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Motorola Reports Fourth-Quarter and
Full-Year 2003 Financial Results
• Fourth-quarter sales of $8.0
billion, up 4 percent vs. the prior-year quarter, up 17 percent sequentially vs.
the third quarter
• Fourth-quarter GAAP earnings of
$.20 per share vs. earnings of $.08 per share in the prior-year
quarter
• Fourth-quarter earnings, excluding
special items, of $.17 per share vs. earnings of $.13 per share, excluding
special items, in the prior-year quarter
• Fourth-quarter positive operating
cash flow of $0.9 billion
• Ratio of net debt to net debt plus
equity improved to 0.3 percent from 19.6 percent in the prior-year
quarter[1]
• First-quarter 2004
guidance:
|
– Sales: $6.4 to $6.8 billion
– GAAP earnings per share: $.05 to
$.07 per share
|
Click
here to view the financial tables which are an integral part of this
release.
SCHAUMBURG, Ill. – January 20,
2004 – Motorola, Inc. (NYSE: MOT) today reported sales of $8.0 billion in
the fourth quarter of 2003 and net earnings of $489 million, or $.20 per share,
presented in accordance with generally accepted accounting principles (GAAP).
This represents an increase in sales of 4 percent from $7.7 billion in the
year-ago quarter, up 17 percent sequentially from the third quarter. Motorola
reported GAAP net earnings in the year-ago quarter of $174 million, or $.08 per
share.
Motorola Chairman and Chief Executive
Officer Ed Zander said, “Both sales and earnings exceeded the guidance
given by the company at the start of the quarter. Just as important, these
results provide further evidence that top-line growth has returned and that
further improvement in profitability can be achieved. Motorola is a company
with great potential, and I’m absolutely delighted to have joined it at
this important next stage of its evolution as a high technology
leader.”
Excluding special items,
Motorola had net earnings in the fourth quarter of 2003 of $409 million, or $.17
per share, compared with net earnings of $291 million, or $.13 per share, in the
year-ago quarter. In the fourth quarter of 2003, Motorola reported special
items resulting in net income of $198 million pre-tax, or $80 million after-tax.
In the fourth quarter of 2002, Motorola reported special items resulting in a
net charge of $188 million pre-tax, or $117 million after-tax. Details of the
special items are presented in a table at the end of this press
release.
Mike
Zafirovski, president and chief operating officer, said,
"Motorola continues to make progress. All six major segments reported higher
orders, ranging from 12 percent to 67 percent; four segments reported higher
operating earnings; the Commercial, Government and Industrial Solutions Segment
had record ongoing sales and earnings; and the Semiconductor Products Segment
returned to profitability. At the same time, we are far from being satisfied
with these results. We need to improve our financial returns on research and
development, and we must elevate our performance, particularly in the Personal
Communications Segment, in the areas of new product execution and related supply
chain management. We believe that our performance will improve significantly in
these areas during 2004."
David
Devonshire, executive vice president and chief financial
officer, said, “This past quarter, Motorola continued to strengthen its
balance sheet by generating positive operating cash flow of $0.9 billion, the
12th consecutive quarter of positive cash flow. We also generated
profitability, excluding special items, for the 7th consecutive
quarter, further reduced our debt and increased sales by 4 percent and orders by
45 percent versus the prior year. The ratio of net debt to net debt plus equity
improved to 0.3 percent, the lowest level in more than 20 years. Cash flow
performance will continue to be a major financial objective in 2004. Our
guidance for the first quarter of 2004 is sales of between $6.4 and $6.8 billion
and earnings per share on a GAAP basis in the range of $.05 to $.07.”
Motorola reported full-year 2003 sales of
$27.1 billion, compared with sales of $27.3 billion in 2002. On a GAAP basis,
2003 full-year net earnings were $893 million, or $.38 per share, compared with
a net loss of $2.5 billion, or $(1.09) per share, for 2002. Excluding special
items, full-year net earnings were $581 million, or $.25 per share, compared
with net earnings of $279 million, or $.12 per share in
2002.
