MOtorola

phone rings. Your pager vibrates off the bed stand. Your

PowerPC boots up for the day. Your boss calls you on your

cell phone claiming that you’re late. The supercomputers that

operate the streetlights in your neighborhood continue to

keep your streets safe. If not for Motorola, none of these

everyday occurrences 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, produces and distributes a broad line of

discrete semiconductors and integrated circuits, including

microprocessors, RF devices, microcontrollers, digital signal

processors, memories, logic and analog circuits, and sensors.

Motorola’s Cellular Subscriber Sector designs, manufactures

and distributes a full range of wireless telephone products for

worldwide markets. Motorola’s Cellular Network’s and Space

Sector designs and manufactures equipment for wireless

telephone systems, advanced electronic systems and satellite

communications for commercial and government customers

and is responsible for forming joint-venture telecom operating

companies worldwide. Motorola’s Land Mobile Products

Sector designs, manufactures and distributes analog and

digital two-way radio products and systems for applications

worldwide, from on-site to wide-area communications.

Motorola’s Messaging, Information and Media Sector designs,

manufactures and distributes a variety of messaging products,

including pagers and paging systems, wireless and wireline

data communications products, infrastructure equipment and

systems, handwriting-recognition software products, image

communications products and services, and Internet software

products. Motorola’s Automotive, Energy and Components

Sector designs and manufactures a broad range of electronic

components, modules and integrated electronic systems and

products for automotive, industrial, transportation, navigation,

communication, energy systems, consumer and lighting

markets. Motorola’s Computer Group designs, manufactures

and distributes Mac® OS-compatible systems, computer

board products and technical computer system platform

products. Many of the products Motorola creates are used in

everyday life unknowingly. FINANCIAL INFORMATION-SEE

APPENDIX 1 GRAPHS-SEE APPENDIX 2-5 APPENDIX 2-

this graph shows that most of Motorola, Inc.’s sales are done

in the US, with Europe a distant second. This is rational due

to the well being of the US economy compared to foreign

economies. APPENDIX 3- this graph shows that the net sales

for Motorola, Inc. have increased steadily over the past three

years. This is due in part to the increase of products made

available by Motorola and the increase in demand for

increasingly inexpensive products. APPENDIX 4- this graph

shows earnings before income taxes. Seen next to Appendix

3, this graph seems unreasonable, however, research and

development costs have increased, plus their more expensive

processors’ sales have decreased due to the instability of

Apple, while their inexpensive cellular devices have

increased. Motorola did sell more, but they also spent more

than in the past two years. Motorola, Inc. appears to be doing

quite will for the 1997 fiscal year compared to their 1996 year.

After the poor year in ’96, they cut programs that weren’t living

up to expectations and have recently joined in several

joint-venture projects including the IRIDUIM® satellite

communications system. Prior to ’96, Motorola’s value was

climbing steadily, but several new programs failed and their

joint venture with Apple to create PowerPC Mac’s tumbled,

taking their value down in ’96. Motorola is constantly

producing new communications devices including, but not

limited to, phones, Internet accessories, satellites, handheld

computers and software that will continue to drive their value

up. As an investor, I would invest in Motorola. They are not a

brilliant stock that would rise suddenly, but they are a safe,

long-term investment that will prove profitable over time. The

need for the devices that primarily Motorola provides will not

decrease, but will instead increase with the increase of

population and space colonization, thus forcing their value up

slowly over time. Motorola, Inc. is a business looking towards