Motorola CEO will leave in the year due to poor performance

July 12, Motorola said Wednesday that its second-quarter profit and sales would be lower than expected, mainly because of the poor performance of its mobile phone business in Asia and Europe. 　　Motorola also said it expects its handset business to be unprofitable in 2007. 　　Motorola expects operating losses in the second quarter to be between 2-4 cents per share, including 3-4 cents per share from layoffs and other projects, according to the Forbes website. Motorola also lowered its sales revenue in the second quarter to $868.7 billion trillion from the forecast of about $9.4 billion trillion. 　　According to Thomson Financial's statistics, analysts expect Motorola's second-quarter sales revenue to be $9.26 billion trillion, and 2 cents for earnings per share. 　　Motorola expects to sell 350.036 billion handsets in the second quarter. Meanwhile, a recent news that Motorola CEO Edward Jander may resign. 　　Affected by the news, the company's share price rose 3% in Wednesday. "There are rumours that the CEO of Motorola will resign, a move that could boost investor confidence," said Ed Snyder, Charter Equity, a researchers. Earlier this year, Zander was hit by investor Carl Iken. 　　This week, Eric Jackson, the activist shareholder, threw out a "Motorola B plan", which Zander again to face a severe test. In a statement, Jackson said: "Zander has been a 13.5% per cent return for Motorola shareholders since taking over as CEO in 2004, while Nokia is as high as 37.8%." His performance over the past few years, and the current strategy, are not enough to reverse the situation, which is unacceptable. 　　Motorola's share price rose nearly 3% in Wednesday, influenced by rumours of resignation. In fact, activist investor Carl Iken said in May this year that if Zander could not reverse the company's business this year, he would consider letting Zander resign.