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To: Logain Ablar who wrote (41091)	4/20/2004 9:19:58 PM
From: Johnny Canuck	Respond to of 70132

Motorola Earnings Triple Under New CEO Tuesday April 20, 7:19 pm ET By Dave Carpenter, AP Business Writer Motorola 1Q Earnings More Than Triple Under New Chairman and CEO Ed Zander CHICAGO (AP) -- Motorola Inc. more than tripled its first-quarter net earnings as new products boosted its flagship cell-phone business and helped company revenues soar 42 percent over a year earlier. ADVERTISEMENT The company's earnings report Tuesday far outpaced expectations for both profits and sales and marked a smash debut quarter for new chairman and CEO Ed Zander. Motorola stock rocketed 20 percent higher in heavy after-hours trading. Net earnings for the three months ended April 3 were $609 million, or 25 cents a share, compared with $169 million, or 7 cents a share, for the same period in 2003. Excluding certain items, earnings were 19 cents a share, well above the 7-cent consensus estimate of analysts surveyed by Thomson First Call. Revenues jumped to $8.6 billion from $6 billion a year earlier -- nearly $2 billion more than Wall Street's estimate of $6.75 billion. Motorola also forecast a much better second quarter than analysts were anticipating, pegging earnings of 14 cents to 18 cents per share, compared with the First Call estimate of 9 cents per share. "Sales and earnings exceeded our start-of-the-quarter guidance, the result of strengthening customer demand, improved execution in delivering new products and growing market share in some areas," Zander said. The former Sun Microsystems president took over the top job at the Schaumburg, Ill.-based company on Jan. 5 after Christopher Galvin's mixed seven-year term. Sales from the cell-phone unit were $4.1 billion, up 67 percent. Shipments rose 15 percent and the company said its market share improved, especially in Europe, as it benefited from 25 new handsets and the delayed release of new camera phones. Motorola said the cell phones that spurred the sales rise were released in the second half of 2003 -- a period when its revenue sagged from being characteristically late to market with some products. The company's No. 2 business, semiconductors, also saw a surge in sales -- up 21 percent to $1.4 billion -- which Motorola attributed to its networking and wireless markets. The chip unit is being spun off into a separate company later this year, to be called Freescale Semiconductor Inc., based in Austin, Texas. Zander told analysts on a conference call that the strongest quarter in years surprised the company itself and that results started running far ahead of expectations only in February. Asked why Motorola hadn't updated its guidance from January, he said it is company policy to give guidance only at the beginning of a quarter. The Galvin tenure ended on the upswing, and Zander credited steps taken while Galvin was in charge for the exceptional first-quarter numbers, including a commitment to focus on improved execution, customer satisfaction and new products. "I think you're seeing a payoff" from that, he said. Brian Modoff, a San Francisco-based analyst for Deutsche Banc Securities, called the results "pretty exceptional numbers" and noted that the strong showing in handsets had carried over to other Motorola businesses, particularly the semiconductor division that makes chips used in its phones. Besides the belated boost from the new camera phones, "they still have a number of new products coming in, and you see good customer acceptance of them," Modoff said. "We also are seeing a general recovery in infrastructure, particularly in wireless, so they're benefiting from that too." Motorola shares fell 48 cents to close at $16.22 on the New York Stock Exchange before the report was released. In the extra session, the stock shot up about 20 percent, or $3.23, on whopping after-hours volume of more than 16 million shares. Nearly 4 million more Motorola shares were traded in the extended session than during the full day of regular trading.

To: Logain Ablar who wrote (41091)	4/21/2004 4:20:57 AM
From: Johnny Canuck	Respond to of 70132

PXLW CC summary April 20,2004 Beat estimates due to better than expect demand. Usually a seasonally weak Q. rev up 11 perc q-q Advance TV's grew 28 perc q-q, [Harry:note Advance TV still a small segment of rev] BTB > 1 all time record rev EPS gain 100 perc q-q $417,000 charge in Q due to acquisition EPS grew 33 perc q-q added 24 mil in cash in q, $7 mil from operations, rest from shares in China Foundary investment Total cash and securities $124 mil, note $13.4 mil in shares for Foundary increase customers from 40 to 50, customers in all major geographies seeing tightening wafer supplies, longer lead times at foundaries, increases cost at foundaries currently using IFX and TSMC added SMIC as foundary supplier in Q expect to have new capacity allocation with TSMC gonig forward 2 market segments: Project tv's up 8 perc q-q, better than expected, 42 perc of total rev, down from 54 perc last q, unit shipments up 10 perc, ASP's down 2 perc, project 35 perc overall industry growth in segment this year, mostly projectors less that $1000, now 45 different models in the market place booking down q-q as expected, expect 5 perc q-q decline as a result of Japan year end LCD Monitors: 10 perc of rev, down 16 perc q-q, unit shipments down 11 perc, ASP down 6 perc, BTB > 1.0,with current backlog expect 10 to 15 perc growth q-q, see 40 perc growth for year and 70 million units shipped industry wide Advanced TV: 28 perc q-q growth, 38 perc of total rev, LCD-TV 58 perc growth q-q, Plasma 8 perc q-q, Digital CRT 2 perc q-q, LCD-TV and Plasma in line with expectation, Digital CRT better than expected, LCD-TV 54 perc of total TV rev, Digital CRT 26 perc, Plasma TV 18 perc, Projectors 2 perc, BTB well above 1.0, see double digit growth q-q,LCD-TV leading way, digital CRT, plasma then projector TV leadig way, expect overall75 to 100 perc growth this year industry wide larget customer account for only 12 perc of rev top 10 customers accounted for 57 perc of rev GM 52.3 per due to increase volumes and sales of written off inventory tax rate 35.5 perc DSO 34 dats up from 19 days q-q long term DSO 30 days turns 8.5 6 weeks of inventory, at low end Guidance Q2: Rev $47 to $49 milliom Projector growth flat to down 5 perc LCD monitors up 10 to 15 perc Advance TV ip 15 to 20 perc Have about 80 percent of rev ship already to make mid-point of guidance on rev GM 47 to 49 perc on GAP, 3 point decrease due to price increase seen last q and mix R+D and SGA up $1 mil due to taping out of new chips and compensation for new employees 34 to36 per tax rate EPS 10 to 12 cent on GAAP Geographic mix: 30 per Japan, 6 perc Taiwan, 15 perc China, 10 perc Korea, 10 perc rest of world [Harry: Only negative right now is the increase in supplier prices which they have been absorbing. Longer term they see GM in the 15 to 20 perc range also. Now pressure to get there yet though. May be a few year out.]