Le snip from Batwing
Personal Communications Segment
Segment sales were $2.7 billion, down 16 percent. Orders were $3.0 billion, down 12 percent. The segment's market share for wireless handsets increased by approximately two percentage points versus a year ago to between 17 and 18 percent. The segment recorded operating earnings of $19 million versus operating earnings of $189 million a year ago. The decline in financial performance compared to a year ago was due to lower worldwide demand for wireless handsets by service providers.
On a sequential basis versus the second quarter, financial performance improved. Sales increased 8 percent and orders increased 3 percent. This is the third consecutive quarter in which orders have exceeded sales, reflecting the market's strong reception to the segment's new product portfolio. The segment returned to profitability following two quarters of losses and increased its market share slightly.
During the quarter, Motorola continued to strengthen its market position in 2.5 Generation (2.5G) General Packet Radio Service (GPRS) by delivering its second generation of GPRS wireless handsets that operate on Global System for Mobile (GSM) communication systems. Motorola shipped an estimated 1.5 million GPRS wireless handsets in the third quarter and expects to ship five million GPRS units by year-end 2001.
Industry experts continue to report that only Motorola has a complete portfolio of commercially available GPRS solutions, which offer the potential to increase average revenue per unit for service providers. These include the Motorola Accompli(TM) 008, which blends voice, ``always-on'' Internet access and personal organizer functionality; the Motorola V.series(TM) 60, 66 and 100, a blend of style and technology for consumers; the Motorola Timeport(TM) 280, which provides increased productivity for business users on the go; and the Motorola Talkabout(TM) 193 for cost-conscious, entry-level consumers.
Motorola shipped a variety of its second-generation GPRS handsets to Europe and announced the availability of the first two GPRS wireless handsets in North America. In Asia, Motorola continues to lead in the delivery of GPRS by shipping two new GPRS products in the region.
In Code Division Multiple Access (CDMA) handsets, Motorola continues to win customer approvals for the V.series 120c and 60c and for the Timeport 270c, which are shipping in volume. These products feature Motorola's new, simple to navigate, next-generation user interface. The company also introduced three new CDMA 1X handsets for Korea, and it received acceptance for the entry-level Talkabout 182 from several operators in Latin America.
In Time Division Multiple Access (TDMA) handsets, Motorola has won numerous customer approvals for the V.series 60t, including customers in Mexico and Brazil. U.S. customers also have begun field trials of the product.
The company also made a number of iDEN® technology announcements. Motorola shipped the i55sr handset for use in harsh environments, the first handset of its kind in North America with Java(TM) technology. This is also the third handset from Motorola with Java 2 Platform, Micro Edition (J2ME(TM)) technology, allowing users to customize the phone with software applications to fit their business and personal lifestyles. Motorola also introduced the iBoard(TM), the first portable, full-sized keyboard for wireless handsets which provides users with the ability to compose e-mail messages and enter date book appointments. The iBoard leverages and extends the mobile computing power of Motorola's i85s, i50sx and i55sr Internet-ready wireless handsets.
Global Telecom Solutions Segment
Segment sales were $1.8 billion, down 10 percent. Orders declined 13 percent to $1.6 billion. Operating earnings declined to $33 million, compared with $247 million a year ago. Operating earnings declined due to a decrease in sales stemming from lower worldwide demand for wireless infrastructure equipment by service providers and an increase in manufacturing costs.
During the quarter, Motorola was awarded a CDMA2000 1X digital wireless infrastructure contract with Telekom Malaysia, signed six GSM communications expansion contracts with China Unicom and announced the launch of a nationwide GPRS network for LibanCell in Lebanon.
After the quarter ended, Motorola announced it had won two CDMA 1X infrastructure contracts, including one in the Ukraine and a CDMA network expansion with Horizon PCS in six states in the U.S. The contract with Horizon PCS includes upgrades and expansion of the operator's current system to provide 3G CDMA 1X voice and data services capability.
Motorola also won India's single largest contract for a new GSM system for Bharat Sanchar Nigam, Ltd.; a new GSM network contract including GPRS services for Bharti Enterprises in India; a GSM network contract with Telekom Cellular Sdn. Bhd. in Malaysia; and, a GPRS expansion contract with China Mobile.
Motorola and Nextel announced new enhancements to the iDEN wireless network technology which are expected to lead to a doubling of wireless voice capacity. These enhancements are expected to become available in 2003.
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