2014

Motorola Announces Fourth-Quarter and Full-Year 2009 Financial Results

SCHAUMBURG, Ill., Jan. 28 /PRNewswire-FirstCall/ --

Financial Highlights

  • Fourth-quarter sales of $5.7 billion
  • Fourth-quarter GAAP earnings of $0.06 per share, including net charges of $0.03 per share from highlighted items
  • Full-year sales of $22.0 billion; full-year GAAP loss from continuing operations of $0.05 per share, compared to a net loss of $1.87 per share in 2008
  • Total cash* of $8.0 billion, a sequential quarterly increase of $839 million
  • Completed cost-reduction actions that generated more than $1.9 billion in cost savings for full-year 2009, with $1.5 billion in cost savings from Mobile Devices
  • Enterprise Mobility Solutions sales of $2.0 billion; operating earnings of $368 million
  • Home & Networks Mobility sales of $2.0 billion; operating earnings of $91 million
  • Mobile Devices sales of $1.8 billion, excluding $200 million in deferred revenue on certain smartphones; shipped 12 million handsets, including 2 million smartphones; operating loss of $132 million

Click here to view the financial tables that are an integral part of this release.

Click here to view additional financial information.

Motorola, Inc. (NYSE: MOT) today reported sales of $5.7 billion in the fourth quarter of 2009.  The GAAP earnings in the fourth quarter of 2009 were $142 million, or $0.06 per share.  The GAAP earnings include net charges of $0.03 per share from highlighted items, which are outlined at the end of this press release.

For the full year of 2009, sales were $22.0 billion.  The full-year GAAP loss from continuing operations was $0.05 per share, which included net charges of $0.07 per share from items highlighted in the Company's quarterly earnings releases.  This compares to a GAAP loss from continuing operations of $1.87 per share in 2008, which included net charges of $1.89 per share from items highlighted in the Company's quarterly earnings releases.

Consistent with the Company's previously reported results, GAAP earnings per share include non-cash expenses for amortization of intangibles and stock-based compensation.  These expenses totaled $0.04 per share in the fourth quarter and $0.16 per share for full-year 2009.

During the quarter, the Company generated positive operating cash flow of $877 million.  For the full year, the Company generated positive operating cash flow of $629 million and ended the year with a total cash* position of $8.0 billion.

"We performed well in the face of a challenging environment in 2009.  Our results demonstrate the strength of our market leadership and the resilience of these businesses and our people," said Greg Brown, Motorola co-chief executive officer and CEO of Broadband Mobility Solutions.  "As market growth returns, we are well positioned to take advantage of our investments in key global markets with a competitive cost structure."

"We are pleased with the meaningful progress we made in 2009 in further improving our cost structure and strengthening the operations of the Mobile Devices business," said Sanjay Jha, Motorola co-chief executive officer and CEO of Mobile Devices.  "Our first Android smartphone devices have been very well received. We look forward to broadening our handset portfolio in 2010 with the launch of at least 20 smartphone devices around the world and continued evolution of our MOTOBLUR™ service.  With an aggressive product and brand strategy and our continued focus on operational efficiency, we are building on our momentum to further improve the financial performance of the Mobile Devices business."

Operating Results

Mobile Devices segment sales were $1.8 billion, down 22 percent compared with the year-ago quarter.  The GAAP operating loss was $132 million, including $18 million of highlighted items, compared to an operating loss of $595 million in the year-ago quarter.  These current quarter results exclude deferred revenue of $200 million and the related gross margin for certain smartphones sold during the quarter.  For the full year 2009, sales were $7.1 billion, compared to $12.1 billion in 2008, and the segment incurred a GAAP operating loss of $1.1 billion, compared to an operating loss of $2.2 billion in 2008.  During the quarter, the Company shipped 12 million handsets and estimates its share of the global handset market was 3.7 percent.

