the combined sales from the full year of 2008, the report notes. The leap in sales was largely driven by consumer and enterprise adoption of the iPhone 4S, which shipped more than 36 million units in the quarter. Read on for Transparency Market Research’s press release.

Tablet Sales to End Users is Expected to Reach 248.6 Million Units by 2015, Smartphones Sales to End Users Will Reach 1,048.0 Million Units by 2015: Transparency Market Research

ALBANY, New York, February 8, 2012/PRNewswire/ –

According to a new market report published by Transparency Market Research (http://www.transparencymarketresearch.com) “Tablet Market and Smartphones Market: Global Database & Forecast (2010 – 2015) [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ]“, Global Tablet sales to end users reached 67.0 million units in 2011 and is expected to reach 248.6 million units by the end of 2015, growing at a CAGR of 38.8% from 2011 to 2015. Asia – Pacific (including Japan) is expected to enjoy the highest share of overall global shipments and end user sales of Tablets at 36.1% and 35.3% respectively in 2015.

In 2011, Smartphone sales to end users reached 469.9 million units, registering a growth of 66.7% over 2010 sales of 282.0 million units. The Smartphone sales to end user are expected to reach 1,048.0 million units by 2015 with Asia – Pacific accounting for the largest market share at 39.5%. Asia Pacific is also expected to enjoy the highest growth rate at a CAGR of 36.3% from 2010 to 2015.

Browse the database at http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html

The Tablet sales to end user increased by 276.5% in 2011 from 17.8 million units sold to end users in 2010. Globally, the installed base of Tablet devices have reached 81.2 million units in 2011 and expected to reach 388.8 million units by the end of 2015. This represents approximately 45% replacement/loss rate by the same year.

Form factor plays crucial role in adoption of Tablet devices. Our research indicates that consumer purchased the largest number of Tablet devices with screen size ranging 8 Inch and 10 Inch; whereas devices weighed between 450g and 900g (1 lb – 2 lbs) had the highest share of overall sales of tablet devices. Consumer segment is the largest adopter of media Tablet devices, while business users prefer communicators. Media Tablets is expected to remain the largest Tablet device segment with over 60% sales share in 2015, while hybrid segment will account for more than one-fourth of the sales in the same year. Continue reading here [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ].

Smartphones are becoming more ubiquitous communication devices among all user segments with almost 75% of smartphone consumer (individual) subscriber use their smartphones for personal as well as business purposes. Moreover, 65% of global SMBs now allow employee owned smartphone for official use. This acted as the strong booster for Smartphone market growth. The smartphones market [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ] grew by 66.7% during last year and sales reached to 469.9 million units in 2011. Smartphone sale in 4Q2011 alone crossed the combined sales of all the four quarters of 2008. This leap in sales came on account of consumer as well as enterprise adoption of iPhone 4S, which posted 36.1 million units sales to end user in Q42011 alone. Continue reading here [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ].

This extensive database report covers quarterly sales to end users, installed base, revenue, ASP from 2009 to 2011 and forecast till 2015 for Tablets and Smartphones based on following segmentation.

Tablet Market Segmentation

- By Operating System

- iOS

- Android

- Windows

- Blackberry Tablet OS (QNX)

- By Vendors

- Apple

- Samsung

- HTC

- Dell

- RIM

- Amazon

- Motorola

- By Form Factors

- Weight

- Width

- Length

- Display Screen Size

- Thickness (depth)

- Users

- Business liable

- Consumer liable

- Personal Only

- Personal and Business

- Usability

- Media Tab

- Communicators

- Hybrid

- Geography

- North America

- Europe

- Asia – Pacific (including Japan)

- ROW

Smartphones Market Segmentation

- By Operating System

- Symbian

- iOS

- Android

- Windows Mobile

- Blackberry OS

- Bada

- By Vendors

- Nokia

- Apple

- Samsung

- HTC

- RIM

- By Form Factors

- Weight

- Width

- Length

- Display Screen Size

- Thickness (depth)

- Users

- Business liable

- Consumer liable

- Personal Only

- Personal and Business

- Usability

- Media Tab

- Communicators

- Hybrid

- Geography

- North America

- Europe

- Asia – Pacific (including Japan)

