Motorola 2009 Annual Report Download - page 3

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7JAN201013065306
March 2010
Dear Fellow Shareholders:
In 2009, we navigated through very challenging global economic conditions. We focused on our
customers, developed innovative products and solutions, increased total cash to more than
$8 billion, and reduced our cost structure by $1.9 billion. In Mobile Devices, we substantially
reduced our operating loss. In Enterprise Mobility Solutions and Home and Networks Mobility, we
maintained market leadership and delivered solid operating profitability.
In February 2010, we provided an update on our plans to pursue the creation of two independent,
publicly traded companies. We expect to complete the separation in the first quarter of 2011, with
one company comprised of our Mobile Devices and Home businesses and the other company
comprised of our Enterprise Mobility Solutions and Networks businesses. We believe that the
separation will best position each business to successfully pursue its respective strategies and
opportunities for growth.
Business review
2009 was a year of significant progress for our Mobile Devices business. Execution of our
smartphone strategy showed tangible results with the launch of CLIQTM/DEXTTM with
MOTOBLURTM and DROID by Motorola/MILESTONETM, our first Android-based smartphones.
During the year, Mobile Devices significantly reduced its cost structure and sharpened its focus in
priority markets. With plans to further expand our portfolio of smartphones in 2010, we are well
positioned to address the fastest growing segment of the handset market.
Our Enterprise Mobility Solutions business is a substantial franchise with leadership positions in
many business and mission-critical communications markets. In 2009, our research and
development continued to focus on delivering innovative products and solutions, such as our
industry-leading APXTM two-way radio communications systems. We believe that our
comprehensive product portfolio and market leadership make our Enterprise Mobility Solutions
business well positioned for profitable growth as market conditions improve.
In Home and Networks Mobility, we remained the world’s leading provider of digital entertainment
devices in 2009 and shipped our 100 millionth digital entertainment device. We prioritized our
research and development to deliver innovative video solutions for both consumers and operators
and, through our acquisition activity, enhanced our portfolio with leading video-on-demand and
digital security solutions. We also continued to invest in WiMAX and LTE, 4G wireless broadband
solutions that deliver higher bandwidth speeds and enable richer mobile experiences.
continued –