Motorola Reports Third-Quarter 2004 Financial Results; Revenue Up 26%, Income Up 313%

Net Cash/Debt = Cash and Cash Equivalents + Short-Term Investments - Notes Payable and Current Portion of Long-Term Debt - Long-Term Debt - Trust Originated Preferred Securities ("TOPrS").

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 Motorola's guidance for fourth quarter 2004 sales and earnings and Motorola's current intentions regarding its remaining ownership of Freescale Semiconductor, Inc. Motorola cautions the reader that the factors below and those on pages 76 through 85 of Motorola's 2003 Annual Report on Form 10-K 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 uncertainty of current economic and political conditions, as well as the economic outlook for the telecommunications, semiconductor, broadband and automotive industries; (2) the company's ability to increase profitability and market share in its wireless handset business; (3) demand for the company's products, including products related to new technologies; (4) the company's ability to introduce new products and technologies in a timely manner; (5) risks related to dependence on certain key suppliers; (6) risks related to the company's high volume of manufacturing and sales in Asia; (7) the company's ability to purchase sufficient materials, parts and components to meet customer demand, including, without limitation, semiconductor products; (8) the creditworthiness of the company's customers, particularly purchasers of large infrastructure systems; (9) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation, including any relating to the Iridium project; (10) the timing and levels at which design wins become actual orders and sales; (11) the impact of foreign currency fluctuations; (12) the company's ability to use its deferred tax assets; (13) the impact on the company from continuing hostilities in Iraq and conflict in other countries; (14) unexpected effects on the company and Freescale Semiconductor, Inc. as a result of the recent initial public offering of Freescale; (15) the company's ability to successfully distribute its remaining ownership of FSL in a timely manner, which success is dependent upon a wide variety of factors, many of which are outside of the company's control, and (16) the outcome of currently ongoing and future tax matters with the IRS.

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: http://www.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. and Subsidiaries
                  Consolidated Statements of Operations
                 (In millions, except per share amounts)

                                 Three Months Ended    Three Months Ended
                                   October 2, 2004     September 27, 2003
                                 -------------------   -------------------
  Net sales                                  $8,624                $6,829
  Costs of sales                              5,501                 4,507
                                 -------------------   -------------------
  Gross margin                                3,123                 2,322

  Selling, general and administrative
    expenses                                  1,275                 1,078
  Research and development expenditures         999                   941
  Reorganization of businesses                   46                    44
  Freescale separation costs                     19                     -
  Other charges (income)                         66                    (4)
                                 -------------------   -------------------
  Operating earnings                            718                   263

  Other income (expense):
    Interest expense, net                       (53)                  (84)
    Gains on sales of investments and
      businesses                                195                    31
    Minority interest                           (32)                    -
    Other                                      (101)                  (32)
                                 -------------------   -------------------
  Total  other  income  (expense)                                        9                                      (85)
                                                                  -------------------      -------------------
    Earnings  before  income  taxes                                    727                                      178
    Income  tax  expense                                                        248                                        62
                                                                  -------------------      -------------------
    Net  earnings                                                                  $479                                    $116
                                                                  ===================      ===================

    Net  earnings  per  common  share
    -----------------------------
        Basic                                                                          $0.20                                  $0.05
        Diluted                                                                      $0.20                                  $0.05

    Weighted  average  common  shares  outstanding
    ------------------------------------------
        Basic                                                                      2,359.6                              2,322.8
        Diluted                                                                  2,500.5                              2,358.0

    Dividends  paid  per  share                                        $0.04                                  $0.04


                                                                    Nine  Months  Ended          Nine  Months  Ended
                                                                      October  2,  2004          September  27,  2003
                                                                  -------------------      -------------------
    Net  sales                                                                  $25,885                              $19,035
    Costs  of  sales                                                          16,725                                12,729
                                                                  -------------------      -------------------
    Gross  margin                                                                9,160                                  6,306

