Motorola Mobility cuts its losses

Motorola Mobility is confident of turning a profit by the year-end after cutting its losses by $25 million (€17.5 million) sequentially during the second quarter.
 
The firm generated a loss of $56 million in the three months to end-June on the back of higher sales of mobile devices, which were up from 8.3 million units in 2Q10 to 11 million this year. Smartphone shipments accounted for 4.4 million of the total and tablets 440,000.
 
Revenues were up 28% year-on-year on the back of the growth in device sales, as shipments of the firm’s set-top boxes remained largely flat.
 
Chief Sanjay Jha says device sales were boosted by the launch of new smartphones in the US, and a doubling of sales in Latin America and China. “With a focus on profitable growth and delivering differentiated LTE smartphones and tablets, we expect to achieve profitability in Mobile Devices in the fourth quarter and for the full year 2011,” he states.
 
However, Jha gave a weak outlook for mobile device sales in the third quarter because of an expected “modest delay” launching 4G devices, the Wall Street Journal reports.
 
Network equipment business Motorola Solutions simultaneously revealed it doubled net profit year-on-year to $349 million in 2Q11, as it benefitted from the $975 million sale of its wireless infrastructure business to Nokia Siemens in April.
 

The figures left the firm confident enough to raise full-year guidance, predicting operating earnings around 16.5% of sales and revenue growth of 5.5% to 6%.

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