Q3 2008 Motorola, Inc. Earnings Conference Call Presentation

481 views

Published on

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
481
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Q3 2008 Motorola, Inc. Earnings Conference Call Presentation

  1. 1. Motorola Q3 2008 Earnings Conference Call October 30, 2008 Q3 2008 Earnings Release- October 30, 2008 Slide - 1 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  2. 2. Dean Lindroth Investor Relations Officer Q3 2008 Earnings Release- October 30, 2008 Slide - 2 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  3. 3. Safe Harbor A number of forward-looking statements will be made during this presentation. Forward- looking statements are any statements that are not historical facts. These forward- looking statements are based on the current expectations of Motorola and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, Motorola’s actual results could differ materially from these statements. Information about factors that could cause, and in some cases have caused, such differences can be found in this morning’s press release, on pages 18 through 27 in item 1A of Motorola’s 2007 Annual Report on Form 10-K and in Motorola’s other SEC filings. This presentation is being made on the 30th of October 2008. The content of this presentation contains time-sensitive information that is accurate only as of the time hereof. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Motorola will not be reviewing or updating the material that is contained herein. MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008 Slide -- 3 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  4. 4. Greg Brown Co-CEO of Motorola and CEO of Broadband Mobility Solutions Q3 2008 Earnings Release- October 30, 2008 Slide - 4 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  5. 5. Q3 2008 Earnings Call Q3 2008 Earnings Release- October 30, 2008 Slide - 5 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  6. 6. Paul Liska Chief Financial Officer Q3 2008 Earnings Release- October 30, 2008 Slide - 6 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  7. 7. Q3 2008 Financial Results Q3 ($ in Millions) Q2 Q3 GAAP 2008 2008 2007 $ 7,480 Sales $ 8,082 $ 8,811 Operating Earnings (Loss) $ 5 $ (10) $ (452) Operating Margin 0.1% -0.1% -6.0% $ (397) Earnings (Loss) from Continuing Operations $ 4 $ 40 EPS from Continuing Operations $ 0.00 $ 0.02 $ (0.18) Excluding Highlighted Items $ 205 Operating Earnings $ 82 $ 169 Operating Margin 1.0% 1.9% 2.7% $ 113 Earnings from Continuing Operations $ 53 $ 147 EPS from Continuing Operations $ 0.02 $ 0.06 $ 0.05 Slide -- 7 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  8. 8. Cash Flow and Cash Q3 Q2 Q3 2008 ($ in Millions) 2008 2007 $ (397) Earnings (Loss) from Continuing Operations $ 4 $ 40 708 Depreciation, Amortization, Deferred Income Taxes and Other, net 186 161 (131) Change in Assets and Liabilities, net 14 141 $ 180 Net Cash provided by Operating Activities $ 204 $ 342 ($ in Billions) $ 7.6 Total Cash* $ 7.8 $ 8.4 *Includes Cash and cash equivalents, Sigma Fund (current and non-current) and Short-term investments Slide -- 8 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  9. 9. Greg Brown Co-CEO of Motorola and CEO of Broadband Mobility Solutions Q3 2008 Earnings Release- October 30, 2008 Slide - 9 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  10. 10. Home and Networks Mobility Financials Q3 ($ in Millions) Q2 Q3 GAAP 2008 2008 2007 $ 2,369 Sales $ 2,738 $ 2,389 Operating Earnings $ 245 $ 159 $ 263 Operating Margin 8.9% 6.7% 11.1% Excluding Highlighted Items Operating Earnings $ 248 $ 165 $ 268 11.3% Operating Margin 9.1% 6.9% Slide -- 10 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  11. 11. Home and Networks Mobility Highlights • Expanded operating margin year over year • Shipped 4.1 million digital entertainment devices • Signed multiple networks contracts with China Mobile Communications Corporation • Announced the multimedia set-top platform and its first implementation with KDDI in Japan • Won IPTV contract with Deutsche Telekom in Germany Slide -- 11 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  12. 12. Enterprise Mobility Solutions Financials Q3 ($ in Millions) Q2 Q3 GAAP 2008 2008 2007 $ 2,030 Sales $ 2,042 $ 1,954 Operating Earnings $ 377 $ 328 $ 403 Operating Margin 18.5% 16.8% 19.9% Excluding Highlighted Items Operating Earnings $ 380 $ 336 $ 411 20.2% Operating Margin 18.6% 17.2% Slide -- 12 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  13. 