Motorola Mobility Announces First Quarter Financial Results
Poster: SySAdmin
Posted on May 1, 2012 at 3:14:01 PM
Motorola Mobility Announces First Quarter Financial Results
LIBERTYVILLE, Ill., May 1, 2012 /PRNewswire/ --
First Quarter Financial Highlights
-- Net revenues of $3.1 billion
-- Non-GAAP net loss of $0.03 per share compared to net loss of $0.08 per
share in first quarter 2011; GAAP net loss of $0.28 per share compared
to net loss of $0.27 per share in first quarter 2011
-- Mobile Devices net revenues of $2.2 billion; Non-GAAP operating loss of
$85 million; GAAP operating loss of $121 million
-- Shipped 8.9 million mobile devices, including 5.1 million smartphones
-- Home net revenues of $884 million; Non-GAAP operating earnings of $91
million; GAAP operating earnings of $68 million
Click here for printable press release and financial tables.
Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.1 billion in the first quarter of 2012, up 2 percent compared to the first quarter of 2011. The GAAP net loss in the first quarter of 2012 was $86 million, or $0.28 per share, compared to a net loss of $81 million, or $0.27 per share, in the first quarter of 2011. On a non-GAAP basis, the net loss in the first quarter 2012 was $10 million, or $0.03 per share, compared to a net loss of $25 million, or $0.08 per share, in the first quarter of 2011.
The Company had operating cash outflow of $98 million in the first quarter. Total cash at the end of the quarter was $3.5 billion and includes cash, cash equivalents, and cash deposits.
Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this press release and in the financial tables.
"The introduction of RAZR(TM) 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," said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. "We continue to work closely with Google to complete the proposed merger during the first half of the year."
Operating Results
Mobile Devices net revenues in the first quarter were $2.2 billion, up 3 percent compared with the year-ago quarter. The GAAP operating loss was $121 million compared to an operating loss of $89 million in the year-ago quarter. The non-GAAP operating loss was $85 million compared to an operating loss of $61 million in the year-ago quarter. The Company shipped a total of 8.9 million mobile devices in the first quarter, including 5.1 million smartphones.
Mobile Devices highlights:
-- Launched RAZR(TM) MAXX, the longest-lasting 4G LTE smartphone, allowing
customers to talk for over 21 hours on a single charge, and DROID 4 by
Motorola, the thinnest and most powerful 4G LTE QWERTY smartphone.
-- Expanded budget-friendly smartphone portfolio in China, Europe, and
Latin America with the introduction of MOTOLUXE((TM)), a slim
touchscreen device and Motorola DEFY((TM)) MINI, the ideal "life proof"
device for the active consumer.
-- Teamed up with Bubba Watson, four time PGA Tour winner, including the
2012 Masters to introduce MOTOACTV((TM)) Golf Edition, a cutting-edge
GPS golf tracker, virtual caddy and online clubhouse.
Home segment net revenues in the first quarter were $884 million, down 2 percent compared with the year-ago quarter. GAAP operating earnings improved to $68 million, compared to $53 million in the year-ago quarter. Non-GAAP operating earnings were $91 million compared to $81 million in the year-ago quarter.
Home highlights:
-- Introduced Connected Home Gateway, the industry's first plug-and-play
solution for home monitoring and control services.
-- Provided equipment and services to Asian Broadcasting Network for launch
of Malaysia's most advanced digital cable TV network.
-- Industry recognition of our Medios multi-screen software portfolio
including SecureMedia® named "Best Rights and Asset Management
Solution" at 2012 IPTV World Forum.
-- Announced global distributor and integrator agreement with Edgecast's
Content Delivery Network platform, enabling advanced multi-screen
service delivery to consumers.
Merger Update
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.
Motorola Mobility and Google continue to work closely with the authorities in China for approval on the acquisition. The transaction has been investigated and cleared without conditions in all other jurisdictions with pre-closing clearance requirements. We continue to expect the transaction to close during the first half of 2012.
For more information on the proposed merger, please visit http://investors.motorola.com.
Conference Call and Webcast
In light of the pending acquisition of the Company by Google, the Company does not conduct a financial analyst conference call or webcast following the release of its earnings information nor provide financial guidance. To access the first quarter results and other financial information, please visit http://investors.motorola.com.
Consolidated GAAP Results
A comparison of results from operations is as follows:
First Quarter
-------------
(In millions, except per
share amounts) 2012 2011
------------------------ ---- ----
Net revenues $3,078 $3,032
Gross margin 754 755
Operating loss (70) (36)
Loss before income taxes (69) (51)
Net loss ($86) ($81)
Basic loss per common share ($0.28) ($0.27)
Diluted loss per common share ($0.28) ($0.27)
Weighted average common
shares outstanding
-----------------------
Basic 302.4 294.7
Diluted 302.4 294.7
Non-GAAP Adjustments for first quarter 2012 and 2011
First Quarter
-------------
Per Share Impact
2012 2011
---- ----
GAAP Loss per Common Share ($0.28) ($0.27)
Merger-related costs * 0.06 ---
Stock-based compensation expense 0.16 0.14
Intangible assets amortization
expense 0.04 0.05
Total Non-GAAP Adjustments ** 0.25 0.19
Non-GAAP Loss per Common Share ($0.03) ($0.08)
====== ======
Definitions
* Merger-related costs primarily consisting of legal and banking fees.
** Earnings or loss per share (EPS) impact may not add up due to rounding.
Use of Non-GAAP Financial Information
In addition to the GAAP results included in this presentation, Motorola Mobility also has included non-GAAP measurements of results. Motorola Mobility has provided these non-GAAP measurements to help investors better understand Motorola Mobility's core operating performance, enhance comparisons of Motorola Mobility's core operating performance from period to period, and allow better comparisons of Motorola Mobility's operating performance to that of its competitors. Among other things, the Company's management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results, excluding these items, because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the Company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.
