Motorola reports US$3.6B loss as phone sales fall by half

Motorola reported a net loss of US$3.6 billion, or US$1.57 per share, for the fourth quarter, attributing much of it to tax charges and goodwill write-downs.

The company reported revenue for the quarter of US$7.14 billion, down 26 per cent from a year earlier, with the biggest decline in its mobile phone division, where revenue fell 51 per cent to US$2.35 billion.

Charges relating to business reorganization accounted for a loss of US$0.05 per share. Motorola says it expects these and other reorganization measures will help it save around US$1.5 billion this year.

Looking ahead, Motorola said that through the first quarter it expected losses to continue at between US$0.10 and US$0.12 per share, excluding the cost of reorganization, but did not comment on the period after that.

The company has suspended the payment of dividends until further notice.

Motorola also said it is looking for a new CFO, after the previous post holder, Paul J. Liska, resigned. The company has appointed its corporate controller Edward J. Fitzpatrick as interim CFO.

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