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Motorola, Inc. (NYSE: MOT) is set to release its latest quarterly earnings this week, and earnings are expected to be $0.04 per share according to analyst estimates. Although Motorola CEO Ed Zander has jettisoned about 10% of the company's global workforce and has finally introduced a true successor to the record-setting RAZR handset from 2004 (the RAZR 2), he may just be biding his time until he gets the boot.

When Motorola's time comes tomorrow, the company will most likely report a profit -- its first in three quarters. But does a small quarterly profit make for a legitimate comeback? Not at all. The first half of this year saw a $209 million loss for the largest cellphone maker in the U.S., and a profit (even a small one) this quarter will be the final opportunity for Zander to produce a return to consistent profitability by the end of 2007. If he does not show this, expect a resignation. For Carl Icahn, who has been critical of Zander, it would be sweet justice.

Although cutting costs is the top tool for Zander, improving sales and margins is much more important if he doesn't want to be seen as a leader who can't produce growth quarter by quarter. His days may or may not be limited, but by the end of 2007, the writing will be on the wall. Either Zander finds a way to grow sales and profit beyond cost cutting, or investors who want to unlock more value from the company will scream until he's ejected from the company.

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Motorola Q3 earnings preview: Zander on the ropes originally appeared on BloggingStocks on Wed, 24 Oct 2007 12:50:00 EST. Please see our terms for use of feeds.

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