Motorola disappoints with revenue report

Motorola disappoints with revenue report

North America’s largest mobile phone seller Motorola has posted lower-than-expected quarterly revenue. The company also failed to meet some analyst estimates on phone sales.

All this resulted in a situation where company’s share prices tumbled down around 8% at the stock exchange.

The company reported that its third-quarter profit fell to $968 million or 39 cents a share. This is quite a disappointment compared to figures of $1.75 billion, or 69 cents a share last year. However, that report included a gain from its investment in Nextel Communications.

Revenues were up 17 percent to $10.6 billion from $9.05 billion. Market had expected them to touch figures of $11.06 billion.

Motorola added in their report that they ended up selling 53.7 million cell phones in the quarter compared with 51.9 million in the second quarter and 38.7 million in the third quarter of last year. Market analysts had expected them to post a figure of around 54.75 million.