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.
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.