Motorola Earnings Jump
Among obviously lower sales and sluggish requirement for its cell telephones, Motorola saw a dramatic boost in takings for quarter two. The company on Thu. reported net profit of $26 million, or 1 cent a share, for the period ended July four, compared with $4 million for 2008’s 2nd quarter. The jump in revenues stunned researchers, who had anticipated a loss of four cents a share, and Motorola itself, which had looked for a loss of three cents to five cents per share.
Quarterly sales dropped to $5.5 bn., a drop of 32 p.c from $8.1 bill a year back. Ih the approaching months, Motorola is looking to make a dent in the smartphone market. “We have agreements in place with carriers and remain on track to bring our new smartphone devices to market for the vacation selling season,” Sanjay Jha, co-CEO of Motorola and Chairman of Mobile Devices, claimed in a press release.
“We are also happy about our 2010 portfolio and are happy with the shopper feedback. ZDNet’s Larry Dignan spotted the company’s expectancy of good results from drumming Google’s Android software, which, Jha claimed, “will get us back in the game in smartphones.”. “We will have two Android devices ( for the vacations in the U.S. ),” declared Jha, adding that deals are already in place with 2 major carriers with extra to follow. “We also have plans for more devices in the 1st quarter of 2010. Facing a competitive cell telephone market and the absence of exciting new releases, the Corporation has been wrestling over the last two years.
Motorola’s well-liked Razr was showcased in 2004. Since that time, the Firm has did not come up with a device hot enough to challenge effectively with smartphones from corporations like iPhone maker Apple. During Second-quarter , Motorola claimed it sold 14.8 million mobile telephones, up a touch from 14.7 million in quarter one but down from the twenty-eight million units it sold a year before. Second-quarter sales for the portable device division plunged forty five % to $1.8 bill. To remain afloat, the Corporation has been on a cost-cutting madness since last year, which made a contribution to the quarterly earnings gain.
In December, Motorola asserted it would trim compensation packages for all employees. Then in Jan , it claimed staff sackings of four thousand, around six % of its whole workforce. For quarter 3, Motorola is expecting anywhere from a loss of 1 cent per share to a gain of 1 cent per share. “We will further improve revenues in the second twelve the year,” expounded Jha on a phone meeting to proclaim the Q2 results.