- ROW

- Input Type

- Touchscreen

- Keyboard

- Keypad

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Nokia Siemens Networks to lay off more than 4,000 workers in Europe

Wednesday, February 1st, 2012

Nokia Siemens Networks recently announced that it will cut as many as 1,200 jobs in Finland and lay off another 2,900 workers in Germany as it begins to restructure the company. Both Nokia and Siemens originally tried to sell the joint venture, which has struggled to report a profit, but gave up those plans this past summer. The move is expected to save €1 billion per year, Reuters said Tuesday. Nokia Siemens Networks is the second larger maker of phone network equipment in the world behind Ericsson, and the joint venture was originally created to help both Siemens and Nokia better compete on a global scale. Nokia Siemens Networks originally said that it plans to cut as many as 17,000 jobs by 2013

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Motorola posts $80 million Q4 loss; ships 10.5 million mobile devices including 200,000 tablets

Thursday, January 26th, 2012

Motorola Mobility on Thursday announced the company’s results for the fourth quarter last year. The vendor managed $3.4 billion in revenue but posted a net loss of $80 million, or $0.27 per share. Motorola posted a profit of $0.27 per share in the same quarter a year earlier. For the full year, the company’s revenue totaled $13.1 billion, up 14% compared to 2010, and it reported a net loss was $0.84 per share compared to a loss of $0.29 per share in 2010. Motorola shipped 10.5 million mobile devices in the fourth quarter, including 200,000 tablets, and full-year device shipments totaled 42.4 million units. Motorola Mobility’s full press release follows below.

Motorola Mobility Announces Fourth Quarter and Full-Year Financial Results

LIBERTYVILLE, Ill., Jan. 26, 2012 /PRNewswire/ –

Fourth Quarter Financial Highlights

  • Net revenues of $3.4 billion
  • Non-GAAP net earnings of $0.20 per share compared to net earnings of $0.37 per share in fourth quarter 2010; GAAP net loss of $0.27 per share compared to net earnings of$0.27 per share in fourth quarter 2010
  • Mobile Devices net revenues of $2.5 billion, up 5 percent from fourth quarter 2010; Non-GAAP operating loss of $19 million; GAAP operating loss of $70 million
  • Shipped 10.5 million mobile devices, including 5.3 million smartphones
  • Home net revenues of $897 million, down 11 percent from fourth quarter 2010; Non-GAAP operating earnings of $84 million; GAAP operating earnings of $57 million

Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.4 billion in the fourth quarter of 2011, comparable to the fourth quarter of 2010. The GAAP net loss in the fourth quarter of 2011 was $80 million, or $0.27 per share, compared to net earnings of $80 million, or $0.27 per share, in the fourth quarter of 2010. On a non-GAAP basis, net earnings in the fourth quarter 2011 were $61 million, or $0.20 per share, compared to net earnings of $108 million, or $0.37 per share, in the fourth quarter of 2010.

For the full year, 2011 net revenues were $13.1 billion, up 14 percent compared to 2010. For the full year, the GAAP net loss was $0.84 per share compared to a loss of $0.29 per share in 2010. On a non-GAAP basis, net earnings were $0.33 per share compared to a loss of $0.28 per share in 2010.

The Company generated positive operating cash flow of $225 million and $357 million in the fourth quarter and full year, respectively. Total cash at the end of the quarter was $3.6 billion and includes cash, cash equivalents, and cash deposits.

Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this press release and in the financial tables.

“In the fourth quarter, we received very positive consumer response to Motorola RAZR, which combined an iconic brand with ultra-thin in an innovative smartphone.  Our Home business continues to be a leader in the industry’s transformation to all IP, with unique solutions that enable rich media experiences across any screen,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. “We remain energized by the proposed merger with Google and continue to focus on creating innovative technologies.”