Mobile Devices highlights:

  • Successfully launched two smartphones powered by Android, including TIME magazine's  "Best new gadget of 2009" – DROID by Motorola/MILESTONE™, as well as CLIQ™ / DEXT™ with MOTOBLUR™
  • Shipped 2 million smartphones to customers globally in more than 20 countries
  • Announced four new smartphones powered by Android and shipping in the first quarter, bringing our total number of new Android-powered devices to six:
    • CES 2010's "Gadget of the Show" winner – BACKFLIP™ maximizes the multi-tasking potential of MOTOBLUR with a unique reverse-flip design and a stunning 3.1-inch screen
    • MT710 with China Mobile, featuring a 3.7-inch FWVGA display screen, the most advanced version of the OPhone platform and 4GB of storage space
    • XT800 with China Telecom, featuring a 16 million-color WVGA display, two SIM card slots, a 550MHz processor and Wi-Fi
    • MOTOROI™, the first smartphone powered by Android available in Korea, featuring a full-touch screen, an 8-megapixel camera with Xenon flash and a 720p HD camcorder
    • Announced SHOP4APPS store in China, offering consumers personalization for mobile experiences and developers a seamless path to market for their Android applications

Enterprise Mobility Solutions segment sales were $2.0 billion, down 12 percent compared with the year-ago quarter.  GAAP operating earnings were $368 million, compared with operating earnings of $466 million in the year-ago quarter.  For the full year 2009, sales were $7.0 billion, compared to $8.1 billion in 2008, and the segment generated GAAP operating earnings of $1.1 billion, compared to $1.5 billion in 2008.

Enterprise Mobility Solutions highlights:

  • Shipped the APX™ 7500 multi-band mobile radios, making Motorola the first and only company to offer a complete family of multiband radios
  • Launched MC3100  – a mid-range mobile computer with industry-leading data capture and wireless technologies for indoor applications
  • Launched Motorola's first portfolio for voice-directed picking operations with the Voice Only Wearable computer (WT4090) and Rugged Headset (RCH50)
  • Expanded integrated voice solutions with the CLP two-way radio, the smallest and lightest push-to-talk radio in its class, and the EWB100 TEAM Badge, a push-to-talk device that runs over wireless LAN (WLAN)
  • Continued to broaden distribution channels for WLAN solutions with new strategic partnerships, including Brocade and Extreme Networks

Home & Networks Mobility segment sales were $2.0 billion, down 24 percent compared with the year-ago quarter.  GAAP operating earnings were $91 million, compared to $257 million in the year-ago quarter.  For the full year 2009, sales were $8.0 billion, compared to $10.1 billion in 2008, and the segment generated GAAP operating earnings of $558 million, compared to $918 million in 2008.

Home & Networks Mobility highlights:

  • Shipped 3.4 million digital entertainment devices, reaching milestone of shipping 100 millionth digital entertainment device
  • Achieved 1 millionth fiber-to-the-home optical network terminal shipment
  • Won contract to power the world's first WiMAX-based electric utility smart metering for SP AusNet; shipped 10,000th WiMAX Access Point Base Site
  • Selected to provide indoor TD-LTE broadband coverage at World Expo 2010 in Shanghai
  • Announced intent to acquire BitBand Technologies Ltd., a company that specializes in video on demand for IPTV, and in January, acquired SecureMedia, Inc., a developer of software-based digital rights management and security systems for IP video

First-Quarter 2010 Outlook

The Company's outlook for the first quarter of 2010 is a loss of $0.01 to $0.03 per share.  This outlook excludes charges associated with items of the variety typically highlighted by the Company in its quarterly earnings releases.  This outlook includes expenses related to non-cash amortization of intangibles and stock-based compensation expense of approximately $0.04 per share.

Consolidated GAAP Results

A comparison of results from operations is as follows:

    
    
    
                                     Fourth Quarter           Full Year
                                     --------------           ---------
    (In millions, except
     per share amounts)              2009       2008        2009      2008
    ------------------------------------------------------------------------
    
    Net sales                       $5,723     $7,136     $22,044   $30,146
    Gross margin                     2,043      2,122       7,057     8,395
    Operating earnings (loss)          163     (1,675)       (148)   (2,391)
    Earnings (loss) from
     continuing operations **          142     (3,657)       (111)   (4,244)
    Net earnings (loss) **             142     (3,657)        (51)   (4,244)
    Diluted earnings (loss) per
     common share: **
      Continuing operations           0.06      (1.61)      (0.05)    (1.87)
      Discontinued operations            -          -        0.03         -
                                   -------------------    ------------------
                                      0.06      (1.61)      (0.02)    (1.87)
                                   -------------------    ------------------
    
    Weighted average diluted
     common shares outstanding     2,330.0    2,273.8     2,295.6   2,265.4
    
    

Highlighted Items

The table of highlighted items for the fourth quarter of 2009 is as follows:

    
    
    
    
                                                                    EPS Impact
                                                                    Exp/(Inc)
    --------------------------------------------------------------------------
    Reorganization of business charges                                $0.02
    Legal settlements                                                  0.02
    Separation-related transaction costs                               0.01
    Gain on sale of investment                                        (0.01)
    Tax-related benefit                                               (0.01)
                                                                   -----------
    Total                                                             $0.03
                                                                   ===========
    

Conference Call and Webcast

Motorola will host its quarterly conference call beginning at 8 a.m. (U.S. Eastern Time) on Thursday, January 28.  The conference call will be webcast live with audio and slides at www.motorola.com/investor.

