Motorola rides Android to big Q3 profit, shares soar
$109 million net income dwarfs $12 million figure from year-ago quarter; sales near $5 billion
Telecommunications hardware manufacturer Motorola on Thursday reported third-quarter net income of $109 million, or 5 cents a share, up dramatically from last year's Q3 profit of $12 million, or 1 cent per share.
The company announced Q3 results before Thursday's market open, pushing Motorola shares (NYSE: MOT) as high as 62 cents, or 7.7 percent, to 8.71 in early trading. After Wednesday's close, Motorola was up 4.2 percent for the year.
In the past year Motorola has eagerly embraced Google's Android mobile OS, which powers a number of smartphones in its lineup.
Q3 sales were $4.9 billion, up 13 percent from last year's $4.3 billion. Including revenue from Motorola networks business expected to be acquired by Nokia Siemens Networks, reported as discontinued operations, sales were $5.8 billion.
The company introduced 22 smartphones so far this year, shipping 3.8 million of the devices.
Motorola ended the third quarter with total cash of $9 billion, with net cash increasing to $5.6 billion from $4.9 billion in Q2.
Sanjay Jha, Motorola co-chief executive officer and Motorola Mobility CEO, said in a statement, "Mobile Devices' DROID X continues to sell extremely well, and we have had several other successful smartphone launches globally, including the DROID 2, the MING series in China, as well as a well-received introduction of our enterprise-ready DROID PRO."