Motorola managed to post its first profit in three quarters and gave a positive outlook for the future. However, net income collapsed by 94% to US$60 million from US$968 million a year earlier. Sales fell 17 percent to US$8.81 billion.
"We are pleased with the improvement in the financial performance of mobile devices and we look forward to building upon the progress we have made," said Ed Zander, chairman and chief executive officer. "We have strengthened our leadership position in broadband video, WiMAX, next generation government and public safety and the enterprise mobility markets. With our focus on these key opportunities and the initiatives we are taking in mobile devices we will further improve our performance and create long-term shareholder value."
Mobile Devices segment sales were $4.5 billion, down 36 percent compared with the year-ago quarter. Excluding special items, the segment incurred an operating loss of $138 million, compared with operating earnings of $843 million in the year-ago quarter. Motorola said it shipped 37.2 million handsets in the quarter, including more than 900,000 Razr2 phone and the company estimates that its share of the global handset market for the quarter is 13 percent.
Home and Networks Mobility had segment sales of $2.4 billion, up 6 percent compared with the year-ago quarter. Excluding highlighted items, operating earnings were $165 million, compared with operating earnings of $231 million in the year-ago quarter. Enterprise Mobility Solutions had segment sales of $2.0 billion, up 47 percent compared with the year-ago quarter. Excluding highlighted items, operating earnings were $336 million, compared with operating earnings of $280 million in the year-ago quarter.
Posted to the site on 25th October 2007
Posted to: www.cellular-news.com/story/26956.php