Motorola 'very disappointed' with Q4 financial performance

Motorola says its fourth quarter results, due to be released later this month, won't meet expectations due to below-par-performance of its mobile devices unit.

On January 19, the mobile phone giant was hoping to report sales for the quarter of $11.8 to $12.1 billion, but due to what the company cites "an unfavourable geographical and product-tier mix of sales" this estimate has been revised to $11.6 to $11.8 billion.

In contrast to the lowered financial expectations, Motorola announced that sales for its mobile device unit have actually increased by almost a quarter (23 per cent) compared with the third quarter this year and up 48 per cent compared with the same period in 2005.

"We are very disappointed with our fourth-quarter financial performance, but we remain committed to the strategic direction and long-term financial targets we discussed at our annual analysts meeting in July 2006," said Ed Zander, Motorola's chairman and chief executive.

The company will hold an analyst meeting on the same day as the results are issued to enable senior management representatives to deliver a business strategy update and provide a financial outlook for the coming financial year.

"We will discuss plans to improve operating profitability on January 19 when we announce fourth-quarter earnings," Zander added.

On a more positive note , the mobile phone giant says its other business divisions, which span home and network-based products, are on track to at least meet, if not exceed, previous earnings expectations.

In addition, Motorola said that the impending results will mark the 24th consecutive quarter of positive operating cash flow for the company.

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