Feeds

Motorola Q3 profits up 730 per cent

Iridium still draining dollars, though

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Motorola bosses were in a jubilant mood yesterday as the company met analyst expectations with a Q3 profit way in excess of the one it reported for the same period last year. The company posted earnings of $332 million for the quarter, up from the $40 million is posted for last year's third quarter. Sales for the quarter totalled $7.7 billion, up seven per cent from $7.2 billion a year earlier. As anticipated -- Motorola itself warned Wall Street to expect one -- the company took a hefty charge against its reserve thanks to its continued role bankrolling Iridium, the troubled satellite cellphone business. It exposure to Iridium totalled $944 million. Motorola also took a $344 million hit against earnings for the sale of its analog semiconductor devices business, now operating independently as On Semiconductor. Bringing these and other factors into the equation, Motorola ended up with a profit of $91 million for the quarter, up from $27 million for the same period last year. Both Motorola's cellphone and semiconductor operations led the company's growth, with increases in sales of 37 per cent (to $3.1 billion) and 11 per cent (to $1.6 billion), respectively. Motorola's Internet; Integrated Electronic Systems; Commercial, Government and Industrial Systems businesses also notched up notable increases in sales -- the only downturns the company experienced were in its satellite (surprise, surprise) and Network Systems operations. And while Motorola's outlook is good, Iridium continues to overshadow the company's growth. The company reiterated financial support for Iridium beyond what it's already contracted to provide is contingent on the satellite company successfully restructuring its business. And while it has various contracts with Iridium, Motorola is refusing to count what it makes out the deal as real revenue. The company even admitted it isn't actually being paid to maintain Iridium's satellite network. As with the previous quarter's results, Motorola warned investors that it may well take a further charge in Q4 thanks to Iridium. Much will depend on Iridium's attempt to persuade other investors to back its restructure plan, though given it's been trying to do so for over two months, it's hard to expect a positive outcome. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.