    Selling,  general  and  administrative
        expenses                                                                    3,740                                  2,912
    Research  and  development  expenditures              2,956                                  2,839
    Reorganization  of  businesses                                        5                                        65
    Freescale  separation  costs                                          69                                          -
    Other  charges  (income)                                                    5                                      (74)
                                                                  -------------------      -------------------
    Operating  earnings                                                    2,385                                      564

    Other  income  (expense):
        Interest  expense,  net                                            (180)                                  (236)
        Gains  on  sales  of  investments  and
            businesses                                                                391                                      338
        Minority  Interest                                                      (46)                                        -
        Other                                                                            (107)                                  (119)
                                                                  -------------------      -------------------
    Total  other  income  (expense)                                      58                                      (17)
                                                                  -------------------      -------------------
    Earnings  before  income  taxes                                2,443                                      547
    Income  tax  expense                                                    1,558                                      143
                                                                  -------------------      -------------------
    Net  earnings                                                                  $885                                    $404
                                                                  ===================      ===================

    Net  earnings  per  common  share
    -----------------------------
        Basic                                                                          $0.38                                  $0.17
        Diluted                                                                      $0.37                                  $0.17

    Weighted  average  common  shares  outstanding
    ------------------------------------------
        Basic                                                                      2,349.6                              2,318.2
        Diluted                                                                  2,432.2                              2,338.7

    Dividends  paid  per  share                                        $0.12                                  $0.12


                                              Motorola,  Inc.  and  Subsidiaries
                                        Condensed  Consolidated  Balance  Sheets
                                                                (In  millions)

            ASSETS                                                              October  2,              December  31,
                                                                                            2004                            2003
                                                                                    ------------          --------------
    Cash  and  cash  equivalents                                    $10,801                          $7,877
    Short-term  investments                                                  152                                139
    Accounts  receivable,  net                                          5,367                            4,436
    Inventories,  net                                                          3,191                            2,792
    Deferred  income  taxes                                                1,098                            1,678
    Other  current  assets                                                  1,381                                985
                                                                                    ------------          --------------
          Total  current  assets                                          21,990                          17,907
                                                                                    ------------          --------------
    Property,  plant  and  equipment,  net                      4,550                            5,164
    Investments                                                                    2,894                            3,335
    Deferred  income  taxes                                                2,975                            3,349
    Other  assets                                                                  2,141                            2,343
                                                                                    ------------          --------------
          Total  assets                                                        $34,550                        $32,098
                                                                                    ============          ==============

            LIABILITIES  AND  STOCKHOLDERS'  EQUITY

    Notes  payable  and  current  portion  of
        long-term  debt                                                            $336                              $896
    Accounts  payable                                                          3,332                            2,789
    Accrued  liabilities                                                    6,925                            5,748
                                                                                    ------------          --------------
            Total  current  liabilities                              10,593                            9,433
                                                                                    ------------          --------------
    Long-term  debt                                                              6,259                            6,675
    Other  liabilities                                                        2,548                            2,693

    Minority  interest                                                        1,303                                122

    Company-obligated  mandatorily  redeemable
        preferred  securities  of  subsidiary
        trust  holding  solely  company-
        guaranteed  debentures                                                    -                                486

    Stockholders'  equity                                                13,847                          12,689
                                                                                    ------------          --------------

        Total  liabilities  and  stockholders'
            equity                                                                  $34,550                        $32,098
                                                                                    ============          ==============


                                              Motorola,  Inc.  and  Subsidiaries
                                                          Segment  Information
                                                                (In  millions)

      Summarized  below  are  the  Company's  net  sales  by  reportable  segment  for
      the  quarters  and  nine  months  ended  October  2,  2004  and  September  27,
      2003.

