According to
RBC Capital Markets, after releasing
2008 2nd Quarter financial results,
Motorola plans to announce numerous new models late this year of which half will be UMTS.
RBC Capital Markets Managing Director -
Mark Sue commented to yours truly:
 "Things are starting to stabilize for the beleaguered wireless company and Motorola shipped 28M mobile devices units suggesting the company maintained global market share at ~9.5%."
"The stock is cheap, in our view, trading at just 0.4x our CY09E revenues net cash and with Motorola having reached break-even, near term focused investors may drive the shares to our new price target of $10." |
"Revenues during the quarter were $8.1B vs. expectations of $7.5B with better trends from Home & Networks Mobility."
"Motorola, despite the risks and the costs, is continuing with its planned separation scheduled now for 3Q09."
"We're not sure what the two separate companies will be called however."
"In terms of the outlook, Motorola is looking for slightly down sequential Mobile Devices revenues in a product transition quarter with modest share loss; ASPs should be stable at $119."
"
Motorola is guiding to continuing operations profit of $0.00-$0.02 in 3Q08 and $0.06-$0.08 in FY08."
"The loss on the mobile devices segment narrowed from $347M to $340M with further cost cutting planned."
"Motorola plans to announce numerous new models late this year of which half will be UMTS."
"More touch and smartphones are slated for the holidays as well."
"People are still buying RAZRs and MOT sold 3M units during the quarter and 1M RAZR2s."
"The W Series hit 12M units while ROKR was 1M."
"North America was 48% for devices; Latin America was 27%, while Asia Pacific and EMEA remain challenged at 14% and 11% respectively."
"Home and Networks Mobility revenues were strong at $2.7B and operating margins of 9.1%."
"Enterprise Mobility Solutions were $2.0B with healthy operating margins of 18.6%."
"Overall GMs were 28.8% and further mobile devices enhancements may enable gross margins to improve modestly by year end."
"Overall operating margins were 1.0%; device operating margins narrowed from -10.5% to -10.2%."
"Global unit growth remains healthy with at least 10% YoY growth endorsed by Nokia, Samsung and now Motorola."
"And Motorola's channel inventories remain low heading into the back half."
"Challenges remain and
Motorola will soon split off its handset division from the other segments, which are showing stable and cushioning financials."
"Increased execution risk keeps us at Sector Perform."
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