From Motorola's quarterly earnings release:
>>Cellular Products Segment
Segment sales increased 7 percent to $3.9 billion and orders increased 13 percent. Operating profits were lower.
Cellular Subscriber Sector (CSS) sales and orders increased, as demand for digital products grew very significantly while the demand for analog products fell significantly. Both GSM (Global System for Mobile Communications) and CDMA (Code Division Multiple Access) digital technologies showed a strong sequential increase from the third quarter due to rapid acceptance of new products.
Sales were up significantly in Asia, higher in Europe and lower in the Americas. Orders were significantly higher in the Americas, higher in Europe and lower in Asia.
The sector announced commercial availability of a new entry-level dual-mode CDMA phone, and signed several significant contracts with carriers for digital StarTAC(R) phones for use in the Americas. A V-Series digital phone began shipping in Europe. It is the world's lightest dual-band GSM phone. The sector began volume shipments of phones for the Iridium(R) system.
Motorola opened a new digital wireless design center as a result of purchasing assets related to the research and product development (R&D) portion of Lucent Technologies' wireless handset facility in Piscataway, N.J. Approximately 300 employees involved in R&D have joined Motorola as part of this purchase.
Cellular Infrastructure Group (CIG) sales were unchanged and orders were higher. Sales increased very significantly in Europe, while they were lower in the Americas and Asia. Asia sales were lower due to revenue recognition of initial CDMA systems in Japan a year ago. Orders were higher in both Asia and Europe, but were significantly lower in the Americas. The cellular infrastructure business has been historically characterized by large orders and irregular purchasing patterns, which can cause volatility in
quarterly growth rates.
CIG was recognized by Cahners In-Stat Group as the leading international provider of commercial CDMA digital cellular systems, with a total of 31 commercial system awards. CIG and its customers also announced the launch of commercial service on eight PCS (Personal Communications Services) networks in the U.S. and an upgrade to a CDMA network in Singapore.
CIG received GSM contracts for systems in Russia and China. M-Cell(tm) access, an in-building GSM base station, won the Infovision Award from the International Engineering Consortium.
Land Mobile Products Segment (LMPS)
Segment sales decreased 3 percent to $1.5 billion and orders decreased 4 percent. Operating profits were higher.
Orders for iDEN(R) equipment for integrated digital enhanced networks were higher. The new i1000(tm) handset received a Product of the Year Award from Mobile Computing & Communications
magazine.
Infrastructure orders included system expansions in the U.S., Japan, Singapore, Mexico, Colombia and Argentina, and new systems became operational in Vancouver, B.C., and Honolulu. The total worldwide iDEN subscriber base grew to more than 3 million users.<< |
