Motorola Shows Profits in 3Q

The Schaumburg-based maker of mobile phones and other communications equipment on Thursday reported net income of $12 million, or 1 cent a share, in the third quarter, a substantial improvement from a net loss of $397 million, or 18 cents a share, a year earlier. The 1-cent result includes a one-off charge of 1 cent per share for costs relating to an environmental reserve and Motorola's ongoing plans to split into two independent companies.The news sent shares up more than 11 percent in midday trading to $8.84 on the New York Stock Exchange.
The mobile device unit's sales totaled $1.7 billion, down 46 percent from last year, and its estimated global market share is now 4.7 percent, compared with 8.4 percent in 2008. Operating loss was $183 million, smaller than an operating loss of $840 million in the year-earlier quarter, mostly because of aggressive cost-cutting measures.

Motorola has so far introduced two of these devices, which will represent the company's offerings for the ultra-competitive holiday season. Sales for these phones won't be recorded until the fourth quarter.
While the Droid does not have Motoblur, Jha said the majority of Motorola's smartphones next year will feature the service, which will evolve to tackle other functions besides social networking. The company will also make smartphones for consumers who have traditionally been users of simpler feature phones. Jha said he expects volumes in feature phones to decline, partially offset by the ramp-up in smartphones, which produce much higher profit margins.
"We will drive Android down to lower price points," Jha said. "I would then say those are low-end smartphones, as opposed to feature phones."

Meanwhile, sales were down at both of Motorola's other two business units in the third quarter. Home and Networks Mobility, which produces cable television set-top boxes and network infrastructure, saw sales drop 15 percent from a year ago. Operating earnings fell to $199 million from $263 million in the same quarter last year.

Sales at enterprise Mobility Solutions, which makes communications equipment for business and government clients, fell 13 percent on the year. Operating earnings totaled $306 million, down from $403 million a year ago.

motorola profits, motorola stock value, motorola profit 3Q, motorola profit q3