A press announcement was just released by Motorola Mobility stating they’ll miss their Q4 2011 targets. They reminded the masses that the results are “not finalized”, but when the official numbers are released on Thursday, January 26, 2012 we can expect the quarterly sales to be $3.4 billion. The reasons for the missed target was caused by “increased competitive environment in the Mobile Device business and higher legal costs associated with ongoing Intellectual Property (IP) litigations”. Motorola, who has adopted Google’s Android OS, has been in a tight battle to regain mobile dominance with Apple, Samsung and HTC. In regards to smartphone shipments, Motorola said they tallied up 10.5 million mobile devices, this includes 5.3 million smartphones – representing 50.5% of total shipments. Would be interesting to see how many RAZRs were part of the 5.3 million.
A bit of a reminder was in the release also… the recent $12.5 billion Google acquisition was “overwhelmingly” approved by the Motorola Mobility stockholders and “expects the transaction to close in early 2012 once all conditions have been satisfied.”
Motorola Mobility Provides Business Update
Jan. 06, 2012
LIBERTYVILLE, Ill., Jan. 6, 2012 – Motorola Mobility Holdings, Inc. (NYSE: MMI) (“Motorola Mobility”) today announced preliminary results for the fourth-quarter 2011. Although the Company has not finalized its financial results for the fourth-quarter, it estimates sales of $3.4 billion with modest profitability on a non-GAAP basis. These estimates include shipments of approximately 10.5 million mobile devices, of which approximately 5.3 million were smartphones. Motorola Mobility’s fourth-quarter results were impacted by the increased competitive environment in the Mobile Device business and higher legal costs associated with ongoing Intellectual Property (IP) litigations. The Company estimates sales of $900 million for the Home business in the fourth-quarter. Motorola Mobility will issue its fourth-quarter 2011 earnings results at approximately 3:00 p.m. U.S. Central Time on Thursday, January 26, 2012.
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 7, 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, and currently expects the transaction to close in early 2012 once all conditions have been satisfied. The Company 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.
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