Motorola rings up sharply higher net profit

NEW YORK — Motorola posted a six-fold increase in quarterly net profit Thursday and an optimistic outlook for its mobile phone division ahead of its separation next year.Motorola reported a second-quarter net profit of 162 million dollars, or nine cents per share, compared to 26 million dollars, or one cent per share, a year ago. Wall Street analysts had been expecting eight cents per share.Revenue declined to 5.41 billion dollars from 5.49 billion dollars a year ago but was better than the 5.19 billion forecast by analysts.Motorola's mobile phone division saw revenue fall by six percent to 1.7 billion dollars. The company sold 2.7 million smartphones in the quarter, up from 2.3 million during the previous quarter, and 5.6 million basic handsets.Motorola co-chief executive Sanjay Jha said demand has been outstripping supply for the "Droid X," one of a line of smartphones powered by Google's Android mobile operating system.He said the device, seen as Motorola's answer to Apple's iPhone, "has been very well received and is seen as one of the best smartphones in the market today."Jha has been counting on smartphones running Android to help turn around the Illinois-based company's flagging fortunes."As we continue to execute on our business strategy, we are in a strong position to continue improving our share in the rapidly growing smartphone market and improving our operating performance," Jha said in a statement.He said he expected to see growth in Motorola's mobile phone sales in the July-September quarter, reversing a slide that has lasted years.Motorola enjoyed success with its popular Razr phone launched in 2005 but has been losing ground since to Apple, Canada's Research in Motion, maker of the Blackberry, and other major cell phone manufacturers.Motorola said revenue rose 10 percent in its enterprise mobility division to 1.9 billion dollars while revenue at its networks business fell two percent to 967 million dollars.The company announced last week it was selling most of its wireless network infrastr

Add comment

Nick
Content

Submit