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After much speculation from analysts, Motorola has finally revealed the total number of XOOM tablets shipped during the first quarter of 2011 as part of their quarterly earning report. Though it was recently speculated that as few as 25,000 XOOMs may have shipped, Motorola has confirmed the actual number to be 250,000. That number makes up a small fraction of the 9.3 million total mobile devices shipped in the first quarter. Of those, 4.1 million were smartphones.
That is a growth from the 2.3 million smartphones shipped a year earlier, and coincides with a 22 percent net revenue increase from Q1 2010. Motorola posted $3 billion in revenues, with $2.1 billion earned through mobile device sales. See the full report below.
Motorola Mobility Announces First-Quarter Financial Results
April 28, 2011
First Quarter Financial Highlights
Net revenues of $3.0 billion, up 22 percent from first quarter 2010
GAAP net loss of .27 per share compared to .72 loss in first quarter 2010
Non-GAAP loss of .08 per share compared to .48 loss in first quarter 2010
Mobile Devices revenues of $2.1 billion, up 30 percent from first quarter 2010; GAAP operating loss of $89 million; non-GAAP operating loss of $61 million
Shipped 9.3 million mobile devices, including 4.1 million smartphones and more than 250,000 tablets
Home revenues of $904 million, up 8 percent from first quarter 2010; GAAP operating earnings of $53 million; non-GAAP operating earnings of $81 million
Positive operating cash flow of $107 million
LIBERTYVILLE, Ill. – April. 28, 2011 – Motorola Mobility Holdings, Inc. (NYSE: MMI) today reported net revenues of $3.0 billion in the first quarter of 2011, up 22 percent from the first quarter of 2010. The GAAP net loss in the first quarter of 2011 was $81 million, or .27 per share, compared to a loss of $212 million, or .72 per share, in the first quarter of 2010. On a non-GAAP basis, the net loss in the first quarter of 2011 was $25 million, or .08 per share, compared to a loss of $142 million, or .48 per share, in the first quarter of 2010.In the quarter, the Company generated $107 million in operating cash flow, its seventh consecutive quarter of positive cash generation. Total cash of $3.3 billion at the end of the quarter includes cash, cash equivalents and cash deposits.
Details on non-GAAP adjustments and the use of non-GAAP measures are included later in this press release and in the financial tables.
“In the first quarter, we reached a major milestone in our history by becoming a new independent, public company. We enhanced our product portfolio by delivering compelling experiences with the launch of Motorola ATRIX™ and Motorola XOOM™, as well as offering unique end-to-end video solutions for the home,” said Sanjay Jha, chairman and chief executive officer, Motorola Mobility. “With a well-recognized brand, a strong balance sheet and industry leading intellectual property, we have the right assets to deliver an exciting pipeline of products, continue to grow our business and further improve our financial results.”
Operating Results
Mobile Devices net revenues in the first quarter were $2.1 billion, up 30 percent compared with the year-ago quarter. The GAAP operating loss was $89 million compared to an operating loss of $192 million in the year-ago quarter. The non-GAAP operating loss was $61 million compared to an operating loss of $148 million in the year-ago quarter. The Company shipped a total of 9.3 million mobile devices, including 4.1 million smartphones and more than 250,000 Motorola XOOM™ tablets. In the first quarter of 2010, the Company shipped 8.5 million mobile devices, including 2.3 million smartphones.
Mobile Devices highlights:
Introduced the award-winning Motorola ATRIX™, the world’s most powerful smartphone, with leading carriers around the globe. With Motorola’s innovative webtop application and smart accessories, Motorola ATRIX transforms into a mobile information and entertainment center, and enables a PC-like computing experience.
Introduced the award-winning Motorola XOOM™, the first tablet to use the Android 3.0 (Honeycomb) platform. In the U.S., Motorola XOOM launched with Verizon as a 4G LTE upgradeable device and Motorola XOOM with Wi-Fi launched with seven leading retailers in North America.
Announced four powerful new mobile devices specific to the China market – dual-core, Android 2.3 XT882 and MT870 plus MT620 and XT316.
Announced the acquisition of Three Laws Mobility, Inc. (3LM), a developer of mobile enterprise security and device management software for the Android operating system. Motorola plans to integrate 3LM’s technology into its smartphones and license the technology to other Android smartphone providers.
Home segment net revenues in the first quarter were $904 million, up 8 percent compared with the year-ago quarter. GAAP operating earnings were $53 million, compared to $20 million in the year-ago quarter. Non-GAAP operating earnings increased to $81 million from $47 million in the year-ago quarter. The Company maintained its leadership in key markets with set-top shipments up more than 20 percent as compared to the year-ago quarter.
