Motorola 8167 - Timeport Cell Phone User manual

AnnualReport1990(M)
MOTOROLA INC.
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AbouttheCompany
Motorolaisoneof the world'sleadingprovidersofelectronicequipment,
systems,componentsandservicesforworldwidemarkets.Products
includetwo-wayradios,pagers,cellulartelephonesandsystems,
semiconductors,defenseandaerospaceelectronics,automotiveand
industrialelectronics,computers,datacommunicationsandinforma-
tionprocessingandhandlingequipment.Motorolawasa winner of
thefirstMalcolmBaldrigeNationalQualityAward,inrecognitionof
itssuperiorcompany-widemanagementofqualityprocesses.
OntheCover
OneofthenewestlandmarksinParisisarchitectI.M.Pei'spyramid
entrancetotheLouvre.GuardsfromEromSe'curite'S.A.useMotorola
two-waycommunicationsequipmentatthemuseumtoprotectsomeof
thefinestarttreasuresintheworld.
Inthisyear'sreportyouwillseehowMotorolaproductsandsys-
temsserveourcustomersthroughouttheworld.
Contents
FinancialHighlights2
ToOurStockholdersandOtherFriends3
Ata Glance16
ReviewofOperations19
FinancialReview24
FinancialStatements27
NotestoConsolidatedFinancialStatements30
FiveYearFinancialSummary36
Sectors,GroupsandDivisions,MotorolaWorldwide37
ElectedOfficers38
Directors,CEOQualityAwards,DanNobleFellows40
StockholderReferenceInformation41

neachofourchosenarenasoftheelectronicsindustry,weplantogrowrapidly
byprovidingourworldwidecustomerswhattheywant,whentheywantit,with
SixSigmaqualityandbest-in-classcycletime,aswestrivetoachieveourfundamental
corporateobjectiveofTotalCustomerSatisfaction,andtoachieveourstatedgoalsof
increasedglobalmarketshare,best-in-classpeople,products,marketing,manufacturing,
technologyandservice,andsuperiorfinancialresults.

FinancialHighlightsYearsendedDecember31Motorola, Inc. and Consolidated Subsidiaries
(In millions, except as noted)
Netsales
Earningsbeforeincometaxes
%tosales
Netearnings
%to sales
Netearningspershare(indollars)
Researchanddevelopmentexpenditures
Fixedassetexpenditures1
Workingcapital
Currentratio
Returnonaverageinvestedcapital(stockholders'
equitypluslong-andshort-termdebt
.lessshort-terminvestments)2
%oftotaldebtlessshort-terminvestmentsto
totaldebtlessshort-terminvestmentsplusequity2
Bookvaluepercommonshare(indollars)
Year-endemployment(inthousands)
^Includes expenditures related to capitalized leases.
'Includes short-term investments categorized as cash and cash equivalents.
1990
9.4%
1989
$10,885
666
6.1%
499
4.6%
3.80
1,008
1,260
1,404
1.46
$9,620
646
6.7%
498
5.2%
3.83
810
1,124
1,261
1.48
10.3%
23.7%
32.32
105
23.7%
29.16
104

