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  • 8/8/2019 History Motorola Annual Report Archive 1955 4p12mb 24

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    annual report:

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    television

    c a r r a d i o s

    tw o wayr a d i o and

    c o n t r o l s electronics manu

    mi l i taryelectronics4545 AUGUSTA BOULEVARD

    CHICAGO 51, ILLINOIS

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    Paul V. GalvinDirecto r , Pres id en t

    Robert W. GalvinD i r e c t o r ,Execu t ive V ice Pres id en t

    Daniel E. NobleD i r e c t o r ,V ice Pres id en t in Ch a rg e o fC o m m u n i c a ti o n s a n d E l e c tr o n i c sD i v i s i o n

    Matthew J . Hickey, Jr. *D i r e c t o r '\

    Frank J. O'BrienD i r e c t o r ,V ice Pres id en t fo r Pu rch a sing Walter B. ScottD i r e c t o r ,V ice Pres id en t fo r Ma nu fa ctu r ingConsu mer Prod u cts a nd Mi l i t a ry

    Edward R. TaylorD i r e c t o r , Edwin P. Vanderwicken Elmer H. WaveringD i r e c t o r ,V ice Pres id en t fo r Eng inee r ingConsu mer Prod u ctsDirecto r ,V ice Pres id en t fo r F ina nce a ndTrea su re rV ice Pres id en t fo r Ma rke t ingConsu mer Prod u cts a ndAssis ta n t to th e Pres id en t

    TRANSFER AGENTS

    REGISTRARS

    Chemical Corn Exchange Bank1 65 B r o a d w a y , N e w Y o r k 1 5 , N e w Y o r k

    Irving Trust CompanyO n e W a l l S t r e e t , N e w Y o r k 1 5 , Ne w

    Harris Trust and Savings Bank1 15 West Monroe St ree t , Ch ica g o 9 0 , I l l ino is

    Continental Illinois National Bankand Trust Company of Chicago231 South La Salle St., Chicago 90, Illinois

    The annual meeting wil l be held on Monday, Ma y7, 1956. A notice of the meeting, together with aform of proxy and a proxy statement, will be mailedto shareholders on or about April 14, 1956, at whichtime proxies will be solicited by the management.

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    YEAR FINANCIAL SUMMARYEARNINGS

    BEFORE TAXESON INCOME

    INVESTMENTIN PLANT AND

    EQUIPMENT 2

    61,981,44281,803,358

    'Earnings per share of common stock based upon the 1,935 ,131 shares outstanding at December 3 1 , 195 5.JNet investment after deduction of depreciation reserves.'Thirteen month period ended December 31 , 194 8.'Consolidated information including financial data of wholly-owned subsidiaries in 1949 and subsequent years.

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    SALES

    totheshareholders

    of

    MOTOROLA 46 47 48 49 51 51 52 53 54 55 46 47 48 49 51 52 53 54 55SALES AND EARNINGSA new sales record for thecompany was made in 1955. The$226,654,000 sales were $21,428,000 or 10% above 1954. The autoradio, home radio, television andcommunications divisions eachparticipated in this increase which was achieved despite a decline inour military business ofabout 18%.Consolidated earnings in 1955, before provision fortaxes, were$18,740,426, up 13% over 1954, and the highest in the record of thecompany except for 1950. Net earnings of $8,490,539 in1955,equivalent to $4.39 pershare of common stock, compare with$7,572,024 or$3.91 per share in 1954.

    MONOCHROME TELEVISIONIn 1955 the industry produced and sold more television sets than inan y previous year. There were 7,756,521 monochrome sets produced

    which compares with 7,463,800 in 1950, the previous high. The dollarvalue ofsets produced was greater than in the previous year becausethe demand shifted toward higher priced sets and the price levelgenerally increased to give effect to higher costs of labor and materials.Industry inven tories at the manufacturing, w holesaling and retail levelstotalled about 2,100,000 sets atyear-end and were at reasonablelevels even though sales for the industry in November and Decemberdid not measure up to expectations.Motorola introduced an entirely new line of television sets in July,featuring "right-up-front" tuning and a vertical chassis with a sub-stantially brighter picture. Our objective was togive "value aboveall" and the acceptance of the line proved this was achieved. We wereunder the necessity of allocating sets to our distributors during Augustto October, resulting from a shortage of labor inthe Chicago areaat a time of peak demand for our sets. Inthe latter part of the yearMotorola 's propor t ion of industry sales was increased over theprevious year.

