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Motorola Promises Full-Year Handset Operating Profit

Schaumburg, Ill. –
Motorola Mobility slightly narrowed the operating losses in its mobile devices
segment in the second quarter compared with the first quarter, and chairman/CEO
Sanjay Jha forecast that the segment would achieve fourth-quarter and full-year
operating profits.

If Jha achieves
his goal, Motorola would likely achieve a consolidated net profit during the
two periods because the company’s other business segment — which mainly
markets cable settop boxes and cable operator infrastructure — posted
operating profits during the second quarter and first half.

 “With a focus on profitable growth and
delivering differentiated LTE smartphones and tablets, we expect to achieve
profitability in mobile devices in the fourth quarter and for the full year
2011,” Jha said.

For the second
quarter, Motorola posted a consolidated net loss of $56 million, down
sequentially from a first-quarter $81 million but contrasting sharply with net
earnings of $77 million in the year-ago quarter. The first-half consolidated
net loss of $137 million was about the same as the year-ago $134 million net
loss.

In the mobile
devices segment, second-quarter operating losses came to $85 million, down from
a first-quarter $89 million operating loss but contrasting sharply with
year-ago operating earnings of $87 million.

First-half
mobile-device operating losses came to $174 million, up from a year-ago $105
million loss.

The mobile device
losses came despite a 41 percent gain in device revenues to $2.4 billion in the
second quarter compared to the year-ago quarter and a 35 percent first-half
gain to $4.56 billion.

Home segment
operating profits came to $62 million, up 114 percent from the year-ago period
and up 135 percent in the half to $115 million. Revenues were up in the quarter
by 2 percent to $907 million and in the half by 5 percent to $1.81 billion.

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