Wednesday, October 27, 2010

Motorola Posts its First Growth Quarter since Q4 2006

Motorola reported Q3 2010 sales of $4.9 billion , up 13 percent from the third quarter a year ago. Financial results related to the portion of the Company's Networks business expected to be acquired by Nokia Siemens Networks are reported as discontinued operations. GAAP net earnings in the third quarter of 2010 were $109 million, or $0.05 per share, compared to $12 million, or $0.01 per share, in the third quarter 2009. On a non-GAAP basis, including discontinued operations, earnings in the third quarter of 2010 were $380 million, or $0.16 per share, exceeding the company's guidance of $0.10 - $0.12 per share.

"In the third quarter, Motorola Mobility showed positive momentum across the business, with Mobile Devices reaching profitability for the first time in over three years and Home continues to maintain its leadership position," said Sanjay Jha, Motorola co-chief executive officer and Motorola Mobility CEO. "Mobile Devices' DROID™X continues to sell extremely well, and we have had several other successful smartphone launches globally, including the DROID 2, the MING series in China, as well as a well-received introduction of our enterprise-ready DROID™ PRO. As we continue to make progress across the organization, we remain focused on further improving our financial results and pursuing the delivery of best-in-class software and hardware experiences to consumers and business users."

Greg Brown, Motorola co-chief executive officer and Motorola Solutions CEO, said, "Our Enterprise Mobility Solutions business continues to deliver very solid financial results. In enterprise markets, we continued to experience double-digit sales growth in all four geographic regions we serve. Additionally, our public safety business remains resilient. Going forward, we are focused on next-generation public safety and enterprise solutions and services. I am excited about the opportunities ahead as we approach our targeted separation."

Some highlights:

Mobile Devices segment sales were $2.0 billion, up 20 percent compared with the year-ago quarter. The company shipped 3.8 million smartphones with a total of 22 smartphones introduced during 2010.

Home segment sales were $912 million, up 5 percent compared with the year-ago quarter. The company recently introduced a hosted switched digital video solution that provides independent operators with the bandwidth reclamation and management capabilities needed to launch HDTV, VOD, 3DTV and interactive TV applications.

Enterprise Mobility Solutions segment sales, which now includes the iDEN infrastructure business, were $1.9 billion, up 9 percent compared with the year-ago quarter. The company recently secured a $50 million federal government grant to expand broadband access to communities in the San Francisco Bay Area, including a private broadband LTE network for public safety. The company also announced a strategic alliance with Ericsson for an LTE-based solution that will be integrated with Motorola's Next Generation Public Safety Broadband solution.

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