Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (42554)	7/20/2005 3:39:44 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69971

Motorola revenue up, but shares slip Tuesday July 19, 9:00 pm ET By Sinead Carew NEW YORK (Reuters) - Motorola Inc. (NYSE:MOT - News) on Tuesday posted higher second-quarter profit, and revenue rose 17 percent amid strong growth in its mobile telephone business, but shares ticked down 1 percent because some investors had hoped for more. The stock has risen about 35 percent in recent months as investors have ratcheted up expectations of the No. 2 mobile phone maker, which has had success at the high end with its sleek Razr phone and has moved into the low-end market. "The quarter was fine. Guidance was fine but the market wanted more," said Shawn Campbell, of Campbell Asset Management, which has $30 million of assets under management including some Motorola shares. Motorola, the world's second-biggest mobile phone maker, said it increased its share of the global market for mobile phones with record handset shipments arising from strong demand in the United States and emerging markets. It reported a profit from continuing operations of $947 million, or 38 cents a share, compared with a profit of $619 million, or 25 cents per share, a year earlier. The results exclude its chip business, which was spun off in December. Excluding one-time gains of 12 cents a share in the current quarter, earnings were a penny higher than average Wall St. estimates of 25 cents a share, according to Reuters Estimates. Motorola, which trails only Nokia (NOK1V.HE) in the global cellphone market, posted revenue of $8.83 billion, up from $7.54 billion a year ago and topping the Wall Street consensus of $8.5 billion. "We went into the quarter feeling very good. Our product line was stronger and perhaps our competition was weakening," Chief Executive Ed Zander said in an interview. Motorola said it shipped 33.9 million mobile phone units in the quarter, giving it a global market share of 18.1 percent, up 3.3 percentage points from a year ago. It forecast third-quarter earnings of 27 cents to 29 cents per share and revenue of $8.9 billion to $9.1 billion compared with analyst estimates for earnings of 25 cents a share and revenue of $8.54 billion. Smaller rivals Samsung Electronics (KSE:005930.KS - News) and LG Electronics (KSE:066570.KS - News) have said in the last few days that their second-quarter margins were hurt as marketing costs rose amid cutthroat competition. Samsung had said its handset sales were similar to the first quarter and LG said it sold fewer handsets than it expected in the quarter. Nokia is set to report its second-quarter earnings later this week. "(Motorola) probably took some share from Nokia in the United States," and likely won business from LG and Samsung, Charter Equity analyst Ed Snyder said. Average selling prices for mobile phones fell about 4 percent from the first quarter, according to Zander who credited a 50 percent rise in sales of inexpensive phones. Motorola recently began selling phones around the $40 price level aimed at emerging markets, putting it head-to-head with Nokia, which dominates the market for low-end cellphones. Oppenheimer analyst Lawrence Harris said this would help Motorola hit its long-term goal of 25 percent market share. Motorola's mobile device revenue rose 24 percent from a year earlier to $4.9 billion. Revenue from government and corporate clients increased 7 percent to $1.7 billion and revenue for its network equipment unit rose 3 percent to $1.6 billion Its home solutions business, which includes set-top boxes, saw revenue increase 35 percent to $718 million. Motorola shares fell 16 cents to $19.69 on Inet from their New York Stock Exchange close of $19.85.