New York, Oct. 16: Motorola reported late Tuesday that it had slightly exceeded investors’ diminished earnings expectations for the quarter that ended September 30 but that it had fallen well short of Wall Street’s revenue projections.
The revenue shortfall overshadowed the news that Motorola reported’s net profit of $ 111 million, or 5 cents a share, marked the first time since the end of 1999 that the company had completed a quarter in the black, based on generally accepted accounting principles.
In after-hours trading, investors drove down shares in the telecommunications and semiconductor giant, which is based in Schaumburg, Ill.
The stock had closed unchanged during the regular trading session, at $ 10.10, before the earnings report was released Tuesday. The price fell as low as $ 9.30 in after-hours trading.
“People were looking for sequential growth,” said Matthew Hoffman, who follows Motorola for SoundView Technologies Group. “But this continues to be a shrinking company.”
The revenue shortfall appeared to arise from lower than expected sales in most of Motorola’s major businesses, including its cellular phones, wireless networking equipment, semiconductors and broadband equipment for cable television systems.
Motorola said that sales in the quarter were $ 6.37 billion, down more than 14 per cent from the $ 7.39 billion the company reported in the third quarter of 2001. The revenues were more than 5 per cent below the $ 6.74 billion Wall Street expected, based on analysts tracked by First Call/Thomsom Financial. That expectation, which was based on lowered estimates last month after warnings from the company, had been in line with revenues in the second quarter.