Operating Results

Mobile Devices net revenues in the fourth quarter, impacted by the increased competitive environment, were $2.5 billion, up 5 percent compared with the year-ago quarter. The GAAP operating loss was $70 million compared to operating earnings of $72 million in the year-ago quarter. The non-GAAP operating loss was $19 million compared to operating earnings of $56 million in the year-ago quarter. For the full year 2011, net revenues were $9.5 billion, an increase of 22 percent compared to 2010. The 2011 GAAP operating loss was$285 million compared to an operating loss of $76 million in 2010. The 2011 non-GAAP operating loss was $126 million compared to an operating loss of $198 million in 2010.

The Company shipped a total of 10.5 million and 42.4 million mobile devices in the fourth quarter and full year 2011, respectively. This included 5.3 million and 18.7 million smartphones and approximately 200 thousand and 1 million tablets in the fourth quarter and full year, respectively.

Mobile Devices highlights:

  • Launched Motorola RAZR extending the iconic RAZR brand around the world
  • Announced DROID RAZR MAXX, featuring twice as much battery life as the leading competitor and measuring only 8.99 millimeters
  • Unveiled the award-winning DROID 4 by Motorola, the thinnest and most powerful 4G LTE QWERTY smartphone featuring a five-row keyboard and edge-lit keys
  • Introduced two new 4G LTE tablets, the DROID XYBOARD 10.1 and XYBOARD 8.2.
  • Announced the “life proof” Motorola DEFY MINI and slim MOTOLUXE, two new value priced additions to Motorola’s growing budget-friendly portfolio
  • Shipped award-winning MOTOACTV, the world’s first combined GPS fitness tracker and MP3 player
  • Launched two flagship devices in China – the TD-SCDMA Motorola MT917 and the Motorola XT928, a dual-core, dual-mode, dual-standby smartphone

Home segment net revenues in the fourth quarter were $897 million, down 11 percent compared with the year-ago quarter. GAAP operating earnings were $57 million, compared to$54 million in the year-ago quarter. Non-GAAP operating earnings were $84 million compared to $90 million in the year-ago quarter. Fourth quarter set-top shipments were down 3 percent compared to the year-ago quarter. For the full year 2011, net revenues were $3.5 billion, compared to $3.6 billion in 2010. GAAP operating earnings increased to $226 millionfrom $152 million in 2010. The 2011 non-GAAP operating earnings increased to $332 million from $272 million in 2010. Full year set-top shipments were up 6 percent compared to 2010.

Home highlights:

  • Launched DreamGallery next-generation HTML-5 video navigation software in North America with Shaw Communications
  • Expanded video leadership and paved the way for Canada’s move to all-MPEG-4 broadcast and On-Demand HD services with Eastlink
  • Demonstrated market leadership with introduction of new carrier Ethernet product line for the deployment of cost-effective commercial services
  • Introduced Motorola APEX3000, which delivers market-leading density to cost-effectively add greater demand for narrowcast services such as VOD and DVR
  • Selected by Altibox AS in Norway to provide VAP 2400 HD wireless video bridge to enable multi-room TV services

Merger Update

As previously announced on August 15, 2011, Motorola Mobility and Google Inc. (“Google”) (NASDAQ: GOOG) entered into a definitive agreement for Google to acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion.  On November 17, 2011, Motorola Mobility stockholders voted overwhelmingly to approve the proposed merger with Google at the Company’s Special Meeting of Stockholders.  The Company continues to work closely 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. Antitrust clearances, or waiting period expirations, are required by the U.S. Department of Justice (DOJ), by the European Commission, and in Canada, China, Israel, Russia, Taiwan and Turkey. Requisite filings have been submitted to the appropriate regulatory body in each of these jurisdictions. Clearances have been received in Turkey and Russia. In Canada and the United States, the statutory waiting period for the transaction has expired although the parties have been informed that the reviewing agencies have not closed their respective investigations.  In December 2011, the Chinese Ministry of Commerce proceeded to phase two of its investigation.  In February, the European Commission is expected to announce whether it will close its investigation or proceed to a phase two investigation.

The Company currently expects the transaction to close in early 2012 once all conditions have been satisfied and reminds stockholders that it is possible that the failure to timely meet such conditions or other factors outside of the Company’s control could delay or prevent completion of the transaction altogether.

For more information on the proposed merger, please visit http://investors.motorola.com.