                                                                                              Segment  Net  Sales
                                                                --------------------------------------------
                                                                        Quarter  Ended  Quarter  Ended
                                                                            October  2,    September  27,        %  Change
                                                                                  2004                  2003                  from  2003
                                                                --------------------------------------------
    Personal  Communications  Segment                $3,912              $2,924                      34%
    Semiconductor  Products  Segment                    1,430                1,225                      17%
    Global  Telecom  Solutions  Segment                1,308                1,054                      24%
    Commercial,  Govt,  and  Industrial
        Solutions  Segment                                          1,164                1,035                      12%
    Integrated  Electronic  Systems  Segment          683                    559                      22%
    Broadband  Communications  Segment                    589                    451                      31%
    Other  Products  Segment                                          92                      78                      18%
    Adjustments  &  Eliminations                              (554)                (497)                    11%
                                                                -----------------------------
        Segment  Totals                                              $8,624              $6,829                      26%
                                                                ============================================


                                                                                              Segment  Net  Sales
                                                                --------------------------------------------
                                                                  Nine  Months  Ended  Nine  Months  Ended
                                                                            October  2,          September  27,  %  Change
                                                                                2004                        2003              from  2003
                                                                --------------------------------------------
    Personal  Communications  Segment              $11,876                  $7,702                  54%
    Semiconductor  Products  Segment                    4,287                    3,491                  23%
    Global  Telecom  Solutions  Segment                4,068                    3,052                  33%
    Commercial,  Govt,  and  Industrial
        Solutions  Segment                                          3,308                    2,894                  14%
    Integrated  Electronic  Systems  Segment      1,993                    1,596                  25%
    Broadband  Communications  Segment                1,644                    1,302                  26%
    Other  Products  Segment                                        265                        235                  13%
    Adjustments  &  Eliminations                          (1,556)                (1,237)                26%
                                                                -------------------------------
        Segment  Totals                                            $25,885                $19,035                  36%
                                                                ============================================


                                          Motorola,  Inc.  and  Subsidiaries
                                                      Segment  Information
                                                            (In  millions)

      Summarized  below  are  the  Company's  operating  earnings  (loss)  by
      reportable  segment  for  the  quarters  and  nine  months  ended  October  2,  2004
      and  September  27,  2003.

                                                                                Segment  Operating  Earnings  (Loss)
                                                                                ------------------------------------
                                                                                                          GAAP  Results
                                                                                ------------------------------------
                                                                                    Quarter  Ended          Quarter  Ended
                                                                                  October  2,  2004    September  27,  2003
                                                                                -----------------  ------------------

    Personal  Communications  Segment                                $390                          $147
    Semiconductor  Products  Segment                                      82                            (76)
    Global  Telecom  Solutions  Segment                                175                              61
    Commercial,  Govt,  and  Industrial
        Solutions  Segment                                                          185                            146
    Integrated  Electronic  Systems  Segment                        18                              25
    Broadband  Communications  Segment                                  34                              (4)
    Other  Products  Segment                                                  (101)                          (14)
    Adjustments  &  Eliminations                                            (11)                            (2)
                                                                                -----------------  ------------------
          Segment  Totals                                                              772                            283
    General  Corporate                                                              (54)                          (20)
                                                                                -----------------  ------------------
    Operating  Earnings                                                          $718                          $263
                                                                                =================  ==================


                                                                                Segment  Operating  Earnings  (Loss)
                                                                                ------------------------------------
                                                                                                            GAAP  Results
                                                                                ------------------------------------
                                                                                Nine  Months  Ended    Nine  Months  Ended
                                                                                  October  2,  2004    September  27,  2003
                                                                                -----------------  ------------------
    Personal  Communications  Segment                            $1,182                            $352
    Semiconductor  Products  Segment                                    244                            (322)
    Global  Telecom  Solutions  Segment                                502                              109
    Commercial,  Govt,  and  Industrial
        Solutions  Segment                                                          546                              322
    Integrated  Electronic  Systems  Segment                      105                                95
    Broadband  Communications  Segment                                  78                                14
    Other  Products  Segment                                                  (135)                            (30)
    Adjustments  &  Eliminations                                            (11)                            (10)
                                                                                -----------------  ------------------
          Segment  Totals                                                          2,511                              530
    General  Corporate                                                            (126)                              34
                                                                                -----------------  ------------------
    Operating  Earnings                                                      $2,385                            $564
                                                                                =================  ==================
 





Review Article Be the first to review this article

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy