Motorola posts surprise profit

The company expects better results for the current quarter, once it starts selling its new smartphones

Even before the phones it is hinging its future livelihood on hit the market, Motorola posted a surprise profit and upped expectations for the current quarter.

During its third quarter, Motorola reported sales of US$5.5 billion and earnings of $0.01 per share. Sales are down from $7.5 billion in the same quarter last year, but earnings per share improved over a loss of $0.18 last year.

Analysts polled by Thomson Reuters were expecting the company to break even, on an earnings-per-share basis.

The company’s third-quarter earnings report comes a day after a heavily promoted launch in New York City of a Motorola Android-based phone to run on Verizon’s network. Neither that phone nor the earlier-announced Cliq Android phone is yet available to users in the US; the European version of the Cliq recently went on sale.

Despite the surprise profit, Motorola had bad news to report. It shipped 13.6 million handsets during the quarter, compared to 25.4 million phones during the same period last year. Sales in its mobile devices segment were $1.7 billion, down 46 percent over last year’s corresponding quarter.

But the company has just begun selling its new breed of phones.

“In the fourth quarter we’ll begin to expand our smartphone portfolio as we ship new devices to additional carriers and markets,” Sanjay Jha, co-CEO of Motorola and CEO of its mobile device group, said during a conference call to discuss the earnings report.

Motorola has said that most of its new phones next year will run Android, and Jha said the majority will also include Motoblur, software Motorola developed that is designed to let users combine all their social-networking activities in one place.

Motorola has high hopes that once those new phones hit the market, its prospects will improve. It said it is expecting earnings per share for the fourth quarter this year of between $0.07 and $0.09. That's higher than the current consensus from analysts polled by Thomson Reuters, who are expecting $0.06 per share for the quarter.

Despite Motorola's historical support of Windows Mobile and other phones targeting the enterprise, businesses should not expect much from Motorola -- at least in the near future. Motoblur and future phones will be mainly targeted at consumers, prosumers and heavy social messaging users, Jha said. "These market segments are growing in the high double-digit rate and faster than the enterprise market," he said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MotorolaAndroidMotorola Cliq

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?