Business Risks

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about the timing and financial impact of the launch of new products and Motorola's financial outlook for the first quarter of 2010.   Motorola cautions the reader that the risk factors below, as well as those on pages 18 through 30 in Item 1A of Motorola's 2008 Annual Report on Form 10-K and in its other SEC filings, could cause Motorola's actual results to differ materially from those estimated or predicted in the forward-looking statements. Factors that may impact forward-looking statements include, but are not limited to: (1) possible negative effects on the Company's business operations, financial performance or assets as a result of its plan to create two independent, publicly traded companies; (2) the economic outlook for the telecommunications and broadband industries; (3) the Company's ability to improve financial performance in its Mobile Devices business; (4) the level of demand for the Company's products, particularly in light of global economic conditions which may lead consumers, businesses and governments to defer purchases in response to tighter credit and negative financial news; (5) the Company's ability to introduce new products and technologies in a timely manner; (6) unexpected negative consequences from the Company's restructuring and cost reduction activities, including as a result of significant restructuring at the Mobile Devices business; (7) negative impact on the Company's business from the global financial crisis, which may include: (i) the inability of customers to obtain financing for purchases of the Company's products; (ii) the viability of the Company's suppliers that may no longer have access to necessary financing; (iii) reduced value of investments held by the Company's pension plan and other defined benefit plans; (iv) fair and/or actual value of the Company's debt and equity investments differing significantly from the fair values currently assigned to them; (v) counterparty failures negatively impacting the Company's financial position; (vi) difficulties or increased costs for the Company in obtaining financing; and (vii) the inability of the Company to sell accounts receivable and long-term receivables in volumes and on terms comparable to historical practices; (8) the Company's ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions; (9) risks related to dependence on certain key suppliers; (10) the impact on the Company's performance and financial results from strategic acquisitions or divestitures, including those that may occur in the future; (11) risks related to the Company's high volume of manufacturing and sales in Asia; (12) the creditworthiness of the Company's customers and distributors, particularly purchasers of large infrastructure systems; (13) variability in income received from licensing the Company's intellectual property to others, as well as expenses incurred when the Company licenses intellectual property from others; (14) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (15) the impact of foreign currency fluctuations, including the negative impact of a strengthening U.S. dollar on the Company when competing for business in foreign markets; (16) the impact on the Company from continuing hostilities in countries where the Company does business; (17) the impact on the Company from ongoing consolidation in the telecommunications and broadband industries; (18) the impact of changes in governmental policies, laws or regulations; (19) the outcome of currently ongoing and future tax matters; and (20) negative consequences from the Company's outsourcing of various activities, including certain manufacturing, information technology and administrative functions. Motorola undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.

Definitions

* Total cash equals Cash and cash equivalents plus Sigma Fund (current and non-current) plus Short-term investments

** Amounts attributable to Motorola, Inc. common shareholders

About Motorola

Motorola is known around the world for innovation in communications and focused on advancing the way the world connects.  From broadband communications infrastructure, enterprise mobility and public safety solutions to high-definition video and mobile devices, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile.  Motorola (NYSE: MOT) had sales of US $22 billion in 2009. For more information, please visit www.motorola.com.



Media contact:

Jennifer Erickson

Motorola, Inc.

+1 847-435-5320



Investor contact:

Dean Lindroth

Motorola, Inc.

+1 847-576-6899

dean.lindroth@motorola.com



MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. Android is a trademark of Google, Inc. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010. All rights reserved.

