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Motorola Mobility Reveals Q1 Financial Results

Motorola Mobility has announced its financial results for the first quarter of 2012, with revenue up very slightly, but the company making a loss.

Google is about to acquire the outfit, so probably won't be too pleased to see a net loss of $86 million. Revenue was up 2 per cent year-on-year, however, to $3.1 billion. The firm also made a net loss during Q1 2011, although a tad less at $81 million.

Motorola Mobility noted that it had an operating cash outflow of $98 million in the quarter, with total cash at the close of Q1 2012 amounting to $3.5 billion (including "cash equivalents" and deposits).

The firm's Mobile Devices arm saw revenue increase by 3 per cent, but suffered an operating loss of $121 million. The company shipped 8.9 million mobiles in Q1, 5.1 million of which were smartphones, and it pointed to the success of the RAZR MAXX.

Sanjay Jha, chairman and CEO of Motorola Mobility, commented: "The introduction of RAZR MAXX marked another successful addition to the Motorola product family and contributed to our growth in smartphones. Our Home business delivered another solid quarter highlighted by improvement in year-over-year profitability. We continue to work closely with Google to complete the proposed merger during the first half of the year."

While Home business profitability did improve, with operating earnings up to $68 million (from $53 million), revenue was down 2 per cent year-on-year, at $884 million.