US handset maker Motorola reported a slight drop in first-quarter income despite a 23% jump in sales that helped it gain market share and close the gap on rival Nokia, an Associated Press report said.
The report said Motorola shares tumbled 5% in after-hours trading as investors showed their disappointment that record first-quarter sales failed to translate into higher profits.
The company also disclosed 2,500 new job cuts, mostly abroad, that had not been formally announced, most of them related to the closure of two manufacturing plants in Nogales, Mexico, and Taiwan.
Motorola said its market share was higher than it had been since 1999 as it rode the continued momentum of its trendy Razr line of phones and made inroads in the fast-growing markets of Brazil, Russia, India and China.
Net income fell to $686 million from $692 million in the same period a year earlier when results were boosted by a substantial gain on investments.
Revenue jumped to a record $10 billion from $8.2 billion a year earlier, exceeding analysts' estimates by almost $500 million, the report said.