As part of its Q4 2012 earnings call, Google execs expanded on the current status of Motorola, the division's financials and future integration between the companies. Responding to a question about the current state of Motorola's financials, Senior VP and Chief Financial Officer Patrick Pichette reiterated that when Google purchased Motorola it inherited a 12- to 18-month product pipeline that isn't easily changeable. Google bought Motorola, which already had products promised to customers. That's business.
He explained that although many improvements have been made -- in regards to selling the home division of Motorola and restructuring its financials -- that Google is still only 6 months post-acquisition and these changes take a considerable amount of time. Pichette had this to say:
"It's just the nature of the beast when you're reinventing a business."
Even though Motorola is certainly losing money at this point, the amount is non-consequential to Google nor Motorola's long-term goals or profitability. Make no mistake about it, Google wants Motorola to be profitable:
"We do care about profitability, and that is our goal with every one of the areas where we invest," Pichette said. "We're not in the business of losing money with Motorola."
Financial issues with Motorola aside, it's understandable that it will take some time for Google to turn the business around and make it work the way they want it to. Newly appointed CEO Dennis Woodside is working to trim down the unnecessary parts of the business so that it operates on a core set of products. Google has said as much since the day it bought Motorola, and this will continue to be the plan going forward.
You can take a listen to this portion of the Q4 2012 earnings call below.
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