Motorola Mobility revenue, smartphone sales up
Motorola Mobility Inc. (MMI-N) posted higher than expected revenue in the first quarter, driven by improving smartphone sales, and said it may turn a profit in the second quarter, sending its shares up 2.5 percent.
Motorola said it shipped 4.1 million smarpthones in the quarter, slightly ahead of the average analyst estimate of 3.7 million, according to six analysts contacted by Reuters.
The company said it expects to at least break even in the second quarter but could post a profit of up to 12 cents US per share, excluding unusual items.
In its first quarter as an independent company, Motorola Mobility narrowed its quarterly loss to $81 million or 27 cents per share from a loss of $212 million or 72 cents per share in the same quarter the year before.
Revenue rose to $3.03 billion from $2.48 billion in the year-ago quarter and compared with the average analyst expectation for $2.826 billion, according to Thomson Reuters I/B/E/S.
Chief Executive Sanjay Jha had warned that first quarter financials and smartphone sales would be hurt by new competition in the form of a new Apple Inc. iPhone at Motorola's most important U.S. customer Verizon Wireless.
Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc, had championed Motorola's smarphones in its efforts to compete with AT&T Inc., previously the exclusive U.S iPhone provider.