Motorola (NYSE: MOT), the fourth largest handset manufacturer in the world, reported a surprise profit in the second quarter, but it had more with cost cutting and sales from its non-phone divisions than any sort of mobile device turnaround.
The company launched seven new devices during the quarter, and said it was on track to ship two Android devices in time for the busy fourth quarter holiday season. It is those smartphones that Motorola is pinning its future on. In the second quarter, it shipped 14.8 million handsets, or roughly half of the 28.1 million shipped a year ago. The company’s marketshare has fallen to 5.5 percent from 9.1 percent in that time frame.
| 2Q 2009 | 2Q 2008 | Analysts’ Estimates For 2009 | |
|---|---|---|---|
| EPS | $0.01 | $0.00 | ($0.04) |
| Net Income | $26M | $4M | N/A |
| Revenue | $5.5B | $8.1B | N/A |
Earnings Release | Webcast (5:00 a.m. ET) | Presentation
The mobile devices division reported $1.8 billion in revenues, which is slightly better from the previous quarter, but a 45 percent drop from the year ago period when it reported $3.3 billion in revenues. While the overall company recorded a small profit, the mobile device division had an operating loss of $253 million. Cost cutting measures helped tremendously given that in the previous quarter it had an operating loss of $509 million.
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