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.

ervingitscustomers
inStockholm,
Swedenmeansthat
ASEABrownBoveri(ABB)
mustproviderapid,efficient
supportservices.ABBserves
globalmarketsrangingfrom
powergenerationplantsto
roboticsandadvanced
plastics.Attheheartofeach
ABBoperationisa highly
efficientcommunications
network.ABBDatachosea
networkingsystembasedon
aMotorolaproduct,the
Codex6390FastPacket
Tl/ElMultiplexer,toreduce
costsandmeetthedemand
forincreasedbandwidth.
Codexishelpingtomeet
thenetworkingneedsof
globalcustomerslikeABB,
whichhas217,000
employeesin140countries.
11

icrecentrellers
fromMotorola
areembedded
intomillionsofproductsfor
communications,computing
andcontrol.Thisfamilyin
Parisstaysintouchbyusing
FranceTelecom'sCarte
Pastel, madebyBullCP8.
The"computerina credit
card" allowssecure
authenticationofthecard
andthecaller.Thisenables
thecallertoentera personal
accesscodeandhavethecall
billedtoa homeoroffice
number.Attheheartofthe
telephonecardisa Motorola
MC6805SC01secure
microcontroller.Motorolais
theworld'slargestproducer
of8-bitmicrocontrollers.
whichareusedinproducts
rangingfromcamerasto
automobiles.
12

m

r'!

eacherMarcia
Baileyandtwo
studentsatHarlem
HighSchoolinHarlem,Georgia
reviewanalgebraproblemon
aMotorolaMultiPersonal™
Computer,theplatformfor
LearningLogic,a software
packagedevelopedbythe
NationalScienceCenter
Foundation.TheNSCFchose
thepowerfulMotorolasystem
becauseitofferscolorgraphics
andspeedatpricesthatschools
canafford.Theinteractive,
self-pacedsoftwarepackage
isdesignedtoimprovemath
proficiencyinU.S.schools.
TheMultiPersonalComputeris
basedonMotorola's88000
RISCmicroprocessorfamily.
15

AtA GlanceMajorBusinesses
CommunicationsSector
LandMobil*Product*
TheLandMobileProductsSector designs, manufacturesanddistributestwo-way
radios andotherformsofelectroniccommunicationssystemsfora widerangeof
customersincludingagriculture,commercial,construction,education,state,local
andfederalgovernmentandhealthcaremarkets,aswellasforindustrial,mining,
petroleum,andtransportationcompaniesandutilities.
PagingandTolopolnlSystems
ThePagingandTelepointSystemsGroupdesigns,manufacturesanddis-
tributesproductsforpagingandCT2(telepoint)systemsworldwide.
SemiconductorProductsSector
TheSemiconductorProductsSectordesignsandproducesa broadlineofdis-
cretesemiconductorsandintegratedcircuits,includingmicroprocessors,
microcomputersandmemories,toservetheadvancedsystemsneedsofthe
computer,consumer,automotive,industrial,federalgovernment/militaryand
telecommunicationsmarkets.
GeneralSystem*Sector
TheGeneralSystemsSectordesignsandmanufacturescomputer-basedcellu-
larradiotelephonesystems,mobileandportableradiotelephones,microcom-
puterboards,andinformationprocessingandhandlingequipment,suchas
multi-usermicrocomputersystems.
InformationSystemsGroup
TheInformationSystemsGroupcombinesthecapabilitiesofCodex
CorporationandUDStoprovidealltheelementsfordistributeddataand
voicenetworksfrombasicmodemstonetworkmanagementsystems.
GovernmentElectronicsGroup
TheGovernmentElectronicsGroupspecializesinresearch,developmentand
productionofelectronicsystemsandequipmentfortheU.S.Departmentof
Defense,NASAandothergovernmentagencies,commercialusersandinter-
nationalcustomers.
AutomotiveandindustrialElectronicsGroup
TheAutomotiveandIndustrialElectronicsGroupservesthemotorvehicleand
industrial equipmentindustriesthroughthedevelopmentandproductionofa
varietyofelectroniccomponents,modulesandintegratedelectronicsystems.
NewEnterprises
TheNewEnterprises'organizationmanagesMotorola'sentryintostrategically
relevant,emerging,highgrowth,hightechnologybusinessarenas,including
hospitalclinicalinformationsoftwaresystems,selectedimagingsystems,as
wellasdatacommunicationsproductsandservices.
16

