Triggered by stronger-than-anticipated profits and sales from Intel, Motorola reported a better-than-expected 14 percent increase in first-quarter earnings, continuing its comeback on another solid rise in sales.

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Motorola reported record sales of $8.16 billion in the first quarter of 2005, an increase of 10 percent from sales of $7.44 billion in the first quarter of 2004, and reported record first-quarter earnings of $.28 per share, versus earnings from continuing operations of $.19 per share in the year-ago quarter. First-quarter 2005 earnings include pre-tax income of $234 million, or $.06 per share, from the sale of an investment. First-quarter 2004 earnings from continuing operations included pre-tax income of $143 million, or $.04 per share, from the sale of an investment and other items highlighted in that release. During the quarter, the company continued to strengthen its balance sheet, generating operating cash flow of $438 million and ending the quarter with a record net cash position of $6.0 billion.

"Our strong performance during the first quarter exceeded our guidance," said Ed Zander, Chairman and CEO. “We continue to see positive responses to Motorola's innovative products and Seamless Mobility solutions from around the world. As a result, we achieved important market share gains in many of our businesses and in key high-growth geographies. Motorola's strong quarterly financial performance was evidenced by our 10% sales growth, our 48% growth in earnings from continuing operations and our 17th consecutive quarter of positive operating cash flow.

- Sales up 10 percent: Sales of $8.16 billion, compared to first-quarter 2004 sales of $7.44 billion.

- Earnings Per Share up 47 percent: Earnings of $.28 per share, versus $.19 per share from continuing operations in the year-ago quarter.

- Gain of 1.4 percentage points in global mobile device market share: Mobile device shipments of 28.7 million units, representing an estimated market share of 17.1 percent, an increase of 1.4 percentage points versus the year-ago quarter and 1.2 percentage points versus fourth quarter of 2004.

Mobile Devices Segment sales in the first quarter of 2005 were $4.4 billion, up 6 percent compared with the year-ago quarter. Operating earnings were $440 million, compared with $406 million in the year-ago quarter. The business delivered record first-quarter unit shipments, sales and operating earnings. Sales, operating earnings and market share were up as a result of "must-have" products that combine innovative style, leading technology and quality.

- Motorola shipped 28.7 million mobile devices during the first quarter -- an increase of 13 percent compared to the same period in 2004.

- Motorola continues as the strong No. 2 player in the world's mobile device industry with an estimated 17.1 percent global market share. During the quarter, the company solidified leadership in the Americas by strengthening its No. 1 position in North America and by regaining the No. 1 position in Latin America. In Europe, Motorola Mobile Devices posted a record quarter.

- The company announced 27 new mobile devices during the quarter, including new "must-haves" for later in 2005 such as SLVR, PEBL and ROKR. By technology, the company announced six new mobile devices for CDMA networks, 17 for GSM, and four for 3G-UMTS/WCDMA. Seven of the new mobile devices announced started shipping during the first quarter. Additional new device announcements are planned for later in 2005.

- Mobile Devices continued to increase investments in future growth drivers, including R&D for 3G and 4G devices, expanded deployment of the Java+Linux Open Source software platform, and global brand development and marketing.