Evolving Security Requirements for Communications Service Providers
by Yaser Mujahed
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Motorola Posts Q2 Sales of $8.1 billion, Ahead of Expectations Motorola exceeded market expectations by reporting Q2 sales of $8.1 billion and GAAP net earnings of $4 million. The company had positive operating cash flow of $204 million and ended the quarter with a net cash* position of $3.6 billion and a total cash position of $7.8 billion.
"Motorola's Home and Networks Mobility and Enterprise Mobility Solutions segments delivered strong results in the second quarter, driven by sales growth and operating margin expansion. These segments are well positioned to continue generating year-over-year sales and margin growth during the second half," said Greg Brown, Motorola president and chief executive officer.
Some highlights:
- Mobile Devices segment sales were $3.3 billion, down 22 percent compared to the year-ago quarter. The segment reported an operating loss of $346 million, compared to an operating loss of $332 million in the year-ago quarter.
- During Q2, Motorola shipped 28.1 million handsets, and maintained its share of the global handset market
- Home and Networks Mobility segment sales were $2.7 billion, up 7 percent compared to the year-ago quarter. Operating earnings were $245 million, which represents an increase of 28 percent as compared to operating earnings of $191 million in the year-ago quarter.
- Motorola experienced record sales in Home, driven by shipments of 4.9 million digital entertainment devices, due to continued strong demand for HD, HD/DVR and IPTV devices
- Consumer demand for HD content continued to drive the uptake of MPEG-4. This quarter we added DirectTV, HBO LatAM and Starz to the lineup of programmers and service providers transitioning from MPEG-2
- DOCSIS 3.0 momentum started to build with certification for multiple Motorola cable modems, bronze qualification for the BSR 64000 cable modem termination system edge route, as well as customer deployment with J-Com in Japan
- Motorola now has 19 contracts for commercial WiMAX systems in 16 countries.
- Enterprise Mobility Solutions segment sales were $2.0 billion, up 6 percent compared to the year-ago quarter. Operating earnings increased to $377 million, which represents an increase of 24 percent as compared to operating earnings of $303 million in the year-ago quarter.
http://www.motorola.com
31-Jul-08
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