    
    
    
    
                        Motorola, Inc. and Subsidiaries                    
                Condensed Consolidated Statements of Operations            
                    (In millions, except per share amounts)                
    
                                             Three Months Ended            
                                             ------------------            
                                   December 31,   October 3,   December 31,  
                                      2009          2009          2008     
                                 -------------  -----------  ------------- 
    Net sales                        $5,723        $5,453         $7,136 
    Costs of sales                    3,680         3,645          5,014 
                                      -----         -----          ----- 
    Gross margin                      2,043         1,808          2,122 
                                      -----         -----          ----- 
                                                                           
    Selling, general and                                                   
     administrative expenses            890           800            988 
    Research and development                                               
     expenditures                       793           768          1,008 
    Separation-related                                                     
     transaction costs                   23            19             18 
    Other charges                       106            24          1,708 
    Intangibles amortization             68            69             75 
                                        ---           ---            --- 
    Operating earnings (loss)           163           128         (1,675)
                                        ---           ---         ------ 
                                                                           
    Other income (expense):                                                
       Interest income (expense), net   (18)          (49)            42 
       Gain on sales of investments
        and businesses, net              57            21             17 
       Other                             (2)          (64)          (108)
                                        ---           ---           ---- 
    Total other income (expense)         37           (92)           (49)
                                        ---           ---            --- 
    Earnings (loss) from                                                   
     continuing operations                                                 
     before income taxes                200            36         (1,724)
    Income tax expense                   57            14          1,932 
                                        ---           ---          ----- 
    Earnings (loss) from                                                   
     continuing operations              143            22         (3,656)
                                                                           
    Earnings from discontinued                                             
     operations, net of tax               -             -              - 
                                        ---           ---            --- 
    Net earnings (loss)                 143            22         (3,656)
                                                                           
    Less: Earnings attributable                                            
     to noncontrolling interests          1            10              1 
                                        ---           ---            --- 
    Net earnings (loss)                                                    
     attributable to Motorola,                                             
     Inc.                              $142           $12        $(3,657)
                                       ====           ===        ======= 
                                                                           
    Amounts attributable to
     Motorola, Inc. common
     shareholders             
      Earnings (loss) from                                                 
       continuing operations,                                              
       net of tax                      $142           $12        $(3,657)
      Earnings from                                                        
       discontinued operations,                                            
       net of tax                         -             -              - 
                                        ---           ---            --- 
        Net earnings (loss)            $142           $12        $(3,657)
                                       ====           ===        ======= 
                                                                           
    Earnings (loss) per common share                                       
    --------------------------------                                       
      Basic:                                                               
        Continuing operations         $0.06         $0.01         $(1.61)
        Discontinued operations           -             -              - 
                                          -             -              - 
                                      $0.06         $0.01         $(1.61)
                                      =====         =====         ====== 
                                                                           
      Diluted:                                                             
        Continuing operations         $0.06         $0.01         $(1.61)
        Discontinued operations           -             -              - 
                                        ---           ---            --- 
                                      $0.06         $0.01         $(1.61)
                                      =====         =====         ====== 
                                                                           
    Weighted average common
     shares outstanding                             
    ------------------------ 
      Basic                         2,311.4       2,299.6        2,273.8 
      Diluted                       2,330.0       2,319.5        2,273.8 
                                                                           
    Dividends paid per share             $-            $-          $0.05 
                                        ---           ---          ----- 
                                                                           
                                                                           
                                          Percentage of Net Sales*         
                                            ------------------------         
    Net sales                           100%          100%           100%
    Costs of sales                     64.3%         66.8%          70.3%
                                       ----          ----           ---- 
    Gross margin                       35.7%         33.2%          29.7%
                                       ----          ----           ---- 
                                                                           
    Selling, general and                                                   
     administrative expenses           15.6%         14.7%          13.8%
    Research and development                                               
     expenditures                      13.9%         14.1%          14.1%
    Separation-related                                                     
     transaction costs                  0.4%          0.3%           0.3%
    Other charges                       1.9%          0.4%          23.9%
    Intangibles amortization            1.2%          1.3%           1.1%
                                        ---           ---            --- 
    Operating earnings (loss)           2.8%          2.3%         -23.5%
                                        ---           ---          ----- 
                                                                           
    Other income (expense):                                                
       Interest income (expense), net  -0.3%         -0.9%           0.6%
       Gain on sales of investments
        and businesses, net             1.0%          0.4%           0.2%
       Other                            0.0%         -1.2%          -1.5%
                                        ---          ----           ---- 
    Total other income (expense)        0.6%         -1.7%          -0.7%
                                        ---          ----           ---- 
    Earnings (loss) from continuing
     operations before                                                 
     income taxes                       3.5%          0.7%         -24.2%
    Income tax expense                  1.0%          0.3%          27.1%
                                        ---           ---           ---- 
    Earnings (loss) from continuing
     operations                         2.5%          0.4%         -51.2%
                                                                           
