Feeds

Motorola chip biz narrows loss

But sales still below last year's level

  • alert
  • submit to reddit

Motorola's soon to be spun off Semiconductor Products Sector (SPS) saw sales dip four per cent year on year during the group's third quarter.

SPS posted a $76 million operating loss, as a result. This time last year, it reported operating income totalling $13 million. Ignore the effect of one-off items and the Q3 2003 loss falls to $55 million - bad enough - while the year-ago quarter saw earnings of $12 million.

Sequentially, the Q3 results are an improvement. Last quarter, SPS lost $134 million on sales of $1.1 billion. Orders slipped 25 per cent to $1 billion.

The dip in sales was blamed on weak demand for wireless and networking products, thanks in part to budgetary restrictions in the telecoms arena.

However, SPS reported that orders were up eight per cent, to $1.4 billion.

Motorola as a whole reported Q3 sales of $6.8 billion - up five per cent on the same period last year, and up on last quarter's $6.2 billion - and net income of $116 million (five cents a share), up a similar percentage on last year's $111 million earnings, but down sequentially from $119 million.

Looking ahead, the company said it expects group sales of $7.5-7.8 billion, with earnings of eight to 12 cents a share - 11-15 cents a share, when special items are ignored. ®

Related Stories

Motorola to IPO chip division
Motorola Q2 chip sales slide

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.