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Quoted from Dispatch Monthly Magazine – 06/24/2008

One of the country’s largest and most successful electronics companies is suffering after competition, changing technology and other factors have left it at the mercy of overseas competitors and even U.S. upstarts. The uncertainty leaves cities and counties wondering if Motorola can continue to compete in the two-way radio market. Motorola reported yet another quarterly loss in April: $194 million, on revenues of $7.45 billion, the lowest sales in four years.

Motorola was once the king of electronics, but has seen their market share dip as firms from Japan and Korea began to sell competing models of products, most notably cellular handsets. The company’s profits disappeared for several years, returning only briefly in the last 18 months, but the stock price has continued to suffer–down almost 63% over the past year, and likely to move lower, analysts forecast. Even the company’s announcement earlier this yet that it will spin off its handset business from its other subsidiaries hasn’t prevented investors from bailing out, or financial analysts from wondering how the other product categories, including cable boxes and two-way radios, will fare in the coming months. Most recently analysts say the company’s $4 billion in cash won’t be enough to sustain the two spun-off companies, leaving the network and radio products division without financing to maintain research and development.

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