13. Enterprise Mobility Solutions Highlights • Expanded operating margin year over year • Continued strong international demand in the government and public safety markets • Launched APX, the industry’s first Project 25 multi-band radio with multi-agency interoperability • Completed acquisition of AirDefense, after the quarter ended • Signed a definitive agreement to sell the biometrics business unit to SAFRAN, after the quarter ended Slide -- 13 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  14. 14. Sanjay Jha Co-CEO of Motorola and CEO of Mobile Devices Q3 2008 Earnings Release- October 30, 2008 Slide - 14 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  15. 15. Mobile Devices Financials Q3 ($ in Millions) Q2 Q3 GAAP 2008 2008 2007 $ 3,116 Sales $ 3,334 $ 4,496 Operating Loss $ (346) $ (248) $ (840) Operating Margin -10.4% -5.5% -27.0% Excluding Highlighted Items Operating Loss $ (340) $ (138) $ (295) -9.5% Operating Margin -10.2% -3.1% Units (M) 28.1 37.2 25.4 8.4% Market Share (Estimate) 9.5% 13.0% Slide -- 15 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  16. 16. Portfolio Segmentation NEW NEW NEW NEW E8 U9 W388 Q11 Z6w ZN4 EM30 VA76r V950 W156 / V9x W181 E8 W161 Z9 W160 NEW NEW NEW NEW NEW Q9c lime Q9c EM25 V9 W375 VU204 ZN200 VU20 VU30 W216 AURA W450 Z6 i365 Z8 NEW NEW NEW NEW Q700 Q9h W377 W396 VE538 EM28 VE75 Z6tv W5 A810 Z6m W270 V8 K1m i776 i576 NEW Q9m NEW NEW A1800 W260 A1600 W175 / W230 Z8m VE20 ZN5 W755 W6 V3s W362 W180 i877 V750 Z10 Everyday Multitask Feature Multimedia/Music Communications Slide -- 16 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. = Began shipping in Q308 NEW
  17. 17. Q3 2008 Earnings Call Q3 2008 Earnings Release- October 30, 2008 Slide - 17 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. .
  18. 18. Q&A Participants Sanjay Jha Greg Brown Co-CEO of Motorola and Co-CEO of Motorola and CEO of Mobile Devices CEO of Broadband Mobility Solutions Paul Liska Dean Lindroth Chief Financial Officer Investor Relations Officer Slide -- 18 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  19. 19. Safe Harbor A number of forward-looking statements will be made during this presentation. Forward- looking statements are any statements that are not historical facts. These forward- looking statements are based on the current expectations of Motorola and there can be no assurance that such expectations will prove to be correct. Because forward-looking statements involve risks and uncertainties, Motorola’s actual results could differ materially from these statements. Information about factors that could cause, and in some cases have caused, such differences can be found in this morning’s press release, on pages 18 through 27 in item 1A of Motorola’s 2007 Annual Report on Form 10-K and in Motorola’s other SEC filings. This presentation is being made on the 30th of October 2008. The content of this presentation contains time-sensitive information that is accurate only as of the time hereof. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Motorola will not be reviewing or updating the material that is contained herein. MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2008 Slide -- 19 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.
  20. 20. Use of Non-GAAP Measures In addition to the GAAP results provided during this conference call, Motorola has presented certain non- GAAP measurements. Motorola has provided these non-GAAP measurements as a measure to help investors better understand its core operating performance, enhance comparisons of Motorola’s core operating performance from period to period and to allow better comparisons of Motorola’s operating performance to that of its competitors. Among other things, the Company’s management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to incentive compensation targets. Management uses operating results excluding these items because they believe this measure enables them to make better period-to-period evaluations of the financial performance of its core business operations. There are inherent limitations in the use of operating results excluding these items because the company’s GAAP results do not include the impact of these items. The non-GAAP measures are intended only as a supplement to the comparable GAAP measures and the company compensates for the limitations inherent in the use of non-GAAP measures by using GAAP measures in conjunction with the non-GAAP measures. As a result, investors should consider these non-GAAP measures in addition to, and not in substitution for, or as superior to, measures of financial performance prepared in accordance with GAAP. Details of these items and reconciliations of the non-GAAP measurements provided during this call to GAAP measurements can be found on Motorola’s website at www.motorola.com/investor. Slide -- 20 Q3 2008 Earnings Release- October 30, 2008 MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office.

×