Feeds

Freescale grows Q2 earnings on flat sales

Stepping out of Motorola's shadow

  • alert
  • submit to reddit

The Power of One Infographic

Freescale, the company still making G4-class PowerPC processors for Apple's notebook line-up, saw a big jump in income during its second fiscal quarter, despite an only marginal increase in sales, the firm said yesterday.

Sales totalled $1.47bn, up 2.1 per cent from $1.44bn in Q1 FY2005 and up just under a single percentage point from Q2 FY2004's $1.46bn.

Net income was $122m (29 cents a share), rather better than the $85m (20 cents a share) Freescale reported for the previous quarter and the year-ago quarter's $43m (15 cents a share) income.

Then again, Q2 was hit by a $5m expense relating to Freescale's split from Motorola, compared to $39m a year ago and $18m in the previous quarter.

Gross margins for the quarter were calculated to be 41.6 per cent, Freescale said.

Drilling down, the company's Network and Computing Systems business yielded $387m worth of sales, up 10.9 per cent sequentially but down 2.8 per cent year on year. The division's earnings contribution was up 32.4 per cent sequentially and year on year to $94m, Freescale said.

The company's Transportation and Standard Products operation contributed $667m to the quarter's sales and $87m in earnings. Wireless and Mobile Solutions added $401m and $5m, respectively, to those figures - the division's earnings were well down on the previous quarter, but nonetheless an improvement on the year-ago quarter's $43m loss. Other operations together lost $47m during Q2 FY2005.

Looking ahead, Freescale said it's anticipating Q3 to yield sales of between $1.38bn and $1.47bn, flat or down on the current quarter but consistent with seasonal sales patterns. Gross margins will match Q2's figure, it forecast. ®

Related stories

Apple profits, revenue up again
IBM to Apple: eat these chips
Widescreen iBook rumours gain weight
Apple shifts to Intel: what is all the fuss about?
Apple in 'talks with Intel'
World chip sales continue to rise
Freescale earnings grow post-restructure

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP and Microsoft prove it again: Big Business Doesn't Create Jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.