- Associated Press - Wednesday, January 26, 2011

NEW YORK (AP) - Motorola Mobility Holdings Inc., the cell phone maker that recently broke away from Motorola, reported a profit for the fourth quarter as it more than doubled its holiday smart-phone sales, but warned of a loss in the current quarter.

Motorola Mobility Holdings Inc. on Wednesday said it had net income of $80 million, or 27 cents per share, in the October to December period. That compares with a loss of $204 million, or 69 cents per share, in the previous year, and a long string of losses before that.

Excluding one-time items, earnings were 37 cents per share, beating the average estimate of analysts polled by FactSet by 1 cent.

The Libertyville, Ill., maker of the Droid 2 and Cliq phones posted $3.43 billion in revenue, up 21 percent from $2.82 billion a year ago.

The company said it expects a loss of 9 cents to 21 cents in the first quarter, which is usually slow. However, analysts were expecting a profit of 1 cent per share.

Motorola shares fell $1.68, or 4.8 percent, to $33.15 in extended trading, after the release of the report.

Motorola shipped 4.9 million smart phones in the quarter, up from 2 million in the same quarter a year ago, when it launched the first Droid phone.

The company has bet its turnaround on phones like the Droid that run Google Inc.’s Android software. Verizon Wireless has been an enthusiastic seller of the phones, since it needed an alternative to the iPhone at rival AT&T Inc. Now, however, Verizon is set to start selling its own iPhone on Feb. 10, and Motorola’s prospects there look dimmer.

Motorola shipped 11.3 million of all types of phones in the fourth quarter, down slightly from 12 million a year ago. Among North American phone makers, both Apple Inc. and Research In Motion Ltd., the maker of the BlackBerry, sell more phones.

Copyright © 2016 The Washington Times, LLC.

blog comments powered by Disqus

 

Click to Read More

Click to Hide