Motorola, Profit No Longer Mutually Exclusive
Posting earnings this morning, the company said it managed a surprise profit in the third quarter despite a decline in revenue. For the period, the troubled handset maker reported a profit of $12 million, or a penny a share, compared with a year-earlier loss of $397 million, or 18 cents a share. Sales fell 28 percent to $5.45 billion from $7.48 billion.
Not the prettiest of quarters, but that penny-a-share profit beat the consensus estimates of analysts, who had expected the company to simply break even.
“We delivered on our commitment to improve the financial performance of Mobile Devices and to commercially launch two smartphones in time for the fourth-quarter holiday season,” Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, said in a statement.
“The introductions of our new products powered by Android,” Jha continued, “are important milestones as we begin to address the mobilization of the Internet and the growing demand for modern smartphones. Next year, we will continue to expand our smartphone portfolio and deliver improved financial results.”
Glad those layoffs are paying off for someone.
Which is not to say that Motorola’s suffering is over. Sales at the company’s struggling wireless division dropped a precipitous 46 percent to $1.7 billion. Its estimated global market share is now 4.7 percent, compared with 8.4 percent it claimed in 2008. An ugly decline indeed.
That said, with some strong new Android handsets in the pipeline, things are beginning to look up for Motorola (MOT). At $8.44, company shares are trading up six percent this morning.