Feeds

Motorola chip unit slides into red

Reverses upward trend of past few quarters

  • alert
  • submit to reddit

Motorola's semiconductor business is back in the red, after turning a profit for its last few quarters.

The company posted a loss of $121 million for the first quarter of 2003, compared to income of $18 million and $13 million for Q4 and Q3 of 2002, respectively. It lost $238 million in Q1 2002.

Motorola recorded sales of $1.2 billion for the 2003 quarter, up two per cent on the year-ago quarter, but down from Q4 2002's $1.3 billion. Q3 2002 also saw revenues of $1.2 billion. First quarter orders declined 16 per cent year-on-year, falling to $1.1 billion.

Motorola said its Q1 loss was down compared to the year-ago quarter, thanks to improving margins, the result of its shift toward fewer manufacturing facilities.

For the group as a whole, Motorola posted a profit of $169 million ($0.07 a share), on sales of $6.04 billion for the first quarter, compared to a loss of $449 million ($0.20 a share), on sales of $6.18 billion during Q1 2002.

Looking ahead, the company said it expects to see a slight increase in revenues, to between $6.4 billion and $6.6 billion. Earnings per share will fall, however, to $0.01-0.03 ($0.03-0.05 excluding special items), it admitted. ®

Related Stories

IBM chip sales and margins static
Intel sales flatter than a pancake

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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.