The share value of Motorola plunged by almost a quarter yesterday after the company confessed that its projected sales would be worse than expected.
Suffering from sluggish growth in core markets including semiconductors, broadband and wireless infrastructure, Motorola cut its sales forecast for the last three months of this year from $7.5bn to $7.1bn. Its share value dropped by 22 per cent.
The company – which is the main supplier of PowerPC chips used in Macs – revealed its gloomy forecast during a conference call yesterday with analysts and press. Only the previous day, Motorola reported its first quarter-year of profit since 2000.
The company returned sales of $6.4 billion and net earnings of $111 million, or $.05 per share in the quarter.
Motorola's shares were valued at $8.05 at close of business yesterday on Nasdaq.