Motorola has attributed its strong second quarter and first-half results on a recovery in the Asian market as well as in the semiconductor industry.
In the second quarter, the hardware giant posted revenue of $7.5bn, up seven per cent from $7bn and net profit of $273m, from $6m for the corresponding period last year. The figures beat Wall Street estimates.
Motorola's first-half results for 1999 showed earnings, excluding special charges, of $450m, or $0.73 per share, compared with $147m, or $0.25 per share last year. Including special charges, earnings would have been $377m for the first half of 1999 with last year's comparative figure showing a loss of $1.15bn.
Robert Growney, president and chief operating officer of Motorola, said: "The improved results stem from good growth in semiconductors and very significant growth in digital wireless telephones. This is coupled with a recovery in Asian markets and the benefits of the company's profit improvement programmes."
The semiconductor division was one of the biggest areas of improvement for the telecoms gaint. While sales rose nine per cent to $2bn after realising a 20 per cent increase in orders, the division showed profit of $80m compared with an after charges operating loss of $899m last year.
Motorola warned that its third-quarter results will be affected by Iridium, the troubled satellite telephone company. Iridium is struggling to obtain a significant number of subscribers to prevent its creditors from pulling the plug on the project.
A financial restructuring by Iridium is expected to result in a significant special charge being incurred on Motorola, which is a minority shareholder.
Motorola is unlikely to offer further support to Iridium unless it meets its obligations to creditors.
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