Motorola 2002 Annual Report Download

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Motorola 2002 Summary Annual Report

Table of contents

  • Page 1
    Motorola 2002 Summary Annual Report

  • Page 2
    We build real things needed in a global society...

  • Page 3
    in w ays that make sense in an unpredic table w orld.

  • Page 4
    Ensuring c ontinual innovative thinking from a nimble global enterprise.

  • Page 5
    It's w hat w e do every day.

  • Page 6
    Offering produc ts to enhanc e w hat you do every day!

  • Page 7
    >>> at home >>> at home >>> at home >>> at home >>> at home >>> at home >>>

  • Page 8
    >>> at w ork >>> at w ork >>> at w ork >>> at w ork >>> at w ork >>> at w ork >>>

  • Page 9
    >>> in the c ar >>> in the c ar >>> in the c ar >>> in the c ar >>> in the c ar >>>

  • Page 10
    >>> on the person >>> on the person >>> on the person >>> on the person >>>

  • Page 11
    >>> globally >>> globally >>> globally >>> globally >>> globally >>> globally >>>

  • Page 12
    >>> smarter >>> smarter >>> smarter >>> smarter >>> smarter >>> smarter >>>

  • Page 13
    >>> simpler >>> simpler >>> simpler >>> simpler >>> simpler >>> simpler >>>

  • Page 14
    >>> saf er >>> saf er >>> saf er >>> saf er >>> saf er >>> saf er >>> saf er >>>

  • Page 15
    >>> sync hronized >>> sync hronized >>> sync hronized >>> sync hronized >>>

  • Page 16
    >>> fun >>> fun >>> fun >>> fun >>> fun >>> fun >>> fun >>> fun >>> fun >>>

  • Page 17
    .... And they told us: M ake the billions of things around us smarter, simpler, safer, sync hronized and, w hen appropriate, fun . W e heard it from c onsumers. W e heard it from business c ustomers. W e heard it from government organizations. W hether for themselves or for their organizations, they...

  • Page 18
    ..., voic e and high-speed data solutions for broadband operators; embedded semic onduc tor solutions for c ustomers in w ireless c ommunic ations, netw orking and transportation markets; and integrated elec tronic systems for automotive, Telematic s, industrial, telec ommunic ations, c omputing and...

  • Page 19
    ...an be found in the Proxy Statement. THE FI VE- POI N T PLAN The five-point plan introduc ed in 2001 has served us w ell by helping us foc us on c ritic al priorities to drive profitable grow th: 1. To aggressively foc us on the balanc e sheet. 2. To low er our break-even sales level by reduc ing SG...

  • Page 20
    ... tronic Systems Sec tor - formerly exec utive vic e president of business development, strategy and c orporate operations at The Home Depot, Inc . 4. Pursuing Grow th W e invested $3.8 billion in researc h and development in 2002. This investment is funding ongoing innovation in the new products...

  • Page 21
    ...inaugural w inner of the aw ard in 1988. In 2002, our Commerc ial, Government and Industrial Solutions Sec tor - our Homeland Sec urity business - w on the aw ard. The sector w as assessed in seven categories: leadership, strategic planning, customer and market focus, information and analysis, human...

  • Page 22
    ... $750 in tools and a design for our first product. We enter our 75th year as a technology leader helping to build a global soc iety unimagined by our founders, guided by high ethic s and principles and executing a forw ard-looking plan to help us outperform our competitors, generate profit and c ash...

  • Page 23
    ... Segment Integrated Electronic Systems Segment Broadband Communications Segment Other Products Segment - 10 - 1.5 - 20 - 2.25 98 99 00 01 02 D i l ute d Ea r ni ngs (Loss) Pe r Sha r e (in dollars) - 30 98 99 00 01 Re tur n on Ave r a ge I nve ste d Ca pi ta l (%) 02 2002 N e t Sa l e s by...

  • Page 24
    ...ept per share amounts) Years Ended December 31 2002 2001 2000 Net sales Costs of sales Gross margin Selling, general and administrative expenses Researc h and development expenditures Reorganization of businesses Other c harges Operating earnings (loss) Other inc ome (expense): Interest expense...