Following are highlights of the financial
performance of Motorola’s six major segments for the fourth quarter of
2003, compared with the fourth quarter of
2002.
Personal Communications Segment
Personal Communications Segment (PCS) sales
were $3.3 billion, down 3 percent compared with the year-ago quarter, and up 12
percent from the third quarter. Orders increased 64 percent to $3.6
billion. “The decline in revenues was due to delays in introducing
several new products,” Zafirovski said. “However, these products
have been shipping in volume since mid-December. The reception to these
products has been positive from consumers, as well as from the wireless service
providers which have placed significant orders for
them.”
The
segment reported operating earnings of $127 million, presented on a GAAP basis,
compared with operating earnings of $294 million in the year-ago quarter.
Excluding special items, the segment reported operating earnings of $179
million, compared with operating earnings of $301 million in the year-ago
quarter. The decline in operating earnings is primarily due to the decrease in
sales and a decline in gross margin.
The
following table provides a reconciliation of GAAP operating earnings to
operating earnings excluding special items:
|
Fourth Quarter
|
Full Year
|
(Dollars in millions)
|
2003
|
2002
|
2003
|
2002
|
|
|
|
|
|
GAAP operating earnings
|
$127
|
$294
|
$479
|
$503
|
|
|
|
|
|
Special items income (expense):
|
|
|
|
|
|
Employee severance
|
(45)
|
(19)
|
(43)
|
(71)
|
|
Fixed asset impairments
|
1
|
9
|
(2)
|
(119)
|
|
Potentially uncollectible finance
|
|
|
|
|
|
|
receivables from Telsim
|
-
|
-
|
-
|
(125)
|
|
Other
|
(8)
|
3
|
(6)
|
14
|
|
|
|
|
|
Operating earnings excluding special
items
|
$179
|
$301
|
$530
|
$804
|
|
|
|
|
|
During the fourth quarter, PCS launched 21 new
handsets – 10 featuring color displays with integrated cameras, eight
featuring color displays and three others with monochrome displays. PCS’
global wireless handset portfolio now includes 15 models with photo-messaging
capabilities, as well as the industry’s broadest line of handsets with
push-to-talk functionality and a complement of handsets designed for networks
based on the 3G Universal Mobile Telecommunications Standard (UMTS). Of these
21 new handsets, 12 are designed for the Global System for Mobile Communications
(GSM) standard; four are for the Code Division Multiple Access (CDMA) standard;
two are for UMTS; and three are for iDEN® integrated digitally enhanced
networks.
On January 7, during the Consumer
Electronics Show in Las Vegas, PCS announced the North American launch of the
Motorola V600, which features a color display and integrated camera, quad-band
functionality and Bluetooth technology, which enables hands-free operation.
Semiconductor Products
Segment
Semiconductor Products Segment (SPS)
sales were $1.4 billion, up 2 percent compared with the year-ago quarter, and up
12 percent from the third quarter. Orders increased 14 percent to $1.4 billion.
The increase in sales and orders is primarily attributed to the segment's
networking market.
The segment reported
operating earnings of $25 million, presented on a GAAP basis, compared with
operating earnings of $18 million in the year-ago quarter. Excluding special
items, the segment reported operating earnings of $51 million, compared with
operating earnings of $7 million in the year-ago quarter. The increase in
operating earnings is attributable to the increase in sales and improved gross
margin.