Non-GAAP adjustments are comprised of the following items:
Merger-related costs: The Company has excluded the effects of merger-related costs from its non-GAAP operating expenses and net income measurements because the Company believes that this item does not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the Company's current operating performance or comparisons to the Company's past operating performance.
Stock-based compensation expense: The Company has excluded stock-based compensation expense from its non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our employees and the Company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues - the Company continues to evaluate its performance excluding stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-based compensation expense will recur in future periods.
Intangible assets amortization expense: The Company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net income measurements, primarily because it represents a significant non-cash expense and because the Company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the Company's acquisitions. Investors should note that the use of intangible assets contributed to the Company's revenues earned during the periods presented and will contribute to the Company's future period revenues as well. Intangible assets amortization expense will recur in future periods.
Details of the above non-GAAP adjustments and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found in the financial tables.
Business Risks
Motorola Mobility cautions the reader that this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, but are not limited to, the expected closing date of the proposed Google transaction and the expected timeframe for regulatory decisions. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements including, but not limited to, the ability of the parties to consummate the proposed transaction and the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory and other approvals at all or in a timely manner; and the other risks and uncertainties contained and identified in Motorola Mobility's filings with the Securities and Exchange Commission (the "SEC"), any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Motorola Mobility undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances or update the reasons that actual results could differ materially from those anticipated in forward-looking statements, except as required by law.
About Motorola Mobility
Motorola Mobility Holdings, Inc. (NYSE: MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people's lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.
MOTOROLA and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. All other trademarks are the property of their respective owners. © 2012 Motorola Mobility, Inc. All rights reserved.
CONTACTS:
Media:
Jennifer Erickson
Motorola Mobility Holdings, Inc.
+1 (847) 772-1217
jennifer.erickson@motorola.com
Investors:
Dean Lindroth
Motorola Mobility Holdings, Inc.
+1 (847) 523-2858
dean.lindroth@motorola.com
Motorola Mobility Holdings, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
Three Months Ended
------------------
March 31, 2012 December 31, 2011 April 2, 2011
-------------- ----------------- -------------
Net revenues $3,078 $3,436 $3,032
Costs of sales 2,324 2,582 2,277
Gross margin 754 854 755
--- --- ---
Selling, general
and administrative
expenses 430 446 417
Research and
development
expenditures 366 384 357
Other charges 17 90 1
Intangibles
amortization 11 12 16
Operating loss (70) (78) (36)
--- --- ---
Other income (expense):
Interest income
(expense), net 3 - 2
Gains on sales of
investments - 5 -
Other, net (2) (5) (17)
Total other income
(expense) 1 - (15)
--- --- ---
Loss before income
taxes (69) (78) (51)
Income tax expense 17 2 30
--- --- ---
Net loss (86) (80) (81)
=== === ===
Basic loss per
common share $(0.28) $(0.27) $(0.27)
Diluted loss per
common share $(0.28) $(0.27) $(0.27)
Weighted average common shares outstanding
----------------------------------
Basic 302.4 300.2 294.7
Diluted 302.4 300.2 294.7
----- ----- -----
Percentage of Net Revenues *
---------------------------
Net revenues 100.0% 100.0% 100.0%
Costs of sales 75.5% 75.1% 75.1%
Gross margin 24.5% 24.9% 24.9%
---- ---- ----
Selling, general
and administrative
expenses 14.0% 13.0% 13.8%
Research and
development
expenditures 11.9% 11.2% 11.8%
Other charges 0.6% 2.6% 0.0%
Intangibles
amortization 0.4% 0.3% 0.5%
Operating loss -2.3% -2.3% -1.2%
---- ---- ----
Other income (expense):
Interest income
(expense), net 0.1% 0.0% 0.1%
Gains on sales of
investments 0.0% 0.1% 0.0%
Other, net -0.1% -0.1% -0.6%
Total other income
(expense) 0.0% 0.0% -0.5%
--- --- ----
Loss before income
taxes -2.2% -2.3% -1.7%
Income tax expense 0.6% 0.1% 1.0%
--- --- ---
Net loss -2.8% -2.3% -2.7%
==== ==== ====
* Percentages may not add up due to rounding.
Motorola Mobility Holdings, Inc.
Condensed Consolidated Balance Sheets
(In millions)
March 31, 2012 December 31, 2011 April 2, 2011
Assets
Cash and cash
equivalents $3,065 $3,451 $3,116
Cash deposits 267 2 -
Accounts receivable, net 1,711 1,780 1,551
Inventories, net 569 701 859
Deferred income taxes 92 95 114
Other current assets 595 583 561
Total current assets 6,299 6,612 6,201
----- ----- -----
Cash deposits 162 155 168
Property, plant and
equipment, net 801 805 810
Investments 123 119 143
Deferred income taxes 93 93 58
Goodwill 1,434 1,433 1,397
Other assets 480 513 652
Total assets $9,392 $9,730 $9,429
====== ====== ======
Liabilities and
Stockholders' Equity
Accounts payable $1,530 $1,666 $1,580
Accrued liabilities 2,224 2,408 2,250
Total current
liabilities 3,754 4,074 3,830
----- ----- -----
Other liabilities 547 568 670
Stockholders' Equity:
Common stock 3 3 3
Additional paid-in
capital 5,522 5,452 5,016
Accumulated other
comprehensive loss (99) (118) (9)
Accumulated deficit (335) (249) (81)
Total stockholders'
equity 5,091 5,088 4,929
Total liabilities and
stockholders' equity $9,392 $9,730 $9,429
------ ------ ------
Motorola Mobility Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
------------------
March 31, 2012 December 31, 2011 April 2, 2011
-------------- ----------------- -------------
Operating
Net loss $(86) $(80) $(81)
Adjustments to
reconcile net loss to
net cash provided by
operating activities:
Depreciation and
amortization 49 54 54
Share-based
compensation expense 48 36 40
Other non-cash
charges (income) - - (1)
Gains on sales of
investments - (5) -
Deferred income taxes (3) - (11)
Changes in assets and
liabilities, net of
effects of
acquisitions:
Accounts receivable,
net 74 (17) 21
Inventories 138 42 (16)
Other current assets (8) 4 22
Accounts payable and
accrued liabilities (327) 155 1
Other assets and
liabilities 17 36 78
Net cash provided by
(used for) operating
activities (98) 225 107
--- --- ---
Investing
Acquisitions and
investments (20) (7) (11)
Proceeds from sales of
investments - 10 -
Capital expenditures (33) (64) (50)
Cash deposits (265) 20 -
Other, net (1) 1 -
Net cash used for
investing activities (319) (40) (61)
---- --- ---
Financing
Share-based
compensation activity 22 45 16
Capital contribution
from Former Parent - 150 3,032
Other, net (1) - 15
Net cash provided by
financing activities 21 195 3,063
--- --- -----
Effect of exchange
rate changes on cash
and cash equivalents 10 (7) 7
Net increase
(decrease) in cash
and cash equivalents (386) 373 3,116
Cash and cash
equivalents,
beginning of period * 3,451 3,078 -
----- ----- ---
Cash and cash
equivalents, end of
period $3,065 $3,451 $3,116
------ ------ ------
* Until separation, the Company
participated in Motorola, Inc.'s
(Former Parent) centralized cash
management program. Accordingly, no
cash and cash equivalents are presented
on the Motorola Mobility Holdings, Inc.