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    The demand for replacement and second-set television is rapidlyincreasing. There was a total of 975,000 sets sold in 1948, 3,000,000in 1949 and 7,463,000 in 1950. Many of these early sets containedsmaller picture tubes and no longer provide a quality of receptionavailable from current models. Many sets are old enough to requirenew picture tubes. Replacement ofthese older sets now provides agrowing share of the television business and should continue to sup-por t ahigh level of production. The rate of obsolescence will furtherincrease as color television gains acceptance. At year end it isestimated there were 37,500,000 monochrome sets inus e inthiscountry.

    COLOR TELEVISIONColor television is gaining acceptance gradually. The number of

    telecasts are increasing, both day time shows and evening programs.There are more stations preparing to give more color programs. Thetelecasters have had good experience with day time telecasts of out-door sports eventsthe world series, football games and other events.The NBC affiliate in Chicago will be converted to color exclusivelyfor all programs emanating from Chicago beginning some time inApril, 1956, thus providing upwards toten hours of color a day.This progress inextending more programs into more localities isthe forerunner of a greater volume ofsales ofcolor television sets.We have been selling color television sets since the summer of1954 and are one of the few companies that have sold them in anyconsiderable number. We are continuing our research and develop-ment work in color television sets and expect to introduce new modelsthis summer. With the advent of these new models, we expect toincrease our volume of sales in color receivers.

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    COMMUNICATIONS & ELECTRONICSThis division of the business had, by a substantial margin of improve-ment, its best sales on record and is preparing for further advances.During the year it completed preparation for manufacture of anew line of portable communication equipment. By the use of transis-tors, printed circuitry, modular construction and other improvementsthis equipment is lighter in weight, smaller in size, has higher poweroutput (as much as 20 times former equipment) and is more versatile.The receiving units contain only 2vacuum tubes. Transmitter poweris 2V i to 1 comp ared with former equipment. As aresult of extensivefield tests substantial orders are already in hand.

    This division also introduced the transistorized Handie-Talkieradio paging unit which can supplant noisy and ineffective pagingsystems in hospitals, mail order houses, industrial plants and in otherlocations where short distance portable communications are desired.Only the person being paged receives a signal on his small pocketreceiver on which a message is also received.

    Another new product line, the "Private Line" radiophone, is beingintroduced tosupplement the mobile communications products. Itemploys the Motorola vibrasponder and vibrasender which preventactivation ofunwanted stations using the same frequency channel.By this means mobile communications systems are freed from thenecessity ofmonitoring all messages.The last section of this report is devoted to a fuller description ofthe work of the communications and electronics division.

    MILITARY ELECTRONICSWhile sales of military electronic equipment and laboratory servicesdeclined about 18% in 1955, much preparatory work was underwaywhich has promise of further substantial increases in military billings.Our research and development laboratories in Phoenix, Riverside andChicago have been working on projects which could result in majordevelopment and production contracts, particularly inthe field ofguided missiles.

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    It isour purpose tomake a constructive engineering contributionto the military services in the field of electronics in which we specialize,and by so doing tomerit their interest as anincreasingly importantproducer of electronic products.The President's budget report tothe Congress inJanuary recom-mended substantially increased appropriations inthe electronic andcommunications fields.

