To Thread: Can somebody speculate as to what the announcement is between MOT & SUNW tomorrow? Subject "unknown".......
(http://fnews.yahoo.com/iionline/99/06/08/magic25b_990608.html)
CNBC will cover live at 8:00AM EST.
Magic 25
Jun 08, 1999
Motorola Looks Good Ahead of Sun Micro Conference
Motorola (NYSE:MOT - news) will host a joint press conference with Sun
Microsystems (NASDAQ:SUNW - news) tomorrow, June 9th, at 11:30 AM
eastern time. The two companies will make an announcement, the subject of which is currently unknown.
The fundamental story at Motorola continues to improve. Over the first half of this fiscal year, Motorola has demonstrated to Wall Street its ability to restructure operations to improve profitability. The key focus for investors going forward will be how Motorola will grow its revenue and capitalize on new market opportunities.
After entering the digital handset market late, Motorola is enjoying very strong momentum. Witness the recent win at Bell Atlantic (NYSE:BEL - news) . Motorola recently won a contract for one million CDMA StarTac phones over rivals Samsung, Sony and Nokia. The award, valued at between $250-300 million, should enable Motorola to increase its share of the digital handset market.
On Monday, Motorola announced an agreement with partner Cisco Systems (NASDAQ:CSCO - news) to purchase part of Germany's Bosch Telecom for an undisclosed figure. Motorola and Cisco will acquire assets that include Bosch's LMDS division. LMDS, or local multipoint distribution services is a wireless technology. LMDS wireless services are expected to increase to $2.3 billion in 2003 from $241 million in 1999 according to Pioneer Consulting.
Motorola and Cisco teamed up earlier in the year to develop wireless technology that has the capability to carry voice, data and video traffic at high speeds over a wireless communications network. Yesterday's announcement is evidence of Motorola's commitment to positioning the company to capitalize on emerging trends in communications infrastructure.
Further upside for Motorola shareholders remain. Our year-end price target is $100. The stock closed Tuesday at $84.06.
Analyst: Eric Singer
Updated 6/8/99 with MOT at $84.06.
Recommended 11/16/98 at $58.00.
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Maybe MOT will award SUNW a large contract to provide the hardware components, product software and service integration to help MOT fulfill their new CDMA StarTac phones order. Perhaps it pertains to the licensing of Java & JINI technology and the joint development of a JAVA enabled Platform ("MS type CE") OS for use in MOT CDMA phones.
Any other ideas?
EKS |
