Motorola (MOT) shipped only 19.2 million handsets in the last quarter. At its peak, when its RAZR was flying off the shelves, the number was over 50 million. That, in a nutshell ruined the MOT results

The handset and telecom equipment firm turned in a Q4 net loss of $3.58 billion, or $1.57 a share, compared with year-earlier net income of $100 million, or $.04 a share. The latest results included $1.56 a share in write-downs. Revenue dropped 26% to $7.14 billion from $9.65 billion.

MOT also suspended it dividend. And, the CFO quit.

Results from the company’s handset operation were devastating  The segment’s sales were $2.35 billion, down 51% compared with the year-ago quarter. The operating loss was $595 million.

The Home and Networks Mobility segment sales were $2.6 billion, down 5% compared with the year-ago quarter. Operating earnings increased to $257 million, compared with operating earnings of $192 million in the year-ago quarter. This unit includes MOT’s set-top box operation.

Enterprise Mobility Solutions segment sales were $2.2 billion, up 4% compared with the year-ago quarter. Operating earnings increased to $466 million, compared with operating earnings of $451 million in the year-ago quarter. If this unit were not doing well, MOT would be in ruins.

Motorola really can’t make a comeback in handsets. Its unit sales have fallen too far. It does not have a "hot" product in the market. It competes with companies with better products and balance sheets like RIM (RIMM), Apple (AAPL), Nokia (NOK), and Samsung. In addition, market leaders like Nokia say that worldwide handset sales will drop this year. Motorola is facing falling market share in a shrinking industry.

Put another way, Motorola has gone beyond the point of no return.

Douglas A. McIntyre

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