Motorola (MOT) added its voice to the tech sector's chorus of boos Thursday as it warned of a third-quarter revenue shortfall.
The struggling wireless equipment maker projected that third-quarter revenue would be flat with the second quarter's $7.5 billion, due to continuing softness in the end markets for mobile phones, wireless base station equipment and chips. When the company delivered its third-quarter outlook on July 12, it projected a 5% sequential rise; accordingly, analysts had projected third-quarter revenue of $7.8 billion.
Motorola shares dropped 9% to $14.95.
Motorola projected a third-quarter loss of 5 cents to 8 cents a share, slightly wider than earlier projections by the company and the analysts who love it. The company said efforts in its mobile-phone and large satellite and radio-systems business will narrow the third-quarter loss from the second quarter's 11 cents a share. Motorola, which has been aggressively cutting costs, also said it would cut an additional 2,000 jobs from the wireless-systems business; it has laid off 32,000 workers companywide in 2001.Earlier this week, similarly beleaguered competitor Ericsson (ERICY) warned investors it did not expect to see a recovery in the wireless market through 2002.