ToOurStockholders
andOtherFriends
GeorgeFisher
Chairmanof
theBeardand
ChiefExecutive
Officer
I
n1990,Motorolaimprovedthewaytheworldcommunicates.Drawingon
thebroadestportfolioofsemiconductorsintheworld,weintroducedelec-
tronicproducts,systemsandservicesdesignedtomakeourcustomersmore
productive. We announcedprogramsthatwillenablepeopletocommunicate
without wires, byvoiceor data, anywherefrominsideanofficetothemostremote
portionof the Earth.
Instrivingtoachieveourfundamentalobjectiveof Total CustomerSatisfaction,
wewillfocusongivingourworldwidecustomerswhattheywant,whentheywantit,
withSixSigmaquality.Thisyear'sreportportrayssomeof the waysweareserving
customersthroughouttheworld,witheverimprovingquality.
Toprovidetheplatformforsuperiorlong-termfinancialperformanceandmaxi-
mizeourstockholders'long-termvalue,ourstrategyfocusesonfourinterrelated
arenasofelectronics— communications,components,computingandcontrol.
FinancialResultsWhilesalesgrewduring1990,earningswerethesameasin
1989, aswecontinuedtoaggressivelyreducepricesandincreasestrategic
investments,despiteweakereconomicconditionsinsomeofourmarkets.
Salesincreased13percentto$10.88billionfrom$9.62 billionin1989.
Earningswere$499million,or$3.80pershare,comparedwith$498million,or
$3.83pershare,a yearearlier.Netmarginonsaleswas4.6percent,comparedwith
5.2percenta year ago. Returnonaverageinvestedcapitalwas9.4%,compared
with 10.3% in1989.
We acknowledgethelowerthandesirablefinancialreturnsof 1990. Somestock-
holdersandanalystsbelieveweareover-investinginresearchanddevelopmentand
pursuingtoomanytechnologiesinourstrategicareasof interest. Werespectfully
disagreeandbelievethatsustained,long-terminvestmentsinpromisingtechnolo-
giesprovidetheplatformforsolid,profitablegrowth.
Detailedoperatingandfinancialresultsbyourvariousbusinessesin1990
appearonpages 19-23. Wewerepleasedbyoursemiconductorperformance,
wherewegainedmarketshareineverymajorregionof the world.Inthe
CommunicationsSector,wehavetakenstepstoaddresstheprofitabilityproblem,
whilecontinuingtodevelopnewproductsandsystems.Thepotentialgrowthin
thecommunicationsarenaisasexcitingasever.
We expecttobeoperatingina recessionaryenvironmentinthe U.S., Canadaand
theU.K.duringthefirst halfof 1991. Theoutlookismorefavorableinotherparts
of Europe, aswellasinAsiaandJapan.
OurplanscallforcontrolofexpensesthroughoutMotorola.Wemaymake

GaryL.Tooker
Presidentand
ChiefOperating
Officer
additionalcostadjustmentsintheeventofchangesinbusinessconditions.Atthe
sametime,weseecontinuedopportunitiestoprovideourcustomerswithproducts
thatenablethemtobemoreefficient.
Motorolatraditionallyhasbeenabletobuildonitsstrengthsandgainagainstits
competitorsduringlowpointsintheeconomiccycle,andweplantocontinueour
investmentinresearchanddevelopment.
GlobalExpansionOurcustomerbasehasbecomemoreglobal,andweare
expandingaccordingly.Non-U.S.revenuesasa percentageofthetotal
reached44%in1990,comparedwith25%in1985,onaninternational
marketbasis.Inthepagesthatfollow,youwill seehowelectronicproducts
fromMotorolaarebringingtheworldclosertogether.Amongthehighlights
ofourglobalachievementsin1990:
•InJapan,our'MicroTAC™personalcellulartelephonewontheForeignProduct
DesignAwardfromtheMinistryofInternationalTradeandIndustry.Ourspeech
codertechnologywasselectedastheofficialstandardfordigitalcellularinJapan.
We deliveredthe10millionthmicrocontrollertoSonyforuseinitslineof8 mm
camcorders,andthe3 millionthcontroller to CanonforitsEOScamerafamily.
•InAsia,weopeneda majornewsemiconductorfacilityinHongKong,provided
theradiosystemfortheAsianGamesinChina,andshippedmorethan500,000
pagers to Taiwan. WebegansupplyingCT-2digitalcordlessphonesinSingapore
andwonawardsforcellularphonesystemsinIndonesiaandChina.InIndia,our
MotorolaBlueStarjointventureproduceditsfirstdatacommunicationsproducts.
•InEurope,wewillsupplythecommunicationssystemfortheChannelTunnel
linkingEnglandandFrance. We developedmajorelementsofthePan-European
DigitalCellular System. InemergingEasternEuropeanmarkets,wesoldtwo-way
radiosinRomaniaandYugoslavia,andcellulartelephonesinHungary.
•IntheUnitedStates,wemovedtowardcompletionof a nationwidevoiceanddata
communicationsvehiclelocationnetworkandunveiledourtechnologyfor
WirelessIn-BuildingNetworks.
Theseareonlya fewexamplesofhowMotorolaisservingnewcustomersina
changing world. Youwillsee manymorethroughoutthisreport.
NewTechnologies Inadditiontonewtechnologiesdevelopedbyourindividual
businesses,wecontinuedresearchonsystemsthatdrawonourstrengths
throughoutMotorola.OnesuchexampleistheproposedIridium™global
personalcommunicationssystem,whichhasthepotentialtoallowanyhuman
beingonEarth— whetheronland,atseaorintheair— tocommunicatewith