Products
AutomaticVehicleLocationSystems
CommunicationsControlCenters
CommunicationsSystemInstallation
andMaintenance
EmergencyMedical
CommunicationsSystems
FMTwo-WayRadioProducts
BaseStationandRepeaterProducts
MobileProducts
PortableProducts
FMTwo-WayRadioSystems
AdvancedConventionalSystems
DigitalVoiceProtection
CommunicationsSystems
TrunkedRadioSystems.
HFSingleSideband
CommunicationsSystems
IntegratedSecuritySystems
MobileDataSystems
DataRadioNetworks
PortableandMobileDataTerminals
RFModems
SignalingandRemoteControlSystems
Components
CT2(telepointsystems)Pagers RadioPagingSystemsSecondGenerationCordlessPhones
BipolarandMOSAnalogICs
BipolarandMOSDigitalICs
Bipolar,BIMOS,CMOSand
CombinedTechnology
SemicustomCircuits
CustomandSemicustomSemiconductors
CustomerDefinedArrays
DataConversionCircuits
DigitalSignalProcessors
FiberOpticActiveComponents
FieldEffectTransistors(FETs)
IndustrialControlCircuits
InterfaceCircuits
MicrocomputersandPeripherals
MicrocontrollerICs
MicroprocessorsandPeripherals
MicrowaveTransistors
MOSandBipolarMemories
MotorControlCircuits
OpenArchitectureCADSystems
OperationalAmplifiers
OptoelectronicsComponents
PowerSupplyCircuits
PressureandTemperatureSensors
Rectifiers
RFModules
RFPowerandSmallSignalTransistors
SMARTmos™Products
TelecommunicationsCircuits
ThyristorsandTriggers
TMOS™andBipolarPowerProducts
VoltageRegulatorCircuits
ZenerandTuningDiodes
CellularMobile,Portable,Transportable
andPersonalSubscriberProducts
CellularRadiotelephoneSystems
ElectronicMobileExchange(EMX)Series
FactoryAutomationComputer
ControlSystems
HD, LDandHDIISeries
CellularBaseStations
Microcomputer (VME) BoardLevelProducts
Multi-UserSuperMicrocomputer
SystemsandServers
SoftwareforWorkgroupandNetwork
ComputingCommunications
Real-TimeDistributedComputingSystems
WirelessIn-BuildingNetworkProducts
DigitalService/ChannelServiceUnits
DistributedCommunicationsProcessors
ElectronicDataSwitches
HighSpeedDigitalCommunicationProducts
ISDNTerminalAdaptors
LAN/WANInternetworkingProducts
Micro-to-mainframePlug-inBoards
Modems
Multiplexers
NetworkDesign,Installationand
MaintenanceService
NetworkManagementSystems
NetworkMonitoringServices
ProtocolConverters
Tl/ElNodalProcessorsandCircuitSwitches
X.25PacketSwitchesandPADs
Droneandtargetcommand
andcontrolsystems
Electronicfuzesystems
Electronicpositioningandtrackingsystems
Fixedandsatellitecommunicationssystems
Intelligentdisplayterminalsandsystems
Missileandaircraftinstrumentation
Missileguidancesystems
Satellitesurveyandpositioningsystems
Securetelecommunications
Spacecommunicationssystems
Surveillanceradarsystems
Tacticalcommunicationstransceivers
Trackingandcommandtranspondersystems
Videoprocessingsystems
andproducts
AgriculturalVehicleControls
Anti-lockBrakingSystemControls
AutomotiveandIndustrialSensors
AutomotiveBodyComputers
GasolineandDieselEngineControls
IgnitionModules
Instrumentation
KeylessEntrySystems
MotorControls
MultiplexSystems
PowerModules
SolidStateRelays
SteeringControls
SuspensionControls
TransmissionControls
VehicleNavigationSystems
VehicleTheftAlarmModules
VoltageRegulators
SoftwareandHardwareforHospital
IntensiveCareUnitsSupervisoryControlandData
Acquisition(SCADA)Systems
17