Schaumburg, Ill.-4/16/2000 8:00 PM Eastern
Schaumburg, Ill.-Despite increases at its recently acquired Broadband Communications Sector (the former General Instrument Corp.), Motorola Inc.'s stock took a nosedive last week. Overall, Motorola beat analysts' earnings estimates for the quarter by a penny a share. But declining margins at its cellular-handset operation-which accounts for about 40 percent of sales-caused investors to head for the hills.
Motorola's stock price lost 18 percent on April 11 and another $8.13 per share, or 6.55 percent, the next day.
Broadband Communications sales rose 15 percent in the period, to $678 million, and operating profit rose 49 percent, to $91 million. The company said it has shipped 7.3 million digital set-top boxes and about 1,100 digital headends, representing about 50 percent of U.S. cable households.