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Motorola shows gains in Q1

Claws way back in semiconductor market

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US giant Motorola said that its first quarter financial results show that it is returning to profitability in its chip business. Overall, Motorola showed turnover of $7.2 billion, with net profits of $171 million. That represents a five per cent increase in revenues from the same period last year. Net margin on its products was 2.4 per cent. According to chief operating officer Robert Gowney, Motorola sees "continuing improvements in the semiconductor business, which returned to profitability." The following are the 1999 first-quarter results of major operations compared with the first quarter of 1998. In its mobile business, sales rose by eight per cent. Its network system sales rose by five per cent, quarter on quarter, with digital infrastructure sales accounting for 95 per cent of its terrestrial systems turnover. In its chip business, sales were 11 per cent higher, with this division turning in an operating profits of $47 million compared to a loss of $58 million in the same period last year. European orders fell, while orders increased in the Americas, Asia and Japan. The turn round was led by wirleess communications. ®

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