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To: SJS who wrote (453)	8/3/2000 10:05:23 AM
From: SJS	Read Replies (1) \| Respond to of 906

Here's some more data.....Read the info in here on shortages, which MOT thinks will be gone in 2H: ______________ Motorola (MOT) 36 5/8: Motorola is trading down 1 1/2 in the pre-market. The company reportedly had a conference call with suppliers last night guiding unit demand lower in order to be in-line with financial guidance MOT has offered to the Street. In its Q2 conference call, Motorola surprised many by saying they expected to reach 10% operating margin for its Personal Communications Segment by Q4, up from 4% in Q2. Operating margin for this segment has been the most important number to investors. As such, MOT is willing to lose volume and market share in order to reach that goal. Also as part of that call, they blamed component shortages for contributing to the low op margins in the first half of the year. That apparently is no longer a problem. On that point, expect weakness in the handset component group which is a large group of 40-50 companies. Some of the names are Texas Instruments (TXN 53 3/16 -4 1/2), Silicon Storage Tech (SSTI 51 -4 13/16), TriQuint (TQNT 32 -4 1/16), LSI Logic (LSI bid 28 ask 31 1/2) and RF Micro Devices (RFMD 66 -4 1/8). These prices are pre-market versus yesterday's close. Motorola reduced its handset volume production to 80-85 mln units from 100 mln....This morning's news should not affect Motorola's outlook for the year as the company as recently as Tuesday told investors that it will meet 2000 and 2001 revenue and EPS forecasts to ease investors' fears due to recent warnings from Nokia (NOK) and Ericsson (ERICY). (see our story stock) Overall, we view this news as a non-event as the company never promised it would hit 100 mln units, just that they hoped to reach that level. The more important figures are the sales and EPS which do not change - today's news just changes how Motorola will get to those numbers. -- Robert J. Reid, Briefing.com