AIM Alliance (Apple, IBM, Motorola) partner, Motorola reported its fourth successive decline in revenue yesterday.
The company saw a 25 per cent drop in its revenues, falling to $7.3 billion from $10.1 billion. Motorola blamed a slowdown in spending in the telecommunications market. The results gave the company a net loss of $90 million, compared to a net profit of $362 million in the year ago quarter.
Motorola's largest division, its personal communications segment - which includes its handset business - saw revenue drop to $3 billion, down 14 per cent from the year ago quarter. The company also saw its global telecommunication division suffer a 33 per cent drop in revenue, down to $1.4 billion. The company blamed falling demand worldwide for wireless-infrastructure equipment combined with lower average selling prices.
Christopher Galvin, Motorola's CEO, said the company was glad to have put 2001 behind it. Motorola expects to continue to post losses in the first and second quarters of 2002, with a return to profitability expected in the second half of the year, Galvin said.
Motorola, which had 150,000 employees in August 2000, will have eliminated 42,900 jobs and transferred 5,500 employees by the end of 2002, the company said in December.