Motorola Mobility reports $56 million net loss in Q2, $3.3 billion in revenue

Second Quarter Financial Highlights
-Net revenues of $3.3 billion, up 28 percent from second quarter 2010
-GAAP net lack of $0.19 per share in comparison to net earnings of $0.27 per share in
second quarter 2010
-Non-GAAP earnings of $0.09 per share in comparison with $0.30 loss in second
quarter 2010
-Mobile Devices revenues of $2.4 billion, up 41 percent from second quarter
2010; GAAP operating lack of $85 million; non-GAAP operating lack of $31
million
-Shipped 11.0 million mobile devices, including 4.4 million smartphones and
440,000 tablets
-Home revenues of $907 million, up 2 percent from second quarter 2010; GAAP
operating earnings of $62 million; non-GAAP operating earnings of $90 million

LIBERTYVILLE, Ill. – July 28, 2011 – Motorola Mobility Holdings, Inc. (NYSE: MMI)
today reported net revenues of $3.3 billion within the second quarter of 2011, up 28 percent
from the second one quarter of 2010. The GAAP net loss inside the second quarter of 2011 was
$56 million, or $0.19 per share, in comparison to net earnings of $80 million, or $0.27 per
share, within the second quarter of 2010. On a non-GAAP basis, the web earnings in the
second quarter of 2011 were $26 million, or $0.09 per share, when compared with a lack of $87
million, or $0.30 per share, inside the second quarter of 2010.

Total cash on the end of the quarter was $3.2 billion and includes cash, cash equivalents
and cash deposits, and operating cash flow was breakeven for the quarter.
Details on non-GAAP adjustments and using non-GAAP measures are included
later on this press release and within the financial tables.

“Within the second quarter, Mobile Devices launched several new smartphones within the U.S.
and markets all over. Revenues grew over 40 percent driven largely by Latin
America and China where sales greater than doubled year over year. Our Home business
delivered another strong performance, and we introduced several innovative products
and services for next generation multi-screen video solutions,” said Sanjay Jha,
chairman and chief executive officer, Motorola Mobility. “With a spotlight on profitable
growth and delivering differentiated LTE smartphones and tablets, we predict to achieve
profitability in Mobile Devices within the fourth quarter and for the total year 2011.”

Operating Results
Mobile Devices net revenues within the second quarter were $2.4 billion, up 41 percent
compared with the year-ago quarter. The GAAP operating loss was $85 million
in comparison to operating earnings of $87 million within the year-ago quarter. The non-GAAP
operating loss was $31 million in comparison to an operating lack of $109 million in the
year-ago quarter. The corporate shipped a complete of eleven.0 million mobile devices, including
4.4 million smartphones and 440,000 Motorola XOOM™ tablets. Within the second quarter
of 2010, the corporate shipped 8.3 million mobile devices, including 2.7 million
smartphones.

Mobile Devices highlights:
-Expanded Motorola DROID family at Verizon Wireless with the introduction of
DROID X2 and DROID 3 by Motorola both featuring a dual-core 1GHz processor,
providing better gaming experiences, web browsing, multi-tasking, and Adobe®
Flash® video performance
-Launched 4 new smartphones in China, including the Motorola XT883 with China
Telecom, the most recent and most advanced member of the powerful Milestone™
product family, and the XT316, Motorola’s first value priced smartphone for
emerging market consumers
-Announced plans to launch 10 devices in 2011 with Sprint, including Motorola
Photon™ 4G, Sprint’s first international smartphone, the ready-for business
Motorola XPRT™ smartphone, the Motorola TITANIUM™ smartphone featuring
iDEN technology, and Motorola TRIUMPH™, a price priced smartphone for
prepaid customers on Virgin Mobile USA
-Expanded distribution of the ATRIX™ 4G smartphone and Motorola XOOM
tablets into Latin America, China, Korea, and Europe
-Named exclusive U.S. launch marketing partner for mobile devices and tablets
by Spotify. Spotify is an award-winning digital music service that provides users ondemand
access to at least one of the world’s largest music libraries

Home segment net revenues within the second quarter were $907 million, up 2 percent
compared with the year-ago quarter. GAAP operating earnings were $62 million,
in comparison to $29 million within the year-ago quarter. Non-GAAP operating earnings
increased to $90 million from $58 million within the year-ago quarter. The Company
maintained its leadership in key markets with set-top shipments up greater than 10
percent in comparison to the year-ago quarter.

Home highlights:
-Introduced Motorola Televation™, a broadband video device enabling
consumers to look at live TV on a connected IP device anywhere around the
home
-Launched the Medios Xperience platform which enables operators to merge
video content with social networking, games and web-based content, and deliver
more interactive functionality with broadcast television and video-on-demand
services
-Selected by Time Warner Cable to develop a video gateway platform capable of
delivering a complicated in-home entertainment experience and announced the
DCX3600M, Motorola’s first video gateway device
-Selected by ESPN to transition all programming for ESPN and ESPN-2 networks
to an MPEG-4 HD format using Motorola’s video distribution solution

Third-Quarter and 2011 Outlook
The Company’s outlook for the third quarter and entire year 2011 is right here:
-Third-quarter net earnings per share of $0.00 to $0.10
-2011 net earnings per share of $0.48 to $0.60
-Excludes charges related to items of the range typically highlighted by the