Home highlights:Leveraged Motorola’s 4Home managed services solution with the announcement of Verizon’s connected home services which offers home control and monitoring to FiOS subscribers.
Acquired Dreampark, allowing the continued expansion of the Company’s cloud-based Medios software suite and strengthening the Company’s ability to provide systems integrators, service providers, enterprises and content providers with innovative solutions for deploying converged media experiences.
Launched a new wireless video bridge solution, the VAP2400, enabling content distribution for the broadband home.
Achieved a world record for upstream speed using Motorola’s RX48 high-sensitivity DOCSIS CMTS receiver technology, a solution that enables operators to generate incremental revenue from their existing network.
Selected by HBO Latin America to upgrade its satellite network using MPEG-4 equipment for high-definition video service delivery.
Conference Call and WebcastMotorola Mobility will host its quarterly conference call beginning at 5:00 p.m. (U.S. Eastern Time) on Thursday, April 28. The conference call will be webcast live with audio and slides at http://investors.motorola.com.
Use of Non-GAAP Financial Information
In addition to the GAAP results included in this presentation, Motorola Mobility also has included non-GAAP measurements of results. Motorola Mobility has provided these non-GAAP measurements to help investors better understand Motorola Mobility’s core operating performance, enhance comparisons of Motorola Mobility’s core operating performance from period to period, and allow better comparisons of Motorola Mobility’s operating performance to that of its competitors. Among other things, the Company’s management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results, excluding these items, because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the Company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.
Highlighted items: The Company has excluded the effects of highlighted items (and any material reversals of highlighted items recorded in prior periods) from its non-GAAP operating expenses and net income measurements because the Company believes that these historical items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the Company’s current operating performance or comparisons to the Company’s past operating performance.
Stock-based compensation expense: The Company has excluded stock-based compensation expense from its non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our employees and the Company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues – the Company continues to evaluate its performance excluding stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-based compensation expense will recur in future periods.
Intangible assets amortization expense: The Company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net income measurements, primarily because it represents a significant non-cash expense and because the Company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the Company’s acquisitions. Investors should note that the use of intangible assets contributed to the Company’s revenues earned during the periods presented and will contribute to the Company’s future period revenues as well. Intangible assets amortization expense will recur in future periods. Details of the above items and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found at the end of this press release.
Business Risks
Motorola Mobility cautions the reader that the risk factors below, as well as those on pages 13 through 34 in the Company’s 2010 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Mobility’s website at investors.motorola.com, could cause the Company’s actual results to differ materially from those estimated or predicted in the forward-looking statements. Such forward-looking statements include, but are not limited to, statements about future performance, and the Company’s financial outlook for the second quarter of 2011. Many of these risks and uncertainties cannot be controlled by the Company and factors that may impact forward-looking statements include, but are not limited to: (1) possible negative effects on the Company’s business operations, financial performance or assets as a result of becoming an independent, publicly traded Company, which may include: (i) diminished purchasing leverage and increased exposure to market fluctuations as a result of being a smaller, more focused Company, and (ii) potential negative consequences of licensing certain logos, trademarks, trade names and service marks, including “MOTOROLA” to Motorola Solutions, Inc.; (2) the economic outlook for the telecommunications and broadband industries; (3) the Company’s ability to improve the financial performance in its Mobile Devices business, including the success of its smartphone strategy; (4) Mobile Devices’ dependency on third-party operating systems and software, including Google’s Android operating system; (5) the level of demand for the Company’s products, particularly if customers defer purchases in response to tighter credit or as a result of the recent earthquake and resulting events in Japan; (6) the Company’s ability to introduce new products and technologies in a timely manner; (7) unexpected negative consequences from the restructuring and cost reductions; (8) negative impact on the Company’s business from global economic conditions and uncertainties; (9) the Company’s ability to purchase sufficient materials, parts and components to meet customer demand, particularly as we continue to assess the impact of the recent earthquake and resulting events in Japan; (10) risks related to dependence on certain key suppliers; (11) the impact on the Company’s performance and financial results from strategic acquisitions or divestitures, including those that may occur in the future; (12) risks related to the Company’s high volume of manufacturing in Asia and operations in foreign countries, including Brazil; (13) variability in income received from licensing the Company’s intellectual property to others, as well as expenses incurred when the Company licenses intellectual property from others; (14) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (15) the impact of foreign currency fluctuations, including the negative impact of a strengthening U.S. dollar on the Company when competing for business in foreign markets; (16) the impact on the Company from ongoing consolidation in the telecommunications and broadband industries; (17) the impact of changes in governmental policies, laws or regulations; (18) the outcome of currently ongoing and future tax matters; and (19) negative consequences from the Company’s outsourcing of various activities, including certain manufacturing, information technology and administrative functions. Motorola Mobility undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
About Motorola Mobility
Motorola Mobility, Inc. (NYSE:MMI) fuses innovative technology with human insights to create experiences that simplify, connect and enrich people’s lives. Our portfolio includes converged mobile devices such as smartphones and tablets; wireless accessories; end-to-end video and data delivery; and management solutions, including set-tops and data-access devices. For more information, visit motorola.com/mobility.