Condensed Consolidated Balance Sheet as
of any reporting period prior to
separation. On January 3, 2011, the
Company received a cash contribution of
$3.2 billion from Motorola, Inc., which
Motorola Mobility Holdings, Inc.
Segment Information
(In millions)
Summarized below are the
Company's Net revenues and
Operating loss by reportable
segment for the three months
ended March 31, 2012 and April
2, 2011.
Net Revenues
------------
Three Months Ended Three Months Ended % Change from
March 31, 2012 April 2, 2011 2011
-------------- ------------- ----
Mobile
Devices $2,194 $2,128 3 %
Home 884 904 (2)%
Company
Totals $3,078 $3,032 2 %
------ ------ ---
Operating Loss
--------------
Three Months Ended Three Months Ended % Change from
March 31, 2012 April 2, 2011 2011
-------------- ------------- ----
Mobile
Devices $(121) $(89) 36 %
Home 68 53 28 %
Merger-
related
costs * (17) - -
Company
Totals $(70) $(36) 94 %
---- ---- ---
* Represents costs incurred at the corporate level related to the Company's proposed merger with Google
Inc.
Motorola Mobility Holdings, Inc.
GAAP to Non-GAAP Bridge
(In millions, except per share amounts)
Three Months Ended Three Months Ended
March 31, 2012 December 31, 2011
-------------- -----------------
GAAP Results Non-GAAP Adjustments Non-GAAP Results GAAP Results Non-GAAP Adjustments Non-GAAP Results
------------ -------------------- ---------------- ------------ -------------------- ----------------
Net revenues $3,078 $ - $3,078 $3,436 $ - $3,436
Costs of sales 2,324 5 2,319 2,582 9 2,573
Gross margin 754 (5) 759 854 (9) 863
--- --- --- --- --- ---
Selling, general and administrative expenses 430 25 405 446 18 428
Research and development expenditures 366 18 348 384 14 370
Other charges 17 17 - 90 90 -
Intangibles amortization 11 11 - 12 12 -
Operating earnings (loss) (70) (76) 6 (78) (143) 65
--- --- --- --- ---- ---
Other income (expense):
Interest income, net 3 - 3 - - -
Gains on sales of investments - - - 5 - 5
Other, net (2) - (2) (5) - (5)
Total other income (expense) 1 - 1 - - -
--- --- --- --- --- ---
Earnings (loss) before income taxes (69) (76) 7 (78) (143) 65
Income tax expense 17 - 17 2 (2) 4
--- --- --- --- --- ---
Net earnings (loss) (86) (76) (10) (80) (141) 61
=== === === === ==== ===
Basic earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.47) $0.20
Diluted earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.47) $0.20
Weighted average common shares outstanding
------------------------------------------
Basic 302.4 302.4 302.4 300.2 300.2 300.2
Diluted 302.4 302.4 302.4 300.2 300.2 300.2
----- ----- ----- ----- ----- -----
Percentage of Net Revenues *
---------------------------
Net revenues 100.0% 100.0% 100.0% 100.0%
Costs of sales 75.5% 75.3% 75.1% 74.9%
Gross margin 24.5% 24.7% 24.9% 25.1%
---- ---- ---- ----
Selling, general and administrative expenses 14.0% 13.2% 13.0% 12.5%
Research and development expenditures 11.9% 11.3% 11.2% 10.8%
Other charges 0.6% 0.0% 2.6% 0.0%
Intangibles amortization 0.4% 0.0% 0.3% 0.0%
Operating earnings (loss) -2.3% 0.2% -2.3% 1.9%
---- --- ---- ---
Other income (expense):
Interest income, net 0.1% 0.1% 0.0% 0.0%
Gains on sales of investments 0.0% 0.0% 0.1% 0.1%
Other, net -0.1% -0.1% -0.1% -0.1%
Total other income (expense) 0.0% 0.0% 0.0% 0.0%
--- --- --- ---
Earnings (loss) before income taxes -2.2% 0.2% -2.3% 1.9%
Income tax expense 0.6% 0.6% 0.1% 0.1%
--- --- --- ---
Net earnings (loss) -2.8% -0.3% -2.3% 1.8%
---- ---- ---- ---
* Percentages may not add up due to rounding.
Motorola Mobility Holdings, Inc.
