Motorola''s recent measures on cost saving appear to be finally paying off as the company posted $ 26 million or $0.01 per share in net profit for Q2 2009. Last quarter the company had posted a loss of $ 231 million.

Revenues from all the business divisions taken together were at $ 5.5 billion as compared to $ 8.1 billion during corresponding quarter last year. However when compared on a sequential basis, the revenues are slightly on growth trajectory as the company had recorded $ 5.37 billion revenues in Q1 2009.

The company attributed its reasonable performance to the increasing uptake of broadband mobility solutions as well as cost saving measures adopted.. Sales in the Home and Networks Mobility segment however fell by 27 % to $ 2.0 billion. Earnings from this division slid to $ 153 million from $ 245 million a year ago.

The Enterprise Mobility segment too witnessed a YoY drop of 17 % with earnings of  227 million.

Sales of Mobile Devices fell by 45 % to $1.8 billion. The sales of handsets in terms of units shipped almost halved from 28.1 million a year ago to 14.8 million. In Q1 Motorola had shipped 14.7 million handsets. The division however improved its performance on loss from $ 346 million a year ago to $ 253 million.

The company expects to save an additional $ 100 million from its cost cutting efforts which it has aimed a $ 1.8 billion. It now expects the Mobile Devices division to break-even in the current quarter.

Motorola’s cost saving measures has mainly revolved around shunning about 8,000 work force.

"We will further improve earnings in the second half of the year," said co-CEO Sanjay Jha.

Shares of the company closed up 62 cents, or 9.4 percent, at $7.19, peaking at $7.68 earlier, the highest level since October.