Feeds

Motorola sees near-twofold Q2 profit growth

Chip-related profits up 592 per cent

  • alert
  • submit to reddit

A 592 per cent rise in profits from its semiconductor operation helped drive Motorola's second quarter earnings 91 per cent to $515 million - 23 cents a share - the chips-to-communications company said yesterday.

Motorola's profits were right in line with Wall Street expectations, according to First Call polls. Last year, the company recorded profits of $269 million before expenses. However, one-off charges, mostly relating to acquistion-derived R&D, knocked the company's Q2 2000 earnings down to $204 million, or nine cents a share. That figure is actually down, year-on-year - for Q2 1999, Motorola posted after-expenses earnings of $255 million, 12 cents a share.

Revenues for the quarter reached $9.3 billion, up 22 per cent from last year's $7.6 billion. The company's Semiconductor Products Sector contributed $2 billion to the Q2 2000 figure, which amounts to a rise of 27 per cent. Profits for the group rose from $24 million to $166 million.

Cellphone sales grew 20 per cent to $3.3 billion, and growing margins pushed profits up 5.65 per cent. Motorola's network systems business added a further $2 billion to the quarter's revenue, an increase of 37 per cent, while broadband communications products generated revenues of $768 million, up 23 per cent. ®

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
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.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.