Motorola 1999 Annual Report Download

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1999 SUMMARY ANNUAL REPORT
Linking People’s Dreams
WITH TECHNOLOGY’S PROMISE

Table of contents

  • Page 1
    1999 SUMMARY ANNUAL REPORT Linking People's Dreams WITH TECHNOLOGY'S PROMISE

  • Page 2
    A S HARPENED FOCUS Linking People's Dreams With Technology's Promise A NEW MOTOROLA EMERGES B UILDING ON A DYNAMIC VISION FOR A DYNAMIC MARKETPLACE. Motorola is extending human capabilities by providing integrated wireless communication and embedded electronic solutions for the individual, the...

  • Page 3
    ... projected number of wireless phone users worldwide by 2002. Internet offers a new world of personal networking. For business enterprises and government agencies, it offers flexibility to better manage their communications systems. With the convergence of voice, video and data, Motorola is focusing...

  • Page 4
    ..., we sense the pulse of cultures, and we anticipate where these cultures are going. No one else has our mix of disciplines - solutions on a chip, embedded 50 billion The estimated number of smart chips to be sold globally in the next five years. electronic systems, Internet, wireless, broadband...

  • Page 5
    ..., access devices, content, applications and services. Our vision of a third-generation (3G) wireless IP future is becoming a reality through the Aspira TM communications architecture, which we are creating in alliance with some of the best minds in IP and networking - including Cisco Systems and...

  • Page 6
    ... a world where you can call home, check the stock market, access e-mail from anywhere. Our customers want solutions that think and link. Personal networking places users at the center of their network - where they can share and deliver experiences that foster personal and 200 The number of messages...

  • Page 7
    M OTOROLA TECHNOLOGY AND Timeport P8167 TM PRODUCTS ARE HELPING TO MAKE THE ERA OF THE PERSONAL NETWORK A REALITY. MOTOROLA, INC. 6

  • Page 8
    Mobile Workstation 520 M OTOROLA DIGITAL SOLUTIONS AND SOFTWARE ARE CHANGING THE WAY ORGANIZATIONS COMMUNICATE, OPERATE AND SUCCEED. 7 MOTOROLA, INC.

  • Page 9
    ... and public communications solutions have the ability to integrate two-way radio, digital cellular phone, wireless Internet, alphanumeric messaging and data/fax capabilities. Organizations also benefit from smart Motorola solutions ranging from embedded computer systems to smart card and BiStatix...

  • Page 10
    ...networks and smart vehicles to link to people and information. We are the leading supplier of semiconductors for the automotive industry. And to ensure a creative advantage for our customers, we plan to continue 26.5 billion $ The annual worldwide demand projected for automotive electronics by 2002...

  • Page 11
    M OTOROLA'S EMBEDDED Mercedes-Benz S-Class ELECTRONIC SOLUTIONS ARE CONNECTING THE VEHICLE AND THE DRIVER TO A NEW WORLD OF POSSIBILITIES. MOTOROLA, INC. 10

  • Page 12
    MOTOROLA'S DCT-5000+ Digital Cable Set-top Terminal VISION IS TO COMPLETE THE PICTURE AT HOME, INTEGRATING BROADBAND WITH WIRELESS ACCESS. 11 MOTOROLA, INC.

  • Page 13
    ... Estimated U.S. cable industry revenues by 2008 through deployment of digital cable, high-speed Internet access and telephony via broadband. sion set-top devices that decode digital cable programming as well as enable advanced TV services like video-on-demand, e-mail and shopping. Motorola's latest...

  • Page 14
    ... the company's research organizations. Examples of the exciting breakthroughs from Motorola Labs include the world's thinnest functional transistor using a new class of semiconductor materials called perovskites. It will enable future 21,807 The number of patents Motorola holds worldwide. chips to...

  • Page 15
    M OTOROLA IS ACCELERATING ITS Prototype videophone with third-generation (3G) wireless technology DRIVE TO LINK PEOPLE'S DREAMS WITH TECHNOLOGY'S PROMISE. MOTOROLA, INC. 14

  • Page 16
    ... electronic solutions. These include: • Software-enhanced wireless telephone, two-way radio, messaging and satellite communications products and systems, as well as networking and Internet-access products, for consumers, network operators, and commercial, government and industrial customers...

  • Page 17
    ... AND OTHER FRIENDS This year's annual report introduces a new Motorola that is a very exciting place for investors. We are strategically focused on harnessing the power of wireless, broadband and the Internet to deliver end-toend network, embedded and chip-based solutions for the individual...

  • Page 18
    ..., and returned to profitability. Our Integrated Electronic Systems Sector, which repositioned itself around embedded systems, recorded improved results. The sector sold its non-semiconductor components group and now focuses on systems solutions in the automotive, communications and computer markets...

