Troubled mobile phone maker Motorola has announced its financial results for the fourth quarter of 2008…and the results are not pretty. The company reports fourth quarter sales of $7.1 billion, but a net loss for the quarter of a whopping $3.6 billion. Most of the loss isn’t actually in cash, however: instead, it’s calculated from impaired goodwill of existing assets and an increase in deferred tax asset valuation, and Motorola still has $7.4 billion in cash. Without those charges, Motorola would have only lost one cent per share.
Motorola’s mobile phone business continues to struggle, with a net loss of $595 million for the quarter.
The company has also bid farewell to CFO Paul Liska, who is departing with no reason given. Motorola’s co-CEOs praised Liska for his work in preparing the company to spin off its cell phone business, but that separation was postponed last year as the unit’s finances worsened. Motorola corporate controller and senior VP Edward Fitzpatrick will take over CFO duties.
Motorola is now engaging in belt-tightening and cost reductions designed to save the company roughly $1.5 billion in 2009.
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