Motorola posted its financial results for the second quarter of 2010, reporting solid overall results and smartphone sales that hint at better times ahead. Motorola’s sales in Q2 were $5.4 billion, while earnings were $162 million, up from $26 million in the second quarter of 2009.

Motorola’s Mobile Devices segment sales were $1.7 billion, down 6% compared with Q2 2009. Operating earnings for the segment were $87 million, but this includes income from a legal settlement of $228 million. However, having shipped 2.7 million smartphones and 8.3 million handsets in Q2 2010, Motorola sees its Droid X and the smartphone segment as the key to success in the future.

“The Droid X launch has been very well received… As we continue to execute on our business strategy, we are in a strong position to continue improving our share in the rapidly growing smartphone market and improving our operating performance,” said Sanjay Jha, Motorola co-chief executive officer and CEO of Motorola Mobility.

Although it’s not reflected in this financial report, Motorola also recently sold its wireless network unit to Nokia Siemens Networks for $1.2 billion.