Motorola surprised analysts by posting a second-quarter net income of $4 million, up from a net loss of $28 million a year ago. Revenue fell 7.4 percent to $8.08 billion and the company expects its third-quarter earnings to be flat.
The handset maker continues to lose market share, shipping just 28.1 million handsets during second quarter, a decrease of 21 percent from the first quarter. Although some predicted Motorola would lose its stature as the third largest maker of cell phones behind Nokia and Samsung, it held onto its ranking. In second quarter Nokia shipped 122 million devices and Samsung shipped 45.7 million handsets. Meanwhile, LG shipped 27.7 million and appears to be quickly closing the gap.
Motorola is in the midst of a major restructuring. Earlier this week it announce it was dividing its Home & Networks Mobility Group into three separate businesses, a move that many believe may make the businesses easier to sell off.