GAAP to Non-GAAP Bridge
(In millions, except per share amounts)
Three Months Ended Three Months Ended
March 31, 2012 April 2, 2011
-------------- -------------
GAAP Results Non-GAAP Adjustments Non-GAAP Results GAAP Results Non-GAAP Adjustments Non-GAAP Results
------------ -------------------- ---------------- ------------ -------------------- ----------------
Net revenues $3,078 $ - $3,078 $3,032 $ - $3,032
Costs of sales 2,324 5 2,319 2,277 4 2,273
Gross margin 754 (5) 759 755 (4) 759
--- --- --- --- --- ---
Selling, general and administrative expenses 430 25 405 417 21 396
Research and development expenditures 366 18 348 357 15 342
Other charges 17 17 - 1 - 1
Intangibles amortization 11 11 - 16 16 -
Operating earnings (loss) (70) (76) 6 (36) (56) 20
--- --- --- --- --- ---
Other income (expense):
Interest income (expense), net 3 - 3 2 - 2
Gains on sales of investments - - - - - -
Other, net (2) - (2) (17) - (17)
Total other income (expense) 1 - 1 (15) - (15)
--- --- --- --- --- ---
Earnings (loss) before income taxes (69) (76) 7 (51) (56) 5
Income tax expense 17 - 17 30 - 30
--- --- --- --- --- ---
Net earnings (loss) (86) (76) (10) (81) (56) (25)
=== === === === === ===
Basic earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.19) $(0.08)
Diluted earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.19) $(0.08)
Weighted average common shares outstanding
------------------------------------------
Basic 302.4 302.4 302.4 294.7 294.7 294.7
Diluted 302.4 302.4 302.4 294.7 294.7 294.7
----- ----- ----- ----- ----- -----
Percentage of Net Revenues *
---------------------------
Net revenues 100.0% 100.0% 100.0% 100.0%
Costs of sales 75.5% 75.3% 75.1% 75.0%
Gross margin 24.5% 24.7% 24.9% 25.0%
---- ---- ---- ----
Selling, general and administrative expenses 14.0% 13.2% 13.8% 13.1%
Research and development expenditures 11.9% 11.3% 11.8% 11.3%
Other charges 0.6% 0.0% 0.0% 0.0%
Intangibles amortization 0.4% 0.0% 0.5% 0.0%
Operating earnings (loss) -2.3% 0.2% -1.2% 0.7%
---- --- ---- ---
Other income (expense):
Interest income (expense), net 0.1% 0.1% 0.1% 0.1%
Gains on sales of investments 0.0% 0.0% 0.0% 0.0%
Other, net -0.1% -0.1% -0.6% -0.6%
Total other income (expense) 0.0% 0.0% -0.5% -0.5%
--- --- ---- ----
Earnings (loss) before income taxes -2.2% 0.2% -1.7% 0.2%
Income tax expense 0.6% 0.6% 1.0% 1.0%
--- --- --- ---
Net earnings (loss) -2.8% -0.3% -2.7% -0.8%
---- ---- ---- ----
* Percentages may not add up due to rounding.
Motorola Mobility Holdings, Inc.
Operating Earnings (Loss) after Non-GAAP Adjustments
(In millions)
Q1 2012
-------
TOTAL Mobile Devices Home Other
-------------- ---- -----
Net revenues $3,078 $2,194 $884 $ -
Operating earnings (loss) $(70) $(121) $68 $(17)
------------------------ ---- ----- --- ----
Non-GAAP adjustments
by P&L statement
line: Statement Line
--------------
Merger-related costs
* Other charges (income) 17 - - 17
Stock-based
compensation expense Cost of sales 5 3 2 -
Stock-based
compensation expense SG&A and R&D 43 30 13 -
Intangible assets
amortization expense Intangibles amortization 11 3 8 -
Less: Total non-GAAP adjustments 76 36 23 17
Operating earnings (loss) after non-GAAP adjustments $6 $(85) $91 $ -
---------------------------------------------------- --- ---- --- -------
Operating earnings (loss) as a percentage of net revenues -
GAAP -2.3% -5.5% 7.7% 0.0%
Operating earnings (loss) as a percentage of net revenues -
after non-GAAP adjustments 0.2% -3.9% 10.3% 0.0%
--- ---- ---- ---
* Represents costs incurred at
the corporate level related
to the Company's proposed
merger with Google Inc.
Motorola Mobility Holdings, Inc.
Non-GAAP Adjustments
(In millions, except per share amounts)
Q1 2012
-------
Non-GAAP Adjustments Statement Line Q1 2012 PBT (Inc)/Exp Q1 2012 Tax Inc/
(Exp) Q1 2012 PAT (Inc)/Exp EPS Impact (Incr)/Decr *
-------------------- -------------- --------------------- ----------------- --------------------- ------------------------
GAAP Results $(69) $17 $(86) $(0.28)
---- --- ---- ------
Merger-related costs ** Other charges (income) 17 - 17 (0.06)
Stock-based compensation
expense Cost of sales, SG&A and R&D 48 - 48 (0.16)
Intangible assets
amortization expense Intangibles amortization 11 - 11 (0.04)
Total Impact 76 - 76 (0.25)
Non-GAAP Results $7 $17 $(10) $(0.03)
=== === ==== ======
* EPS impact may not add up
due to rounding.
** Represents costs incurred
at the corporate level
related to the Company's
proposed merger with Google
Inc.
Motorola Mobility Holdings, Inc.
Revenue Mix by Region
(In millions)
Q1 2012
-------
TOTAL Mobile Devices Home
----- -------------- ----
North America 60% 54% 74%
Latin America 17% 21% 10%
Greater China 10% 13% 2%
EMEA 9% 7% 13%
Rest of Asia 4% 5% 1%
Total 100% 100% 100%
----- --- --- ---
SOURCE Motorola Mobility Holdings, Inc.
Photo:http://photos.prnewswire.com/prnh/20020307/MOTLOGO
http://photoarchive.ap.org/
Motorola Mobility Holdings, Inc.
