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Motorola Reports Quarterly Financials (7/29/10)
Motorola reported sales of $5.4 billion in the second quarter of 2010. The Generally Accepted Accounting Principles (GAAP) earnings in the second quarter of 2010 were $162 million, which compares with GAAP earnings of $26 million in the second quarter of 2009.

During the quarter, Motorola generated positive operating cash flow of $242 million, reduced long-term debt through a $500 million tender offer and ended the quarter with a total cash position of $8.3 billion. Net cash increased to $4.9 billion from $4.6 billion in the first quarter.

"In the second quarter, our enterprise mobility solutions (EMS) and networks businesses continued to deliver best-in-class market leadership and financial returns, with strong operating earnings and excellent cash generation,” said Greg Brown, Motorola co-CEO and CEO of Motorola Solutions.

EMS segment sales, which include the company’s mission-critical communications products, were $1.9 billion, up 10 percent compared with the year-ago quarter. GAAP operating earnings were $181 million compared with operating earnings of $141 million in the year-ago quarter. Non-GAAP operating earnings were $292 million compared with $225 million in the year-ago quarter. Motorola said EMS achieved year-over-year sales growth in all four regional markets.

Networks segment sales were $967 million, down 2 percent compared with the year-ago quarter. GAAP operating earnings were $178 million compared with $92 million in the year-ago quarter. Non-GAAP operating earnings were $191 million compared with $147 million in the year-ago quarter.

Earlier this month, Motorola announced the sale of the majority of its networks assets to Nokia Siemens Networks for $1.2 billion in cash and a potential public-safety broadband partnership between the two companies.

The company's outlook for the third quarter is for earnings 10 – 12 cents per share. This outlook includes the networks business and excludes stock-based compensation expense and intangible assets amortization expense of about 4 cents per share.

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