    HOME RADIOS AND PHONOGRAPHSThe complete line of home, clock and portable radios and phono-graphs was redesigned in 1955 and this, in part, accounts for a5 5 %increase insales over 1954. Sales ofportable radios were more thandoubled over the previous year. They feature anantenna enclosedin a rotating handle and anunbreakable, metal casing with good

    TABLE RADIOS

    New building will consolidate radio manufacturing facilities nowoccupying several separate buildings inQuincy,III.

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    design and colors. Their performance was outstanding. Motorola'sproportion of industry sales in all of these categories was substantiallygreater than in 1954.

    AUTO RADIOCoincident with the record production of automobiles in1955, ourauto radio division also experienced its best sales year on record bya good margin. Our sales to Ford Motor Co. and the Chrysler Corpo-ration increased substantially, as did sales to our distributors.

    We recently announced a new line of transistor powered autoradios. Because the transistor hasa practically unlimited life, itsapplication toauto radios isparticularly advantageous and, in ad-dition, permits elimination of several power consuming componentsof anauto radio installation.This division of the business added anew product line, the push-

    button shift a ctuator adopted on all Chrysler Corpora tion cars in 1955 .The auto radio tuner plant inArcade, New York, acquired latein 1954, was used to good advantage in1955 and plans are alreadyin the making for asubstantial addition to it. The new building, nowbeing completed inQuincy, Illinois, will also provide more adequatemanufacturing capacity for auto radios.

    TRANSISTORSWe have just recently completed a $1,500,000 facility inPhoenix,Arizona, for the commercial production of transistors. This operationis designed to be the most efficient producer of transistors in existence.At the same time our development work in transistors has given betterresults than we anticipated.As the first manufacturer to put ahigh power transistor into com-mercial production, we are concentrating ongetting a high yield in

    Architect's sketch showscarradio tuner plant inArcade, New York, after new addition iscompleted.

    New addition adds 50,000 square feet to televisionassembly facilities atFranklin Park,III.

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    production. Power transistors which will be used inauto radios, atfirst, will obsolete present methods ofmaking auto radios.We have also discovered an effective method of producing diffusedbase transistors forradio frequency applications extending into themicrowave region. Development of four other types of transistorsis well along.FINANCESAt the 1955 year-end net working capital stood at$42,892,165, upabout $4,500,000 for the year, while consolidated net worth had risento $56,186,590.In June the company increased its long term notes, held by Pru-dential Insurance Company, inthe amount of $3,500,000 and alsoarranged for an additional $4,000,000 to be made available toMotorola at any time up toJuly 1, 1957. These additional fundswere arranged for in contemplation of a program for increasingefficiency and capacity of our physical plant and equipment. This

    program was underway in1955 during which work was started ona 185,000 square foot building in Quincy, Illinois, toreplace opera-tions in three other locations in Quincy. A 70,000 square footbuilding was started inPhoenix, Arizona, tohouse the productionof transistors and a 50,000 square foot addition to our Franklin Park,Illinois, plant was inprogress. All three plants have been or will beoccupied inearly 1956. We also have under consideration anad -dition toour plant inArcade, New York and further facilities atour Franklin Park plant. Recently we announced the acquisition of160 acres of land near Phoenix, Arizona on which we propose tobuild a plant with about 150,000 square feet for military electronicsengineering and production. We were also engaged during the yearin a program ofadvanced mechanization ofour plant equipment .Dividends totalling $1.50 per common share were paid in1955.At the close of the year there were 4,434 Motorola stockholders.

    Directors, officers and their immediate families owned directly orbeneficially 565,709 shares ofMotorola stock.

    NET WORTH, WORKING CAPITALAND INVESTMENT

    IN PLANT AND EQUIPMENT

    1946 1947 1948 1949 1950 1951 1952 1953 1954 1955

    NET WORTH i WORKING CAPITAL PLANT & EQUIPMENT (NET)

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    TH E FUTUREWhile both the political and economic uncertainties are greater in1956 than appeared at the beginning of 1955, we are aiming foranother year of growth in 1956.

