Motorola records steady quarter ahead of drastic changes ahead

Motorola reported a slight fall in second-quarter revenues to end-June of US$5.4 billion, compared to US$5.5 billion a year ago. Net profit for the quarter was up markedly to US$162 million from US$26 million a year earlier.

Sales at Motorola’s Mobile Devices segment amounted to US$1.7 billion, down six per cent year-on-year. Profits were US$87 million, which included income from a significant legal settlement of US$228 million, compared to an operating loss of US$287 million in the year-ago quarter.

Home segment sales were US$886 million, down 13 per cent compared with the year-ago quarter. GAAP operating earnings were US$29 million, compared to US$18 million in the year-ago quarter. Non-GAAP operating earnings were US$57 million, compared to US$49 million in the year-ago quarter.

Enterprise Mobility Solutions segment sales were US$1.9 billion, up 10 per cent compared with the year-ago quarter. GAAP operating earnings were US$181 million, compared to operating earnings of US$141 million in the year-ago quarter. Non-GAAP operating earnings were US$292 million, compared to US$225 million in the year-ago quarter.

Networks segment sales were US$967 million, down two per cent compared with the year-ago quarter. GAAP operating earnings were US$178 million, compared to US$92 million in the year-ago quarter. Non-GAAP operating earnings were US$191 million, compared to US$147 million in the year-ago quarter.

Earlier this month it was announced that Nokia Siemens Networks will acquire the majority of Motorola’s networks business. The transaction is expected to be completed by the end of the year.