Motorola has reported a 33 percent drop in sales during the second quarter of this year to $5.5 billion.
The company said mobile devices sales were $1.8 billion, down 45 percent compared to the same period last year. The operating loss was $253 million, compared to an operating loss of $346 million in the year-ago quarter. Motorola said the segment reduced its operating loss by 50 percent sequentially from $509 million in the first quarter of 2009.
However, total cash at the end of the second quarter was $6.5 billion, an increase of $360 million compared to the end of the first quarter.
The Company generated $150 million of positive operating cash flow during the quarter and expects to continue to generate positive cash flow in the second half of the year.
Officials however remain upbeat about the company’s change of fortunes.
Greg Brown, co-CEO of Motorola and CEO of Broadband Mobility Solutions, commented, “In Broadband Mobility Solutions, we continued to lead in our key markets and delivered solid results in a very challenging economic environment. We further reduced our cost structure, improved our operating
margins and decreased inventory on a sequential basis. We also continued to focus our R&D efforts on innovation in areas such as next-generation public safety, enterprise mobile computing, enhanced broadband video and 4G wireless.”
Sanjay Jha, co-CEO of Motorola and CEO of Mobile Devices, added, “We have agreements in place with carriers and remain on track to bring our new smartphone devices to market for the holiday selling season. We are also excited about our 2010 portfolio and are pleased with the customer
feedback. In Mobile Devices, we improved the operating loss, reflecting a lower cost structure, and substantially reduced cash consumption as compared to the first quarter.”
Motorola shipped 14.8 million handsets, which leaves its estimated global handset market share of 5.5 percent.
Home and Networks Mobility segment sales were $2.0 billion, down 27 percent compared to the year-ago quarter.
The Enterprise Mobility Solutions segment saw drop to $1.7 billion, down 17 percent compared to the year-ago quarter.
