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To: im a survivor who wrote (3124)	7/30/2001 8:00:29 PM
From: Boplicity	Respond to of 13815

Motorola seen to be upbeat in analyst meeting By Yukari Iwatani CHICAGO, July 30 (Reuters) - Wireless technology giant Motorola Inc.<MOT.N> is expected to sound an upbeat note at its annual analyst meeting on Tuesday, even as the company is mired in financial losses and slashing jobs amid industrywide slowdowns and a sagging economy. Motorola, the world's No. 2 cellphone maker, reported earlier this month a $759 million net loss in the second-quarter and said it planned to shed 4,000 more jobs. However, the Chicago-based company has said that the slowdown at its key handset and semiconductor units was nearing an end. Analysts said the company was likely to highlight its restructuring progress and improvement in the mobile phone unit at the meeting. "We expect it's going to be an upbeat meeting. We expect them to reaffirm the outlook. We don't expect them to change the guidance," said Tim Ghriskey, senior partner of investment management firm Ghriskey Capital Partners LLC. Tim Luke, analyst for Lehman Brothers, said that Motorola's shares could trade up on Tuesday due to investors who are likely to be encouraged by management's optimism, although he said that the increase could be limited in the long term by trying macroeconomic trends. Motorola said on Tuesday that it acquired broadband equipment and services firm RiverDelta Networks Inc. for $300 million in stock. It also disclosed in its quarterly regulatory filing that it is being sued by a committee of unsecured creditors over failed satellite firm Iridium. Shares of Motorola closed up 3 cents at $19.03 on the New York Stock Exchange on Monday. Since the beginning of the year, the stock has traded on par with the Standard & Poor's 500 Index<.SPX> and has outperformed the S&P Communications Equipment index<.SPCOMM> by 96 percent. GPRS: THE NEXT GENERATION In the personal communications unit, which makes the mobile phones, all eyes will be on the company's comments regarding its Global Packet Radio Service (GPRS) phones. GPRS phones, which are also called 2.5 generation phones, provide always-on Internet connectivity. It is considered an intermediary step to third-generation service which promises even faster access to data and high-quality video and audio. Motorola has been the only mobile phone maker with GPRS phones in the market so far, but competitors Nokia Corp. <NOK1V.HE> <NOK.N> and LM Ericsson AB <LMEb.ST><ERICY.O> are both expected to begin shipping GPRS phones this quarter. "We look for evidence of the company's 2.5G staying power as Ericsson and Nokia models begin shipping this quarter," Credit Suisse First Boston's Tim Long said in his research note. Analysts also expect Motorola to give an update on overall market demand in its mobile phone unit, and talk about its progress toward increased profitability and market share gains. Earlier this month, Motorola said it believed its market share in mobile phones had grown to about 15 percent in the second-quarter. Investment bank Bear Stearns said Motorola's comments regarding mobile phones could serve as the next catalyst in that market. In the semiconductor unit, Motorola is expected to be upbeat about its business prospects in 2002 and focus on its new licensing strategy to supply mobile phone development tools and software to other manufacturers. Motorola has said that global semiconductor sales would fall by 15 percent to 20 percent this year but increase by the same amount in 2002. Analysts expect the company's infrastructure unit to provide details about further business opportunities in China, where it has won several recent contracts. The unit's business has become increasingly tied to growth in China. Motorola's broadband unit is expected to remain weak in the second half of this year but management is expected to point to opportunities in Europe in the first half of 2002. The broadband unit agreed on Monday to buy closely held broadband equipment and services firm RiverDelta Networks Inc. in a stock swap valued at $300 million as part of its strategy to build the offerings of its broadband unit. The deal is expected to close late in the third quarter or early in the fourth quarter. MOTOROLA SUED OVER IRIDIUM Separately, Motorola confirmed in its quarterly earnings report with the U.S. Securities and Exchange Commission that it was the target of a lawsuit by unsecured creditors of Iridium, the failed $5 billion satellite telephone service that Motorola created. Iridium was sold last December for $25 million to new owners, but the company said a committee of unsecured creditors sued Motorola on July 19 in U.S. Bankruptcy Court seeking more than $4 billion in damages. The creditors are accusing Motorola of causing the old Iridium to execute contracts that brought billions of dollars in revenue to Motorola but were unfair to Iridium. "We deny that Motorola has any liability whatsoever to the creditors of Iridium LLC," Scott Wyman, spokesman for Motorola told Reuters. "Contrary to the allegations, Motorola's contracts with Iridium were fair as were all of our other dealings with Iridium," he said. Motorola also said in its quarterly filing that some purchasers of its infrastructure equipment continue to require suppliers to provide financing of equipment purchases, a practice called vendor financing. Vendor financing has created one headache for Motorola as Turkey's No. 2 wireless operator, Telsim, has defaulted on about $2 billion it owes Motorola. Motorola said it may assist customers in obtaining financing from banks and other sources. Although there are no outstanding financing commitments relating to third-generation (3G) wireless networks, Motorola said it may provide such financing in the future.