Motorola earnings see healthy boost for broadband unit
After a somewhat dismal 2003, it appears prospects continue to brighten for Motorola Inc.'s Broadband Communications Segment.
The company's second quarter earnings issued late yesterday reported BCS sales totaling $567 million, a 32 percent increase compared with the same quarter 2003 and a strong improvement compared to the $488 million in sales posted in the previous quarter. Operating earnings also rose to $20 million, compared with just $5 million posted in the second quarter last year but down from the $24 million posted in the first quarter.
Part of that sales boost can be attributed to the first shipments of Motorola's long-awaited DCT 6412, an HD, dual-tuner set-top with a 120 Gigabyte DVR.
During the quarter Motorola also acquired Quantum Bridge Communications, a provider of fiber-to-the-premise gear.
The broadband unit's performance was part of a strong quarter for the Schaumburg, Ill.-based electronics maker that saw a significant boost in its cell phone and global telecom solutions segments. Company wide, total pre-tax earnings rose to $800 million, a 614 percent jump compared to $112 million the second quarter 2003. But it reported a $203 net loss for the quarter, in part resulting from a $898 million non-cash tax expense associated with the initial public offering of is silicon supply subsidiary, Freescale Semiconductor Inc.