The following table provides a
reconciliation of GAAP operating earnings (loss) to operating earnings (loss)
excluding special items:
|
Fourth Quarter
|
Full Year
|
(Dollars in millions)
|
2003
|
2002
|
2003
|
2002
|
GAAP operating earnings (loss)
|
$25
|
$18
|
$(297)
|
$(1,515)
|
|
|
|
|
|
Special items income (expense):
|
|
|
|
|
|
Employee severance
|
(30)
|
16
|
(74)
|
(2)
|
|
Fixed asset impairments
|
4
|
(6)
|
(17)
|
(1,145)
|
|
Other
|
-
|
1
|
6
|
(79)
|
|
|
|
|
|
Operating earnings (loss) excluding
special
|
|
|
|
|
|
Items
|
$51
|
$7
|
$(212)
|
$(289)
|
|
|
|
|
|
SPS announced the Mobile Extreme Convergence (MXC)
architecture for multimedia mobile devices and disclosed that its i.MXL
applications processor will be used in the world's first handheld devices
running on the Palm OS® 5 Simplified Chinese Edition. The segment also
completed its acquisition of XtremeSpectrum, Inc., a pioneer in ultra-wideband
(UWB) multimedia connectivity.
Honeywell
International licensed Motorola's magnetoresistive random access memory (MRAM)
technology for space and military use. SPS announced it produced the world's
first four-megabit MRAM chip.
For automotive,
SPS delivered the first microcontrollers from the MPC5500 family containing the
PowerPC™ e500 core and integrated digital signal processor (DSP) features.
UTStarcom, Inc. selected SPS network
processors for several 3G radio access network products for Wideband CDMA. SPS
also introduced a standards-based chipset designed to enable deployment of
fiber-to-the-home networking.
In mid-December,
a registration statement was filed with the U. S. Securities and Exchange
Commission related to the proposed separation of the semiconductor operations
into a publicly traded company.
Global
Telecom Solutions Segment
Global Telecom
Solutions Segment (GTSS) sales were $1.4 billion, up 11 percent compared with
the year-ago quarter, and up 30 percent from the third quarter. Orders
increased 67 percent to $1.8 billion. The increase in sales and orders is due
to an increase in capital expenditures by wireless service providers.
The segment reported operating earnings of
$138 million, presented on a GAAP basis, compared with an operating loss of $22
million in the year-ago quarter. Excluding special items, GTSS reported
operating earnings of $125 million, compared with operating earnings
of $3 million
in the year-ago quarter. The increase in operating earnings was due primarily
to higher sales and increased gross margin.
The following table provides a
reconciliation of GAAP operating earnings (loss) to operating earnings (loss)
excluding special items:
|
Fourth Quarter
|
Full Year
|
(Dollars in millions)
|
2003
|
2002
|
2003
|
2002
|
GAAP operating earnings (loss)
|
$138
|
$(22)
|
$247
|
$(621)
|
|
|
|
|
|
Special items income (expense):
|
|
|
|
|
|
Employee severance
|
7
|
(27)
|
30
|
(128)
|
|
Fixed asset impairments
|
-
|
-
|
6
|
(25)
|
|
Exit costs
|
-
|
2
|
3
|
(57)
|
|
Potentially uncollectible finance
|
|
|
|
|
|
|
receivables from Telsim
|
-
|
-
|
-
|
(401)
|
|
In-process research & development
|
-
|
-
|
(32)
|
-
|
|
Other
|
6
|
-
|
6
|
1
|
|
|
|
|
|
Operating earnings (loss) excluding
special
|
|
|
|
|
|
Items
|
$125
|
$3
|
$234
|
$(11)
|
|
|
|
|
|
On January 13, several large Chinese technology and
telecom firms announced a collective $2.3 billion of equipment purchases from
U.S. suppliers, including Motorola and other companies. The contracts were
announced at a ceremony in Washington, D.C. with senior government officials
from the U.S. and China. In two press releases issued on January 13, Motorola
confirmed that GTSS had been awarded contracts in excess of $1 billion from
China Mobile Communication Corporation (CMCC) and China United
Telecommunications Corp. (China Unicom) to expand and upgrade China’s
wireless communications networks. This release provides the following
clarifications to those announcements. The contract signing was ceremonial and
in large part it recognized business that had been previously awarded. Of the
$1.07 billion in contracts announced, approximately $150 million represents
value added tax, which is not recognized by Motorola in calculating orders or
sales. Of the remaining approximately $920 million, approximately $857 million
related to the segment’s orders, of which $645 million in orders have been
recognized in 2003 and $445 million of sales have been recognized in
2003.