Web Site: http://motorola.com/mobility
LIBERTYVILLE, Ill., May 1, 2012 /PRNewswire/ --
First Quarter Financial Highlights
-- Net revenues of $3.1 billion
-- Non-GAAP net loss of $0.03 per share compared to net loss of $0.08 per
share in first quarter 2011; GAAP net loss of $0.28 per share compared
to net loss of $0.27 per share in first quarter 2011
-- Mobile Devices net revenues of $2.2 billion; Non-GAAP operating loss of
$85 million; GAAP operating loss of $121 million
-- Shipped 8.9 million mobile devices, including 5.1 million smartphones
-- Home net revenues of $884 million; Non-GAAP operating earnings of $91
million; GAAP operating earnings of $68 million
Click here for printable press release and financial tables.
Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.1 billion in the first quarter of 2012, up 2 percent compared to the first quarter of 2011. The GAAP net loss in the first quarter of 2012 was $86 million, or $0.28 per share, compared to a net loss of $81 million, or $0.27 per share, in the first quarter of 2011. On a non-GAAP basis, the net loss in the first quarter 2012 was $10 million, or $0.03 per share, compared to a net loss of $25 million, or $0.08 per share, in the first quarter of 2011.
The Company had operating cash outflow of $98 million in the first quarter. Total cash at the end of the quarter was $3.5 billion and includes cash, cash equivalents, and cash deposits.
Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this press release and in the financial tables.
"The introduction of RAZR(TM) 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," said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. "We continue to work closely with Google to complete the proposed merger during the first half of the year."
Operating Results
Mobile Devices net revenues in the first quarter were $2.2 billion, up 3 percent compared with the year-ago quarter. The GAAP operating loss was $121 million compared to an operating loss of $89 million in the year-ago quarter. The non-GAAP operating loss was $85 million compared to an operating loss of $61 million in the year-ago quarter. The Company shipped a total of 8.9 million mobile devices in the first quarter, including 5.1 million smartphones.
Mobile Devices highlights:
-- Launched RAZR(TM) MAXX, the longest-lasting 4G LTE smartphone, allowing
customers to talk for over 21 hours on a single charge, and DROID 4 by
Motorola, the thinnest and most powerful 4G LTE QWERTY smartphone.
-- Expanded budget-friendly smartphone portfolio in China, Europe, and
Latin America with the introduction of MOTOLUXE((TM)), a slim
touchscreen device and Motorola DEFY((TM)) MINI, the ideal "life proof"
device for the active consumer.
-- Teamed up with Bubba Watson, four time PGA Tour winner, including the
2012 Masters to introduce MOTOACTV((TM)) Golf Edition, a cutting-edge
GPS golf tracker, virtual caddy and online clubhouse.
Home segment net revenues in the first quarter were $884 million, down 2 percent compared with the year-ago quarter. GAAP operating earnings improved to $68 million, compared to $53 million in the year-ago quarter. Non-GAAP operating earnings were $91 million compared to $81 million in the year-ago quarter.
Home highlights:
-- Introduced Connected Home Gateway, the industry's first plug-and-play
solution for home monitoring and control services.
-- Provided equipment and services to Asian Broadcasting Network for launch
of Malaysia's most advanced digital cable TV network.
-- Industry recognition of our Medios multi-screen software portfolio
including SecureMedia® named "Best Rights and Asset Management
Solution" at 2012 IPTV World Forum.
-- Announced global distributor and integrator agreement with Edgecast's
Content Delivery Network platform, enabling advanced multi-screen
service delivery to consumers.
Merger Update
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.
Motorola Mobility and Google continue to work closely with the authorities in China for approval on the acquisition. The transaction has been investigated and cleared without conditions in all other jurisdictions with pre-closing clearance requirements. We continue to expect the transaction to close during the first half of 2012.
For more information on the proposed merger, please visit http://investors.motorola.com.
Conference Call and Webcast
In light of the pending acquisition of the Company by Google, the Company does not conduct a financial analyst conference call or webcast following the release of its earnings information nor provide financial guidance. To access the first quarter results and other financial information, please visit http://investors.motorola.com.
Consolidated GAAP Results
A comparison of results from operations is as follows:
First Quarter
-------------
(In millions, except per
share amounts) 2012 2011
------------------------ ---- ----
Net revenues $3,078 $3,032
Gross margin 754 755
Operating loss (70) (36)
Loss before income taxes (69) (51)
Net loss ($86) ($81)
Basic loss per common share ($0.28) ($0.27)
Diluted loss per common share ($0.28) ($0.27)
Weighted average common
shares outstanding
-----------------------
Basic 302.4 294.7
Diluted 302.4 294.7
Non-GAAP Adjustments for first quarter 2012 and 2011
First Quarter
-------------
Per Share Impact
2012 2011
---- ----
GAAP Loss per Common Share ($0.28) ($0.27)
Merger-related costs * 0.06 ---
Stock-based compensation expense 0.16 0.14
Intangible assets amortization
expense 0.04 0.05
Total Non-GAAP Adjustments ** 0.25 0.19
Non-GAAP Loss per Common Share ($0.03) ($0.08)
====== ======
Definitions
* Merger-related costs primarily consisting of legal and banking fees.
** Earnings or loss per share (EPS) impact may not add up due to rounding.
Use of Non-GAAP Financial Information
In addition to the GAAP results included in this presentation, Motorola Mobility also has included non-GAAP measurements of results. Motorola Mobility has provided these non-GAAP measurements to help investors better understand Motorola Mobility's core operating performance, enhance comparisons of Motorola Mobility's core operating performance from period to period, and allow better comparisons of Motorola Mobility's operating performance to that of its competitors. Among other things, the Company's management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results, excluding these items, because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the Company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.
Non-GAAP adjustments are comprised of the following items:
Merger-related costs: The Company has excluded the effects of merger-related costs from its non-GAAP operating expenses and net income measurements because the Company believes that this item does not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the Company's current operating performance or comparisons to the Company's past operating performance.