    On a product by product basis, it is probable that our volume ofsales of car radio will be reduced somewhat because of lower auto-mobile production. Television sales will depend in some degree onwhat progress is made in public acceptance of color television be-cause it is possible that sales of monochrome sets will be somewhat

    lower for the industry. The communications and electronics, homeradio and military electronics divisions of our business appear to beheaded for higher levels.Over the longer term we see what we believe are exceptionallygood prospects in all divisions of the business and to prepare forthis we will continue in 1956 our program of improving our plantand equipment, providing adequate space and advanced mechaniza-tion of production methods.

    March 14, 1956Sincerely

    For the Board of Directors

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    MOTOROLANC ANDSUBSIDIARIES, CONSOLIDATEDBASSETS rCashAc c oun ts r ec e iv a b le :U n i t e d S t a t e s G o v e r n m e n t

    O t h e r t r a d e a c c o u n t s ( l e s s r e s e r v e f o r b a d d e b t s 1955, $849,438; 1954, $743,128)O t h e r c u r r e n t r e c e i v a b l e sC os ts r e c o v e r a b l e u n d e r U n i t e d S t a te s G o v e r n m e n t c o n t r a c t s ,less progress bi l l ingsI n v e n t o r i e s a t t h e l o w e r o f p r im e c o s t o r m a r k e tPr epa id ex pens es

    TOTAL CURRENT ASSETSOther assetsPla n t , equipmen t a nd lea s eho ld impr ov emen ts ( les s r es e r v ef o r d e p r e c i a t i o n 1 9 5 5 , $ 5 , 1 9 7 , 5 3 6 ;

    1 9 5 4 , $3, 806, 341)P a t e n t s a n d t r a d e m a r k s l e s s a m o r t i z a t i o n

    1955

    $ 5,936,3569,067,795

    28,863,5161,195,103

    11,378,43424,805,491

    324,295$ 81,570,990

    3,495,463

    19,179,992184,773

    $104,431,218

    December31,1954

    $13,321,302

    10,489,782

    23,772,927720,152

    7,167,00319,290,806

    461,208$75,223,180

    2,573,429m

    16,579,531154,944

    $94,531,084

    LIABILITIES

    C u r re n t m a t u r i t i e s of l o n g - t e r m d e b t , a n d s h o r t -t e r mb o r r o w i n g s ofs ubs id ia r iesA cc o un ts p a y a b l e t r a d eAc c r ued ta x esR e s e r v e s f o r p r o d u c t a n d s e r v i c e w a r r a n t i e sOthe r c ur r en t l i a b i l i t i e sTOTAL CURRENT LIABILITIESL o n g -t e r m d e b t , le s s c ur r e n t m a t u r it i e s a b o v e :3 % % n o te s :D ue N o v e m b e r 1 , 1 9 6 6 , w i t h a n n u a l p r e p a y m e n t r e -qu i r emen ts o f $500, 000

    Due July 1,1972,with a n n u a l p r e p a y m e n t r e q u i r e m e n t so f $500, 00 0, c omm enc ing J uly 1, 1958R e a l e s t a t e m o r t g a g e s :Pa r en t , d ue Ma r c h 1, 1956 ( inc lud ed in c ur r en t l i a b i l i -t i e s o n D e c e m b e r 3 1 , 1 9 5 5 )

    Subs id ia r ies , pr inc ipa l l y ma tur ing a f te r 1965To ta l l i a b i l i t i e sSHAREHOLDERS EQUITYCa pi ta l s toc k , $3. 00 pa r v a lue a utho r iz ed , 3,000, 000s h a r e s ; is s ue d a n d o u t s t a n d i n g , 1,935,131 sharesCapita l surplusR e t a in e d e a r n i n g sTo ta l s ha r eho ld e r s ' equ i ty

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    LANCE SHEETS AS OF DEC 3 1 , 1 9 AND 1 954December 31 ,

