Motorola warned investors of a second-quarter loss today and said it no longer expected its mobile phone business to be profitable this year.
The warning came at the end of a day when Motorola shares had risen as much as 3 per cent on rumours chief executive Ed Zander could resign amid a campaign by an activist shareholder to oust him.
The company said it would post a second-quarter net loss from continuing operations ranging from 2 cents to 4 cents per share on sales of $8.6 billion to $8.7 billion.
It had previously said second-quarter sales would be essentially flat with the first quarter's $9.4 billion.
Motorola also backtracked on its previous target for the mobile unit to make a full-year profit, and said its second-quarter operating loss would be wider than in the first quarter.