Motorola 2002 Annual Report Download - page 38

36 Motorola, Inc.
SEMICONDUCTOR
PRODUCTS
SEGMENT
How does your car know when to deploy an airbag?
How does a router sort all the Internet traffic passing
through it? How do they cram all the services
and features into your newest wireless device?
Welcome to the world of embedded processing
and connectivity, delivered by system-on-chip
technologies. It’s a world we created, and today
we are the global No. 1 producer of embedded
processors and the No. 1 silicon supplier in our
wireless, networking and automotive markets.
We are focused on these markets:
>Wireless, where our platform solutions help
device manufacturers get to market quickly with
more features and more functionality.
>Networking,w here our c ommunication proc es-
sors are connecting the world and driving vital
upgrades in the telecom and Internet infrastructure.
>Automotive, where we are helping customers
create “ smart” vehicles that enhance safety, the
environment and the driving experience.
>Standard Products, used in everything from
pocket-sized digital cameras to smart washing
machines.
For 2002, Semiconductor Products Segment (SPS)
sales were $4.8 billion, compared to $4.9 billion in
2001. The segment reported an operating loss of
$1.5 billion, presented on a GAAP basis, versus an
operating loss of $1.9 billion a year ago. Excluding
special items, SPS reported an operating loss of
$283 million, compared with an operating loss of
$1.0 billion a year ago. The decrease in the operating
loss, excluding special items, was due to higher
gross margin and much low er operating expenses.
In 2002, we took the following steps to deal with
the cyclical nature of the semiconductor industry
and current economic realities: trimmed our costs;
reduced our capital expenditures; outsourced
more production; and partnered to spread the cost
and risk of R&D. We increased our licensing of
intellectual property. We improved our perfor-
mance as the semiconductor industry began to
recover from its deepest downturn in history. Now
the sense of urgency shifts to improving sales and
generating profits. We introduced 181 new products
in 2002 and plan to launch more than 200 in 2003.
MGT5100 TELEMATICS SYSTEM PROCESSOR
IF YOU’RE CONNECTED TO THE INTERNET, THERE’S A
GOOD CHANCE MOTOROLA CHIPS ARE HANDLING AND
ROUTING YOUR DATA. OUR POWERQUICC™ FAMILY
COMMANDS MORE THAN 70% MARKET SHARE IN
THE COMMUNICATION PROCESSOR ARENA.
TELEMATICS COMBINES WIRELESS VOICE AND DATA SERVICES
WITH GLOBAL POSITIONING SYSTEM TECHNOLOGY, GIVING
VEHICLES THE ABILITY TO COMMUNICATE WITH THE OUTSIDE
WORLD. TELEMATICS ENABLES AUTOMATED ROADSIDE
ASSISTANCE, NAVIGATION AND ADVANCED SAFETY FEATURES.
MOTOROLA PROCESSORS HAVE GARNERED A 90% MARKET
SHARE IN TELEMATICS CONTROL UNITS.
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POWERQUICC™COMMUNICATION PROCESSOR