News

Mixed 2Q for Motorola

7/17/2003 7:57 AM Eastern

Spring apparently did little to warm up Motorola Inc.’s cable-gear business,
as that unit posted notable declines in sales and revenue in the second
quarter.

Motorola Broadband Communications Sector saw a mixed bag for the quarter.
Sales continued to tail off, down 26% to $409 million compared with the same
quarter of 2002. But orders rose 10% and totaled $460 million.

Motorola blamed the drop in sales on cuts "reflecting the continued weakness
in the cable-equipment industry," president and CEO Mike Zafirovski said on a
conference call to discuss the company’s earnings. "We anticipate the
cable-industry cap-ex [capital-expenditures] decline is bottoming out, as
reflected in our order growth of 10%," he added.

Motorola also blamed that drop on declining sales, although it was able to
offset the decline with lower operating expenses.

Equipment shipments presented a similar mixed bag of results. Motorola
shipped 1.1 million set-top boxes during the quarter, down considerably from 1.5
million in the same quarter of 2002. But it also shipped 1.1 million cable
modems in the quarter, an increase of 200,000 compared with the year-ago
period.

Among the bright spots for the quarter was a multiyear agreement to ship
Comcast Corp. its "DCT 6208" set-top, which sports HDTV and
digital-video-recording capabilities.

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