Motorola has surprised Wall Street by managing to make a small profit in its second quarter but it warned that there will be continuing pressure on profits for the rest of its financial year.
The company was widely expected to report a loss. Turnover for the quarter amounted to $7.02 billion, with Motorola showing a profit of $6 million. In the same quarter last year, Motorola had turnover of $7.52 billion and a profit of $392 million.
But if a restructuring and redundancy charge of $1.91 billion is added into the figure, Motorola had a net loss of $1.33 billion.
Motorola warned that orders for cellular mobile devices had dropped by 11 per cent compared with the same quarter last year. Semiconductor sales fared worse, with a drop in orders by 25 per cent.
And, according to US reports, Motorola will swallow another bitter financial pill towards the end of the week, as it rejigs its mobile, paging and satellite business.
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