  • Page 19
    ... include the M•CORE TM family of low-power, low-cost processors; the PowerPCTM architecture used in more than 1,000 designs for networking, telecom, automotive and industrial control as well as desktop applications, and the StarCoreTM digital signal processing alliance with Lucent Technologies...

  • Page 20
    ... the corporation - linking people's dreams with technology's promise. We intend to listen even more attentively to those dreams and respond even more creatively. We intend to differentiate, simplify and reinvent industries made possible by technology's promise. We intend to extend human capabilities...

  • Page 21
    ... Marketing Group Value-Added Services 19% 21% Personal Communications Segment Network Systems Segment Semiconductor Products Segment Commercial, Government and Industrial Systems Segment Other Products Segment Personal Communications Sector Organization: Americas Group Asia Pacific Group Europe...

  • Page 22
    ... 31, 1999 and 1998, and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the years in the three-year period ended December 31, 1999, appearing in the appendix to the proxy statement for the 2000 Annual Meeting of Stockholders of the Corporation (not...

  • Page 23
    ...ONSOLIDATED OF OPERATIONS STATEMENTS (In millions, except per share amounts) Years Ended December 31 1999 1998 1997 Net sales Costs and expenses Manufacturing and other costs of sales Selling, general and administrative expenses Restructuring and other charges Research and development expenditures...

  • Page 24
    C ONSOLIDATED BALANCE SHEETS (In millions, except per share amounts) December 31 1999 1998 Assets Current assets Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Deferred income taxes Other current assets Total current assets Property, plant and equipment, net ...

  • Page 25
    ...Stock options and other Dividends declared ($.48 per share) Balances at December 31, 1997 Net loss Conversion of zero coupon notes Fair value...Stock options and other Dividends declared ($.48 per share) Balances at December 31, 1999... financial statements. MOTOROLA, INC. AND SUBSIDIARIES 24

  • Page 26
    ... OF CASH FLOWS STATEMENTS (In millions) Years Ended December 31 1999 1998 1997 Operating Net earnings (loss) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Restructuring and other charges Iridium charges Depreciation Deferred income taxes Amortization...

  • Page 27
    ...-to-market at the balance sheet date to reflect their fair value with the unrealized gains and losses, net of tax, included in a separate component of stockholders' equity. Cash Equivalents: The Company considers all highly liquid investments purchased with an original maturity of three months or...

  • Page 28
    ... Corporation Motorola Credit Corporation (MCC), the Company's SUMMARY FINANCIAL DATA OF wholly owned finance subsidiary, is engaged principally MOTOROLA CREDIT CORPORATION in financing long-term commercial receivables arising out 1998 1997 1999 of equipment sales made by the Company to customers...

  • Page 29
    ... of integrated semiconductor solutions and components. The Other Products Segment is comprised primarily of the Integrated Electronic Systems Sector (which primarily manufactures and sells automotive and industrial electronics); the Internet and Networking Group (which focuses on the development...

  • Page 30
    ...) Years Ended December 31 Operating Profit (Loss) Before Taxes 1998 1997 Personal Communications Segment Network Systems Segment Commercial, Government and Industrial Systems Segment Semiconductor Products Segment Other Products Segment Adjustments and eliminations Segment totals General corporate...

  • Page 31
    ... in millions) Years Ended December 31 SPECIAL ITEMS 1999 1998 1997 Income (Expense) Personal Communications Segment Network Systems Segment Commercial, Government and Industrial Systems Segment Semiconductor Products Segment Other Products Segment Segment totals General corporate Total special...

  • Page 32
    ...telephone services over wired networks. The new sector combines the operations of General Instrument with the cable modem and cable telephony businesses of the Company's Internet and Networking Group. Through the merger the Company also acquired a majority ownership in Next Level Communications, Inc...

  • Page 33
    ...Years Ended December 31 1999 1998 1997 1996 1995 Operating Results Net sales Manufacturing and other costs of sales Selling, general and administrative expenses Restructuring and other charges Research...Excludes the impact of the merger with General Instrument. MOTOROLA, INC. AND SUBSIDIARIES 31 32

  • Page 34
    ...the Board of Directors, Procter & Gamble Company Samuel C. Scott III President and Chief Operating Officer, Corn Products International Gary L. Tooker Retired; formerly Chairman of the Board, Motorola, Inc. B. Kenneth West Senior Consultant for Corporate Governance to Teachers Insurance and Annuity...

  • Page 35
    ...of smart chips to be sold in the next five years, the number of two-way radios in use worldwide by 2002, annual worldwide demand for automotive electronics by 2002, our expectations about the telematics business, estimated U.S. Cable Industry revenues by 2008, applications of next generation set-top...

  • Page 36
    MOTOROLA, INC. Corporate Offices 1303 East Algonquin Road Schaumburg, IL 60196 USA Phone: (847) 576-5000 Motorola is an Equal Employment Opportunity/Affirmative Action Employer Motorola and stylized M logo are registered trademarks of Motorola, Inc. VISIT US AT www.motorola.com