Motorola contributes over $1B to Google, but still a drag overall
Google reported $1.25B in revenue from its newly acquired business unit Motorola. But Motorola still lost $233 million during the quarter with about $192 million coming from its mobile business.
Google beat analyst expectations for the second quarter of 2012 and reported a little more than $1 billion in revenue from its new subsidiary Motorola.
Google said that Motorola contributed $1.25 billion in revenue ,or about 10 percent of the company's consolidated revenue, in the second quarter of 2012. The company reported total revenue of $12.21 billion for the quarter. About $843 million of Motorola's revenue came from its mobile business, and another $407 million came from the business unit that builds set-top boxes for the home.
Even though Google beat expectations overall and Motorola contributed a nice chunk of revenue, Motorola reported an operating loss of $233 million. The mobile business lost $192 million and the home segment lost $41 million.
"Google standalone had a strong quarter with 21 percent year-on-year revenue growth, and we launched a bunch of exciting new products at I/O -- in particular the Nexus 7 tablet, which has received rave reviews," Google CEO Larry Page said in the company's press release. "This quarter is also special because Motorola is now part of the Google family, and we're excited about the potential to build great devices for users."
Google announced last year that it was buying Motorola Mobility for $12.5 billion. And the company completed the acquisition on May 22, 2012. As of the end of the second quarter June 30, 2012, Motorola's assets and liabilities were included in Google's consolidated balance sheet.
Google chief financial officer Patrick Pichette noted that Motorola will continue to "show some accounting variability," which he termed "typical" for a large acquisition.