Motorola on Hold for Now - TheStreet

Motorola( MOT) offered no sign of a quick rebound and said consumers will have to wait until next year for a new phone lineup.

The tech giant met its lowered second-quarter targets and guided for flat earnings for the current quarter, as red ink in its mobile phone unit continues to drag down its bottom line.

The Schaumburg, Ill., wireless tech shop has fallen flat in phones, with no blockbuster new models to revive sales. Motorola executives said they are working on a refreshed phone lineup for 2008, but offered few clues to what types of designs they are planning.

The company did say that the revamped Razr 2 will be available this summer in the U.S., but conceded that its

flawed low-cost MotoFone line was a failure.

Motorola posted an adjusted second-quarter profit of 2 cents a share on a 7% sequential decline in sales to $8.7 billion. That is roughly in line with the

downward revision the company was forced to make earlier this month.

Motorola's troubles have come as its flagship Razr phone has fallen out of fashion. The big drop in phone sales has

cost Motorola its No. 2 spot as rivals like

Nokia

(NOK) - Get Report

,

Samsung

,

Research in Motion

( RIMM) and

Apple

(AAPL) - Get Report

steal customers.

The company has been reshuffling its executive ranks, recently replacing its CFO and naming an operations chief to help with the restructuring effort. It also plans to cut 7,500 jobs.

In the second quarter, Motorola shipped 35.5 million phones. That was down 22% from the first quarter and 32% below year-ago levels. The average selling price of its phones was $120, flat with the prior quarter and last year.

And while sales in its set-top box and cable-equipment unit jumped 10% to $2.5 billion from previous levels, the operating margins narrowed to 8.1% from 8.6% in the first quarter and 9.6% a year ago.

"This was a challenging quarter for Motorola in which revenue fell short of our expectations due to a decline in mobile device unit shipments," CEO Ed Zander said in a press release.

Looking ahead, Motorola expects earnings per share from continuing operations in the third quarter to be flat to slightly up compared to the second quarter.

"While the company does not expect the Mobile Devices business to be profitable for the full year, it does expect its financial results to improve in the second half of the year," the company said in its earnings release.

Motorola shares were up 19 cents to $18.19 in early trading Thursday.