Motorola Reports Handset Unit Losses Reach $194M

Schaumburg, IL (AHN) - Handset maker Motorola reported another depressed financial quarter slowed by sluggish cell phone sales. The company lost $194 million during the period, up from the $181 million drop posted a year ago.

The mobile phone manufacturer said first-quarter revenue dove 21 percent to $7.45 billion with handset sales off 40 percent, or 27.4 million devices shipped.

Motorola's handset share also fell, dropping to 9.5 percent from 17.5 percent during the previous year.

The mobile devices arm lost $418 million, up from $233 million in red ink, or a 39 percent quarterly decline. Motorola's public safety division was a sole bright spot for the handset area, registering a 91 percent jump in income.

Last month, Motorola announced it would split off the handset unit, creating a separate company.