Motorola announces second quarter 2010 financial results

Motorola has announced its second quarter results for 2010. The device manufacturer reported sales of $5.4 billion in the second quarter of 2010. The GAAP earnings in the second quarter of 2010 were $162 million, or .07 per share, which compares to GAAP earnings of $26 million, or .01 per share, in the second quarter of 2009.

Mobile Devices segment sales were $1.7 billion, down 6% compared with the year ago quarter. GAAP operating earnings were $87 million, which included income from a significant legal settlement of $228 million, compared to an operating loss of $287 million in the year ago quarter. The non-GAAP operating loss was $109 million, compared to an operating loss of $239 million in the year-ago quarter.

During the quarter, the Company generated positive operating cash flow of $242 million, reduced long term debt through a $500 million tender offer and ended the quarter with a total cash position of $8.3 billion. Net cash increased to $4.9 billion from $4.6 billion in the first quarter.

Greg Brown, Motorola co-chief executive officer and CEO of Motorola Solutions, said: “In the second quarter, our Enterprise Mobility Solutions and Networks businesses continued to deliver best in class market leadership and financial returns, with strong operating earnings and excellent cash generation.”

“In addition, last week, we announced that Nokia Siemens Networks will acquire the majority of our Networks business. We are very proud of the operational and financial performance of our Networks business and are excited to have reached this agreement to combine our Networks team with such an industry leader,” Brown continued. “This is great news for our customers, our investors and our people and will allow us to sharpen our strategic focus on providing mission-and business-critical solutions for our government, public safety and enterprise customers.”

Said Sanjay Jha, Motorola co-chief executive officer and CEO of Motorola Mobility: “The Droid X launch has been very well received and is seen as one of the best smartphones in the market today with a 4.3 inch high-resolution display, Adobe flash and an 8 megapixel camera. As we continue to execute on our business strategy, we are in a strong position to continue improving our share in the rapidly growing smartphone market and improving our operating performance.”

“The Mobile Devices and Home businesses remain focused on developing next generation products to capitalise on the convergence of mobile experiences and home entertainment.”