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Profit warning issued by under fire Moto

Motorola CEO Ed Zander was in the firing line last week after the world's second largest cell phone maker issued a profits warning for its fiscal first quarter.

Motorola CEO Ed Zander was in the firing line last week after the world's second largest cell phone maker issued a profits warning for its fiscal first quarter.

The company said it now expected to post a loss in Q1 and that it was lowering its revenue targets for the quarter.

Motorola said first quarter revenues would be between US$9.2 billion and US$9.3 billion, due to lower than anticipated sales of its handsets. This is down from its earlier target of between US$10.4 billion and US$10.6 billion for the quarter.

It will be the third straight quarter that Motorola has missed its sales forecast.

"Performance in our mobile devices businesses continues to be unacceptable and we are committed to restoring its profitability," Zander said in a statement.

As a result, Zander has replaced CFO David Devonshire with Thomas Meredith, and promoted Greg Brown to president and chief operating officer (COO).

The company has already said it plans to cut 3,500 jobs. However, analysts are indicating that these moves may not be enough to satisfy shareholders

"He's running out of scapegoats," John Krause, an analyst at Thrivent Financial for Lutherans in Minneapolis, which owns one million Motorola shares, told Bloomberg.

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