Motorola Banking on Android Phones
Posted on: Friday, 30 October 2009, 06:30 CDT
Motorola reported a small quarterly net profit Thursday after unveiling a second Google-powered smartphone a day earlier.
The company posted a net profit of $12 million in the third quarter, compared to the net loss of $397 million in the same period a year ago.
Revenue continued to fall by 27 percent in the quarter to $5.45 billion.
However, the Mobile Devices division has narrowed its operating loss to $183 million from $843 million in the same quarter a year ago.
There were 13.6 million handsets shipped by Motorola during the third quarter, while its share of the mobile phone market dropped to 4.7 percent.
Home and Networks Mobility segment revenue fell 15 percent to two billion dollars, while Enterprise Mobility Solutions revenue fell 13 percent to $1.8 billion.
Motorola forecast fourth-quarter earnings of seven to nine cents per share, better than the six cents per share expected by Wall Street analysts.
The optimistic earnings have helped send Motorola's share price 10.93 percent higher to $8.83 in early trading on Wall Street.
Just a day before the earnings had been reported, Motorola unveiled a new smartphone with Verizon Wireless called the Droid.
The Droid, which will cost $200, is going to try and combat with Apple's iPhone. It is powered with Google's Android 2.0 mobile phone operating system.
The Droid has a new GPS navigation system using 3D maps and turn-by-turn voice guidance.
Motorola also released another Android-powered smartphone in September known as the Cliq.
The Cliq focuses heavy on users that are interested in having a smartphone with social networking capabilities such as Facebook, MySpace and Twitter.
Motorola's co-chief executive, Sanjay Jha, underlined the importance of the new smartphones for the company.
"The introductions of our new products powered by Android are important milestones as we begin to address the mobilization of the Internet and the growing demand for modern smartphones," said Jha, a former Qualcomm executive.
"Next year, we will continue to expand our smartphone portfolio and deliver improved financial results," said Jha, chief executive of Mobile Devices.
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Source: RedOrbit Staff & Wire Reports
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