Moto Posts a Loss in Google Limbo
Motorola Mobility LLC reported a GAAP net loss of $86 million for its first quarter as it awaits final approvals to be acquired by Google (Nasdaq: GOOG).
The handset maker shipped 8.9 million mobile devices in the quarter, including 5.1 million smartphones, headlined by the Long Term Evolution (LTE) RAZR MAXX.
Moto lost 28 cents a share on revenues of $3.1 billion. A year earlier it reported a net loss of $81 million, or 27 cents a share, on revenues of $3 billion.
Non-GAAP losses totaled 3 cents per share. Analysts polled by Thomson Reuters expected a non-GAAP profit of 1 cent on revenue of $2.96 billion.
The company didn't hold an earnings call as it nears finalizing its Google merger. The $12.5 million deal is in limbo right now, having been approved in North America but awaiting clearance from China. Moto's press release says "the transaction has been investigated and cleared without conditions in all other jurisdictions with pre-closing clearance requirements," and Moto says it expects it to close in the first half of the year. (See China Holds Up Google-Moto Deal and DoJ OKs Google-Moto Deal.)
Shares of Motorola Mobility were down 6 cents (0.15%) at $38.76 Tuesday.
— Sarah Reedy, Senior Reporter, Light Reading Mobile