Technology and telecommunications giant Motorola yesterday reported third quarter earnings of $40 million or 7 cents per share excluding charges, handily beating Wall Street estimates, and said it was beginning to see signs of progress in its businesses.

The company, which has been struggling to turn itself around amid an industrywide slump in computer chips and after missteps in the cellular telephone market, posted sales of $7.2 billion for the third quarter, down from $7.4 billion a year ago.