GTSS continues to build on its
industry-leading position in push-to-talk over Cellular (PoC) technology. A
number of commercial systems using the GTSS PoC technology have already been
launched, including Verizon Wireless and Sprint PCS in North
America.
GTSS and Nextel Communications have
executed an agreement to upgrade Nextel’s existing iDEN network to
WiDEN™ technology. WiDEN will enable Nextel to deliver cost-effective,
high-speed wireless data service to its customers, similar to GPRS and CDMA2000
1X.
Today, GTSS announced that it had been
selected by Optimus to supply a UMTS network in northern
Portugal.
Commercial, Government and
Industrial Solutions Segment
Commercial,
Government and Industrial Solutions Segment (CGISS) sales were $1.2 billion, up
5 percent compared with the year-ago quarter, and up 20 percent from the third
quarter. Orders increased 12 percent to $1.2 billion. The increase in sales
and orders reflects significant activity in the segment’s government
markets related to homeland security
initiatives.
The segment reported operating
earnings of $240 million, presented on a GAAP basis, compared with operating
earnings of $189 million in the year-ago quarter. Excluding special items, the
segment reported operating earnings of $247 million, compared with operating
earnings of $168 million in the year-ago quarter. The significant improvement
in operating earnings reflects higher sales volume, favorable product mix and
cost savings from prior restructuring
actions.
The following table provides a
reconciliation of GAAP operating earnings to operating earnings excluding
special items:
|
Fourth Quarter
|
Full Year
|
(Dollars in millions)
|
2003
|
2002
|
2003
|
2002
|
GAAP operating earnings
|
$240
|
$189
|
$562
|
$313
|
|
|
|
|
|
Special items income (expense):
|
|
|
|
|
|
Employee severance
|
(8)
|
11
|
(35)
|
(58)
|
|
Exit costs
|
-
|
7
|
3
|
16
|
|
Other
|
1
|
3
|
3
|
(1)
|
|
|
|
|
|
Operating earnings excluding special
items
|
$247
|
$168
|
$591
|
$356
|
|
|
|
|
|
CGISS continued to be the market leader in
interoperable radio communications and information solutions for public safety
and homeland security.
CGISS announced it
will provide the secure TETRA (TErrestrial Trunked RAdio) digital radio
communications system that will be used by public safety agencies during the
2004 Olympic Games in Athens. To date, Motorola has been awarded more than 110
contracts for TETRA equipment in more than 40 countries.
CGISS also received orders for
mission-critical IP-based voice and data solutions based on the Project 25
digital standard. A system upgrade for Cobb County, Ga., will enable
interoperability as well as computer-aided dispatch and records management
capabilities. CGISS also will upgrade Arkansas’ system to a Project 25
network, which will enable seamless statewide mobile coverage and
interoperability.
Integrated Electronic
Systems Segment
Integrated Electronic Systems
Segment sales were $669 million, up 17 percent compared with the year-ago
quarter, and up 20 percent from the third quarter.
Orders increased 19 percent to $647 million.
The segment reported operating earnings of $66
million, presented on a GAAP basis, compared with operating earnings of $26
million in the year-ago quarter. Excluding special items, the segment reported
operating earnings of $68 million, compared with operating earnings
of $31 million in the year-ago quarter. The improvement in operating
earnings was the result of increased sales and benefits from cost-reduction
actions.
The following table provides a
reconciliation of GAAP operating earnings to operating earnings
excluding special items:
|
Fourth Quarter
|
Full Year
|
(Dollars in millions)
|
2003
|
2002
|
2003
|
2002
|
GAAP operating earnings
|
$66
|
$26
|
$161
|
$52
|
|
|
|
|
|
Special items income (expense):
|
|
|
|
|
|
Employee severance
|
(2)
|
1
|
-
|
(20)
|
|
Exit costs
|
-
|
(6)
|
1
|
(25)
|
|
Fixed asset impairments
|
-
|
-
|
-
|
(22)
|
|
Other
|
-
|
-
|
-
|
9
|
|
|
|
|
|
Operating earnings excluding special
items
|
$68
|
$31
|
$160
|
$110
|
|
|
|
|
|
Automotive Communications and Electronic Systems
Group sales and orders were up compared with the year-ago quarter. For the
second consecutive quarter, Motorola announced significant new and replacement
business awards with a combined value of more than $1 billion in lifetime value
over several years. The awards are in telematics, sensors, chassis, powertrain
control and interior electronics.
Energy
Systems Group sales and orders were up compared with the year-ago quarter.
Motorola Computer Group sales and orders were
up compared with the year-ago quarter.
Broadband Communications
Segment
Broadband Communications Segment (BCS)
sales were $510 million, up 4 percent compared with the year-ago quarter, and up
21 percent from the third quarter. Orders increased 41 percent to $498 million.
The segment reported an operating loss of $40
million, presented on a GAAP basis, compared with operating earnings of $33
million in the year-ago quarter. Excluding special items, the segment reported
operating earnings of $35 million, compared with operating earnings of $55
million in the year-ago quarter. The decline in operating earnings is primarily
due to lower gross margin resulting from declines in average selling prices and
product-mix shift.
The following table provides
a reconciliation of GAAP operating earnings (loss) to operating earnings
excluding special items:
|
Fourth Quarter
|
Full Year
|
(Dollars in millions)
|
2003
|
2002
|
2003
|
2002
|
GAAP operating earnings (loss)
|
$(40)
|
$33
|
$48
|
$(150)
|
|
|
|
|
|
Special items income (expense):
|
|
|
|
|
|
Employee severance
|
(2)
|
(14)
|
4
|
(37)
|
|
Goodwill/Intangible asset impairments
|
(73)
|
-
|
(73)
|
(326)
|
|
Exit costs
|
1
|
-
|
(1)
|
-
|
|
Other
|
(1)
|
(8)
|
3
|
(6)
|
|
|
|
|
|
Operating earnings excluding special
items
|
$35
|
$55
|
$115
|
$219
|
|
|
|
|
|
Insight Communications began deploying the Motorola
DCT6208 DVR/HD set-top terminal. In addition, Comcast Corporation and MediaCom
finalized their respective 2004 deployment plans for the
DCT6208.
BCS received commitments during the
quarter from Comcast Corporation, Cox Communications and Bresnan Communications
and, immediately following the close of the quarter, from Charter Communications
for its broadband services cable modem termination systems/router BSR 64000.
BCS formed an alliance with Moxell Inc., a
subsidiary of Proview International Holdings, Limited, which will co-develop a
powerful line of entertainment TV display solutions for the connected home.
Finally, BCS announced it is the exclusive provider of voice terminal adapters
with Vonage’s market-leading, Internet-based telephone service.
Conference Call and
Webcast
Motorola’s quarterly earnings
conference call is scheduled to begin at 4:00 p.m. Central Time (USA), on
Tuesday, January 20. Motorola plans a live webcast of the conference call over
the Internet, featuring both audio and slides. Investors can view the webcast at
www.motorola.com/investor.
