Motorola ( MOT) delivered mixed first-quarter results and promised more cuts as the tech shop continues to struggle with a turnaround. The Schaumburg, Ill.-based mobile phone and TV set-top maker posted an adjusted net loss, excluding one-time items, of 8 cents a share, which is down from the nickel loss in the year-ago quarter, but better than the 11-cent loss analysts were expecting, according to Yahoo! Finance. Sales for the quarter ended last month fell 28% to $5.37 billion from $7.45 billion at the same time last year. The top line was below analysts' expectations calling for $5.5 billion in revenue. Thanks to strong demand for less expensive pre-paid phones in the U.S., Motorola sold 14.7 million devices, which was more than the 14.1 million analysts were looking for. But Motorola fell down on the cable equipment front with sales for the unit falling to $1.99 billion, below the $2.2 billion range analysts were looking for. Looking ahead, Motorola expects its second-quarter adjusted net loss to be in the range of 3 cents to 5 cents a share. The midpoint loss of 4 cents is slightly better than the 5-cent loss expected in a Wall Street consensus. On cuts, Motorola didn't offer a specific job-reduction target but said on a conference call that cuts in its mobile phone unit were still above targets and that it now expects to trim $1.3 billion in operating expenses this year. On cuts, Motorola again confirmed that it was reducing more jobs than it originally planned. Earlier this month, Motorola said first-quarter employee cuts were 5,600. That total, combined with 1,900 workers cut the fourth quarter, gives Motorola a two-quarter staff cut of 7,500 jobs. The company didn't offer a new job reduction target, but said on a conference call that in the mobile phone unit alone, it expected to trim $1.3 billion in operating expenses this year. Motorola has said that it expects to cut $1.5 billion in costs for the entire company this year.
Jha said Motorola is still on track to deliver Google's ( GOOG) Android-powered smartphones in the fourth quarter, a key time if the company hopes to get involved in the strong holiday buying season. Jha said the phone will be available with multiple telcos both in and outside the U.S. More bad news for WiMax, the next-generation wireless technology sputtering in the hands of cash-strapped Clearwire ( CLWR). Motorola said on the conference call it will reduce its spending on WiMax research and development, to reflect the market demand for the technology. Motorola shares were up 6 cents, or 1%, to $6.02 in premarket trading Thursday.