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To: Sawtooth who wrote (16024)	10/5/1998 9:34:00 PM
From: SKIP PAUL	Respond to of 152472

CDMA related excerpts from MOT earning announcement: Motorola announced a broad array of new wireless phones. Shipments of new digital StarTAC(R) phones for CDMA (Code Division Multiple Access) began in early October and StarTAC phones for TDMA (Time Division Multiple Access)are scheduled to begin shipping later in October. The new V-Series phones, weighing 2.7 ounces, include an analog version scheduled to ship in October, and digital GSM (Global System for Mobile Communications) versions scheduled to ship in December. The Satellite Series 9500 portable phone began initial shipment in September. It is designed for use on the Iridium(R) global personal communications system. Motorola signed a $100 million agreement with Bell Atlantic Mobile for CDMA digital phones for its new service program. Cellular Infrastructure Group (CIG) sales increased significantly and orders were higher. In Japan and Europe both sales and orders were significantly higher, while they were lower in Pan America and significantly lower in Asia. The cellular infrastructure business has been historically characterized by large orders and irregular purchasing patterns which can cause volatility in quarterly growth rates. Contracts for GSM systems included expansion of a GSM900 network and installation of a commercial GSM1800 dual band network in Beijing, China. The group also received contracts to enhance GSM systems in Germany and Egypt. New CDMA contracts included a $220 million contract for a dual-mode CDMA and analog system in Brazil; a CDMA cellular system in the Democratic Republic of Congo, and a CDMA wireless local loop system in the Dominican Republic. Motorola and three of DDI's service providers announced that commercial service on Japan's first CDMA network was introduced in 177 cities and 440 towns and villages. Further deployment of the nationwide system for DDI and IDO continued on schedule.

To: Sawtooth who wrote (16024)	10/5/1998 9:37:00 PM
From: DanZ	Read Replies (1) \| Respond to of 152472

The First Call estimate for MOT was 1 cent with a range of break even to 3 cents. While this is a reduced estimate from several months ago, they still beat the estimate. Based on the stock's reaction to the news, albeit in a thinly traded after hours market, we can assume that the market had discounted worse. The true test will be tomorrow morning when the average investor can place their vote by buying, selling, or holding. Motorola beat the estimate primarily by reducing costs. When revenue growth kicks in during the eventual recovery, they will be meaner and leaner and have even better earnings potential. Many U.S. corporations became leaner over the past decade and this has to a degree, fueled the big bull market of the 1990s. I'm really not sure how one could interpret the MOT news as bad. We are in the midst of the worst down cycle in the history of the semiconductor market, and they beat the estimate by a wide margin. What else can one ask of them? Dan