Consolidated
GAAP Results
A comparison of results from
operations is as follows:
|
Fourth
Quarter
|
Full Year
|
(In millions, except per share
amounts)
|
2003
|
2002
|
2003
|
2002
|
|
|
|
|
|
Net sales
|
$8,023
|
$7,697
|
$27,058
|
$27,279
|
Gross margin
|
2,651
|
2,559
|
8,957
|
8,972
|
Operating earnings (loss)
|
520
|
447
|
1,084
|
(1,813)
|
Net earnings (loss)
|
489
|
174
|
893
|
(2,485)
|
Earnings (loss) per share
|
0.20
|
0.08
|
0.38
|
(1.09)
|
|
|
|
|
|
Weighted average common shares
|
|
|
|
|
|
outstanding
|
2,457.4
|
2,322.0
|
2,351.2
|
2,282.3
|
|
|
|
|
|
|
Consolidated Results Excluding Special
Items
Excluding special items, a comparison of
results from operations is as follows:
|
Fourth
Quarter
|
Full Year
|
(In millions, except per share
amounts)
|
2003
|
2002
|
2003
|
2002
|
|
|
|
|
|
Net sales
|
$8,023
|
$7,697
|
$27,058
|
$27,279
|
Gross margin
|
2,701
|
2,547
|
8,995
|
9,028
|
Operating earnings
|
608
|
528
|
1,151
|
828
|
Net earnings
|
409
|
291
|
581
|
279
|
Earnings per share
|
0.17
|
0.13
|
0.25
|
0.12
|
|
|
|
|
|
Weighted average common shares
|
|
|
|
|
|
outstanding
|
2,457.4
|
2,322.0
|
2,351.2
|
2,282.3
|
|
|
|
|
|
|
Special Items
Description
Motorola reported special items as
follows:
(Dollars in millions, bracketed
|
Fourth
Quarter
|
Full Year
|
amounts represent income)
|
2003
|
2002
|
2003
|
2002
|
|
|
|
|
|
Employee severance, net of
|
|
|
|
|
|
reversals
|
$72
|
$52
|
$112
|
$361
|
Exit costs, net of reversals
|
8
|
(7)
|
(15)
|
79
|
Fixed asset impairments
|
(9)
|
30
|
27
|
1,380
|
Investment impairments
|
19
|
33
|
97
|
1,253
|
Goodwill and intangible asset impairments
|
73
|
-
|
73
|
326
|
In-process research and development
|
|
|
|
|
|
charges
|
-
|
1
|
32
|
12
|
Potentially uncollectible finance
|
|
|
|
|
|
receivables (Telsim)
|
-
|
-
|
-
|
526
|
Iridium
|
-
|
(3)
|
(100)
|
(63)
|
Gains on sales of investments and
|
|
|
|
|
|
businesses, net
|
(306)
|
(24)
|
(644)
|
(96)
|
Other
|
(55)
|
106
|
(59)
|
118
|
Pre-tax special items
|
(198)
|
188
|
(477)
|
3,896
|
Income tax expense (benefit)
|
118
|
(71)
|
165
|
(1,132)
|
After-tax special items
|
$(80)
|
$117
|
$ (312)
|
$2,764
|
|
|
|
|
|
Definition of Net Debt to Net Debt Plus Equity
Ratio
The components of the Net Debt to Net
Debt plus Equity ratio are as follows:
Net Debt = Notes Payable and Current Portion of Long-term
Debt plus Long-term Debt plus Trust Originated Preferred Securities
(“TOPrS”) minus Cash and Cash Equivalents minus Short-term
Investments
Net Debt plus Equity = Net Debt plus Stockholders’
Equity
The ratio is calculated as
Net Debt divided by Net Debt plus Equity. The ratios presented above of 0.3
percent and 19.6 percent as of December 31, 2003 and 2002, respectively, have
been presented on a comparative basis and include the classification of $486
million of TOPrS in debt. The company’s management uses the ratio of net
debt to net debt plus equity as one measure of the strength of the
company’s balance sheet. This ratio is only one of many possible
measures, and investors should analyze the company’s financial position
and results of operations in their entirety to reach their own conclusions about
the company’s overall financial strength. In addition, the ratio of net
debt to net debt plus equity is measured at a specific point in time. Since
certain of its components, in particular the company’s cash balances, are
subject to daily change, investors should recognize that this ratio is subject
to volatility.
Non-GAAP
Measurements
In addition to the GAAP results
provided throughout this document, the company has provided non-GAAP
measurements, which present operating results on a basis excluding special
items. Details of the special items are presented in the table above.
Reconciliations from GAAP results to non-GAAP measurements described in this
press release are provided in the financial tables attached to this document.
