Motorola makes Google a fortune in Q2

Motorola makes Google a fortune in Q2As far as the consumer is concerned, there’s next to no tangible evidence that Google’s $12.5 billion acquisition of Motorola has had any effect whatsoever. To be fair, we were promised that Motorola wouldn’t be given preferential treatment.

However, behind the scenes, Google execs are reportedly rolling around in a big bed of dollars, as the Motorola money is rolling in.

Google says its acquisition has generated $1.25 billion, with roughly $843 million of that mammoth figure coming after the acquisition.

I’m no economist type guy, but, had Motorola soldiered on alone, it reportedly stood to lose $38 million. Zuh? While the Droid Razr Maxx was a success in the US, that was negated by a decline in sales of basic phones elsewhere.

CEO Larry Page yelled: “Google standalone had a strong quarter with 21% 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.

“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.”

If you’re into income and revenue and profit margins and that, you can read about Google’s Q2 results in massive – seriously massive – detail over at Google Investor Relations.

Read more about: Android

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redss  Jul. 21, 2012 at 01:18

Foreign Exchange Impact on Google Revenues – Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the first quarter of 2012 through the second quarter of 2012, our Google revenues in the second quarter of 2012 would have been $68 million higher. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the second quarter of 2011 through the second quarter of 2012, our Google revenues in the second quarter of 2012 would have been $350 million higher.

Google revenues from the United Kingdom totaled $1.18 billion, representing 11% of Google revenues in the second quarter of 2012, compared to 11% in the second quarter of 2011.

In the second quarter of 2012, we recognized a benefit of $81 million to Google revenues through our foreign exchange risk management program, compared to $4 million in the second quarter of 2011.

Reconciliations of our consolidated non-GAAP international revenues and Google non-GAAP international revenues excluding the impact of foreign exchange and hedging to consolidated GAAP international revenues and Google GAAP international revenues are included at the end of this release.

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