Motorola on Tuesday reported a $3.6 billion fourth-quarter loss, and the company said it will suspend its dividend to conserve cash. Motorola stock dropped 11% in early trading Tuesday.

Once synonymous with the cell phone business that it pioneered and dominated, Motorola has seen its mobile phone market share plunge in recent months. The company brought in highly regarded Sanjay Jha from Qualcomm last summer and charged him with turning around the troubled Mobile Devices unit. He was named CEO of the Mobile Devices unit and co-CEO of the entire company.

In its Tuesday report, Motorola said it's continuing to make progress "on the smartphone road map" and is "on target to launch next-generation devices during the fourth quarter of 2009." Motorola has indicated it will concentrate on developing smartphones based on Google's Android design, although it also plans to continue developing other types of phones as well.

"We are aggressively developing innovative new products," said Jha, "and we are encouraged by the positive customer feedback on our smartphone road map."

Motorola said it will continue to reduce cost structures in its Mobile Devices unit and expects to generate cost savings there of $1.2 billion in 2009. Last year, the company announced that it planned to sell off the Mobile Devices operation, but after possible acquirers said they weren't interested, the company renewed its determination to turn around the unit. It has not had a "hit" phone since its popular Razr handset was introduced several years ago. The device was developed under the company's last Galvin family scion, Christopher Galvin, who was hounded out of the company by Wall Street analysts.

Jha and Greg Brown, Motorola's co-CEO and CEO of the Broadband Mobility Solutions unit, said in a statement: "In light of the economic climate and challenges we face, we have implemented aggressive measures to reduce costs and improve financial flexibility particularly in Mobile Devices. The cost-reduction actions under way are expected to generate aggregate savings of approximately $1.5 billion in 2009."

Last month, Motorola said it would initiate additional layoffs primarily in the Mobile Devices operation. Another job casualty Tuesday was CFO Paul J. Liska, who's leaving the company. Motorola said it's searching for a replacement.

Motorola's Enterprise Mobility unit and its Home and Networks Mobility unit each posted earnings increases and held up well in the challenging overall economic environment. Home and Networks Mobility's sales dipped 5% to $2.6 billion, while Enterprise Mobility Solutions sales were up 4% to $2.2 billion.

"Despite the challenging economic environment, our Broadband Mobility Solutions businesses performed very well in the fourth quarter and throughout the year," said Brown, who cited Motorola's positions in broadband, video, public safety, and enterprise mobility markets as strong assets.