Motorola Mobility Holdings has just revealed preliminary results for the fourth-quarter 2011. Although the Company has not finalized its financial results for the fourth-quarter, it estimates sales of $3.4 billion with modest profitability on a non-GAAP basis. These estimates include shipments of approximately 10.5 million mobile devices, of which approximately 5.3 million were smartphones. Motorola Mobility’s fourth-quarter results were impacted by the increased competitive environment in the Mobile Device business and higher legal costs associated with ongoing Intellectual Property (IP) litigations. The Company estimates sales of $900 million for the Home business in the fourth-quarter. Motorola Mobility will issue its fourth-quarter 2011 earnings results at approximately 3:00 p.m. U.S. Central Time on Thursday, January 26, 2012. I’ll be interested to see these same numbers this time next year if the Google acquisition closes in a timely fashion, I would expect Motorola’s Android handsets to quickly become the cream of the crop which would definitely affect their bottom line. Google has always said that its acquisition of Motorola would not affect competitive balance but we all know that is not true, with Motorola, Google should be able finally close the gap on the complete user experience and take Apple head on.
As previously announced on August 15, 2011, Motorola Mobility and Google Inc. entered into a definitive agreement for Google to acquire Motorola Mobility for $40.00 per share in cash, or a total of approximately $12.5 billion. On November 7, 2011, Motorola Mobility stockholders voted overwhelmingly to approve the proposed merger with Google at the Company’s Special Meeting of Stockholders. The Company continues to work closely with Google to complete the proposed acquisition of Motorola Mobility as expeditiously as possible.