Google Reports Partial Q2 Results For Motorola Mobility

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Google reported operating results for Motorola Mobility from the time the $12.5 billion deal closed -- on May 22 -- through June 30, with losses for both Home and Mobile Devices units in the shortened period.

Motorola revenue was $1.25 billion for the five-week span, with $843 million from the mobile segment and $407 million from the cable-focused home segment. The operating loss for Motorola was $233 million, with $192 million for the mobile segment and $41 million for Home.

Google said the assets and liabilities of Motorola were included in Google's consolidated balance sheet as of June 30, 2012, and the operating results of Motorola were included in its consolidated statement of income from the acquisition date through June 30.

"We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions," Google chief financial officer Patrick Pichette said in announcing the Q2 results.

For the second quarter of 2011, Motorola Mobility reported net revenue of $3.3 billion and a net loss of $56 million. In the year-ago quarter, Mobile Devices had revenue of $2.4 billion and an operating loss of $85 million, while Home posted revenue of $907 million and operating profit of $62 million.

Last month, Google hired Marwan Fawaz, previously chief technology officer of Charter Communications, to run the Home unit. Analysts said the move may have been aimed at dispelling cable operators' fears that it is abandoning the cable-technology sector.

Google has pledged to run Motorola Mobility as an independent entity. Executive chairman Eric Schmidt, speaking at Google's annual shareholder meeting last month, said the deal was driven as much by Motorola's products and talent as it was for the large patent portfolio.

Overall, Google reported consolidated revenue of $12.21 billion for the quarter ended June 30, 2012, up 35% year-over-year. Excluding Motorola, Google revenue rose 21%, to about $11 billion, according to the company. Net income in the quarter was $2.79 billion, up 11% from $2.51 billion in the year-ago quarter.

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