The Channel logo

News

By | Tony Smith 20th July 2005 09:46

Freescale grows Q2 earnings on flat sales

Stepping out of Motorola's shadow

Freescale, the company still making G4-class PowerPC processors for Apple's notebook line-up, saw a big jump in income during its second fiscal quarter, despite an only marginal increase in sales, the firm said yesterday.

Sales totalled $1.47bn, up 2.1 per cent from $1.44bn in Q1 FY2005 and up just under a single percentage point from Q2 FY2004's $1.46bn.

Net income was $122m (29 cents a share), rather better than the $85m (20 cents a share) Freescale reported for the previous quarter and the year-ago quarter's $43m (15 cents a share) income.

Then again, Q2 was hit by a $5m expense relating to Freescale's split from Motorola, compared to $39m a year ago and $18m in the previous quarter.

Gross margins for the quarter were calculated to be 41.6 per cent, Freescale said.

Drilling down, the company's Network and Computing Systems business yielded $387m worth of sales, up 10.9 per cent sequentially but down 2.8 per cent year on year. The division's earnings contribution was up 32.4 per cent sequentially and year on year to $94m, Freescale said.

The company's Transportation and Standard Products operation contributed $667m to the quarter's sales and $87m in earnings. Wireless and Mobile Solutions added $401m and $5m, respectively, to those figures - the division's earnings were well down on the previous quarter, but nonetheless an improvement on the year-ago quarter's $43m loss. Other operations together lost $47m during Q2 FY2005.

Looking ahead, Freescale said it's anticipating Q3 to yield sales of between $1.38bn and $1.47bn, flat or down on the current quarter but consistent with seasonal sales patterns. Gross margins will match Q2's figure, it forecast. ®

Related stories

Apple profits, revenue up again
IBM to Apple: eat these chips
Widescreen iBook rumours gain weight
Apple shifts to Intel: what is all the fuss about?
Apple in 'talks with Intel'
World chip sales continue to rise
Freescale earnings grow post-restructure

alert Send corrections

Opinion

Houses of Parliament in night-time

Andrew Orlowski

Come on everybody, let's upload all our stuff into Government by Cloud
Joe Tucci EMC
frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties

Features

Alistair Darling and Alex Salmond debate Scottish independence
You keep the call centres, Hamish, we'll take the banks
Internet of Things
Everyone loves those Things, just not on each others' terms
No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever