Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
Motorola has announced another massive round of job cuts, 3000 in its mobile devices division and 1000 associated with corporate functions and other business units, that, together with earlier similar prunings are expected to generate cost savings of $US1-5b in 2009.
The cuts, to start immediately represent about six percent of the company's workforce and are in addition to the 3000 staff reductions announced in Q4 of 2008 which were expected to produce cost savings of $US800 million. Of the total of $US1.5b savings, $1.2b are expected to come from the mobile devices business. Motorola has given no indication of the geographic locations where cuts will be made.
In an attempt to mitigate the bad news, co CEO Sanjay Ja, said: "we are making good progress in developing important new smartphones for 2009 and are pleased with the positive response from our customers to these new devices."
The company has also released preliminary results for Q4 of 2008 and says it shipped around 19 million mobile devices in the quarter. This is significantly fewer than the 23.5m in Q3 and the 28m in Q2. In the corresponding quarter of 2007 it sold almost 41m handsets.
The company said that :"Sales were adversely impacted by continued weakness in end consumer demand and customer inventory reduction." It added that "Enterprise Mobility Solutions and Home and Networks Mobility businesses continued to perform very well in a challenging environment.."
Total Motorola sales for the fourth quarter of 2008 are expected to be in the range of $US7.0b to $7.2b and the company had cash reserves of $US7.4b at year end. The company is forecasting a loss of around seven to eight cents per share.
David Bass
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