Cell phone producer Motorola has posted another loss in profits
, and experts predict that the numbers will keep on dwindling. This quarter, the company saw a net loss of $231 million, or $0.13 per share, as compared to a net loss of $194 million in the year-ago quarter. Company revenue fell 28% throughout the first quarter to $5.4 billion, and the mobile phone division reported an operating loss of $509 million dollars.
The Illinois-based company reportedly shipped 14.7 million handsets during this period, giving it an even 6% share of the global handset market. This number is down significantly from a more reassuring 17.5% share of the market two years ago, after it enjoyed a bout of success with the then trendy Razr cell phone.
According to co-chief executive Sanja Jha, the company has set its sights on reducing annual costs for the deteriorating mobile devices division at more than $1.3 billion. Division CEO, Jha went on to say that the company has implemented aggressive actions as a means of reducing costs, and have gained solid traction on improving operational effectiveness. He also stated that the company is on track to deliver Android-based phones in the fourth quarter of this year.
The home and networks and enterprise solutions divisions have experienced a more forgiving quarter, posting operating incomes of $115 and $156 million. Despite that fact, analyst Douglas Mclntyre of 247WallSt.com, believes Motorola is “slowly disappearing” and has “no chance” of spinning-off the mobile division to shareholders.