Motorola shares climbed slightly in response, and to the company's prediction of a rebound in the semiconductor business. Stock values climbed to a five-month high, despite Motorola warning that it is likely to lose money in the current quarter.
Its second-quarter results saw a 19 per cent decline in revenues, accruing $7.5 billion. Its semiconductor business saw a 38 per cent decline in sales. The company reported a loss per share of 11 cents, a cent ahead of Wall Street predictions.
Motorola CEO Christopher Galvin discussed the wireless business showing signs of recovery, predicting increased customer demand in the third quarter. He also announced further cost-cutting measures, in the form of 4,000 more lay-offs. The 147,000-strong workforce is being reduced by 30,000, 4,000 more than previously announced.
The company is predicting a slightly profitable fourth quarter. Reflecting a slight rally on tech stocks this week, Motorola closed at $18.15 yesterday.
Apple closed up 8 per cent at $24.36, in anticipation of a successful quarter. Nasdaq climbed 5.26 per cent on the day's trading.