    Earnings from discontinued                                             
     operations, net of tax             0.0%          0.0%           0.0%
                                        ---           ---            --- 
    Net earnings (loss)                 2.5%          0.4%         -51.2%
                                                                           
    Less: Earnings attributable                                            
     to noncontrolling interests        0.0%          0.2%           0.0%
                                        ---           ---            --- 
    Net earnings (loss)                                                    
     attributable to
     Motorola, Inc.                     2.5%          0.2%         -51.2%
                                        ===           ===          ===== 
    
    * Percentages may not add up due to rounding 
    
    
    
                        Motorola, Inc. and Subsidiaries                   
                Condensed Consolidated Statements of Operations           
                    (In millions, except per share amounts)               
    
                                                     Year Ended          
                                                     ----------          
                                             December 31,   December 31,  
                                                  2009           2008     
                                             -------------  ------------- 
    Net sales                                    $22,044        $30,146 
    Costs of sales                                14,987         21,751 
                                                  ------         ------ 
    Gross margin                                   7,057          8,395 
                                                   -----          ----- 
                                                                          
    Selling, general and administrative                                   
     expenses                                      3,381          4,330 
    Research and development expenditures          3,183          4,109 
    Separation-related transaction costs              42             59 
    Other charges                                    321          1,969 
    Intangibles amortization                         278            319 
                                                     ---            --- 
    Operating loss                                  (148)        (2,391)
                                                    ----         ------ 
                                                                          
    Other income (expense):                                               
       Interest income (expense), net               (132)            48 
       Gain on sales of investments and                                   
        businesses, net                               88             82 
       Other                                          27           (372)
                                                      --           ---- 
    Total other income (expense)                     (17)          (242)
                                                     ---           ---- 
    Loss from continuing operations before                                
     income taxes                                   (165)        (2,633)
    Income tax expense (benefit)                     (77)         1,607 
                                                     ---          ----- 
    Loss from continuing operations                  (88)        (4,240)
                                                                          
    Earnings from discontinued operations,                                
     net of tax                                       60              - 
                                                     ---            --- 
    Net loss                                         (28)        (4,240)
                                                                          
    Less: Earnings attributable to                                        
     noncontrolling interests                         23              4 
                                                     ---            --- 
    Net loss attributable to Motorola, Inc.         $(51)       $(4,244)
                                                    ====        ======= 
                                                                          
    Amounts attributable to Motorola, Inc.
     common shareholders            
      Loss from continuing operations, net                                
       of tax                                      $(111)       $(4,244)
      Earnings from discontinued                                          
       operations, net of tax                         60              - 
                                                     ---            --- 
        Net loss                                    $(51)       $(4,244)
                                                    ====        ======= 
                                                                          
    Earnings (loss) per common share                                      
    --------------------------------                                      
      Basic:                                                              
        Continuing operations                     $(0.05)        $(1.87)
        Discontinued operations                     0.03              - 
                                                    ----            --- 
                                                  $(0.02)        $(1.87)
                                                  ======         ====== 
                                                                          
      Diluted:                                                            
        Continuing operations                     $(0.05)        $(1.87)
        Discontinued operations                     0.03              - 
                                                    ----            --- 
                                                  $(0.02)        $(1.87)
                                                  ======         ====== 
                                                                          
    Weighted average common shares outstanding                            
    ------------------------------------------                            
      Basic                                      2,295.6        2,265.4 
      Diluted                                    2,295.6        2,265.4 
                                                                          
    Dividends paid per share                       $0.05          $0.20 
                                                   -----          ----- 
                                                                          
                                                                          
                                                 Percentage of Net Sales*   
                                                 ------------------------   
    Net sales                                        100%           100%
    Costs of sales                                  68.0%          72.2%
                                                    ----           ---- 
    Gross margin                                    32.0%          27.8%
                                                    ----           ---- 
                                                                          
    Selling, general and administrative                                   
     expenses                                       15.3%          14.4%
    Research and development expenditures           14.4%          13.6%
    Separation-related transaction costs             0.2%           0.2%
    Other charges                                    1.5%           6.5%
    Intangibles amortization                         1.3%           1.1%
                                                     ---            --- 
    Operating loss                                  -0.7%          -7.9%
                                                    ----           ---- 
                                                                          
