Motorola posts profit below forecasts; data provide report card on damage from Asia to US multinationals

Article Abstract:

Motorola's reported 4th qtr 1997 net income of $321 million, or 53 cents a share on a fully diluted basis, fell moderately below analysts' expectations. The electronics company cited 'significant' drops in cellular phone sales in Asia, as well as in major orders for cell-phone systems. Fourth qtr 1997 earnings, excluding special charges, totaled $393 million, or 65 cents a share. While these numbers represent a 10% boost from the 4th qtr 1996's totals of $357 million, or 59 cents a share, analysts had projected approximately 68 cents a share. Motorola's sales of $8.28 billion topped the 4th qtr 1996 total of $7.69 billion by 7.7%. CEO Christopher Galvin said intergovernment cooperation and the International Monetary Funds will help to stabilize falling Asian currencies. Galvin predicts 1st qtr 1998 and 2nd qtr 1998 sales to exceed their 1997 counterparts by a 'range of 10%.'

Other Electrical Equipment and Component Manufacturing, Electronics, Electronic Components and Accessories, Finance, Company sales/revenue, Company sales and earnings, Electronics industry, Company earnings/profit

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Motorola, IBM to end alliance on design of PowerPC chip line

Article Abstract:

Motorola and IBM said they will discontinue their joint design of the PowerPC microprocessor line. Plans call for Motorola to assume full ownership of the Austin, TX-based Somerset PowerPC microprocessor design center, which it had co-owned with IBM, for an undisclosed amount. Both companies will develop separate PowerPC designs and target different markets, possibly competing directly for Apple and other customers. Motorola and IBM will maintain a working group with Apple, a former PowerPC ally that helped form the operation in 1991, to ensure intercompatibility. Product delays and partner conflicts prevented the alliance from achieving its goal of cornering 25% of the microprocessor market, in addition to much of the big embedded market. The Somerset sale represents IBM's wish to halt investment in a project that basically designs chips for Apple, according to insiders.

Semiconductors and related devices, Semiconductor and Related Device Manufacturing, Microprocessor Chips, Hardware product development, Product development, Computer hardware, Microprocessor, CPUs (Central processing units), International Business Machines Corp., IBM, Microprocessors, Motorola PowerPC (Microprocessor)

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