Motorola posts weak Q2 results, affected by mobiles division

July 19, 2007 – Motorola has posted disappointing results for the second quarter of 2007, weighed down by its underperforming mobile devices division, particularly in Asia and Europe.

The company recorded total sales of $8.7bn in the period, compared to previous predictions of around $9.4bn, and recorded a consecutive loss for the quarter.

The Home and Networks Mobility division, which now includes the former Connected Home Solutions division, registered sales of $2.6bn in the second quarter of 2007, up 9% from the same period of the previous year.  Operating profits for the division reached $207mn, down from the $246mn recorded in the second quarter of 2006.

The company’s Enterprise Mobility Solutions division registered sales of $1.9bn, up 42% from the same period of the previous year, reflecting continued strong sales from the Symbol business it acquired in January 207.  Operating earnings for the division reached $302mn, compared to $252mn registered in the same period of the previous year.

“This was a challenging quarter for Motorola in which revenue fell short of our expectations due to a decline in mobile device unit shipments,” said Ed Zander, Motorola’s Chairman and CEO.  “However, I am pleased with the solid results within our Home and Networks Mobility and Enterprise Mobility Solutions businesses.  Our vision of seamless mobility and the mobile Internet continues to resonate with our customers and partners worldwide.”