    1955

    992,05613,992,50810,616,1111,312,73411,765,416$ 38,678,825

    1954

    $ 1,000,0409,687,561

    10,545,5511,365,625

    14,315,791

    5,500,0003,500,000

    565,803$ 48,244,628

    $ 5,805,3939,018,50641,362,691$ 56,186,590$104,431,218

    6,000,000

    446,804570,965$43,932,337

    $ 5,805,3939,018,506

    35,774,848$50,598,747

    $94,531,084

    N O T E S T O F I N A N C I A L S T A T E M E N T S

    AAll of the company's subsidiaries are wholly owned an d all are included in the consolidated financial state-ments. The accounts of Canadian subsidiaries are included in terms of United States funds, at appropriate ratesof exchange; the amounts pertaining to Canadian companies are relatively inconsequential.

    BThe company's business under United States Government contracts is subject to price renegotiation, inaccordance with federal statute. The comp any's renegotiation status has been reviewed by the Government foryears to and including 1952, and no refund was required. It is believed that no excessive profits were realizedin subsequent years which would be required to be refunded under general price renegotiation.

    CIn connection with the financing of sales of products to consumers in the ordinary course of business thecompanies are obligated to repurchase products under certain circumstances. It is believed that these obligationswill have no material effect on the business of the companies.

    DThe Retained Earnings account at December 31, 1955 is the balance after transfer therefrom in prior yearsof $2,945,385 to capital surplus and $5,034,625 to the capital stock account, in connection with stock dividends,share distributions and increase in the pa r value of capital stock. Capital surplus consists of $6,073,121 of paid-incapital and the above-mentioned transfer from the Retained Earnings account.

    EElection has been made to use a method for accelerated depreciation as permitted by the Internal RevenueCode of 1954. The effect of this change was to increase the depreciation charges in 1955 by approximately$280,000.

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    STATEMENTOFCONSOLDATEDINCOMEAND

    RETANEDEARNNGS AUDTORS REPORTYear Ended December 31,

    SalesOthe r inc ome

    To ta l i nc omeMa nuf a c tur ing andother costs of sa lesS el l i ng , s e r v ic e anda d m i n i s t r a t i v e e x p e n s e sD e p r e c i a t i o n and a m o r t i z a t i o n of l e a s e ho l d i m p r o v e m e n t s . .Con t r ibut ion to employ ees ' p r o f i t - s ha r ing f undI n te r es t and o the r ex pens es

    Tota l costs and o the r ex pens esNe t inc ome be f o r e pr ov is ion for ta x es on i n c omeProv is ion forf e d e r a l , s t a te andC a n a d i a n in c om e t a x e s . . .Ea r n ings , .(per c ommon s ha r e 1955, $4. 39; 1954, $3. 91)Re ta ined ea r n ings , beg inn ing of y e a r

    T o t a lD e d uc t c a s h d i v i d e n d s d e c l a r e d $ 1.50 per s ha r eR e t a i n e d e a r n i n g s , end of y e a r

    1955

    $226,653,9531,774,110

    $228,428,063$179,293,927

    24,133,6151,840,9113,362,5141,056,670

    $209,687,637$ 18,740,42610,249,887$ 8,490,539

    35,774,84844,265,387

    2,902,696$ 41,362,691

    1954

    $205,226,0771,595,724

    $206,821,801$161,730,316

    23,187,2531,405,9412,910,4671,063,935

    $190,297,912

    $ 16,523,8898,951,865

    $ 7,572,02431,105,520

    $ 38,677,5442,902,696

    $ 35,774,848

    BAUMANN, FINNEY &CoCertified Public Accountants

    208 SOUTH LASALLE STREETCHICAGO 4, ILLINOIS

    February 20, 1956To the Board ofDirectors andStockholders ofMotorola, Inc.

