Motorola 2nd Quarter Results Exceed Expectations

[Barry]

Motorola posted a second quarter ahead of most expectations, but investors appear to have expected such results as the company's stock remained relatively unchanged after the news. Motorola recorded companywide revenues of $8.8 billion, a 17-percent jump from the same quarter a year ago.

Motorola shipped a record 33.9 million handsets in the quarter, that's good enough for of 18.1 percent of the wireless market, however, still behind Nokia. Motorola's increase n handset shipments-which were far beyond most projections-was due partially to sales of low-end phones in emerging markets. Motorola earlier this year announced plans to sell $40 handsets through the GSM Association in places like India and Pakistan. Investment banking firm UBS said Motorola shipped 1.2 million of the low-end phones during the quarter.

Motorola's mobile-phone business recorded sales of $4.9 billion, up 24 percent compared with the year-ago quarter. The business' operating earnings were $498 million, up from the $396 million for the same period in 2004. The company said the results were based on strong sales of low- and high-end devices, including Motorola's popular Razr device. Motorola said it has shipped more than 5 million Razrs.

Motorola posted sales of $1.6 billion, up 3 percent compared with the year-ago quarter. Motorola's first-half network sales also were up 9 percent compared with the first half of 2004. The company's operating earnings increased to $263 million compared with $168 million in the year-ago quarter.

For the third quarter, Motorola predicted it would post revenues between $8.9 billion and $9.1 billion and earnings per share between 27 cents and 29 cents. The company's projections were ahead of most analysts' expectations.

_________________
Start Posting for Cool Prizes!