In the company’s first-quarter earnings disclosure, Motorola Mobility finally put a number on XOOM tablet shipments: 250,000. “The Company shipped a total of 9.3 million mobile devices, including 4.1 million smartphones and more than 250,000 Motorola XOOM tablets,” reads the report. “In the first quarter of 2010, the Company shipped 8.5 million mobile devices, including 2.3 million smartphones.” Motorola Mobility also posted $3 billion in net revenues, up 22% year-over-year, with mobile device revenues of $2.1 billion, up 30% year-over-year. The company did post a GAAP net loss of $0.27 per share, however, which was down from a $0.72 share loss in the first-quarter of 2010. Motorola’s complete earnings statement is after the break.

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 Webcast

Motorola 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.

Read

It looks as though Microsoft has accidentally confirmed that its next major Windows Phone update, dubbed Mango, will bring the mobile operating system up to version number 7.5. The information comes courtesy of the Redmond company’s website, which prompts developers to “Preview the Next Windows Phone OS 7.5.” Mango is expected to launch in late-fall of this year and was originally thought to be Windows Phone 7.1. The update will bring with it true multitasking, Internet Explorer 9, and an integrated Twitter experience — among other things. Microsoft has yet to issue an official statement on how the operating system’s version number schema will progress.

Read

Intel gathered by blog Android Central indicates that Sprint and Google will make their Google Voice partnership ready for prime time on April 26th. The venture, which was announced last month, will allow Sprint customers to seamlessly integrate their current wireless number with Google’s Voice service. Calls and texts sent from your mobile device will be logged by Google Voice’s online system, and calls can be made from the browser using the service’s VoIP feature. International calls made from linked mobile devices will automatically route through Google Voice — which offers deep discounting on international voice traffic. The feature has been available in beta for the last few weeks, but it looks like the two companies are finally ready to let everyone in on the fun.

Read

U.S. wireless carrier Sprint has launched a new promotion that aims to ease the financial pain of cellular defectors. Through April 16th, the company will offer a $125 service credit to users that port their number to Sprint from another carrier and sign a two-year smartphone contract. If a smartphone is not in your future, Sprint will offer a $50 service credit to those users porting to a non-smartphone plan. After moving your number over, apply for the credit, and 60 days later an service credit will appear on your wireless statement. The offer is available to those that migrate a line of service from another carrier via Sprint’s online store, phone sales team, or retail locations.

[Via Engadget]

Read

After last month’s little service snafu, internet communications giant Skype is back up, fully operational, and setting company records. Just yesterday, Skype saw a record 27 million users simultaneously logged on to its network. Typically, during peak hours, the company sees close to 25 million Skypers logged on to its network. The surge in users coincides with the conclusion of the holiday season, where, presumably, more users were gifted computers and mobile devices that can run Skype’s popular chat software. The numbers should continue to rise in the coming months, especially with the company’s push to be on more smartphones and internet connected TVs — thanks to its SkypeKit APIs. Anyone recently discover, or rediscover, a use for Skype?

Read

At the Le Web conference in Paris France, Facebook’s platform chief, Ethan Beard, told technology blog TechCrunch that his company’s Facebook Connect service now has 250 million users making monthly connections via third-party sites. Mr. Beard went on to note that 100 million of those users began using the Connect service within the past year and that Facebook is adding nearly 10,000 sites per day.

Do any of you utilize Facebook connect to authenticate to sites other than FB? Login with your Facebook account below to drop us a comment.

Read

Analytics company ComScore has released its October search engine market share numbers and… instead of making you fire up your search-site of choice and finding the information yourself, we thought we would just put it right there for you. October’s search numbers are as follows: Google 66.3%, up from 66.1% in September; Bing 11.5%, up from 11.2% in September; Yahoo 16.5%, down from 16.7% the month prior; Ask.com 3.6% down 0.1% from the previous month; and AOL 2.1%, down from 2.3%. We are curious to see how/if the recent release of Windows Phone will help Bing’s search numbers. We’ll find out next month.

Read

Well it’s not incoming number portability but it’s better than nothing… While the Google Voice team continues to battle through a massive back log of customers itching for their invites, a nifty new feature popped up today for current Google Voice users. Love the service but hate your number? Well now you can change it on the Phones tab under Settings. There is a one-time fee of $10 to change your number but it’s a small price to pay. If you need help picking a new Google Voice number, there’s even a great little number picker tool that lets you type out words and try to snag their corresponding phone numbers. The best part — your old number stays active for 90 days so you don’t have to go crazy hitting all your contacts with your new contact info in a rush. Sweet!

Read