    We have examined the consolidatedbalance sheet ofMotorola, Inc. and itssubsidiaries as ofDecember 31, 1955, andthe related statement ofincome and re-tained earnings forthe year then ended.Our examination was made inaccord-ance with generally accepted auditingstandards, and accordingly included suchtests ofthe accounting records and suchother auditing procedures as we considerednecessary in thecircumstances. It wasnot practicable to attempt to obtain con-firmations of certain receivables fromthe United States Government, but wesatisfied ourselves as to their substan-

    tial accuracy by means of other auditingprocedures.In ouropinion, the accompanying bal-ance sheet and related statement ofincomeand retained earnings, as footnoted, pre-sent fairly the consolidated financialcondition of Motorola, Inc.and its sub-sidiaries on December 31, 1955and theconsolidated results oftheir operationsfor theyear then ended, in conformitywith generally accepted accounting prin-ciples applied onabasis consistent withthat ofthe preceding year.

    See the accompanying notes to financial statements.

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    COMMUNICATIONSANDELECTRONICS DIVISION

    The department that createda new industry.

    T h i s s p e c i a l s e c t i o ni s d e v o t e d toC o m m u n ic a t io n s a n dE l e c t ro n i c s , o n e of th ef i v e . d i v i s i o n s of M o t o r o l a .\ Its p u rp ose is toa c q u a i n t y o u w i t h s o m eo f th e l e s s f a m i l ia r ,m o r e c o m p le x a c t i v it ie sa n d p r o d u c t s ar"t he c o m p a n y .

    From the very beginning, the history of Motorola's communi-cations and electronics division has been one of achievement.Actually, this division has been instrumental in the creationand development of an important new industry.

    Today its activities include construction, installation andmaintenance of custom-engineered two-way radio systems,microwave relay systems, electronic signaling systems andremote control systems . . . everyday necessities for thou-sands of customers inscores of industries and governmentagencies, including theArmed Forces.

    What is behind this remarka ble achievement? It can be summedup in three words: the creative spirit. The communications

    and electronics division has always demonstrated vision andcapacity to achieve. Its mission has been toexplore newhorizons in communications and electronics and throughcreative engineering, production and marketingto turn newideas into practical tools for a growing range of industries.This spirit has made the communications and electronicsdivision a major factor inMotorola's growth. Today thedivision occupies 500,000 sq. ft. of space. It has 3,200 people, anunusually high proportion of them engineers. Nationwide salesand service are provided by a force of225 sales engineers in 12offices, and a network of750 independent authorized MotorolaService Stations.

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    Communications and Electronics Division achievement at work... Motorola Two-Way Radio

    Fire fighters "on the air." T h e D e t r o i t f i r e d e p a r t m e n tr e p o r t s it sav es 10,000 mi les a y e a r in f i r e t r u c k t r a v e l byu s i ng M o t o r o l a t w o - w a y r a d i o s . Fire d e p a r t m e n t s t h r o u g h -o u t t hi s c o u n t r y a n d a b r o a d h a v e f o u n d t h a t M o t o r o l at w o - w a y r a d i o p e r m i t s f a s t e r r e s p o n s e to c a l l s a n d m o r ee f f i c i en t u s e o f e q u i p m e n t .

    P E R S O N T O P E R S O NPolice and fire departments depend on it. So dodoctors and truckers. Pipelines, publicutilities and construction companies. Taxi fleets, railroads and ranchers. Two-way radiohas become an everyday necessity in scores of fields. It's big business, with over 500,000licensed transmitters already in existence. And growing rapidly.

    Thanks to the pioneering of the communications and electronics division, Motorola hasconsistently led the industry in the production oftwo-way radio equipment. This includesbase station equipm ent, mobile units for use in all types of conveyances, and self-containedportable units that go wherever a man can go.

    4 trucks do work of 5. T h e B u t a neS e r v ic e C o m p a n y of F a i r f i e l d ,T e x a s , r e p o r t s t h a t M o t o r o l a t w o -w a y r a d i o m a d e p o s s i b l e a 25 %i n c r e a s e in e a c h t r u c k ' s d e l i v e r i e s .I n e f f ec t it e n a b l e s 4 t r u c k s to dot h e w o r k o f 5 .

