Reporting record handset shipments of 53.7 million units, Motorola posted record quarterly sales of $10.6 billion, up 17 percent versus the year-ago quarter. GAAP earnings were $0.39 per share, including income of $0.10 per share from discontinued operations and charges of $0.05 per share.
"While our third-quarter sales were slightly below our guidance, we are pleased with our earnings. Each of our business segments and total Motorola improved operating margin versus the second quarter of 2006, excluding highlighted items. Mobile Devices again achieved record unit shipments and sequentially improved its market share versus the second quarter," said Ed Zander, chairman and CEO. "During the quarter, GSM infrastructure sales in the Europe, Middle East and Africa region were weaker than anticipated due to customer delays in capital spending. Additionally, sales of iDEN mobile devices were lower, caused by customer inventory reductions in anticipation of new dual-mode device shipments in the fourth quarter."
Some highlights:
- Mobile Devices Segment sales were $7.03 billion, up 26 percent compared with the year-ago quarter.
- Shipped 53.7 million units, up 39 percent compared to the third quarter of 2005 -- and up 3.6 percent compared to 51.9 million handsets shipped during the second quarter of 2006.
- Expanded handset global market share to an estimated 22.4 percent, up 3.8 percentage points from a year ago and up 0.3 percentage points from the second quarter of 2006.
- Networks and Enterprise Segment sales were $2.78 billion, up slightly compared with the year-ago quarter.
- Connected Home Solutions Segment sales were $812 million, up 9 percent compared with the year-ago quarter.
- Set a new quarterly record in video, shipping nearly 2.5 million digital entertainment devices.
- The company's outlook for the fourth quarter of 2006 is for sales of between $11.8 billion and $12.1 billion, an increase of 18 to 21 percent versus the prior-year quarter.
