Legit Reviews

LIBERTYVILLE, Ill. – July 28, 2011 – Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.3 billion in the second quarter of 2011, up 28 percent from the second quarter of 2010. The GAAP net loss in the second quarter of 2011 was $56 million, or .19 per share, compared to net earnings of $80 million, or .27 per share, in the second quarter of 2010. On a non-GAAP basis, the net earnings in the second quarter of 2011 were $26 million, or .09 per share, compared to a loss of $87 million, or .30 per share, in the second quarter of 2010.

Total cash at the end of the quarter was $3.2 billion and includes cash, cash equivalents and cash deposits, and operating cash flow was breakeven for the quarter.

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 second quarter, Mobile Devices launched several new smartphones in the U.S. and markets around the world. Revenues grew over 40 percent driven largely by Latin America and China where sales more than doubled year over year. Our Home business delivered another strong performance, and we introduced several innovative products and services for next generation multi-screen video solutions,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. “With a focus on profitable growth and delivering differentiated LTE smartphones and tablets, we expect to achieve profitability in Mobile Devices in the fourth quarter and for the full year 2011.”

Operating Results

Mobile Devices net revenues in the second quarter were $2.4 billion, up 41 percent compared with the year-ago quarter. The GAAP operating loss was $85 million compared to operating earnings of $87 million in the year-ago quarter. The non-GAAP operating loss was $31 million compared to an operating loss of $109 million in the year-ago quarter. The Company shipped a total of 11.0 million mobile devices, including 4.4 million smartphones and 440,000 Motorola XOOM™ tablets. In the second quarter of 2010, the company shipped 8.3 million mobile devices, including 2.7 million smartphones.

Mobile Devices highlights:

Expanded Motorola DROID family at Verizon Wireless with the introduction of DROID X2 and DROID 3 by Motorola both featuring a dual-core 1GHz processor, providing better gaming experiences, web browsing, multi-tasking, and Adobe® Flash® video performance
Launched 4 new smartphones in China, including the Motorola XT883 with China Telecom, the newest and most advanced member of the powerful Milestone™ product family, and the XT316, Motorola’s first value priced smartphone for emerging market consumers
Announced plans to launch 10 devices in 2011 with Sprint, including Motorola Photon™ 4G, Sprint’s first international smartphone, the ready-for business Motorola XPRT™ smartphone, the Motorola TITANIUM™ smartphone featuring iDEN technology, and Motorola TRIUMPH™, a value priced smartphone for prepaid customers on Virgin Mobile USA
Expanded distribution of the ATRIX™ 4G smartphone and Motorola XOOM tablets into Latin America, China, Korea, and Europe
Named exclusive U.S. launch marketing partner for mobile devices and tablets by Spotify. Spotify is an award-winning digital music service that gives users on-demand access to one of the world’s largest music libraries

Home segment net revenues in the second quarter were $907 million, up 2 percent compared with the year-ago quarter. GAAP operating earnings were $62 million, compared to $29 million in the year-ago quarter. Non-GAAP operating earnings increased to $90 million from $58 million in the year-ago quarter. The Company maintained its leadership in key markets with set-top shipments up more than 10 percent as compared to the year-ago quarter.

Home highlights:

Introduced Motorola Televation™, a broadband video device enabling consumers to watch live TV on a connected IP device anywhere around the home
Launched the Medios Xperience platform which enables operators to merge video content with social networking, games and web-based content, and deliver more interactive functionality with broadcast television and video-on-demand services
Selected by Time Warner Cable to develop a video gateway platform capable of delivering an advanced in-home entertainment experience and announced the DCX3600M, Motorola’s first video gateway device
Selected by ESPN to transition all programming for ESPN and ESPN-2 networks to an MPEG-4 HD format using Motorola’s video distribution solution

Third-Quarter and 2011 Outlook

The Company’s outlook for the third quarter and full year 2011 is the following:

Third-quarter net earnings per share of .00 to .10
2011 net earnings per share of .48 to .60
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

Consolidated GAAP Results

A comparison of results from operations is as follows:



Second Quarter

(In millions, except per share amounts)



2011



2010





Net revenues



$3,337



$2,609

Gross margin



864



664

Operating earnings (loss)



(23)



116

Earnings (loss) before income taxes



(17)



92

Net earnings (loss) attributable to Motorola Mobility Holdings, Inc.



($56)



$80





Basic earnings (loss) per common share*



(.19)



.27

Diluted earnings (loss) per common share*



(.19)



N/A





Weighted average common shares outstanding





Basic



295.8



294.3

Diluted



295.8



N/A

Non-GAAP Adjustments for second quarter of 2011 and 2010 (Highlighted Items, Stock-Based Compensation Expense and Intangible Assets Amortization Expense)



Second Quarter

Earnings Per Share Impact



2011



2010

GAAP Earnings (Loss) per Common Share *



(.19)



.27





Stock-based compensation expense



0.16



0.14

Intangible assets amortization expense



0.05



0.05

Reorganization of business charges



------



0.02

Legal claim provision / settlement



0.07



(0.78)

Total Non-GAAP Adjustments **



0.28



(0.57)





Non-GAAP Earnings (Loss) per Common Share *



.09



(.30)

Definitions

* The computation of basic earnings (loss) per share for all periods prior to separation is calculated using the number of shares of Motorola Mobility Holdings, Inc. common stock outstanding on January 4, 2011, following the distribution of Motorola Mobility Holdings, Inc. common stock. No measure of diluted earnings (loss) per share is presented for periods prior to separation.

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

Conference Call and Webcast

Motorola Mobility will host its quarterly conference call beginning at 5:00 p.m. (U.S. Eastern Time) on Thursday, July 28. The conference call will be webcast live with audio and slides at http://investors.motorola.com.

About Motorola Mobility
Motorola Mobility, Inc. (NYSE:MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people's lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.