Motorola Financial Analysis Essay, Research Paper

Nicholas Alexander Bostic

Period 5

11/24/97

Motorola

The phone rings. Your beeper vibrates off the bed base. Your PowerPC boots up for the twenty-four hours. Your foreman calls you on your cell phone claiming that you? re tardily. The supercomputers that operate the street lamps in your vicinity continue to maintain your streets safe. If non for Motorola, none of these mundane happenings would be possible.

Motorola, Inc. is headquartered in Schaumburg, Illinois with other offices throughout Illinois and the US, plus offices in China, Japan and throughout Europe. Motorola? s Semiconductor? s Products Sector designs, green goodss and distributes a wide line of distinct semiconducting materials and incorporate circuits, including microprocessors, RF devices, microcontrollers, digital signal processors, memories, logic and parallel circuits, and detectors. Motorola? s Cellular Subscriber Sector designs, industries and distributes a full scope of radio telephone merchandises for worldwide markets. Motorola? s Cellular Network? s and Space Sector designs and industries equipment for radio telephone systems, advanced electronic systems and satellite communications for commercial and authorities clients and is responsible for organizing joint-venture telecom runing companies worldwide. Motorola? s Land Mobile Products Sector designs, industries and distributes parallel and digital bipartisan wireless merchandises and systems for applications worldwide, from on-site to wide-area communications. Motorola? s Messaging, Information and Media Sector designs, industries and distributes a assortment of messaging merchandises, including beepers and paging systems, radio and wireline informations communications merchandises, substructure equipment and systems, handwriting-recognition package merchandises, image communications merchandises and services, and Internet package merchandises. Motorola? s Automotive, Energy and Components Sector designs and manufactures a wide scope of electronic constituents, faculties and incorporate electronic systems and merchandises for automotive, industrial, transit, pilotage, communicating, energy systems, consumer and illuming markets. Motorola? s Computer Group designs, industries and distributes Mac? OS

-compatible systems, computing machine board merchandises and proficient computing machine system platform merchandises. Many of the merchandises Motorola creates are used in mundane life unwittingly.

FINANCIAL INFORMATION-SEE APPENDIX 1

GRAPHS-SEE APPENDIX 2-5

APPENDIX 2- this graph shows that most of Motorola, Inc. ? s gross revenues are done in the US, with Europe a distant second. This is rational due to the well being of the US economic system compared to foreign economic systems.

APPENDIX 3- this graph shows that the net gross revenues for Motorola, Inc. have increased steadily over the past three old ages. This is due in portion to the addition of merchandises made available by Motorola and the addition in demand for progressively cheap merchandises.

APPENDIX 4- this graph shows net incomes before income revenue enhancements. Seen following to Appendix 3, this graph seems unreasonable, nevertheless, research and development costs have increased, plus their more expensive processors? gross revenues have decreased due to the instability of Apple, while their cheap cellular devices have increased. Motorola did sell more, but they besides spent more than in the past two old ages.

Motorola, Inc. appears to be making rather will for the 1997 financial twelvemonth compared to their 1996 twelvemonth. After the hapless twelvemonth in? 96, they cut plans that weren? T populating up to outlooks and have late joined in several joint-venture undertakings including the IRIDUIM? orbiter communications system. Prior to? 96, Motorola? s value was mounting steadily, but several new plans failed and their joint venture with Apple to make PowerPC Mac? s tumbled, taking their value down in? 96. Motorola is invariably bring forthing new communications devices including, but non limited to, phones, Internet accoutrements, orbiters, handheld computing machines and package that will go on to drive their value up.

As an investor, I would put in Motorola. They are non a superb stock that would lift all of a sudden, but they are a safe, long-run investing that will turn out profitable over clip. The demand for the devices that chiefly Motorola provides will non diminish, but will alternatively increase with the addition of population and infinite colonisation, therefore coercing their value up easy over clip. Motorola, Inc. is a concern looking towards the hereafter.