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Cost-Cutting Sends Motorola into the Black

Posted by Susan Hall Oct 29, 2009 10:37:18 AM

Motorola, a continual Sad Sack of late, surprised everyone with a third quarter in the black, reports Barron's.

 

It reported net income of $12 million, or 1 cent a share, after a loss of $397 million, or 18 cents, in the period a year ago. Revenue fell 27 percent to $5.45 billion, though analysts had expected $5.54 billion on average, reports Bloomberg. Eliminating at least 8,000 jobs helped Motorola reduce production costs by 36 percent to $3.65 billion.

 

However, its revenue was down 46 percent in its troubled mobile devices unit to $1.7 billion, and its global market share for mobile phones fell by almost half to 5.6 percent.

 

But perhaps its soon-to-be released Droid smartphone will change all that.

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