STOCKHOLM (04/11/2000) - Motorola Inc. yesterday reported first quarter net income more than double that of a year ago, and slightly ahead of analysts' expectations.
Excluding special items, net income from continuing operations for the quarter ended April 1 rose to US$449 million, or 59 cents per diluted share, as compared to $184 million, or 26 cents per diluted share, for the corresponding quarter last year. The profit edged past the 58 cent per share consensus estimate from 29 analysts polled by First Call/Thomson Financial.
Revenue, meanwhile, rose 19 percent to $8.77 billion from $7.34 billion a year ago, Motorola said in a statement.
The results were restated to reflect Motorola's merger with General Instrument Corp., which was finalized on Jan. 5, 2000, the company said.
Sales of personal communications devices, the company's largest business segment, rose 24 percent to $3.2 billion during the quarter, but operating profit slumped to $49 million, from $83 million a year ago. Motorola blamed the downturn on a shift in the wireless phone product mix toward low-end products with smaller margins, particularly in Europe. In addition, increased costs for certain components that were in short supply and significantly higher engineering and advertising investments had also eaten into profitability, the company said.
Network systems sales, meanwhile, increased 11 percent to $1.8 billion, with operating profit rising to $280 million from $193 million a year earlier, Motorola said.
Sales of semiconductor products rose 24 percent to $1.9 billion, the company said, with operating profit increasing to $123 million from $10 million a year ago.
Motorola also posted rising sales in its other main business segments, with revenue from its Commercial, Government and Industrial Systems segment rising 16 percent to $998 million. Broadband communications product sales rose 15 percent to $678 million while revenue from the Integrated Electronic Systems segment was up 17 percent to $690 million.
Prior to the release of the results, Motorola shares slid $2.75 to $151 in yesterday's trading on the New York Stock Exchange.
Motorola, in Schaumburg, Illinois, can be reached at +1-847-576-5000, or via the Web at http://www.motorola.com/.