Stock-based compensation expense: The Company has excluded stock-based compensation expense from its non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our employees and the Company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues - the Company continues to evaluate its performance excluding stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-based compensation expense will recur in future periods.
Intangible assets amortization expense: The Company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net income measurements, primarily because it represents a significant non-cash expense and because the Company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the Company's acquisitions. Investors should note that the use of intangible assets contributed to the Company's revenues earned during the periods presented and will contribute to the Company's future period revenues as well. Intangible assets amortization expense will recur in future periods.
Details of the above non-GAAP adjustments and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found in the financial tables.
Business Risks
Motorola Mobility cautions the reader that this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, but are not limited to, the expected closing date of the proposed Google transaction and the expected timeframe for regulatory decisions. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements including, but not limited to, the ability of the parties to consummate the proposed transaction and the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory and other approvals at all or in a timely manner; and the other risks and uncertainties contained and identified in Motorola Mobility's filings with the Securities and Exchange Commission (the "SEC"), any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Motorola Mobility undertakes no obligation to update the forward-looking statements to reflect subsequent events or circumstances or update the reasons that actual results could differ materially from those anticipated in forward-looking statements, except as required by law.
About Motorola Mobility
Motorola Mobility Holdings, Inc. (NYSE: MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people's lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.
MOTOROLA and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. All other trademarks are the property of their respective owners. © 2012 Motorola Mobility, Inc. All rights reserved.
CONTACTS:
Media:
Jennifer Erickson
Motorola Mobility Holdings, Inc.
+1 (847) 772-1217
jennifer.erickson@motorola.com
Investors:
Dean Lindroth
Motorola Mobility Holdings, Inc.
+1 (847) 523-2858
dean.lindroth@motorola.com
Motorola Mobility Holdings, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)
Three Months Ended
------------------
March 31, 2012 December 31, 2011 April 2, 2011
-------------- ----------------- -------------
Net revenues $3,078 $3,436 $3,032
Costs of sales 2,324 2,582 2,277
Gross margin 754 854 755
--- --- ---
Selling, general
and administrative
expenses 430 446 417
Research and
development
expenditures 366 384 357
Other charges 17 90 1
Intangibles
amortization 11 12 16
Operating loss (70) (78) (36)
--- --- ---
Other income (expense):
Interest income
(expense), net 3 - 2
Gains on sales of
investments - 5 -
Other, net (2) (5) (17)
Total other income
(expense) 1 - (15)
--- --- ---
Loss before income
taxes (69) (78) (51)
Income tax expense 17 2 30
--- --- ---
Net loss (86) (80) (81)
=== === ===
Basic loss per
common share $(0.28) $(0.27) $(0.27)
Diluted loss per
common share $(0.28) $(0.27) $(0.27)
Weighted average common shares outstanding
----------------------------------
Basic 302.4 300.2 294.7
Diluted 302.4 300.2 294.7
----- ----- -----
Percentage of Net Revenues *
---------------------------
Net revenues 100.0% 100.0% 100.0%
Costs of sales 75.5% 75.1% 75.1%
Gross margin 24.5% 24.9% 24.9%
---- ---- ----
Selling, general
and administrative
expenses 14.0% 13.0% 13.8%
Research and
development
expenditures 11.9% 11.2% 11.8%
Other charges 0.6% 2.6% 0.0%
Intangibles
amortization 0.4% 0.3% 0.5%
Operating loss -2.3% -2.3% -1.2%
---- ---- ----
Other income (expense):
Interest income
(expense), net 0.1% 0.0% 0.1%
Gains on sales of
investments 0.0% 0.1% 0.0%
Other, net -0.1% -0.1% -0.6%
Total other income
(expense) 0.0% 0.0% -0.5%
--- --- ----
Loss before income
taxes -2.2% -2.3% -1.7%
Income tax expense 0.6% 0.1% 1.0%
--- --- ---
Net loss -2.8% -2.3% -2.7%
==== ==== ====
* Percentages may not add up due to rounding.
Motorola Mobility Holdings, Inc.
Condensed Consolidated Balance Sheets
(In millions)
March 31, 2012 December 31, 2011 April 2, 2011
Assets
Cash and cash
equivalents $3,065 $3,451 $3,116
Cash deposits 267 2 -
Accounts receivable, net 1,711 1,780 1,551
Inventories, net 569 701 859
Deferred income taxes 92 95 114
Other current assets 595 583 561
Total current assets 6,299 6,612 6,201
----- ----- -----
Cash deposits 162 155 168
Property, plant and
equipment, net 801 805 810
Investments 123 119 143
Deferred income taxes 93 93 58
Goodwill 1,434 1,433 1,397
Other assets 480 513 652
Total assets $9,392 $9,730 $9,429
====== ====== ======
Liabilities and
Stockholders' Equity
Accounts payable $1,530 $1,666 $1,580
Accrued liabilities 2,224 2,408 2,250
Total current
liabilities 3,754 4,074 3,830
----- ----- -----
Other liabilities 547 568 670
Stockholders' Equity:
Common stock 3 3 3
Additional paid-in
capital 5,522 5,452 5,016
Accumulated other
comprehensive loss (99) (118) (9)
Accumulated deficit (335) (249) (81)
Total stockholders'
equity 5,091 5,088 4,929
Total liabilities and
stockholders' equity $9,392 $9,730 $9,429
------ ------ ------
Motorola Mobility Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
Three Months Ended
------------------
March 31, 2012 December 31, 2011 April 2, 2011
-------------- ----------------- -------------
Operating
Net loss $(86) $(80) $(81)
Adjustments to
reconcile net loss to
net cash provided by
operating activities:
Depreciation and
amortization 49 54 54
Share-based
compensation expense 48 36 40
Other non-cash
charges (income) - - (1)
Gains on sales of
investments - (5) -
Deferred income taxes (3) - (11)
Changes in assets and
liabilities, net of
effects of
acquisitions:
Accounts receivable,
net 74 (17) 21
Inventories 138 42 (16)
Other current assets (8) 4 22
Accounts payable and
accrued liabilities (327) 155 1
Other assets and
liabilities 17 36 78
Net cash provided by
(used for) operating
activities (98) 225 107
--- --- ---
Investing
Acquisitions and
investments (20) (7) (11)
Proceeds from sales of
investments - 10 -
Capital expenditures (33) (64) (50)
Cash deposits (265) 20 -
Other, net (1) 1 -
Net cash used for
investing activities (319) (40) (61)
---- --- ---
Financing
Share-based
compensation activity 22 45 16
Capital contribution
from Former Parent - 150 3,032
Other, net (1) - 15
Net cash provided by
financing activities 21 195 3,063
--- --- -----
Effect of exchange
rate changes on cash
and cash equivalents 10 (7) 7
Net increase
(decrease) in cash
and cash equivalents (386) 373 3,116
Cash and cash
equivalents,
beginning of period * 3,451 3,078 -
----- ----- ---
Cash and cash
equivalents, end of
period $3,065 $3,451 $3,116
------ ------ ------
* Until separation, the Company
participated in Motorola, Inc.'s
(Former Parent) centralized cash
management program. Accordingly, no
cash and cash equivalents are presented
on the Motorola Mobility Holdings, Inc.