Conference Call and Webcast

In light of the pending acquisition of the Company by Google, the Company does not conduct a financial analyst conference call or webcast following the release of its earnings information nor provide financial guidance. To access the fourth quarter results and other financial information, please visit http://investors.motorola.com.

Consolidated GAAP Results

A comparison of results from operations is as follows:

Fourth Quarter Full Year
(In millions, except per share amounts) 2011 2010 2011 2010
Net revenues $3,436 $3,425 $13,064 $11,460
Gross margin 854 915 3,317 2,965
Operating earnings (loss) (78) 126 (142) 76
Earnings (loss) before income taxes (78) 110 (148) (4)
Net earnings (loss) attributable to Motorola Mobility Holdings, Inc. ($80) $80 ($249) ($86)
Basic earnings (loss) per common share * ($0.27) $0.27 ($0.84) ($0.29)
Diluted loss per common share* ($0.27) N/A ($0.84) N/A
Weighted average common shares outstanding
   Basic 300.2 294.3 297.1 294.3
   Diluted 300.2 N/A 297.1 N/A

Non-GAAP Adjustments for fourth quarter and full year 2011 and 2010

Fourth Quarter
Per Share Impact 2011 2010
GAAP Earnings (Loss) per Common Share * ($0.27) $0.27
Merger-related costs** 0.22 ——
Reorganization of business charges 0.09 0.06
Stock-based compensation expense 0.12 0.14
Intangible assets amortization expense 0.04 0.05
Joint venture wind-down costs —— 0.03
IP settlement —— (0.19)
Total Non-GAAP Adjustments *** 0.47 0.10
Non-GAAP Earnings per Common Share * $0.20 $0.37
Full Year
Per Share Impact 2011 2010
GAAP Loss per Common Share * ($0.84) ($0.29)
Merger-related costs** 0.28 ——
Reorganization of business charges 0.09 0.20
Stock-based compensation expense 0.52 0.55
Intangible assets amortization expense 0.20 0.19
Legal claim provision 0.07 ——
Joint venture wind-down costs —— 0.03
Legal settlement —— (0.77)
IP settlement —— (0.19)
Total Non-GAAP Adjustments *** 1.16 0.01
Non-GAAP Earnings (Loss) per Common Share * $0.33 ($0.28)

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Sterne Agee: RIM still a solid acquisition target, but only at a discount

Wednesday, January 18th, 2012

Struggling smartphone vendor Research In Motion is still a solid takeover target according to a new report, but only at a deep discount below RIM’s already low market value. RIM has lost 75% of its value over the past year but Sterne Agee analyst Shaw Wu says RIM’s true value lies below its current market capitalization, which sits at approximately $8.7 billion. Logical buyers according to Wu include Samsung — though the company has gone on record instating it is not interested in acquiring RIM — as well as Amazon, Microsoft and maybe even Facebook. Read on for more.

“While we believe there is some intrinsic value in RIMM as an acquisition target with its 75 million subscribers, patent portfolio, BlackBerry OS, and push network, we are unsure if a price of over $10 billion makes sense,” Wu wrote in a note to investors on Wednesday. “Currently, the company has a market capitalization of $9.2 billion, meaning upside could be limited.”

Breaking down RIM’s worth to potential buyers, the analyst sees $5 billion to $7 billion in real value, or between $9 and $13 per share. “We believe its most valuable assets are arguably its patent portfolio and BlackBerry Messenger (BBM) app,” Wu wrote. “We estimate its patent portfolio could be worth $2-$3 billion assuming the prices that an AAPL led team paid (which RIMM was part of) for Nortel assets and GOOG for MMI. For BBM with its 45 million users, we estimate it could be worth $2-$3 billion.”

Wu continued, noting that RIM’s push network and BlackBerry OS likely wouldn’t have much value in a market dominated by Google and Apple. “We believe the value of its push network and BlackBerry OS are more questionable given competitive issues both have had in the marketplace but nonetheless, we assign a value of $1 billion (the price paid for PALM). This gives us a valuation of $5-$7 billion, meaning a stock price of $9-$13, which is a bit below where it is currently trading.”

Sterne Agee reiterated its Neutral rating on RIM stock with no price target.

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