Motorola Device Sales, Earnings Surge

Motorola Wednesday reported strong sales and earnings for the first quarter of 2004 that significantly exceed previous guidance from the company. The strong results were paced by a surge in sales of its mobile devices.

The company reported net earnings for the just-completed quarter of $609 million, compared to $169 million for the same quarter a year ago. Those earnings were on sales of 8.6 billion for the quarter compared to $6 billion for the same quarter a year ago.

The company was conservative about its sales and earnings for the next quarter, however. It predicted sales of between $8.2 and $8.6 billion.

The company reported that sales of its Personal Communications Segment, which includes mobile phones, increased to $4.1 billion for the quarter, a 67 percent increase compared to the same quarter a year ago. That part of Motorola's business contributed earnings of just under $400 million, the company reported. Overall, the company shipped 25.3 million handsets, which was a 51 percent increase compared to a year ago.

The Semiconductor Products Segment also reported a 21 percent increase in sales. That part of the company, which provides microprocessors for mobile devices, is slated to be spun off this spring. The new company will be called Freescale Semiconductor.This is the first full quarterly report since former Motorola head Christopher Galvin was replaced by Ed Zander. However, the report indicates that many of the initiatives that led to the strong results, such as more than 20 new mobile phones, were started before Zander arrived.