    225 messages an hour. T h a t ' s t h ea v e r a g e l o a d o n t h e M o t o r o l a t w o -w a y r a d i o s y s t e m at T i m k e n R o l l e rB e a r i n g C o m p a n y , C a n t o n , O h i o .F o ur d i e s e l l o c o m o t i v e s , t h re e r a i l -r o a d c r a n e s a n d a l l t r u c k s a n d c a r sw e r e r a d i o - e q u i p p e d . The s y s t e mpaid for i t s e l f in d o l l a r s a v i n g s inj u s t 2 '/2 m on t h s .

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    . . O N T H E G O !

    Forest rangers always "in touch." D u r i n g a r e c e n th o l o c a u s t i n t h e S a n t a Y n e z M o u n t a i n s o f s o u t h e r n C a l i -f o r n i a , M o t o r o l a t w o - w a y r a d i o s k e p t r a n g e r s a n d f i r ef i gh t e r s i n c o n s t a n t t o u c h w i t h h e a d q u a r t e r s a n d e a c ho t h e r , t h u s m a k i n g i t p o s s i b l e t o c o o r d i n a t e t h e i r e f f o r t sm o r e e f f i c i e n t l y .

    Radio speeds materia ls handling. R a d i o - d i s p a t c h e df o r k l i f t t r u c k s s i m p l i f y a n d s p e e d o r d e r f i l l i n g a t J o h n s o na n d J o h n s o n , I n c . , w a r e h o u s e s i n M e t u c h e n , N e w J e r s e y .T h i s c o m p a n y h a s a l s o fo u n d i t p r o f i t a b l e to i n s t a l lM o t o r o l a t w o - w a y r a d i o i n i t s C h ic a g o w a r e h o u s e s .

    Handie-Talkie radio-phone in the sky. In thec o n s t r u c t i o n o f C h i c a g o ' s h u g e n e w P r u d e n t i a lB u i l d i n g , t h e G e o . A . F u l le r C o m p a n y f o u n dM o t o r o l a t w o - w a y r a d i o t h e o n l y p r a c t i c a l w a y t om a i n t a i n c o m m u n i c a t i o n s b e t w e e n w o r k e r s hi g h i nt h e s t r u c t u r e a n d t h o s e o n t h e g r o u n d . O n e i m p o r -t a n t b e n e f it w a s a r e m a r k a b l e s a fe t y r e c o r d .

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    Communications and Electronics Division achievement at work

    SEVEN-LEAGUEBOOTS FORINDUSTRIAL

    COMMUNICATIONThestoryof

    Motorola Mcrowave

    Pipeline "on the beam." U n a t t e n d e d o p e r a t i o no f p u m p s a n d c o m p r e s s o r s a l o n g a1000 m i le pipe -l i ne of t h e Te x a s - I l l in o i s N a t u ra l G a s T r a n s m i s s i o nC o m p a n y i s m a d e p o s s i b l e b y r a d io s i g n a l s b e a m e do v e r a M o t o r o la m i c r o w a v e r e la y s y s t e m .

    Microwave systems transmit information bymeans ofsuper-high radiofrequency signals. These signals can be focused into avery narrow beamdirected at an antenn a many miles away. A single beam can carry up to 24voice messages or 500 code signals simultaneously.Microwave provides industry with private, multi-channel communica-tions without the expense, hazards and maintenance problems of conven-tional wire lines. Its applications are numerous. For example, pipelinesand power utilities use microwave for cross-country voice communication,teletype, telemetering and remote control. Microwave extends the rangeof mobile radio by relaying signals from "out of range" transmitters tothe base station. TV broadcasters use it to relay remote programs fromplace oforigin to the studio or transmitter.Motorola's communications and electronics division has been a leaderin microwave from the start, having provided more "in and operating"systems than any other manufacturer.

