Motorola shares were up by as much as 3 percent in premarket trading this morning after the US vendor reported better-than-expected revenue and device shipments. Second-quarter net sales fell to US$5.4 billion from US$5.5 billion in the same quarter a year ago, but were ahead of the average analyst expectation for revenue of US$5.19 billion, according to a Thomson Reuters poll. Net earnings were also ahead of most estimates, coming in at US$162 million, or 7 cents per share, up from US$26 million, or 1 cent per share, a year ago. Earnings were boosted by the long-awaited return to growth of its mobile devices segment, which swung to a US$87 million profit due partly to the proceeds of a US$228 million legal settlement. This compared to an operating loss of US$287 million at the unit a year ago. Mobile devices revenue fell 6 percent to US$1.7 billion but Motorola shipped more devices in the quarter than expected. The firm shifted 8.3 million handsets, including 2.7 million smartphones, in the quarter. This compared with the average estimate for 8.13 million total shipments and 2.69 million smartphones according to seven analysts contacted by Reuters.

Motorola’s recovery in devices has been credited to a range of new smartphones based on Goodle’s Android platform, notably the DROID phones it supplies for US market-leader Verizon Wireless. The latest DROID phone – the DROID X - was launched in June. “The DROID X launch has been very well received and is seen as one of the best smartphones in the market today,” said Motorola’s co-CEO Sanjay Jha (pictured) in a statement. The firm launched three other Android devices in the quarter, bringing its total smartphone portfolio to 12. Meanwhile, sales at Motorola’s Networks business fell 2 percent to US$967 million. Motorola announced earlier this month that it is to sell the majority of Networks assets to Nokia Siemens Networks. At Motorola’s two other divisions, ‘Home’ segment sales were US$886 million, down 13 percent, and ‘Enterprise Mobility Solutions’ sales came in at US$1.9 billion, up 10 percent.