International BusinessMotorola rings in $26 mn profit in second quarter
Telecom entity Motorola today posted a profit of $26 million for the second quarter ended June 30, 2009, even as revenues plunged.
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The company, which is facing a tough business scenario, had a profit of $4 million in the year-ago period, it said in a statement today.
Second quarter revenues tumbled to $5.5 million, a fall of 32 per cent from $8 billion in the comparable period last year.
Motorola said it is on track to introduce smart phones. Sanjay Jha, the India-origin co-CEO of Motorola, said that agreements are in place with carriers and remain on track to bring our new smart phone devices to market for the holiday selling season.
"In Mobile Devices, we improved the operating loss, reflecting a lower cost structure, and substantially reduced cash consumption as compared to the first quarter," Jha who is also the CEO of Mobile Devices said.
The company sold Mobile Devices worth $1.8 billion in the second quarter and shipped 14.8 million handsets. However, the sales in this segment declined 45 per cent compared with the year-ago period.
"The segment reduced its operating loss by 50 per cent sequentially from $509 million in the first quarter of 2009," the statement said.