Motorola 2006 Annual Report Download - page 3

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March 2007
Dear fellow stockholders,
2006 was a year of progress and challenges for Motorola. It was a year in which we achieved
new highs in sales and shipments and added substantial talent and intellectual property.
However, while our Networks & Enterprise and Connected Home Solutions businesses Ñnished
2006 strong, we were disappointed that our Mobile Devices business did not meet expectations
in the latter half of the year.
We remain conÑdent in our vision of seamless mobility Ó building simple and seamless
connections to people, information, and entertainment Ó and the opportunity it brings to our
business. As we focus on proÑtable growth and more selective pursuit of market share, we will
continue to make investments for the future of Motorola.
2006 Ì Overview
In 2006, sales grew 22% to a record $42.9 billion Ó the third consecutive year of double-digit
revenue growth. Net earnings were $3.7 billion, or 8.5% of sales. We generated operating cash
Öow of $3.5 billion, and maintained a strong balance sheet. We shipped a record 217 million
handsets, had a record year in public safety, and a record year in digital entertainment devices.
Additionally last year, we:
‚ Shipped our 75 millionth MOTORAZR
TM
and our 50 millionth digital video set-top.
‚ Launched Öagship stores and retail outlets throughout Asia, Latin America and parts of Europe,
including more than 150 in China.
‚ Sharpened our focus on our core markets by divesting our automotive electronics business and
merging our networks and public safety businesses.
‚ Increased brand value by 18% according to an Interbrand survey.
We completed a $4 billion common stock repurchase program and authorized another program to
repurchase an additional $4.5 billion. We increased our dividend by 25%, and have now paid our
shareholders a dividend for 239 consecutive quarters.
We continue to operate ethically and support critical community needs. This past October, more
than 9,000 employees in 75 cities in 40 countries gave their time, talent and energy to their
communities during our Ñrst Global Day of Service.
Investing for the Future
In 2006, we made several investments that will drive future growth for this company:
Wireless Broadband Ó As a leading proponent of the mobile Internet, Motorola is well-positioned
to capitalize on the potential of WiMAX, the next generation wireless broadband technology.
continued Ó