Motorola 2008 Annual Report Download - page 3

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March 2009
Dear Fellow Shareholders:
In 2008, amidst the most challenging global economic environment in decades, Motorola delivered
solid financial results in our Enterprise Mobility Solutions and Home & Networks Mobility
businesses. We also moved forward on our strategy to reposition our Mobile Devices business.
Across the company, we focused on the right markets, the right technologies and the right
investments to grow our business for the future.
Over the past 80 years, Motorola has weathered tough macro environments and reinvented itself
many times by being very focused on innovation and customers. We are doing so again. In 2009,
we will prudently manage business fundamentals, maintain a strong balance sheet and invest in the
technologies and market segments we serve.
In 2008, we announced that we were pursuing the creation of two independent, publicly traded
companies. Due to the weakened global economic environment and dislocation in the financial
markets, as well as changes underway in our Mobile Devices business, we announced that we
were no longer targeting the third quarter of 2009 to complete the separation. Nonetheless, we
have made progress on various elements of our separation plan and remain committed to creating
two independent companies.
Business review
The Enterprise Mobility Solutions and Home & Networks Mobility businesses that make up our
Broadband Mobility Solutions organization continue to be substantial franchises with leadership
positions in many markets that are shaping the communications landscape of the 21st century.
Our Enterprise Mobility Solutions business performed well and grew in key international markets. In
a time of tight infrastructure budgets, our mission-critical communication solutions remain a top-
priority for homeland security and public safety customers. In enterprise, our products address the
need for converged enterprise communications and productivity enhancing solutions.
Our Home & Networks Mobility business continues to lead in market share in digital entertainment
devices for cable and IPTV deployments. We also provide fully integrated and customizable media
solutions to deliver personalized, rich media experiences to the consumer. Our strategy to make
‘broadband everywhere’ a reality no matter the network topology continues to pan out around the
globe. And we are helping customers optimize their networks to reduce cost and maximize
bandwidth for their subscribers, which makes richer, more personalized media both portable and
secure for consumers.
Our vision for the Mobile Devices business is to be a profitable, leading supplier of wireless
handsets. We have taken actions to reduce the size and cost structure of the business, including
actions to simplify handset platforms and enhance the product portfolio. New products that we plan
to introduce are already getting positive feedback from several key customers. We have also
increased our focus on priority markets, including the Americas and parts of Asia. We will build on
continued –