Motorola sees low earnings; stock tumbles; company plans to exit Apple clone market

Article Abstract:

Motorola announced that its 3rd qtr 1997 earnings would fall significantly below expectations, and that it would discontinue manufacturing clones of Apple's Macintosh computer. Motorola attributed its upcoming losses to weak pager results in the top two international markets, the US and China. This development is expected to add some $20 billion to Motorola's expenses when compared to the 2nd qtr 1997. Expenses from Iridium, the company's satellite venture, and flat panel video displays also will contribute to the 3rd qtr 1997 loss, Motorola said. Halting the Macintosh clones will add a one-time cost of $95 million, which analysts believe might mask other weaknesses. Motorola said it would have paid higher royalty fees to obtain a new license for Macintosh cloning, but Apple showed little interest.

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Motorola sees profit missing forecasts; stock price drops 11% in late trading

Article Abstract:

Motorola announced a $95 million pretax charge for shuttering the Motorola group that cloned Apple's Macintosh computer. The wireless telecommunications powerhouse also projected 'significantly lower' 3rd qtr 1997 projections due to weakness in the international paging market. Additional expenses will result from Motorola's participation in satellite cellular phone start-up company Iridium's losses, plus its efforts to enter the flat-panel display market. Motorola planned to halt the manufacture of Mac clones because Motorola and Apple have failed to reach a licensing agreement on the new Apple OS. Paging losses in China are higher than normal and US paging companies have lowered orders to cut inventories, according to Motorola.

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Alltel buying top phone company in Nebraska for $1.5 billion

Article Abstract:

Little Rock, AR-based Alltel Corp. will acquire Aliant Communications Inc. for $1.5 billion. The merger will enable Alltel's expansion into other less-populated areas. Aliant controls most of the Nebraska market and like Alltel, it offers both long-distance and Internet services. The Alltel-Aliant merger will create $5.3 billion in yearly revenue, services for 6.3 customers in 24 states and a staff of 22,000 employees. Alltel has agreed, also, to acquire Durango Cellular Telephone Co.'s operations in Colorado, thus linking them with Alltel's wireless services in New Mexico.

Cellular Mobile Radio Services, Wired Telecommunications Carriers, Arkansas, Telephone Communications, Telephone communications, exc. radio, Colorado, Nebraska, Mergers, acquisitions and divestments, Telecommunications services industry, Telecommunications industry, Telephone services, ALLTEL Corp., AT, ALNT, Aliant Communications Inc., Durango Cellular Telephone Co.

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