Motorola Announces Record Q2 Sales, Earnings Jul 20, 2006

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During the quarter, the company continued to maintain a very strong balance sheet, generating operating cash flow from continuing operations of approximately U.S. $500 million, its 22nd consecutive quarter of positive operating cash flow. In addition, the company repurchased 39 million shares of its stock for $838 million.

Mobile Devices Segment sales were $7.14 billion, up 46 percent compared with the year-ago quarter. Operating earnings increased to $799 million, compared with operating earnings of $493 million in the year-ago quarter. The company also captured headlines by launching the highly anticipated MOTO Q.

Networks and Enterprise Segment sales were $2.9 billion, up 3 percent compared with the year-ago quarter and up 15 percent compared with the first quarter of 2006. Operating earnings decreased to $386 million, compared with operating earnings of $494 million in the year-ago quarter, but increased sequentially compared with operating earnings of $299 million in the first quarter of 2006. The second quarter of 2006 included restructuring charges of $37 million. Backlog for the segment increased for the second consecutive quarter.

Connected Home Solutions Segment sales were $803 million, up 8 percent compared with the year-ago quarter and up 10 percent compared with the first quarter of 2006. Operating earnings increased to $56 million, compared with operating earnings of $33 million in the year-ago quarter and an operating loss of $11 million in the first quarter of 2006. Motorola continued to maintain and grow its market leadership with strong shipments of video, voice and data infrastructure and consumer devices.

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