Shipped Sold
you mean shipped != sold
Actually, “shipped” means sold into channels and not sold through to consumers. BIG difference and the channels can return product for credit or cash (depending on terms).
= !=
in SQL and other databases, it is
Is this good or bad???? o_O
I don’t think this answers anything.
I know they at least sold one as I love my Xoom tho.
Shipped does not equal sold.
says a chimp.
Only in the case of consignment. I highly doubt Motorola sells their products via consignment. In other words, shipped does equal sold.
I am not 100% certain either way, but have often heard that shipped, from a manufactures perspective, means “to the retail channel” not to the customers. So this number would typically not include units sold to customers, but numbers sold to retailers.
Nope, depends on the leverage and terms of the channel partner. It is obvious only a fraction of the 250K actually sold through to consumers and the return window to the supplier tends to be six month for electronics.
Expect the Xoom to drop big time in price due to competition and Moto NOT wanting to get mass returns in the next few months.
I’d love to hear one example where Motorola is selling the Xoom on consignment. Until then it’s 250K sold and shipped.
for your info chimpo…it does equal sold….they are talking earnings,,read into the words
And you obviously don’t know how retail works. ;) Until those units are in the hands of customers and their return period is up, those things aren’t sold.
Developers care about the number of units in the hands of users. Best Buy and Costco ain’t buying Angry Birds.
btw Apple also sells iPhones to carriers/retailers, so in the case of Apple, it is misleading too. Apple should report activations not sales. Shipping equals sales. Sales does not equal to activations
Where the hell do I talk about crApple?
Hell they might as well have said they have manufactured 250,000 XOOMs cuz it still does not mean they’ve sold any.
Actually, it does mean they’ve sold 250k. How is that not clear?
Meh. To distributers but not the end user
shipped to retailers! Heyo!
I have no idea why this almost gleeful talking down is going on.
Here we go again so called android fans bashing an android device this site should be called applephandroid.
Just because someone is an Android fan doesn’t mean they have to like ALL Android devices. I can’t stand fanboys like that. They’re no worst than Apple fanboys.
Unlike iFans that buy any POS with an apple logo on it, fans of platforms that are licensed to multiple OEMs tend to be more critical and expect more form OEMs. In other words, they don’t let OEMs get way with the shit apple pulls.
The difference between an apple fanboy and an android fanboy is that the former will give Apple a 5 star rating on an obviously flawed product while the latter will go out of his way to give Google a 1 star rating because they forgot to include a changelog.
People love android for the freedom and flexibility that it gives them (or at least the promise) and not because they are awe inspired by Google.
I don’t care how anyone interprets the 250k # but I’m loving my xoom. Can’t wait to get updates for it!!!
Next weeks are goig to be exciting with update to my Nexus S and Android 3.1 for the Xoom!
Motorola shouldn’t have been too agressive with their pricing. With the variety iof honeycomb tabs being made available they could have sold a lot more being the one of the first to release with Xoom.
This is the crap I’m talking about android fans they are very fickle and flakey. Instead of saying good job they down an exceptional device. I just don’t get it
If they lower the price by 100-150 dollars, the xoom will gurantee to sell out.
once the transformer came out for what.. 400 dollars, all plans of getting the xoom went out the window
Man why all the hate for Moto and the Xoom? The Xoom is an awesome tablet! Rejoice!
they must of sold more than 25,000 whichever way you read the figures. no company is going to manufacture and ship 250,000 units of an expensive piece of hardware unless theyre being sold. and no retailer is going to order more unless theyre shifting the units. theyre not going to order a 100 xooms and just leave them lying around in the back room are they lol.
You should check out the costcos around Chicago. Easily a hundred in stock at each store.
Xoom is so FAIL. I can’t believe they only sold a quarter million. $3 billion dollars is like nothing. They only gained maybe 5% of the marketshare with 1 device on 1 carrier!
I expected them to sell 40 million in 90 days and make at least $100 billion because selling consumer electronics is easy
My wife loves my Xoom. If it had been a little bit cheaper, she’d have one too. You listening, Moto?