Feeds

Freescale earnings grow post-restructure

Business picking up

  • alert
  • submit to reddit

Boost IT visibility and business value

Freescale, Motorola's erstwhile chip division, saw its income jump during Q1 FY2005 as it started to put the cost of last year's layoffs behind it.

The quarter yielded sales of $1.44bn, up a mere fraction on the previous quarter's $1.43bn and the year-ago quarter's total, $1.4bn.

Income for the three-month period came to $85m (20 cents a share), well up on Q4 FY2004's $5m (one cent a share) but down 19.8 per cent on the $106m it posted this time last year. The previous quarter's earnings were blitzed by the cost of laying off 1,000-odd workers and costs arising from the split with Motorola.

The restructuring costs continued into Q1, with $18m coming off the bottom line. And the year-ago figure was boosted by a $54m gain from the sale of a Chinese chip-plant.

Freescale's gross margins topped 40.2 per cent during the quarter, up from 36.3 per cent in the year-ago quarter and 36 per cent in Q4 FY2004.

The company's computing products group saw sales grow from last quarter's $314m to $349m, though that's still below the year-ago quarter's level, $389m. The division continues to supply Apple with G4-class PowerPC microprocessors for the Mac maker's iBook and PowerBook laptop lines.

The wireless products business, by contrast, was up year on year, but down sequentially, with sales of $412m. That compares to $465m in the previous quarter and the $354m reported this time last year.

Looking to Q2, Freescale said it expects sales to lie between $1.38bn and $1.47bn. Margins will stay at around 40.2 per cent. ®

Related stories

IBM outs dual-core PowerPC
Apple utility 'confirms' dual-core PowerPC chip
Apple updates G4 PowerBooks with Bluetooth 2.0
Freescale licenses PowerVR MBX graphics core
Job cuts hit Freescale earnings
Dual-core IBM PowerPC 'to ship in single-core form'
Freescale 1000-worker cull to cost $65m

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

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.