Motorola 2002 Annual Report Download - page 44

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42 Motorola, Inc.
OMNISTAR®BROADBAND TRANSMISSION PLATFORM
BROADBAND
COMMUNICATIONS
SEGMENT
The w ord “ Broadband” stands for a big experience –
in this case, a world in w hich video, voice and data
come and go as natural extensions of the human
experience. Broadband is capable of carrying all
the megabytes necessary to keep you seamlessly
informed, entertained and connected. The
infrastructure and the devices that connect you to
these information and entertainment services are
our obsession, and today we are the No. 1 global
provider of these solutions.
For video, voice and data to come and go as natural
extensions of the human experience, certain capa-
bilities are required. Like ease of use and network
compatibility. Security. Reliability. Our broadband
technology enables netw ork operators and retailers
to deliver these capabilities. No other company is
positioned as well as Motorola to deliver on the
promise of the broadband connected home, office
or business.
In 2002, after many years of solid growth, the
cable equipment industry, like much of the telecom
equipment industry, faced the second consecutive
year of sales declines as service providers reduced
capital spending to lower their cost structure,
improve cash flow and reduce their significant debt
levels. Even in this weak climate, we shipped over
5.4 million digital set-tops and over 3.5 million
cable modems, raising the number of units sold to
over 25 million and 10 million, respectively, evidence
of the competitive strength of our business.
For 2002, Broadband Communications Segment
(BCS) sales w ere $2.1 billion, compared to $2.9 billion
in 2001. The reduction in sales reflects the weak
industry climate. For 2002, BCS reported an operating
loss of $150 million, presented on a GAAP basis,
versus operating earnings of $195 million a year ago.
Excluding special items, BCS reported operating
earnings of $257 million, compared with operating
earnings of $450 million a year ago.
We expect declining sales again in 2003. Looking
forward, however, we are focusing on growing our
business by driving our connected home solutions
to the consumer, globalization of our broadband
business, broadening the penetration of our digital
products, expanding our product offering for alter-
native access networks and the expansion of our
network solutions business.
DVi3000 (DIGITAL VIDEO BROADCAST)
INTERACTIVE DIGITAL CONSUMER TERMINAL
BROADBAND SERVICES ROUTER 64000 (BSR64000)
DCT5100 DIGITAL CABLE, HIGH-DEFINITION DECODER