    Other income (expense):                                               
       Interest income (expense), net               -0.6%           0.2%
       Gain on sales of investments and                                   
        businesses, net                              0.4%           0.3%
       Other                                         0.1%          -1.2%
                                                     ---           ---- 
    Total other income (expense)                    -0.1%          -0.8%
                                                    ----           ---- 
    Loss from continuing operations before                                
     income taxes                                   -0.7%          -8.7%
    Income tax expense (benefit)                    -0.3%           5.3%
                                                    ----            --- 
    Loss from continuing operations                 -0.4%         -14.1%
                                                                          
    Earnings from discontinued operations,                                
     net of tax                                      0.3%           0.0%
                                                     ---            --- 
    Net loss                                        -0.1%         -14.1%
                                                                          
    Less: Earnings attributable to                                        
     noncontrolling interests                        0.1%           0.0%
                                                     ---            --- 
    Net loss attributable to Motorola, Inc.         -0.2%         -14.1%
                                                    ====          ===== 
    
    * Percentages may not add up due to rounding 
    
    
    
                        Motorola, Inc. and Subsidiaries                   
                     Condensed Consolidated Balance Sheets                
                                 (In millions)                            
    
                                          December 31, October 3, December 31,
                                             2009        2009        2008
                                             ----        ----        ----
    Assets                                                                
       Cash and cash equivalents            $2,869     $3,050       $3,064
       Sigma Fund                            5,092      4,050        3,690
       Short-term investments                    2         15          225
       Accounts receivable, net              3,495      3,402        3,493
       Inventories, net                      1,308      1,523        2,659
       Deferred income taxes                 1,082      1,108        1,092
       Other current assets                  2,184      2,177        3,140
                                             -----      -----        -----
    Total current assets                    16,032     15,325       17,363
                                            ------     ------       ------
                                                                          
       Property, plant and equipment, net    2,154      2,224        2,442
       Sigma Fund                               66         75          466
       Investments                             459        491          517
       Deferred income taxes                 2,284      2,327        2,428
       Goodwill                              2,823      2,823        2,837
       Other assets                          1,785      1,784        1,816
                                             -----      -----        -----
    Total assets                           $25,603    $25,049      $27,869
                                           =======    =======      =======
                                                                          
    Liabilities and Stockholders' Equity                                  
       Notes payable and current                                          
        portion of long-term debt             $536        $24          $92
       Accounts payable                      2,429      2,212        3,188
       Accrued liabilities                   5,296      5,364        7,340
                                             -----      -----        -----
    Total current liabilities                8,261      7,600       10,620
                                             -----      -----       ------
                                                                          
       Long-term debt                        3,365      3,901        4,092
       Other liabilities                     4,094      3,631        3,562
                                                                          
    Total Motorola, Inc.                                                  
     stockholders' equity                    9,775      9,810        9,507
                                             -----      -----        -----
                                                                          
    Noncontrolling interests                   108        107           88
                                               ---        ---          ---
                                                                          
    Total liabilities and                                                 
     stockholders' equity                  $25,603    $25,049      $27,869
                                           -------    -------      -------
                                                                          
    Financial Ratios:                                                     
        Total cash*                         $8,029     $7,190       $7,445
                                                                          
    *Total cash = Cash and cash equivalents + Sigma Fund (current and non-
    current) + Short-term investments  
    
    
    
                        Motorola, Inc. and Subsidiaries                   
                Condensed Consolidated Statements of Cash Flows           
                                 (In millions)                            
    