  • Page 25
    ...ASSETS 2002 2001 Current assets Cash and c ash equivalents Short-term investments Ac c ounts rec eivable, net Inventories, net Deferred inc ome taxes Other ...term debt Other liabilities Company-obligated mandatorily redeemable preferred sec urities of subsidiary trust holding solely c ompany-...

  • Page 26
    ... 2000 Net earnings (loss) Adjustments to rec onc ile net earnings (loss) to net c ash provided by (used for) operating ac tivities: Deprec iation and amortization Charges for reorganization of businesses and other c harges Gains on sales of investments and businesses, net Deferred inc ome taxes...

  • Page 27
    ...Ended December 31 N ET SALES 2002 2001 2000 Personal Communic ations Segment Semic onduc tor Produc ts Segment Global Telec om Solutions Segment Commercial, Government and Industrial Solutions Segment Broadband Communic ations Segment Integrated Electronic Systems Segment Other Produc ts Segment...

  • Page 28
    ...Years Ended December 31 OPERATIN G RESULTS 2002 2001 2000 1999 1998 Net sales Costs of sales Gross margin Selling, general and administrative expenses Researc h and development expenditures Reorganization of businesses Other c harges Operating earnings (loss) Other inc ome (expense): Interest...

  • Page 29
    ... Special Items (In millions, exc ept per share amounts) Year Ended December 31, 2002 GAAP Results Net sales Costs of sales Gross margin Selling, general and administrative expenses Researc h and development expenditures Reorganization of businesses Other c harges Operating earnings (loss...

  • Page 30
    ... December 31, 2001 GAAP Results Special Items Inc / (Exp) Excluding Special Items Net sales Costs of sales Gross margin Selling, general and administrative expenses Researc h and development expenditures Reorganization of businesses Other c harges Operating earnings (loss) Other inc ome (expense...

  • Page 31
    ... GAAP Results Exited Businesses Ongoing Operations Personal Communic ations Segment Semic onduc tor Produc ts Segment Global Telec om Solutions Segment Commerc ial, Government and Industrial Solutions Segment Broadband Communic ations Segment Integrated Elec tronic Systems Segment Other Produc...

  • Page 32
    ... IN GS (LOSS) GAAP Results Special Items Inc / (Exp) Excluding Special Items Exited Businesses Inc / (Exp) % to Sales Personal Communic ations Segment Semic onduc tor Produc ts Segment Global Telec om Solutions Segment Commerc ial, Government and Industrial Solutions Segment Broadband Communic...

  • Page 33
    ... B. GALVIN JOHN E. PEPPER, JR. Chairman of the Board and Chief Exec utive Offic er, M otorola, Inc . FRAN CESCO CAIO Chairman of the Exec utive Committee, Proc ter...ellor, University of Arkansas M IKE S. ZAFIROVSKI Chairman, M edia Laboratory, M assac husetts Institute of Tec hnology IN DRA N OOYI...

  • Page 34
    ... and shareholders c an find investor relations information on the Internet at w w w .motorola.c om/investor. Inquiries should be direc ted to: Investor Relations, M otorola, Inc . Corporate Offic es 1303 East Algonquin Road Sc haumburg, IL 60196 U.S.A. E-mail: [email protected] om 1 800...

  • Page 35
    Our businesses.

  • Page 36
    ...of Russia and Eastern Europe, India, China, Southeast Asia, Brazil and M exic o, w e are w ell-armed w ith entry-level handsets suc h as our C330 series. In more developed markets w e sw eeten the replac ement opportunity w ith games, produc tivity tools and pic ture messaging - all in c olor. E360...

  • Page 37
    ... : IN SPIRED BY VICTORIN OX ® M A KER OF THE ORIGIN A L SW ISS A RM Y ™ KN IFE A 388: GSM PDA -VOICE HA N DSET W ITH HA N DW RITIN G RECOGN ITION V60i : HAN DSET-FASHION AND FUNCTIONALITY IN CDM A, GSM AN D TDM A C330 SERIES: EN TRY-LEVEL DIFFEREN TIATION FOR OPERATORS A N D CON SUM ERS IN CDM...

