[Motorola reports mobile devices sales of $1.8 billion with 14.7 million handsets shipped Q1. ]

Schaumburg, IL -- Motorola, Inc. reported sales of $5.4 billion in the first quarter of 2009. The total GAAP net loss in the first quarter of 2009 was $231 million, or $0.10 per share, which includes net income of $0.03 per share from discontinued operations. The GAAP net loss from continuing operations was $291 million, or $0.13 per share. The GAAP net loss from continuing operations includes net charges of $0.05 per share from highlighted items, primarily related to cost-reduction initiatives.

Total cash* at the end of the first quarter was $6.1 billion, down from $7.4 billion at the end of 2008. The cash decline was driven in large part by a $700 million reduction in accounts receivable sold and approximately $200 million in restructuring-related payments. The Company expects to generate positive cash flows in the second half of the year through improved earnings and continued working capital improvements.

Greg Brown, president and co-CEO of Motorola and CEO of Broadband Mobility Solutions, said, "Our Broadband Mobility Solutions businesses performed well in a challenging environment, by delivering value for our customers and adding to an already impressive portfolio of products. We will continue to manage our costs to ensure alignment with current market conditions. We are executing with operational and financial discipline while we make targeted investments for our future."

Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, added, "In the quarter at Mobile Devices, we implemented aggressive actions to reduce costs and also gained solid traction on improving operational effectiveness. Customer feedback on our smartphone roadmap remains very positive, and we plan to have differentiated Android-based devices in stores in time for the fourth-quarter holiday season. We significantly reduced the operating loss in Mobile Devices compared with the fourth quarter of 2008 and have increased the 2009 annual cost-reduction target to more than $1.3 billion."

Operating Results

Mobile Devices segment sales were $1.8 billion, down 45 percent compared to the year-ago quarter. The GAAP operating loss was $509 million, compared to an operating loss of $418 million in the year-ago quarter. The segment reduced its operating loss sequentially from $595 million in the fourth quarter of 2008. During the quarter, Mobile Devices shipped 14.7 million handsets and estimates its share of the global handset market was 6.0 percent.

Mobile Devices highlights:

* Continued progress on differentiated smartphone devices targeted to launch in the fourth quarter of 2009

* Launched seven new phones, including three GSM devices, two 3G devices and two CDMA devices

* Launched MOTOSURF A3100, featuring 3G and Wi-Fi; and Evoke QA4, Motorola's latest social networking feature phone

* Introduced and began shipping MOTO(TM) W233 Renew, the world's first phone made with recycled plastics

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