Motorola, Inc. (NYSE: MOT) today reported sales of $4.9 billion in the third quarter of 2010, up 13 percent from the third quarter a year ago. Financial results related to the portion of the Company’s Networks business expected to be acquired by Nokia Siemens Networks (“NSN”) are reported as discontinued operations. Sales, including $871 million associated with discontinued operations, totaled $5.8 billion, up 6 percent from the year-ago period.
GAAP net earnings in the third quarter of 2010 were $109 million, or .05 per share, compared to $12 million, or .01 per share, in the third quarter 2009. On a non-GAAP basis, including discontinued operations, earnings in the third quarter of 2010 were $380 million, or .16 per share, exceeding the Company’s guidance of .10 – .12 per share. Non-GAAP earnings, including discontinued operations, in the third quarter of 2009 were $131 million, or .06 per share.
GAAP earnings from continuing operations in the third quarter of 2010, which excludes the portion of the Networks business expected to be acquired by NSN, were $7 million, compared to a loss from continuing operations of $90 million in the third quarter of 2009. Non-GAAP earnings from continuing operations in the third quarter of 2010 were $278 million, or .12 per share, up from .01 per share in the third quarter of 2009.
Non-GAAP financial information excludes after-tax costs of approximately .12 per share related to stock-based compensation expense, intangible assets amortization expense and highlighted items. Details on these non-GAAP adjustments and the use of non-GAAP measures are included later in this press release.
During the quarter, the Company generated positive operating cash flow from continuing operations of $502 million and ended the quarter with a total cash** position of $9.0 billion. Net cash*** increased to $5.6 billion from $4.9 billion in the second quarter.
“In the third quarter, Motorola Mobility showed positive momentum across the business, with Mobile Devices reaching profitability for the first time in over three years and Home continues to maintain its leadership position,” said Sanjay Jha, Motorola co-chief executive officer and Motorola Mobility CEO. “Mobile Devices’ DROID™X continues to sell extremely well, and we have had several other successful smartphone launches globally, including the DROID™ 2, the MING® series in China, as well as a well-received introduction of our enterprise-ready DROID™ PRO. As we continue to make progress across the organization, we remain focused on further improving our financial results and pursuing the delivery of best-in-class software and hardware experiences to consumers and business users.”
Greg Brown, Motorola co-chief executive officer and Motorola Solutions CEO, said, “Our Enterprise Mobility Solutions business continues to deliver very solid financial results. In enterprise markets, we continued to experience double-digit sales growth in all four geographic regions we serve. Additionally, our public safety business remains resilient. Going forward, we are focused on next-generation public safety and enterprise solutions and services. I am excited about the opportunities ahead as we approach our targeted separation.”
Pages: 1 2