Motorola on Wednesday announced its second loss in as many quarters, citing ongoing difficulties in the telecommunications and semiconductor markets.
Motorola reported revenue of $US7.5 billion for its fiscal second quarter, which ended June 30, a decrease of 19 per cent from a year ago, the company said in a statement. Including pro-forma adjustments, Motorola posted a loss of $232 million, or $0.11 per share, compared with earnings of $551 million, or $0.25 per share, in the year-ago period.
The company inched past the expectations of analysts, who had expected the company to report a loss of $0.12 per share, according to a consensus estimate gathered by Thomson Financial/First Call.
The company said sales decreased in all of its major product segments except for broadband communications.
Excluding the pro forma adjustments, which include a pretax charge of $496 million, or $0.24 per share after tax, related to cost reduction measures, Motorola actually incurred a loss for the quarter of $759 million or $0.35 per share, the company said.
When Motorola announced its first quarter earnings in April, the company reported its first operating loss in 15 years, blaming a worldwide slowdown in the technology industry.
The second quarter has been no kinder to the telecommunications industry. Last month, Finland's Nokia issued a profit warning, lowering its estimated year-on-year growth from 20 per cent to 10 per cent. Although Sweden's Ericsson has not issued a warning for the quarter, it closed last quarter by saying it would cut up to 12,000 jobs, and said it expects to report a loss in the second quarter.
Motorola last month exited the Mexican cellular market, completing the sale of its Baja Cellular, Movitel, Norcel, and Cedetel divisions to Spain's Telefonica SA for $1.8 billion in stock.
Prior to the earnings announcement, Motorola's shares on the New York Stock Exchange closed up 1 per cent, at $15.67.