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 SCHAUMBURG, Ill., April 12 /PRNewswire/ -- Robust global demand for its wireless communications, semiconductors and advanced electronic products helped Motorola, Inc. (NYSE: MOT) post record first-quarter sales and earnings.
 Sales rose to $3.63 billion, up 19 percent from $3.05 billion in the first quarter of 1992. Earnings were $204 million, or 75 cents per common share, compared with $125 million, or 47 cents per common share, a year earlier, before the 1992 cumulative effect of a change in an accounting principle involving postretirement benefits other than pensions. Fully diluted earnings per share were 72 cents per common and common equivalent share, compared with 46 cents per common and common equivalent share a year earlier. Net margin on sales was 5.6 percent against 4.1 percent a year ago.
 Gary Tooker, president and chief operating officer, reviewed the following results of Motorola's major operations for the first quarter, compared with the first quarter of 1992:
 Semiconductor Products Sector
 Sales increased 20 percent to $1.28 billion, the 17th consecutive quarter of growth. Orders rose 35 percent to an all-time high, and operating profits were higher.
 All major market regions, including Japan, posted double-digit order growth. Among market segments, exceptional booking strength was seen in personal computer/workstation and communications, followed by consumer and automotive. Growth by product category was led by MOS digital- analog, fast static random-access memories, and microcontrollers.
 Customers responded enthusiastically to initial sampling of the first PowerPC(A) RISC (reduced instruction set computer) microprocessor, developed jointly with IBM. Motorola was a founding member of the PowerOpen Association, which will enable the development of software products based on the PowerOpen(TM) environment and PowerPC architecture. Sun Microsystems announced that its software subsidiary, SunSoft, Inc., will develop a version of its Solaris software to run on the PowerPC architecture.
 Communications Segment
 In this segment, composed of the Land Mobile Products Sector (LMPS) and the Paging and Wireless Data Group (PWDG), sales advanced 19 percent to $1.09 billion, orders increased 24 percent, and operating profits were higher.
 Land Mobile Products order grew in Asian, European and North American markets. Demand was strong for trunked systems and a new line of portable two-way radios.
 In Australia, the Government of New South Wales ordered a digital trunking network that will be the largest system of its kind in the southern hemisphere. In Europe, Motorola introduced a new generation of mobile two-way radios that support a variety of signaling formats and channel spacing configurations.
 In Paging and Wireless Data, sales and orders for pagers set records. Orders increased both in the U.S. and internationally. International growth was fueled primarily by China, although most of Asia continued strong.
 The group began shipping its new Free Spirit(TM) pager, which is targeted for retail stores, in production volumes during the quarter.
 General Systems Sector
 Sales rose 33 percent to $1.06 billion. Orders increased 26 percent and operating profits were higher.
 Motorola introduced the SC(TM)9600 cellular base station system. It is designed to support analog and digital air interfaces on a single equipment platform. Bell Atlantic Mobile selected CDMA digital cellular technology using the SC9600 system for initial deployment in one of its Northeast markets. TU-KA Tokyo and TU-KA Tokai signed contracts for their Japan Digital Cellular systems using Motorola's TDMA SC9600 system.
 Demand for portable cellular telephones remained strong in the U.S. and international markets. Questions arose during the quarter concerning the safety of portable cellular phones. Motorola assured its customers that its products meet all applicable national and international safety standards on user exposure to radio frequency energy. As previously announced by the U.S. Food and Drug Administration, Motorola and the cellular telephone industry are engaged in further research aimed at better understanding of the biological effects of radio frequency electromagnetic energy.
 Strength in the industrial computer board market helped the Computer Group post higher orders in Japan, Germany and the U.K., as well as in the U.S.
 Information Systems Group
 Sales rose 4 percent to $150 million. Orders were 3 percent higher, while operating profits were lower. At Codex, sales of networking products increased, highlighted by new communications processors for branch-office networking, and strong sales of its 24-kilobit-per-second wireline modems. Universal Data Systems experienced continued growth for its high-speed V.32 modems and obtained its first major contract in Japan for local-area network remote-access products.
 Government and Systems Technology Group
 Sales of the former Government Electronics Group declined 12 percent to $125 million. Orders were down 29 percent, and the group had a larger operating loss. The group changed its name to better reflect its new business focus, which includes government customers, international markets, commercial businesses and the proposed Iridium(TM) global communications system.
