Hang(Cindy) Bi
COMPANY RESEARCH – MOTOROLA, INC
Motorola is a Fortune 100 global communications leader that provides seamless mobility
products and solutions across broadband, embedded systems and wireless networks.
(“Seamless” here means Motorola’s products, services and applications enable telephony,
data and video to be accessed across anywhere -- home, enterprise, or auto and anytime).
Industry:
Manufacturing, Telecommunication Equipment, Consumer Goods, Consumer
Electronics
$36.8 Billion, up18% from $31.3 billion in 2004. Sales increased in all four of
Revenues:
our operating segments.
Employees: 69000
Motorola is a corporation organized under the laws of the State of Delaware as the successor
to an Illinois corporation organized in 1928. Motorola’s principal executive offices are located
in Illinois. Motorola is known around the world for innovation and leadership in wireless,
broadband and automotive communications.
2005 Change in Organizational Structure. Effective on January 1, 2005, the Company
reorganized its businesses and functions to align with the Company’s seamless mobility
strategy. The Company was organized into four main business groups, focused on:
(1) Mobile Devices (net sales represented 58% of the Company’s consolidated net sales ‘05)
Designs, manufactures, sells and services wireless handsets, with integrated software
and accessory products. The segment’s largest end customers (including sales through
distributors) are Sprint Nextel, Cingular, China Mobile, América Móvil and T-Mobile. In
2005, purchases of iDEN® products by Sprint Nextel Corporation comprised
approximately 13% of the segment’s net sales.
(2) Networks (net sales represented 17% of the Company’s consolidated net sales ‘05)
Designs, manufactures, sells, installs and services: (i) cellular infrastructure systems,
including hardware and software, (ii) fiber-to-the-premise (“FTTP”) and fiber-to-the-node
(“FTTN”) transmission systems supporting high-speed data, video and voice, and
(iii) wireless broadband systems. In 2005, five customers represented approximately 56%
of the segment’s net sales (Sprint Nextel; KDDI; China Mobile; Verizon; and China
Unicom). Further, because contracts are long-term, the loss of a major customer would
impact revenue and earnings over several quarters.
(3) Government and Enterprise Mobility Solutions (represented 18% of the Company’s
consolidated net sales ‘05)
The leading provider of: (i) mission-critical wireless communications systems for
government and public safety markets worldwide, (ii) business-critical wireless devices,
networks and applications focused around mobile computers and the mobile office for
world-class enterprise organizations, and (iii) electronics and telematics systems that
enable automated roadside assistance, navigation and advanced safety features for
automobile manufacturers worldwide. In 2005, the net sales to customers in North
America represented 69% of the segment’s net sales.
(4) Connected Home Solutions (represented 8% of the Company’s consolidated net sales
‘05)
Designs, manufactures and sells a wide variety of broadband products. Within the home,
the segment provides interactive digital set-top boxes and Internet gateways that provide
access to entertainment and two-way communications services. The vast majority of the
segment’s sales are in the U.S., where a small number of large cable television multiple
system operators (“MSOs”) own a large portion of the cable systems and account for a
significant portion of the total capital spending in the industry. Comcast Corporation
accounted for approximately 31% of the segment’s net sales in 2005. The opportunity in
this market segment is expected to continue to grow as carriers around the world expand
to offer video services.
Motorola’s key support functions, including supply-chain operations, information technology,
finance, human resources, legal, strategy and business development, marketing, quality and
technology have been architected centrally and distributed throughout the Company. Motorola
has several large customers, the loss of one or more of which could have a material adverse
effect on the Company. Motorola’s largest end customers (including sales through distributors)
Sources: i) Motorola’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005
ii) www.motorola.com iii) www.zoominfo.com
Hang(Cindy) Bi
are Sprint Nextel, Cingular, China Mobile, América Móvil and T-Mobile. Motorola sold
approximately 12% of its products and services to Sprint Nextel in 2005.
News: 8/8/2006 Sprint Nextel Corp announced its plans to develop and deploy the first fourth
generation (4G) nationwide broadband mobile network, working together with Intel, Motorola
and Samsung. The plan intended to allow Sprint Nextel customers to experience a nationwide
mobile data network that is designed to offer faster speeds, lower cost, and greater
convenience and enhanced multimedia quality. Motorola is a provider of mobile broadband
and WiMAX to consumers nationwide. Motorola has been Spring Nextel’s sole supplier of
iDEN handsets and core iDEN network infrastructure equipment for over ten years. The
Nationwide advanced wireless broadband network expected to cover 100 million people in
2008
Sources: i) Motorola’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005
ii) www.motorola.com iii) www.zoominfo.com