Motorola sees $232 M net loss in Q2, broadband orders fall
Motorola Inc. reported a $232 million net loss, or 11 cents a share, in its second-quarter results. It also said it expects a loss of "several cents a share" in its third-quarter, on a 5 percent sales increase, with a slight profit in fourth quarter.
Its Broadband Communications Segment saw Q2 orders fall 16 percent from a year ago, to $760 million. Segment sales increased 7 percent to $820 billion, and operating earnings increased to $145 million from $137 million a year ago, it reports.
Motorola shipped its 15 millionth interactive digital cable set-top terminal and its 5 millionth cable modem during the quarter. That includes 800,000 modems shipped during the quarter, up from 650,000 a year ago.
In a conference call, Networks Sector President Ed Breen said the sector continued to lower cost structures, including exceeding "our previously announced headcount reduction of 4,000 employees."
Despite soft orders, "we expect to see sequential quarterly improvement in orders for the remainder of the year, fueled by increased digital penetration in the fall and broad-based deployments in Europe beginning in 2002," he said.
Motorola says separately that it expects sales to increase 5 percent in the third quarter over second quarter, with a loss of several cents a share. Fourth quarter should show another 5 percent sales increase, it says, and be "slightly profitable, after pro forma adjustments."