Motorola Inc.'s stock price fell nearly 25 percent to $7.60 per share in trading
Wednesday as the company lowered its forecast of $7.5 billion in fourth-quarter
revenue to $7.1 billion, citing weakness in the semiconductor, infrastructure
and broadband sectors.
One day earlier, the company reported sales of $6.4 billion and net earnings
of $111 million, compared with revenue of $7.4 billion and a net loss of $1.4
billion in the year-earlier period. Cost cuts and layoffs helped the company to
achieve year-over-year earnings.
But broadband continued to get hit hard by operator cutbacks in capital
expenditures, with sales down 19 percent to $519 million. Orders decreased 40
percent to $385 million. The broadband division produced operating earnings of
$66 million versus $46 million in the year earlier period.