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Chips, phones boost Motorola Q2

But Iridium still casts a shadow

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Motorola yesterday posted profits of $273 million on revenues of $7.5 billion for its second quarter, ended 26 June, beating Wall Street expectations The figures show a marked turnaround on last year's Q2 results, in which the company recorded a loss of $1.3 billion on revenues of $7.0 billion. The company assigned the improvement to strong sales of semiconductor products and cellphone handsets. Last year's loss does, however, include charges -- without them it would have been in the black to the tune of $6 million. This time round, charges relating to Motorola's investment in troubled satellite-based mobile phone company Iridium pushed profits back to $206 million. It also admitted that its Q3 figures might be made signifantly worse by further Iridium-based costs. ® See also Motorola demands help keeping Iridium in orbit

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