ChristopherB.Galvln
SeniorExecutive
VicePresidentand
AssistantChief
OperatingOfficer
anyotherpersonanywhere.Thesystemisbasedona constellationof77
smallsatellitesinlow-Earthorbit,workingtogetherasa digitalswitched
voiceanddatacommunicationsnetworkinspace.Wealreadyhave
presentedtheIridiumtechnologyandserviceconceptinmorethan35
countries.Motorola'sprimaryrolewouldbetosupplyequipment.We
envisiona consortiumtoprovidetheservicetolocaltelephonecompanies.
OurIntelligentVehicleHighwaySystem(IVHS)technologyaddressesthe
growingconcernsovertrafficcongestionandsafety.Wearedesigningproductsto
bringthepowerof satellite, sensor,computerandcommunicationsequipmentinto
thevehicle— to helpdeterminethemostefficientroutetoa destinationbasedon
real-timeroadwayandtrafficconditions,andthenguidethetraveleralongthatroute.
IridiumandIVHSareexamplesof the cooperativecultureatMotorola,a culture
thatbringstogetherallorganizationsandfunctionstoservethecustomer,wherever
intheworldthatcustomermightbe.
SeniorManagementRobert W. Galvin,inadditiontohisfull-timeemployment
aschairmanof the ExecutiveCommitteeof the Boardof Directors, hasbeen
electedchairmanof the BoardofDirectorsofSematech,a nonprofitindustry-
governmentresearchconsortiuminAustin, Texas. Heisalsoservingaschairman
of the BoardofOverseersof the MalcolmBaldrigeNationalQualityAward.
Arthur P. Sundry,presidentandgeneralmanageroftheCommunicationsSector
andexecutivevicepresidentof Motorola, retiredafter more than30yearsofservice,
allintheCommunicationsSector.Twelveyears ago, hisconcernoverimprovingour
qualityandbetterservingourcustomerswasthecatalystthatsubsequentlychanged
thetoneof the entirecorporationbylaunchingMotorolaonourlatestdecade of
renewal.Itisbasedoncontinualaggressivequalityimprovementleading to Six
Sigma,only3.4defectspermillion.
CarlE.Lindholm,executivevicepresidentanddirectorofinternationalopera-
tions, retiredafter 23 yearsofservice.Healsoservedincommunications,aschief
corporatestaffofficer,andasgeneralmanageroftheAutomotiveandIndustrial
ElectronicsGroup.Hecontinuestoserveasa consultantoninternationalactivities.
WeacknowledgewithappreciationthemanycontributionsofArtSundry
andCarlLindholm.
GeorgeFisherGaryL.TookerChristopher
B. Galvin

Kong. Motorolaphonesserve
customersinoneofthe
world'stoughestenvironments
forradiofrequency
communications— a high
densityofusers,mountainous
terrain, highrisesteeland
concretebuildings,anda
harborthatbisectstwomajor
centersofthepopulation.
HutchisonTelephoneCo.,
whichhasthemostcellular
subscribersinHongKong,
operatestwosystemssupplied
byMotorola.Phonesfrom
Motorolaareavailablein
everymajorcellularmarket
fromArgentinatoZaire.

midthe
commercial
bustleofTokyo,
aMotorolatwo-way
communicationssystemhelps
FootworkInternationalCorp.
savedeliverytimeand fuel.
Thedriverstaysintouchby
usinga newdatamicrophone.
equippedwitha liquidcrystal
displaytokeepinformation
•*•«
J*./
J
r
closeathand.Thecompact
MG-100mobileradiofeatures
a"hear-clear"functionto
reducenoise.Itoperatesat
1.5gigahertzonMotorola's
newJapanSpecialisedMobile
Radio(JSMR-II)system.
Sharedtrunkingsystemssuch
astheseareamongthemost
advancedintheworld.