Motorola reduced quarterly guidance on Wednesday evening, buttressing activist investors' recent demands for a management shakeup, only hours after rumors of a change at the top sent the shares higher.
Attributing the expected shortfall to lower mobile device shipments in Europe and Asia, the cell phone maker said in a release that it now expects a second-quarter loss of 2 to 4 cents a share, on a GAAP basis, compared with previous expectations for a profit of 3 to 4 cents a share.
Motorola also said it expects second-quarter sales in a range of $8.6 billion to $8.7 billion, below previous guidance of $9.4 billion.
The company also said it no longer expects its mobile device division to turn a profit in fiscal 2007. Motorola will formally report quarterly results on July 19.
Shares fell 1.8% in after-hours trading Wednesday.
In a separate announcement, Motorola named Stu Reed, a supply chain executive, president of its mobile devices unit.
Bad Follows the Good for Motorola Shares
Motorola shares rose almost 3% during regular trading hours Wednesday on speculation that Chief Executive Ed Zander could be about to resign, amid a new campaign by an activist investor to oust the executive.
Zander, whose management of the No. 2 mobile phone maker came under heavy criticism from billionaire investor Carl Icahn earlier this year, now faces fresh pressure from activist shareholder Eric Jackson, who published a statement online entitled "Motorola Plan B" this week.