Google promises 'changes' at Motorola, but mum on details
Google (NASDAQ:GOOG) offered little insight into its recently completed $12.5 billion acquisition of Motorola Mobility during its second-quarter conference call, offering only barebones financial details on the company and a few comments on the company's performance in the quarter. The situation is a dramatic reversal from several months ago, when investors were able to comb through Motorola's investor conference calls and earnings releases to get a sense of the company's smartphone shipments and financial performance.
"We're totally excited about this opportunity," Google CFO Patrick Pichette said. "Everybody should expect some changes at Motorola."
However, he repeatedly said that Google has "nothing to announce yet" on Motorola. "It's a little too early to comment on big changes right now," he said.
On Motorola's financials, Google said Motorola revenues clocked in at $1.25 billion ($843 million from the mobile segment and $407 million from the home segment). Motorola's operating loss was $233 million in the quarter ($192 million for the mobile segment and $41 million for the home segment).
Pichette said Motorola's second-quarter results were partially impacted by a number of one-time expenses, some related to Google's acquisition of the company, and that it might take a few months for Motorola's financial situation to shake out. However, he said Motorola likely wouldn't continue to lose money. He specifically mentioned the company's Razr Maxx as a successful device during the quarter.
Google executives also reiterated the company's successes in the mobile advertising space, noting an increasing number of mobile queries to its offerings, and the company's continued efforts to make its services available on mobile.
"We are seeing a phenomenal amount of queries in mobile across the board," said Pichette. "For us, mobile is like desktop in 1999."
Specifically, Google said it improved its YouTube app for Android for consumers and it merged its AdMob and AdSense offerings for advertisers, among other activities. Interestingly, Google said it now counts over a million advertisers that are pushing ads through Google to mobile users.
Overall, Google reported net income in the second quarter of $2.79 billion, up from the $2.51 billion it scored in the second quarter of 2011. Google's overall consolidated revenues were $12.21 billion for the quarter, an increase of 35 percent from the same period a year ago.
Google CEO Larry Page did not attend the company's earnings conference call due to a previously disclosed illness. Google executives said Page has lost his voice but is still running the company.
Google announced its acquisition of Motorola last year, and the deal closed in May. Google has said it plans to operate Motorola as an independent business that will focus on releasing a small number of cutting-edge devices. Motorola's hardware prowess could significantly aid Google as it moves into the hardware business, as evidenced by its recent release of the Nexus 7 tablet.
At its annual I/O developer conference in late June, Google revealed that there are now more than 400 million activated Android devices worldwide, up from 100 million a year ago, Additionally, the company disclosed that there are one million Android activations per day now, up from 400,000 a year ago.
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