Motorola Q4-07 and Full-Year Results

• Fourth-quarter sales of $9.65 billion
• Fourth-quarter GAAP earnings from continuing operations of $0.05 per share, including net charges of $0.09 per share from items highlighted below
• Mobile Devices remains challenged; sales declined 38 percent versus prior-year quarter
• Home & Networks Mobility and Enterprise Mobility Solutions continue to deliver strong results
• Fourth-quarter positive operating cash flow of $470 million and cash conversion cycle improved by 10 days
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  Operating Results
  
  Mobile Devices segment sales were $4.8 billion, down 38 percent compared with the year-ago quarter. The operating loss was $388 million, compared with operating earnings of $341 million in the year-ago quarter. For the full year 2007, sales were $19.0 billion, a 33 percent decrease compared to 2006, and the segment incurred an operating loss of $1.2 billion, compared to operating earnings of $2.7 billion in 2006. During the quarter, the company shipped 40.9 million handsets.
  
  Mobile Devices highlights:

• Announced nine new phones during the quarter, including: the U9, featuring a rich music experience with external touch-sensitive music controls; seven new W-Series handsets; and the luxury edition RAZR²
• At the International Consumer Electronics Show (CES): introduced the MOTO Z10, the ROKR E8, which won four Best of CES awards, including CNET’s “People’s Voice” award, and new companion products; and announced the Soundbuzz acquisition
• Completed an agreement with Qualcomm to include chipsets for 3G devices

Home and Networks Mobility segment sales were $2.7 billion, up 11 percent compared with the year-ago quarter. Operating earnings decreased to $192 million, compared with operating earnings of $223 million in the year-ago quarter. For the full year 2007, sales were $10.0 billion, a 9 percent increase compared to 2006, and the segment generated operating earnings of $709 million, compared to $787 million in 2006.

Home and Networks Mobility highlights:

• Shipped 3.4 million digital entertainment devices during the quarter, with a record quarter for IP set tops
• Shipped its 50 millionth cable/voice modem during the quarter
• Introduced several new products at CES, including the DCX series of MPEG-4 HD set tops, capable of advanced video services, media storage, and usable as a home multimedia hub; the DH01 Mobile TV, a pocket sized and a DVBH device for multimedia entertainment on the go
• Continued momentum in WiMAX - ending the year with 47 active trials and 15 commercial contracts globally
• Completed the sale of the embedded computing business to Emerson for $350 million

Enterprise Mobility Solutions segment sales were $2.1 billion, up 35 percent compared with the year-ago quarter, driven by sales from the Symbol business acquired in early 2007. Operating earnings increased to $451 million, compared with operating earnings of $323 million in the year-ago quarter. For the full year 2007, sales were $7.7 billion, a 43 percent increase compared to 2006, and the segment generated operating earnings of $1.2 billion, compared to $958 million in 2006.

Enterprise Mobility Solutions highlights:

• Acquired majority ownership of Vertex Standard, enabling both companies to deliver an enhanced product portfolio to customers worldwide
• Awarded contracts from the city of Atlanta and the Colombian Ministry of Defense
• Announced the CA50 VOIP-enabled wireless bar code scanner
• Introduced integrated GPS functionality for the market-leading MC70 enterprise digital assistant

First-Quarter 2008 Outlook
The Company’s outlook for the first quarter is a loss from continuing operations of $0.05 to $0.07 per share. This outlook excludes any reorganization of business charges associated with the Company’s operating expense reduction initiatives, as well as any other items of the variety highlighted by the Company in its quarterly earnings releases.

Source: Motorola Press Release