Freescale posts Q2 profit on rising sales
But growth slowing
Motorola's soon-to-be-independent semiconductor operation, Freescale, saw sale rise five per cent sequentially and 31 per cent year-on-year, allowing the company to post a profit for its second quarter.
Sales for the three-month period totalled $1.46bn, up from Q1's $1.4bn and Q2 2003's $1.12bn.
The rising sales yielded a quarterly net income of $43m (15 cents a share), rather better than the $174m (63 cents a share) loss it reported this time last year, but down on Q1 2004's $106m (38 cents a share) - and that after $9m in separation expenses was taken into account.
Motorola last week announced it had cut Freescale's initial share price from $17.50-19.50 to $13. At that price, the sale will yield $1.58bn, of which $580m will go into Freescale's coffers. The chip company will also gain an opportunity to borrow $1.25bn from its parent. ®
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