Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (5716)	7/14/1999 2:11:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

CSFB Downgrades Iridium World To Sell From Hold July 14, 1999 Dow Jones Newswires CSFB Downgrades Iridium World To Sell From Hold No further information is available at this time. Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.

To: djane who wrote (5716)	7/14/1999 2:14:00 PM
From: djane	Respond to of 29987

Dow Jones. Motorola Puts Semiconductor Growth At 15%-19% In 2000 July 14, 1999 NEW YORK -- Motorola Inc. (MOT) believes it can hit Wall Street's earings and revenue targets in the third quarter and the full year, said President and Chief Operating Officer Robert L. Growney. In a conference call that included comments about Motorola's involvement in the teetering Iridium World Communications Ltd. (IRID) satellite phone venture, Growney and other executives said the company is pleased with its progress. The consensus among analysts is that Motorola will have an operating profit of 51 cents a diluted share on revenue of $7.8 billion in the third quarter and operating profit for the full year of $2.00 on revenue of $31.6 billion, Growney said. The Schaumburg, Ill., telecommunications and electronic equipment maker reported earnings late Tuesday of $206 million, or 33 cents a share, on revenue of $7.5 billion, compared to a year-ago loss of $1.3 billion, or $2.22 a share, on revenue of $7 billion. The year-ago quarter included massive restructuring charges, partly offset by gains from asset sales. Excluding charges that affected results in both years, Motorola earned $273 million, or 44 cents, compared to $6 million, or 1 cent, a year ago. The First Call Corp. consensus estimate had been 41 cents. The improvement reflects improvements in the semiconductor industry, the Asian economy and the company's own wireless handset business, along with benefits from restructuring. The company's projections for semiconductor industry growth remains at 9% to 11% for 1999 and is 15% to 19% for 2000, officials said, adding that Motorola expects its own semiconductor performance to at least match the industry's. Motorola, a leading backer of Iridium, said it sees three possible outcomes to Iridium's troubles: an out-of-court restructuring; filing for bankruptcy protection under Chapter 11; or liquidation in bankruptcy. The latter would be the worst-case scenario, officials said. Motorola believes it is still possible for Iridium to devise a viable business plan. Motorola said there will be "significant discussions" between Iridium and its investors and creditors in the third quarter. Motorola reiterated its insistence that all stakeholders participate in any plan to revive Iridium. The company has been making it clear for some time that it will not act alone as a white knight. Motorola has been deferring profits from its contracts to supply equipment to Iridium in order to create a cushion to protect itself from difficulties at Iridium, officials said. Even in the event of a liquidation, Motorola's balance sheet will remain strong, officials said. Motorola, which has an 18% equity stake in Iridium, has guaranteed $750 million in bank loans and provided $355 million in vendor financing. It also holds bonds and about $127 million in receivables. It estimated possible additional liabilities from Iridium at $762 million. The cash impact of that would likely be blunted by upcoming asset sales, including the previously announced plan to sell the semiconductor components group piece of its semiconductor products unit. The company called its recent contract to build a satellite communications system for Teledesic LLC, a "very promising opportunity." The company did not disclose the value of the contract, but it is estimated at more than $3.5 billion over its multi-year life. Teledesic is backed by Microsoft Corp. (MSFT) founder Bill Gates and cellular-phone magnate Craig McCaw. NYSE-listed shares of Motorola were recently down 2 1/2, or 2.6%, at 94 on volume of 1.1 million shares, compared with average daily volume of 3.1 million. - Shawn Young, 201-938-5248; shawn.young@dowjones.com Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.