 Well ahead of even its first official Android handset launch, Motorola posted Q3 sales of $5.5 billion which at last put the beleaguered handset manufacturer in profit. The results place it in a strong position to capitalise and develop on its Android-only smartphone strategy, with at least 3 models expected before the holiday season and its well publicised Verizon partnership expected to go formal with the Droid and Eris handset launches next week. We reported several times before Motorola has appeared to turn the corner after its deep job losses of a couple of years ago and its deep restructuring.
One is only left to wonder how this will affect the supposed sell-off of the handset division. The actual figures are modest but enormously significant. GAAP earnings from continuing operations of $12 million, or $0.01 per share. Total cash at the end of the third quarter was $7.2 billion, an increase of $700 million compared to the end of the second quarter. The Company generated $616 million of positive operating cash flow during the quarter and expects to continue to generate positive cash flow in the fourth quarter.
 It expects "to deliver significantly better financial results in 2010," said Sanjay Jha, co-CEO and head of Motorola's Mobile Devices unit, during the company's quarterly results call.
“We delivered on our commitment to improve the financial performance of Mobile Devices and to commercially launch two smart phones in time for the fourth-quarter holiday season,” Sanjay Jha, he added. “The introductions of our new products powered by Android are important milestones as we begin to address the mobilisation of the internet and the growing demand for modern smart phones. Next year, we will continue to expand our smart-phone portfolio and deliver improved financial results.”
The company announced two new Android-powered smart phones: the CLIQ & DEXT and the DROID - a challenger to the Apple iPhone that comes with a slide-out keyboard and a 3.7-inch screen.
Acting CFO Edward J. Fitzpatrick has been made permanent; under his cost-cutting regime operating costs for the company have decreased sharply.
Jha also emphasised his strategy at aiming to move smartphones into the traditional feature phone market, being well aware of the "holy grail" of handset manufacturers. Could the worlds first mass market smartphone come from Motorola? |