 Automotive and Industrial Electronics Group
 Sales increased 26 percent, orders were up 33 percent and operating profits were higher. The group's performance reflected growth in automotive and heavy-vehicle sales. The results include Motorola Lighting, Inc., a wholly owned manufacturer of electronic ballasts.
 Motorola and Schlumberger Ltd. announced a joint venture, named Advanced Meter Reading Technologies, to develop wireless electronic technology for remote reading of water, gas and electrical utility meters throughout the world.
 Review and Outlook
 George Fisher, chairman and chief executive officer, said growth in the first quarter reflects continued worldwide enthusiasm for Motorola's broad range of wireless communications and electronic products.
 "The potential is especially great in developing regions, with China as an outstanding example," he said. "We continue to experience good growth in the Asia-Pacific region, as well as in the U.S."
 Fisher said that with demand for Motorola products and services remaining strong, "we are focusing our efforts on short-cycle design, production and delivery, as well as on quality and customer service. We believe these are essential for continuing the improvement of our financial results," he said.
 NOTE: (A) PowerPC and its series are trademarks of International Business Machines Corp.
 Statement of Consolidated Earnings
 (Unaudited, Dollars in millions except per share figures)
 First Quarter Ended(B) 1993 1992
 Net Sales $3,626 $3,055
 Manufacturing and other
 costs of sales 2,235 1,925
 Selling, general and
 administrative expenses 797 705
 Depreciation 258 220
 Interest, net 36 36
 Total costs and expenses 3,326 2,886
 Earnings before income taxes
 and accounting change 300 169
 Income taxes 96 44
 Net earnings before effect
 of accounting change $ 204 $ 125
 Effect of accounting change(C) -- 123
 Net earnings $ 204 $ 2
 Net Earnings Per Share: Fully
 Common Primary Diluted
 First Quarter 1993:
 Net earnings per share $ .75 $ .73 $ .72
 Weighted average shares
 (in millions) (D) 270.9 287.7 287.9
 First Quarter 1992:
 Net earnings per share
 before accounting change $ .47 $ .46 $ .46
 Effect of accounting change(C) (.46) (.44) (.44)
 Net earnings per share $ .01 $ .02 $ .02
 Weighted average shares
 (in millions) (D) 265.4 281.3 281.3
 First Quarter (A)
 1993 1992
 Dividends paid per share $ .11 $ .095
 Net margin on sales(E) 5.6 pct. 4.1 pct.
 Return on average
 invested capital(F) 10.8 pct. 7.8 pct.
 R&D expenditures 344 299
 (B) First quarter ended April 3, 1993 and April 4, 1992.
 (C) Cumulative effect of adoption of SFAS 106, "Employers'
 Accounting for Postretirement Benefits Other than
 (D) Primary and fully diluted weighted average shares
 include common share equivalents.
 (E) 1992 amount is before cumulative effect of accounting
 (F) Based on the performance of the four preceding quarters
 ending with April 3, 1993 and April 4, 1992 (1992
 amount is before cumulative effect of accounting
 The sales and earnings results reported herein include, in the opinion of management, all adjustments (consisting of reclassifications and normal recurring adjustments) necessary for a fair statement of income. The results for the quarter are not necessarily indicative of the results to be expected for the full year.
 Motorola, Inc. Information by Industry Segment (unaudited) Information about the company's operations in different industry segments for the quarters ended April 3, 1993 and April 4, 1992 is summarized below:
 Net Sales for the First Quarter
 (Dollars in Millions)
 1993 1992 Change
 Semiconductor products $1,282 $1,066 20
 Communications products 1,092 921 19
 General systems products 1,059 797 33
 Information systems products 150 145 4
 Government and systems
 technology products 125 142 (12)
 Other products 156 121 29
 Adjustments & eliminations (238) (137) (74)
 Industry segment totals $3,626 $3,055 19
 Condensed Consolidated Balance Sheets
 (Unaudited, in Millions)
 ASSETS April 3, Dec. 31,
 1993 1992
 Cash and cash equivalents $ 794 $ 677
 Short-term investments (at lower of
 cost or market) 252 253
 Accounts receivable, less allowance for
 doubtful accounts (1993, $71; 1992, $69) 2,042 2,036
 Inventories 1,407 1,321
 Other current assets 930 931
 Total current assets 5,425 5,218
 Property, plant and equipment, less
 accumulated depreciation
 (1993, $3,849; 1992, $3,603) 4,671 4,576
 Other assets 947 835
 Total assets $11,043 $10,629
 Notes payable and current portion of
 long-term debt $ 357 $ 437
 Accounts payable 974 1,127
 Accrued liabilities 1,983 1,771
 Total current liabilities 3,314 3,335
 Long-term debt 1,412 1,258
 Other liabilities 924 892
 Stockholders' equity 5,393 5,144
 Total liabilities and
 stockholders' equity $11,043 $10,629
 -0- 4/12/93
 /CONTACT: George Grimsrud, 708-576-2346, for Motorola, Inc./

CO: Motorola, Inc. ST: Illinois IN: TLS SU: ERN

LD -- NY081 -- 4948 04/12/93 17:47 EDT
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Date:Apr 12, 1993

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