Also, reconciliations from GAAP results to certain additional non-GAAP
measurements that may be discussed on this afternoon’s earnings conference
call can be found on the company’s Web site at www.motorola.com/investor.
The
company has provided these non-GAAP measurements as a way to help investors
better understand its core operating performance, enhance comparisons of the
company's core operating performance from period to period and to allow better
comparisons of the company's operating performance to that of its
competitors. Among other things, the company's management uses the
operating results excluding special items to evaluate the performance of its
businesses and to evaluate results relative to incentive compensation
targets. Management uses operating results excluding special items because
they believe this measure enables them to make better period-to-period
evaluations of the financial performance of its core business operations by
excluding non-recurring charges. There are inherent limitations
in the use of operating results excluding special items because the company's
actual results do include the impact of these special items. The
non-GAAP measures are intended only as a supplement to the comparable GAAP
measures and the company compensates for the limitations inherent in the
use of non-GAAP measures by using GAAP measures in conjunction with the
non-GAAP measures. As a result, investors should consider these non-GAAP
measures in addition to, and not in substitution for, or as superior to,
measures of financial performance prepared in accordance with
GAAP.
Business
Risks
Statements in this press release that are
not historical facts are forward-looking statements based on current
expectations that involve risks and uncertainties. Such forward-looking
statements include, but are not limited to, statements about the company's sales
and earnings outlook. Motorola cautions the reader that the factors below
and those on pages F-33 through F-40 of the appendix to Motorola's Proxy
Statement for the 2003 Annual Meeting of Stockholders and in its other SEC
filings could cause Motorola's actual results to differ materially from those
stated in the forward-looking statements. These factors include: (1) the
rate of recovery in the overall economy, the uncertainty of current economic and
political conditions and the general economic outlook for the
telecommunications, semiconductor, broadband and automotive industries; (2) the
impact of increased competition in the China handset market; (3) the company's
ability to effectively carry out the planned cost-reduction actions and realize
the savings expected from those actions; (4) the potential for unanticipated
results from cost-reduction activities on the company's performance, including
productivity and the retention of key employees; (5) the lack of predictability
of future operating results; (6) the company's continuing ability to access the
capital markets on favorable terms; (7) demand for the company's products,
including products related to new technologies; (8) risks related to dependence
on certain key manufacturing suppliers; (9) the company's ability to increase
profitability and market share in its wireless handset business; (10) the
company's success in the 2.5G and 3G markets; (11) the impact of ongoing
consolidations in the telecommunications and cable industries; (12) the demand
for vendor financing and the company's ability to provide that financing in
order to remain competitive; (13) the creditworthiness of the company's
customers, particularly purchasers of large infrastructure systems; (14)
unexpected liabilities or expenses, including unfavorable outcomes to any
pending or future litigation, including any relating to the Iridium project;
(15) the levels at which design wins become actual orders and sales; (16) risks
related to the company's high volume of manufacturing and sales in Asia,
including the impact of another outbreak of SARS in the region; (17) the timely
commercial availability of new products; (18) the impact of foreign currency
fluctuations; (19) changes regarding the actual or assumed performance of the
company's pension plan; and (20) the company's ability to successfully complete
the separation of its semiconductor activities in a timely and cost-effective
manner.
About
Motorola
Motorola, Inc. (NYSE: MOT) is a global
leader in wireless, broadband and automotive communications technologies that
help make life smarter, safer, simpler, synchronized and fun. Sales in 2003
were $27.1 billion. Motorola creates innovative technological solutions that
benefit people at home, at work and on the move. The company also is a
progressive corporate citizen dedicated to operating ethically, protecting the
environment and supporting the communities in which it does business. For more
information: www.motorola.com.
# #
#
Media
Contact:
Bill
Parke
1+847-576-4525
William.Parke@motorola.com
MOTOROLA
and the stylized M Logo are registered in the U.S. Patent & Trademark
Office. All other product or service names are the property of their respective
owners.
© Motorola, Inc. 2004
[1] A
definition of the ratio of net debt to net debt plus equity is provided at the
end of this release.
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