Motorola's second quarter better than expected

Motorola reported a better-than-expected second quarter and said its enterprise mobility business did well. The company also said that it expects to gain smartphone market share with the Droid X launch.

Motorola on Thursday reported a better-than-expected second quarter and said its enterprise mobility business did well. The company also said that it expects to gain smartphone market share with the Droid X launch.

The company reported second quarter earnings of $162 million, or 7 cents a share, on revenue of $5.4 billion (statement). Non-GAAP earnings were 9 cents a share. Wall Street was expecting earnings of 7 cents a share on revenue of $5.19 billion.

In addition, the company slightly raised its outlook for the third quarter. Motorola projected earnings of 10 cents a share to 12 cents a share for the three months ending Sept. 30. Wall Street was expecting earnings of 10 cents a share. Motorola's outlook includes the results of its networks unit, which is being sold to Nokia Siemens. That sale is expected to close at the end of 2010.

Also: Motorola's breakup in sight: Nokia Siemens buys wireless networking unit

By the numbers:

  • Motorola's enterprise mobility business delivered sales of $1.9 billion and operating earnings of $181 million.
  • The company's mobile device unit, which will be spun off as a separate business, had sales of $1.7 billion and operating earnings of $87 million. Second quarter device sales were down 6 percent from a year ago. Those earnings were bolstered by a $228 million legal settlement. Backing out the legal settlement, the mobile division lost $109 million.
  • Motorola shipped 8.3 million handsets, including 2.7 million smartphones.
  • Network sales were $967 million with operating earnings of $178 million.
  • Motorola's home division, which includes set-top boxes, media servers and content sharing devices, had revenue of $886 million, down 13 percent from a year ago. Operating earnings were $28 million.

Related: Motorola Droid X review: bigger, badder, better

Motorola Droid X review: hands-on pictures

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