This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Motorola Puts Its Faith in Androids

SCHAUMBURG, Ill. ( TheStreet) -- Motorola's (MOT) cost cutting continues as the shrinking phonemaker looks ahead to a brighter Google (GOOG) Android future.

The Schaumburg, Ill.-based tech shop says it plans to introduce two Android-powered smartphones at two phone companies in the fourth quarter. One of those phones, as TheStreet reported, will be sold by Verizon (VZ - Get Report) in time for the holiday sales season.

More than a little is riding on the Android smartphone strategy. Motorola's slice of the market, a return to profitability and, some would argue, the survival of the mobile phone business hangs in the balance.

TheStreet Hangman Challenge!
TS Hangman Game

"The devices we are planning will get us back in the game in smartphones," Co-CEO Sanjay Jha told analysts on an earnings call. The success of these phone, says Jha, will "keep us on the path to financial improvements in 2009 and 2010."

For the second quarter ended last month, Motorola posted an adjusted net loss of a penny a share, down from the 2-cent pro forma profit in the year-ago quarter and better than the 4-cent loss analysts were looking for in a Yahoo! Finance survey.

Second quarter sales were $5.5 billion down 32% from the $8.08 billion booked a year ago, and slightly below the $5.6 billion Wall Street expected.

Looking ahead, Motorola says it expects to be at a breakeven point on profits in the third quarter as the company is still in a cutting process.

Jha told analysts on the call that the company has eliminated 30% of its staff since he started last year and that he expects the penny pinching trend to continue. Jha raised his target on cuts Thursday aiming at a $1.4 billion operating expense reduction compared to the $1.3 billion prior target.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.36 0.21%
GOOG $573.64 0.40%
NOK $8.06 -0.25%
VZ $49.53 0.12%
FB $79.60 -0.19%

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs