Motorola Mobility reports Q1 operating loss, says China is holding up closing of purchase by Google

Motorola Mobility reports Q1 operating loss, says China is holding up closing of purchase by Google
Motorola Mobility announced that it had an operating loss of $121 million for its first quarter. Revenue rose 2% from last year to $3.1 billion. On a GAAP net basis, Motorola Mobility lost $86 million compared to an $81 million loss in the first quarter of 2011. These figures can be manipulated almost any way the company wants to. On a non-GAAP basis the loss for the three month period was $10 million compared with $25 million a year earlier. Cash Flow was positive for the quarter at $98 million and after the end of the quarter, Motorola had $3.5 billion of cash and cash equivalents on hand.

Motorola Mobility shipped 8.9 million handsets during the quarter with 5.1 million of them being smartphones. During the quarter, Motorola Mobility introduced the Motorola DROID RAZR MAXX which is equipped with a massive 3300mAh battery and offers battery life unmatched by other smartphones.

According to Motorola Mobility, it is China that is holding up the closing of its acquisition by Google. Both Motorola Mobility and Google said that it would work with Chinese authorities to get the $12.5 billion deal approved. Motorola Mobility says it hopes to have the deal closed before the end of the first half of this year.source: Motorola

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10 Comments

1. eDiesel

Posts: 142; Member since: Mar 17, 2012

China has google by the cojones

2. HugeTroller

Posts: 80; Member since: Apr 27, 2012

Gg Google, go back to China now for them to approve.

3. mas11

Posts: 1034; Member since: Mar 30, 2012

Screw China, if the U.S. and Europe approve who cares what China thinks.

4. JcHnd

Posts: 283; Member since: Apr 30, 2012

maybe cuz china is one of their biggest clients... they release phones specially for china... so think...

6. mas11

Posts: 1034; Member since: Mar 30, 2012

Yeah but these are two U.S. companies so it be up to the U.S. government. Do you really think the U.S. would have a say if these were two Chinese companies?

7. jcpwn2004

Posts: 314; Member since: Jan 18, 2012

exactly, chinese gov't is being really lame here. Motorola should tell them to screw off. Most of the chinese population has a crap buying power anyways so all motorola is losing is low end handset sales which don't generate any profit anyways.

10. JcHnd

Posts: 283; Member since: Apr 30, 2012

Did nokia made any profit loss with the nokia 1100?... gotta think again... low wages means low price handsets sold mostly in countries with very large populations like china or russia... I think if motorola ignore china maybe they'll ban the brand from their country... now THAT is a lose in profit for them...

5. kanagadeepan

Posts: 1270; Member since: Jan 24, 2012

May look like that... But really China is tooo big to ignore and Motorola has great market in China with lower end DualSIM (Cdma+Gsm) handsets and even higher end phones likr 4+variants of Razr_Maxx (13Mpx + HD screen remember)... Further Motorola is NOT a problem for Chinese government, but they don't like the open-nature of Google (remember the search restrictions, maps, etc).... But imho, they will approve the deal finally... If they are NOT willing (Chinese govt/authority), they would have stopped it much much earlier (than even EU and US approval)... They are just trying to show Google that "Google depends on them and NOT the other way around" and hence all this delay and tension creation... Further there is NOTHING much (imho) for them (Chinese govt/authority) to loss if the deal goes through... Let us wait peacefully for the drama to complete...

8. Mxyzptlk unregistered

Maybe it's a sign that Motorola should focus on quality over quantity, which they so desperately need right now. A partnership with Google won't really do much, what they need to do is add value.

9. Tux4g63

Posts: 121; Member since: Oct 21, 2011

I am surprised no one has looked at the obvious here. China is probably holding up the deal because Apple has an entrenched presence already there. AND I would not be surprised if there was some backdoor politics going on with Apple leveraging their present existing relationship to hold up the Chinese government from signing off.

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