Motorola Posts 91% Rise in Quarterly Profit
Motorola Inc. said Wednesday its second-quarter operating profit nearly doubled, matching Wall Street estimates, amid strong sales in its broadband communications and network systems segments.
The wireless communications and semiconductor maker said it earned $515 million from ongoing operations, or 23 cents a share, excluding special items, up 91% from $269 million, or a split-adjusted 13 cents a share, a year ago. Revenue climbed 22% to $9.3 billion.
Including special items, earnings were $204 million, or 9 cents a share, down from $255 million, or 12 cents, a year ago.
Motorola warned in April that it expected to earn 67 cents a share in the second quarter, before the effect of a 3-for-1 stock split. That was 3 cents below analysts’ estimates at the time.
In Motorola’s widely watched personal communications segment, which includes wireless phones, profit grew 5.6% to $132 million on a 20% jump in sales to $3.3 billion.
Operating profit margin recovered to 4% of sales versus 2% of sales in the first quarter this year and was about the same as the year-ago profit margin.
In the network systems segment, profit jumped 51% to $256 million on a 23% rise in sales to $2 billion.
Broadband communications unit sales increased 23% to $768 million and profit jumped 65% to $129 million. In semiconductor products, profit climbed to $166 million from $24 million as sales grew 27% to $2 billion.
Ahead of the news, shares in Motorola, based in Schaumburg, Ill., rose $2.69 to close at $36.25 in New York Stock Exchange trading.
At a Glance
Other earnings, excluding one-time gains or charges unless noted:
* Actuate Corp., a maker of software to publish reports on the Internet and corporate networks, said second-quarter profit doubled to $2.47 million, or 8 cents, from $1.19 million, or 4 cents, excluding acquisition costs. Revenue more than doubled to $24.4 million from $9.81 million. Actuate also said it will split its stock 2 for 1 on or about Aug. 14.
* Applied Micro Circuits Corp. said net income for its fiscal first quarter more than tripled to $27.9 million, or 21 cents a share, from $6.8 million, or 6 cents a share, as revenue soared to $74.2 million from $31.6 million. The results, which exclude acquisition costs, exceeded analyst expectations of 17 cents. Applied Micro competes with PMC-Sierra Inc. and Vitesse Semiconductor Corp. in making semiconductors for fiber-optic networks. Its shares touched as high as $129.88 on Nasdaq in after-hours trading on the results, after closing up $11.69 at $125.44.
* Ariba Inc., which makes software to help companies buy and sell goods over the Internet, said its fiscal third-quarter loss widened to $11.3 million, or 5 cents a share, better than the 8-cent loss analysts expected. Revenue soared more than sixfold to $80.7 million from $11.9 million, exceeding analysts’ estimates of revenue of $51 million to $53 million.
The results pushed Ariba’s shares up as much as 14% in after-hours trading. The shares closed up $12.38 at $103.50 on Nasdaq before the earnings were announced.
* Electronics for Imaging Inc., which makes networked publishing equipment and software, said second-quarter profit fell 3% to $22.83 million, or 40 cents a share. Sales rose 8% to $152.2 million. The results topped a revised 38-cent average estimate of analysts surveyed by First Call/Thomson Financial. The company warned last month the earnings would miss estimates because of lower demand for desktop printers and copiers and digital black-and-white copiers. Analysts had expected earnings of 38 cents to 42 cents before the warning.
* Rational Software Corp. said pro forma earnings jumped 83% in its fiscal first quarter to $26.9 million, or 27 cents a share, well above the average analyst forecast of 22 cents, as revenue jumped 45% to $170.3 million. Rational, which makes software used to create programs for Internet commerce, also said it plans to split its stock 2 for 1 on Aug. 17.
* Redback Networks Inc. said its second-quarter loss widened to $5.65 million, or 5 cents a share, from $2.6 million, or 6 cents, a year earlier. The results, which exclude acquisition and stock-compensation costs, were far better than the 10-cent loss analysts expected. Sales climbed to $48.7 million from $11.1 million. The phone-equipment maker also named President Vivek Ragavan as chief executive to replace Dennis Barsema, who becomes vice chairman. The company said it will break even in the fourth quarter, earlier than previous forecasts of the first quarter of 2001. The news sent Redback shares up as high as $167.88 in after-hours trading, after closing off $7.69 at $156.50 on Nasdaq.
