14 DAY TRIAL // Motorola, Inc. announced today its financial results for the second quarter of the ongoing year, and reported sales of $5.5 billion for the time frame. The company also announced that it saw GAAP earnings of $26 million in the quarter, which translate into .01 per share, while stating that the total cash it had at the end of the three-month period was of $6.5 billion, $360 million higher, compared with the first quarter of the year.
Greg Brown, co-CEO of Motorola and CEO of Broadband Mobility Solutions, stated that, “In Broadband Mobility Solutions, we continued to lead in our key markets and delivered solid results in a very challenging economic environment. We further reduced our cost structure, improved our operating margins and decreased inventory on a sequential basis. We also continued to focus our R&D efforts on innovation in areas such as next-generation public safety, enterprise mobile computing, enhanced broadband video and 4G wireless.”
In the mobile devices area, the company announced sales of $1.8 billion, 45 percent lower than the second quarter of the previous year. The GAAP operating loss it registered was of $253 million, compared with an operating loss of $346 million registered a year ago. According to Motorola, the mobile devices area saw a reduction in operating loss of 50 percent when compared with the $509-million loss it registered in the first quarter of 2009.
Other highlights in the company's announcement include a number of 14.8 million handsets shipped in the three-month period, which account for a global market share of around 5.5 percent. At the same time, Motorola also says that it managed to launch a series of devices in the quarter, including the CDMA Rival A455, and the 3G Karma QA1, as well as the iDEN Clutch i465. The company is also working on the development of a series of smartphones that should land on the market in the fourth quarter of the year.
Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, added, “We have agreements in place with carriers and remain on track to bring our new smartphone devices to market for the holiday selling season. We are also excited about our 2010 portfolio and are pleased with the customer feedback. In Mobile Devices, we improved the operating loss, reflecting a lower cost structure, and substantially reduced cash consumption as compared to the first quarter.”