                                            Three Months Ended            
                                            ------------------            
                                December 31,   October 3,   December 31,  
                                     2009          2009          2008     
                                -------------  -----------  ------------- 
    Operating                                                             
    Net earnings (loss)                                                   
     attributable to Motorola,                                            
     Inc.                            $142          $12        $(3,657)
    Less: Earnings                                                        
     attributable to                                                      
     noncontrolling interests           1           10              1 
                                      ---          ---            --- 
    Net earnings (loss)               143           22         (3,656)
    Adjustments to reconcile net
     earnings (loss) to net cash
     provided by operating activities: 
      Depreciation and                                                    
       amortization                   180          189            207 
      Non-cash other charges                                              
       (income)                        (5)          49          1,920 
      Share-based compensation                                            
       expense                         71           75             60 
      Gain on sales of                                                    
       investments and                                                    
       businesses, net                (58)         (21)           (17)
      Deferred income taxes           164          (79)         2,195 
      Changes in assets and
       liabilities, net of effects
       of acquisitions   
       and dispositions:                                                  
        Accounts receivable           (94)         287            847 
        Inventories                   223          136             (8)
        Other current assets            -          453            660 
        Accounts payable and                                              
         accrued liabilities          164         (579)        (1,107)
        Other assets and                                                  
         liabilities                   89           84           (900)
                                      ---          ---           ---- 
          Net cash provided by                                            
           operating activities       877          616            201 
                                      ---          ---            --- 
    Investing                                                             
      Acquisitions and                                                    
       investments, net               (20)          (9)          (102)
      Proceeds from sales of                                              
       investments and                                                    
       businesses, net                 35           54             10 
      Distributions from                                                  
       investments                      -            -              1 
      Capital expenditures            (86)         (52)          (117)
      Proceeds from sales of                                              
       property, plant and                                                
       equipment                       14           21             12 
      Purchases of Sigma Fund                                             
       investments, net            (1,020)        (572)          (269)
      Proceeds from sales of                                              
       short-term investments,                                            
       net                             14           29            511 
                                      ---          ---            --- 
        Net cash provided by                                              
         (used for) investing                                             
         activities                (1,063)        (529)            46 
                                   ------         ----             -- 
    Financing                                                             
      Repayment of short-                                             
       term borrowings, net           (15)         (17)           (13)
      Repayment of debt                (2)           -           (111)
      Proceeds from issuance                                              
       of debt, net                     -            -              4 
      Issuance of common stock          6           54             59 
      Payment of dividends              -            -           (113)
      Proceeds from settlement                                            
       of financial instruments         -            -            158 
      Distributions to                                                    
       discontinued operations          -            -            (64)
      Other, net                       (1)           -              3 
                                       --          ---            --- 
        Net cash provided by                                              
         (used for) financing                                             
         activities                   (12)          37            (77)
                                      ---          ---            --- 
    Effect of exchange rate                                               
     changes on cash and cash                                             
     equivalents                       17           45            (80)
                                      ---          ---            --- 
    Net increase (decrease) in                                            
     cash and cash equivalents       (181)         169             90 
    Cash and cash equivalents,                                            
     beginning of period            3,050        2,881          2,974 
                                    -----        -----          ----- 
      Cash and cash                                                       
       equivalents, end of                                                
       period                      $2,869       $3,050         $3,064 
                                   ------       ------         ------ 
    
    
    
                     Motorola, Inc. and Subsidiaries                 
             Condensed Consolidated Statements of Cash Flows         
                              (In millions)                          
    
                                               Year Ended          
                                               ----------          
                                        December 31,   December 31,  
                                             2009           2008     
                                        -------------  ------------- 
    Operating                                                        
    Net loss attributable to Motorola, Inc.  $(51)       $(4,244)
    Less: Earnings attributable to                                   
     noncontrolling interests                  23              4 
                                              ---            --- 
    Net loss                                  (28)        (4,240)
    Earnings from discontinued                                       
     operations, net of tax                    60              - 
                                              ---            --- 
    Loss from continuing operations           (88)        (4,240)
    Adjustments to reconcile loss from
     continuing operations to net  
     cash provided by operating activities:                          
      Depreciation and amortization           751            831 
      Non-cash other charges                   39          2,516 
      Share-based compensation expense        296            280 
      Gain on sales of investments and                           
       businesses, net                        (89)           (82)
      Gain from extinguishment of long-                              
       term debt                              (67)             - 
      Deferred income taxes                    50          1,698 
      Changes in assets and liabilities,
       net of effects of           
       acquisitions and dispositions:                                
        Accounts receivable                   (10)         1,891 
        Inventories                         1,349            (54)
        Other current assets                  960            466 
        Accounts payable and accrued                                 
         liabilities                       (2,618)        (1,631)
        Other assets and liabilities           56         (1,433)
                                              ---         ------ 
          Net cash provided by                                       
           operating activities               629            242 
                                              ---            --- 
    Investing                                                        
      Acquisitions and investments, net       (50)          (282)
      Proceeds from sales of                                         
       investments and businesses, net        315             93 
      Distributions from investments            -            113 
      Capital expenditures                   (275)          (504)
      Proceeds from sales of property,                               
       plant and equipment                     41            133 
      Proceeds from sales (purchases)                                
       of Sigma Fund investments, net        (922)           853 
      Proceeds from sales of short-                                  
       term investments, net                  223            388 
                                              ---            --- 
        Net cash provided by (used                                   
         for) investing activities           (668)           794 
                                             ----            --- 
    Financing                                                        
      Repayment of short-term                                        
       borrowings, net                        (86)           (50)
      Repayment of debt                      (132)          (225)
      Proceeds from issuance of debt, net       6              7 
      Issuance of common stock                116            145 
      Purchase of common stock                  -           (138)
      Payment of dividends                   (114)          (453)
      Proceeds from settlement of                                    
       financial instruments                    -            158 
      Distributions to discontinued                                  
       operations                               -            (90)
      Other, net                                -              1 
                                              ---            --- 
        Net cash used for financing                                  
         activities                          (210)          (645)
                                             ----           ---- 
    Effect of exchange rate changes on                               
     cash and cash equivalents                 54            (79)
                                              ---            --- 
    Net increase (decrease) in cash                                  
     and cash equivalents                    (195)           312 
    Cash and cash equivalents,                                       
     beginning of period                    3,064          2,752 
                                            -----          ----- 
      Cash and cash equivalents, end                                 
       of period                           $2,869         $3,064 
                                           ------         ------ 
    