  • Page 38
    ... and Internet infrastructure. > Automotive , w here w e are helping customers create " smart" vehicles that enhanc e safety, the envir onment and the driving experienc e. > Standard Products, used in everything from poc ket-sized digital c ameras to smart w ashing mac hines. For 2002, Semiconductor...

  • Page 39
    HCO8 CHIP W ITH BM W 7 SERIES SIDE M IRROR > > i .250 BOA RD W ITH SEW ON PHON E > DRA GON BA LLâ„¢ M X PROCESSOR W ITH GA RM IN PDA SYM PHON Yâ„¢ DIGITA L CHIP SET W ITH A UTON ET RA DIO > Intelligenc e Everyw here â„¢ 37

  • Page 40
    ... GTSS reported an operating loss of $11 million, compared w ith operating earnings of $32 million a year ago. Despite the $1.9 billion dec line in sales, operating earnings, excluding special items, declined by only $43 million as t he segment impr oved it s gr oss mar gin and dramatic ally low ered...

  • Page 41
    M OTOROLA SCâ„¢ 300 BA SE TRA N SCEIVER STATION (CDM A ) M OTOROLA SCâ„¢ 4812T BA SE TRA N SCEIVER STATION (CDM A ) Intelligenc e Everyw here â„¢ 39 M OTOROLA HORIZON II BA SE TRA N SCEIVER STATION (GPRS) M OTOROLA SOFTSW ITCH (CDM A )

  • Page 42
    ...$350 million a year ago. In 2003, w e look for sales grow th to return as a result of inc reased demand for integrated and interoperable voic e, data and broadband w ireless systems at all government levels related to Homeland Sec urity and c ontinued migration from analog to digital tw o-w ay radio...

  • Page 43
    ... PROJ ECT 25 DIGITA L RA DIO W ITH COM M A N DERâ„¢ REM OTE SPEA KER M ICROPHON E HDT500 HA N DHELD DATA TERM IN A L GP2100 A LPHA SERIES RA DIO M CC 5500 DISPATCH CON SOLE M W 800 M OBILE W ORKSTATION Intelligenc e Everyw here â„¢ 41 CDM 1550 M OBILE RA DIO LIVESCA N â„¢ A UTOM ATED BOOKIN...

  • Page 44
    ... of the broadband c onnec ted home, offic e or business. In 2002, after many years of solid grow th, the c able equipment industry, like muc h of the telec om equipment industry, faced the second consecutive year of sales declines as service providers reduc ed c apital spending to low er their c ost...

  • Page 45
    M ULTISERVICE BROA DBA N D TRA N SPORT (M BT) SBV4200 VOICE OVER IP CA BLE M ODEM SB5100 CA BLE M ODEM SBG1000 W IRELESS CA BLE M ODEM GATEW AY Intelligenc e Everyw here â„¢ 43

  • Page 46
    ... w e see exc eptional opportunities in three broad automotive elec tronic s arenas: > The Netw orked Automobile , c onnec tivity w ith the w orld of w ireless information. > The Architected Automobile , c onnec tivity among advanc ed, in-vehic le systems. > The Aw are Automobile , c onnec tivity...

  • Page 47
    NOTEBOOK COMPUTER BATTERY TRANSMISSION HIGH PRESSURE SENSOR ASSEMBLY INSTANT GLOBAL POSITIONING SYSTEM ENGINE CONTROL UNIT MULTISERVICE PACKET TRANSPORT PLATFORM PROCESSOR PMC BOARD VMEBUS SINGLE-BOARD COMPUTER

  • Page 48
    ... IL 60196 U.S.A. +1 847 576 5000 MOTOROLA and the Stylized M logo are registered in the U.S. Patent and Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2003 Motorola is an Equal Employment Opportunity / Affirmative Action Employer