Google Keeps Quiet on Plans for Moto
In its second quarter, the Android maker earned $2.79 billion, or $8.42 a share, on revenues of $12.21 billion. A year earlier it earned $7.68 a share on revenues of $9.02 billion.
Non-GAAP earnings of $10.12 per share beat the $10.05 analyst consensus reported by Thomson Reuters .
Google closed its $12.5 million acquisition of Motorola in May. The division pulled in revenues of $1.25 billion in the second quarter, but posted an operating loss of $233 million for the quarter. Of the loss, $192 million came from its mobile devices business. (See Google Closes $12.5B Motorola Deal .)
CFO Patrick Pichette said it would take a few quarters for the acquisition effects and "accounting noise" to shake out. But, he wouldn't divulge plans for the Moto division, which includes mobile devices, set-top boxes and cable gear, only noting that changes were afoot.
Moto Mobility's Home division has been under particular scrutiny lately, with speculation that Google might try to sell the division.
"We're clearly excited about Motorola," Pichette said. Google's hired 21,427 people in the past three months, the majority of which were former Motorola employees.
Google Chief Business Officer Nikesh Arora added that the company is committed to mobile, as evident by its Android business and its Moto acquisition. It now activates more than 1 million Android devices per day for a total of 400 million activated worldwide, and it's experiencing a groundswell in mobile search and advertising. "Open is really important to mobile," Pichette added. "Our strategy is focused on end users and being open."
— Sarah Reedy, Senior Reporter, Light Reading Mobile