    
    
                           Motorola, Inc. and Subsidiaries                    
                                 Segment Information                          
                                    (In millions)                             
                                                                              
    Summarized below are the Company's Net sales by reportable business 
    segment for the three months and years ended December 31, 2009 and 2008. 
                                                                              
                                                                              
                                              Net Sales                       
                                              ---------                       
                     Three Months Ended   Three Months Ended                  
                        December 31,         December 31,        % Change from
                             2009                 2008                2008    
                     -------------------  -------------------    -------------
                                                                              
    Mobile Devices          $1,824               $2,350               -22%
    Home and Networks                                                         
     Mobility                1,964                2,596               -24%
    Enterprise Mobility                                                       
     Solutions               1,954                2,215               -12%
                             -----                -----               --- 
       Segment Totals        5,742                7,161               -20%
    Other and Eliminations     (19)                 (25)              -24%
                               ---                  ---               --- 
       Company Totals       $5,723               $7,136               -20%
                            ------               ------               --- 
                                                                              
                                                                              
                                              Net Sales                       
                                              ---------                       
                         Year Ended           Year Ended                      
                        December 31,         December 31,        % Change from
                             2009                 2008                2008    
                        -------------        -------------       -------------
                                                                              
    Mobile Devices          $7,146              $12,099               -41%
    Home and Networks                                                         
     Mobility                7,963               10,086               -21%
    Enterprise Mobility                                                       
     Solutions               7,008                8,093               -13%
                             -----                -----               --- 
       Segment Totals       22,117               30,278               -27%
    Other and                                                                 
     Eliminations              (73)                (132)              -45%
                               ---                 ----               --- 
       Company Totals      $22,044              $30,146               -27%
                           -------              -------               --- 
    
    
    
                           Motorola, Inc. and Subsidiaries                    
                                 Segment Information                          
                                    (In millions)                             
                                                                              
    Summarized below are the Company's Operating earnings (loss) by reportable
    business segment for the three months and years ended December 31, 2009 
    and 2008.                                                                 
                                                                              
                                                                              
                                             Operating Earnings (Loss)        
                                             -------------------------        
                                     Three Months Ended   Three Months Ended  
                                      December 31, 2009    December 31, 2008
                                      -----------------    -----------------
                                                                          
    Mobile Devices                          $(132)               $(595)
    Home and Networks Mobility                 91                  257 
    Enterprise Mobility Solutions             368                  466 
                                              ---                  --- 
       Segment Totals                         327                  128 
    Other and Eliminations                   (164)              (1,803)
                                             ----               ------ 
       Company Totals                        $163              $(1,675)
                                             ----              ------- 
                                                                             
                                                                             
                                            Operating Earnings (Loss)        
                                            -------------------------        
                                        Year Ended           Year Ended      
                                     December 31, 2009    December 31, 2008  
                                     -----------------    -----------------  
                                                                             
    Mobile Devices                        $(1,077)             $(2,199)
    Home and Networks Mobility                558                  918 
    Enterprise Mobility Solutions           1,057                1,496 
                                            -----                ----- 
       Segment Totals                         538                  215 
    Other and Eliminations                   (686)              (2,606)
                                             ----               ------ 
       Company Totals                       $(148)             $(2,391)
                                            -----              ------- 
    
    
    

SOURCE Motorola, Inc.



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