Motorola 1Q loss widens; analysts worried

Schaumburg-based Motorola Inc. delivered grim news about its earnings on Thursday. More losses. Fewer shipments of phones. Worldwide ranking slid to No. 4.

Still, the communications company promises consumers that it will have the next iconic phone in your hand, at least, later this year.

While Motorola will be introducing different phones and other products throughout the year, it has been focusing on a new line of mobile phones based on the Google Android. And Motorola's co-Chief Executive Officer Sanjay Jha, who heads the Mobile Devices business, promises this phone will be like no other.

"We want to deliver an experience for users where they can connect with the mobile Internet, not just connect with a Web site, but right to where they want to be," Jha said during an interview. "We want to deliver that without having them go to a Web site."

But Jha was short on details, like the look and feel of the phone, its service provider or price, He said he didn't want to tip his hand to the competition.

Analysts also were eager for more details on Thursday, but were told to look for the Android Motorola phone to be shipped sometime in the fourth quarter.

While those phones are expected to be available for gift-giving during the holidays, some analysts were skeptical. Considering Motorola has been late with deliveries in the past, they're worried about the debut of this new line.

"There's a lot of competition out there right now, like the Blackberry Storm, and Palm is partnering with Sprint with its new Pre," said Jane Zweig, CEO of Columbia, Maryland-based The Shosteck Group, which analyzes the wireless industry. "They have a lot of challenges ahead and its form factor will be important."

Form factor, or style, could make or break a product, Zweig said. The ultra slimness of the Razr phone is what made it a hit in years past.

But that's when the company was doing better, compared to the earnings release on Thursday. Motorola posted a first-quarter net loss of $231 million, or 10 cents per share, compared to a net loss of $194 million, or 9 cents, in the same period a year before. First-quarter sales were $5.4 billion, compared to $7.4 billion in the same period a year before.

Motorola co-CEO Greg Brown also said Thursday that the troubled communications company aims to eliminate more position and continue to consolidate its suburban campuses. The company previously announced about 7,000 job cuts, but it could be as many as 7,500 by June, according to some federal filings.

"We're ahead of our target on reductions and the expense savings will be across the board," he said.

Motorola has been consolidating and "optimizing" its campuses in Schaumburg, Arlington Heights and Libertyville, Brown said.

"We're also reducing positions, not necessarily people, and reducing discretionary spending and the number of contractors," Brown said.

Despite the cuts, Motorola also has been hiring and has roughly 200 jobs posted online, including positions in Libertyville, Schaumburg and Chicago.