Condensed Consolidated Balance Sheet as
of any reporting period prior to
separation. On January 3, 2011, the
Company received a cash contribution of
$3.2 billion from Motorola, Inc., which
Motorola Mobility Holdings, Inc.
Segment Information
(In millions)
Summarized below are the
Company's Net revenues and
Operating loss by reportable
segment for the three months
ended March 31, 2012 and April
2, 2011.
Net Revenues
------------
Three Months Ended Three Months Ended % Change from
March 31, 2012 April 2, 2011 2011
-------------- ------------- ----
Mobile
Devices $2,194 $2,128 3 %
Home 884 904 (2)%
Company
Totals $3,078 $3,032 2 %
------ ------ ---
Operating Loss
--------------
Three Months Ended Three Months Ended % Change from
March 31, 2012 April 2, 2011 2011
-------------- ------------- ----
Mobile
Devices $(121) $(89) 36 %
Home 68 53 28 %
Merger-
related
costs * (17) - -
Company
Totals $(70) $(36) 94 %
---- ---- ---
* Represents costs incurred at the corporate level related to the Company's proposed merger with Google
Inc.
Motorola Mobility Holdings, Inc.
GAAP to Non-GAAP Bridge
(In millions, except per share amounts)
Three Months Ended Three Months Ended
March 31, 2012 December 31, 2011
-------------- -----------------
GAAP Results Non-GAAP Adjustments Non-GAAP Results GAAP Results Non-GAAP Adjustments Non-GAAP Results
------------ -------------------- ---------------- ------------ -------------------- ----------------
Net revenues $3,078 $ - $3,078 $3,436 $ - $3,436
Costs of sales 2,324 5 2,319 2,582 9 2,573
Gross margin 754 (5) 759 854 (9) 863
--- --- --- --- --- ---
Selling, general and administrative expenses 430 25 405 446 18 428
Research and development expenditures 366 18 348 384 14 370
Other charges 17 17 - 90 90 -
Intangibles amortization 11 11 - 12 12 -
Operating earnings (loss) (70) (76) 6 (78) (143) 65
--- --- --- --- ---- ---
Other income (expense):
Interest income, net 3 - 3 - - -
Gains on sales of investments - - - 5 - 5
Other, net (2) - (2) (5) - (5)
Total other income (expense) 1 - 1 - - -
--- --- --- --- --- ---
Earnings (loss) before income taxes (69) (76) 7 (78) (143) 65
Income tax expense 17 - 17 2 (2) 4
--- --- --- --- --- ---
Net earnings (loss) (86) (76) (10) (80) (141) 61
=== === === === ==== ===
Basic earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.47) $0.20
Diluted earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.47) $0.20
Weighted average common shares outstanding
------------------------------------------
Basic 302.4 302.4 302.4 300.2 300.2 300.2
Diluted 302.4 302.4 302.4 300.2 300.2 300.2
----- ----- ----- ----- ----- -----
Percentage of Net Revenues *
---------------------------
Net revenues 100.0% 100.0% 100.0% 100.0%
Costs of sales 75.5% 75.3% 75.1% 74.9%
Gross margin 24.5% 24.7% 24.9% 25.1%
---- ---- ---- ----
Selling, general and administrative expenses 14.0% 13.2% 13.0% 12.5%
Research and development expenditures 11.9% 11.3% 11.2% 10.8%
Other charges 0.6% 0.0% 2.6% 0.0%
Intangibles amortization 0.4% 0.0% 0.3% 0.0%
Operating earnings (loss) -2.3% 0.2% -2.3% 1.9%
---- --- ---- ---
Other income (expense):
Interest income, net 0.1% 0.1% 0.0% 0.0%
Gains on sales of investments 0.0% 0.0% 0.1% 0.1%
Other, net -0.1% -0.1% -0.1% -0.1%
Total other income (expense) 0.0% 0.0% 0.0% 0.0%
--- --- --- ---
Earnings (loss) before income taxes -2.2% 0.2% -2.3% 1.9%
Income tax expense 0.6% 0.6% 0.1% 0.1%
--- --- --- ---
Net earnings (loss) -2.8% -0.3% -2.3% 1.8%
---- ---- ---- ---
* Percentages may not add up due to rounding.
Motorola Mobility Holdings, Inc.
