Schaumburg (IL) - Today, Motorola reported sales of $7.1 billion in Q4'2008, and a net loss of $3.6 billion. Annual sales were $30.1 billion, with a net loss of $4.2 billion. Motorola announced it will suspend its quarterly cash dividend and implement cost reduction actions that will save approximately $1.5 billion in 2009.





Mobile device segments were down 51% compared to Q4'2007. Home networks and mobility were down 5% compared to Q4'2007. Enterprise mobility was up 4% compared to Q4'2007. Motorola currently has $7.5 billion cash on hand.

From the press release:

The Company also announced today that its Board of Directors voted to suspend the declaration of quarterly cash dividends on the Company's common stock, effective immediately. The Board believes suspending the dividend will further strengthen the Company’s balance sheet and enhance its financial flexibility.

Greg Brown, Motorola’s president & co-chief executive officer and CEO of Broadband Mobility Solutions, and Sanjay Jha, co-chief executive officer and CEO of Mobile Devices, said, "In the fourth quarter, we generated positive operating cash flow of $201 million and ended the year with total cash of $7.4 billion."

"In light of the economic climate and challenges we face, we have implemented aggressive measures to reduce costs and improve financial flexibility, particularly in Mobile Devices. The cost-reduction actions underway are expected to generate aggregate savings of approximately $1.5 billion in 2009," added Brown and Jha.