GAAP to Non-GAAP Bridge
(In millions, except per share amounts)
Three Months Ended Three Months Ended
March 31, 2012 April 2, 2011
-------------- -------------
GAAP Results Non-GAAP Adjustments Non-GAAP Results GAAP Results Non-GAAP Adjustments Non-GAAP Results
------------ -------------------- ---------------- ------------ -------------------- ----------------
Net revenues $3,078 $ - $3,078 $3,032 $ - $3,032
Costs of sales 2,324 5 2,319 2,277 4 2,273
Gross margin 754 (5) 759 755 (4) 759
--- --- --- --- --- ---
Selling, general and administrative expenses 430 25 405 417 21 396
Research and development expenditures 366 18 348 357 15 342
Other charges 17 17 - 1 - 1
Intangibles amortization 11 11 - 16 16 -
Operating earnings (loss) (70) (76) 6 (36) (56) 20
--- --- --- --- --- ---
Other income (expense):
Interest income (expense), net 3 - 3 2 - 2
Gains on sales of investments - - - - - -
Other, net (2) - (2) (17) - (17)
Total other income (expense) 1 - 1 (15) - (15)
--- --- --- --- --- ---
Earnings (loss) before income taxes (69) (76) 7 (51) (56) 5
Income tax expense 17 - 17 30 - 30
--- --- --- --- --- ---
Net earnings (loss) (86) (76) (10) (81) (56) (25)
=== === === === === ===
Basic earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.19) $(0.08)
Diluted earnings (loss) per common share $(0.28) $(0.25) $(0.03) $(0.27) $(0.19) $(0.08)
Weighted average common shares outstanding
------------------------------------------
Basic 302.4 302.4 302.4 294.7 294.7 294.7
Diluted 302.4 302.4 302.4 294.7 294.7 294.7
----- ----- ----- ----- ----- -----
Percentage of Net Revenues *
---------------------------
Net revenues 100.0% 100.0% 100.0% 100.0%
Costs of sales 75.5% 75.3% 75.1% 75.0%
Gross margin 24.5% 24.7% 24.9% 25.0%
---- ---- ---- ----
Selling, general and administrative expenses 14.0% 13.2% 13.8% 13.1%
Research and development expenditures 11.9% 11.3% 11.8% 11.3%
Other charges 0.6% 0.0% 0.0% 0.0%
Intangibles amortization 0.4% 0.0% 0.5% 0.0%
Operating earnings (loss) -2.3% 0.2% -1.2% 0.7%
---- --- ---- ---
Other income (expense):
Interest income (expense), net 0.1% 0.1% 0.1% 0.1%
Gains on sales of investments 0.0% 0.0% 0.0% 0.0%
Other, net -0.1% -0.1% -0.6% -0.6%
Total other income (expense) 0.0% 0.0% -0.5% -0.5%
--- --- ---- ----
Earnings (loss) before income taxes -2.2% 0.2% -1.7% 0.2%
Income tax expense 0.6% 0.6% 1.0% 1.0%
--- --- --- ---
Net earnings (loss) -2.8% -0.3% -2.7% -0.8%
---- ---- ---- ----
* Percentages may not add up due to rounding.
Motorola Mobility Holdings, Inc.
Operating Earnings (Loss) after Non-GAAP Adjustments
(In millions)
Q1 2012
-------
TOTAL Mobile Devices Home Other
-------------- ---- -----
Net revenues $3,078 $2,194 $884 $ -
Operating earnings (loss) $(70) $(121) $68 $(17)
------------------------ ---- ----- --- ----
Non-GAAP adjustments
by P&L statement
line: Statement Line
--------------
Merger-related costs
* Other charges (income) 17 - - 17
Stock-based
compensation expense Cost of sales 5 3 2 -
Stock-based
compensation expense SG&A and R&D 43 30 13 -
Intangible assets
amortization expense Intangibles amortization 11 3 8 -
Less: Total non-GAAP adjustments 76 36 23 17
Operating earnings (loss) after non-GAAP adjustments $6 $(85) $91 $ -
---------------------------------------------------- --- ---- --- -------
Operating earnings (loss) as a percentage of net revenues -
GAAP -2.3% -5.5% 7.7% 0.0%
Operating earnings (loss) as a percentage of net revenues -
after non-GAAP adjustments 0.2% -3.9% 10.3% 0.0%
--- ---- ---- ---
* Represents costs incurred at
the corporate level related
to the Company's proposed
merger with Google Inc.
Motorola Mobility Holdings, Inc.
Non-GAAP Adjustments
(In millions, except per share amounts)
Q1 2012
-------
Non-GAAP Adjustments Statement Line Q1 2012 PBT (Inc)/Exp Q1 2012 Tax Inc/
(Exp) Q1 2012 PAT (Inc)/Exp EPS Impact (Incr)/Decr *
-------------------- -------------- --------------------- ----------------- --------------------- ------------------------
GAAP Results $(69) $17 $(86) $(0.28)
---- --- ---- ------
Merger-related costs ** Other charges (income) 17 - 17 (0.06)
Stock-based compensation
expense Cost of sales, SG&A and R&D 48 - 48 (0.16)
Intangible assets
amortization expense Intangibles amortization 11 - 11 (0.04)
Total Impact 76 - 76 (0.25)
Non-GAAP Results $7 $17 $(10) $(0.03)
=== === ==== ======
* EPS impact may not add up
due to rounding.
** Represents costs incurred
at the corporate level
related to the Company's
proposed merger with Google
Inc.
Motorola Mobility Holdings, Inc.
Revenue Mix by Region
(In millions)
Q1 2012
-------
TOTAL Mobile Devices Home
----- -------------- ----
North America 60% 54% 74%
Latin America 17% 21% 10%
Greater China 10% 13% 2%
EMEA 9% 7% 13%
Rest of Asia 4% 5% 1%
Total 100% 100% 100%
----- --- --- ---
SOURCE Motorola Mobility Holdings, Inc.
Photo:http://photos.prnewswire.com/prnh/20020307/MOTLOGO
http://photoarchive.ap.org/
Motorola Mobility Holdings, Inc.
Web Site: http://motorola.com/mobility