    Two-w ay radio "levels mountains." In the shadow of Mt .R a i n e r , A e r o n a u t i c a l R a d i o , Inc. u s e s M o t o r o l a m i c r o w a v e att h e S e a t t l e - T a c o m a I n t e r n a t i o n a l A i r p o r t to b e a m m e s s a g e s tor e m o t e m o u n t a i n - to p a v i a t io n r a d i o t r a n s m i t t e r s .Getting color TV toy o u . N e x t t i m e y o u s e e a s p o r t i n g e v e n t ,t he n a t io n a l c o n v e n t i o n s ors o m e o t h e r " r e m o t e " pr o g r a m i n fu l lc o l o r , the p i c t u r e w i l l p r ob a b l y be b e a m e d tothe t r a n s m i t t i n gs t a t i o n b y M o t o r o l a m i c r o w a v e r e l a y . ^ ^ v

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    MAGIC ON THE HIGH-TENSION WIRESMotorola Power Line Carrier and Supervisory Control

    The power lines you see strung everywhere can carry more than current. ThroughMotorola power line carrier and supervisory control systems, they also carry thou-sands of messages every day ! Voice messages. Telegraph an d teletype messages. Codemessages that make it possible to control a wide variety of generating and distributionoperations throughout an entire power company system from one central point.Hot wires hum with messages. M o t o r o l a p o w e r l i n e c a r r i e ra n d s u p e r v i s o r y c o n t r o l s y s t e m s t u r n t r a n s m i s s i o n l i n e s i n t oa d e p e n d a b le , e c o n o m i c a l c o m m u n i c a t io n s n e t w o r k for CityP u b l i c S e r v i c e B o a r d , S a n A n t o n i o , T e x a s .

    Throwing theswitch100 miles away. Ad i s p a t c h e r t o u c h e s ab u t t on in theG r a nd F o r k s , N or t h D a k o t a o f f i c e of t h e M i n n k o t a P o w e r C o o p e r a t i v e , I n c . A n d ah u n d r e d m i l e s a w a y as w i t c h o p e n s a n d c o n n e c t s a n o t h e r g e n e r a t o r to t h e l i n e .T h i s i s o n l y o n e ofm a n y o p e r a t i o n s t h a t p o . w e r c o m p a n i e s h a n d l e b y r e m o t e c o n t r o lu s i n g M o t o r o l a p o w e r l i n e c a r r i e r a n d s u p e r v i s o r y c o n t r o l s y s t e m s .

    Cross-country meter reader. F r o m o n e c e n t r a l o f f i c e ,M o t o r o l a p o w e r l i n e c a r r i e r a n d s u p e r v i s o r y c o n t r o l m a k ei t p o s s i b l e t o m e t e r t he f l o w ofg a s , e l e c t r i c i t y , o i l o r w a t e rt h r o u g h l i n e s h u n d r e d s ofm i l e s a w a y .

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    Tool ing up for production.T h i s n e w p l a n t in P h oen i x , A r i -z o n a is now b e i n g r e a d i e d tom a s s p r o d u c e the p o w e r andr a d i o - f r e q u e n c y t r a n s i s t o r s d e -v e l o p e d byM o t o r o l a .

    Communications and Electronics Division achievement at work

    TRA NSISTO RSOne of the most significant developments in the history ofelectronics is the transistor.

    Hardly more than a speck of silicon or germanium withwires attached, a transistor can do the job of a vacuum tubemany times its size.

    But more remarkable than its tiny size are the reliabilityand long life of a transistor. Indications are transistors willlast years longer than the vacuum tubes they replace. Inaddition, transistors use far less power.

    The advantages of transistors for a multitude of products

    David replaces Goliath.I n c r e d i b l e t h o u g h it s e e m s , t h i st i n y t r a n s i s t o r c a n p e r f o r m t h e fu n c t i o n s o f a v a c u u m t u b em a n y t i m e s its s i z e . N o t e t h a t t h r ou g h all its e v o l u t i o n , ap r a c t i c a l m a s s - p r o d u c e d v a c u u m tu b e ha s n e v e r a t ta i n e dt h e s m a l l s i z e o f t h e t r a n s i s t o r .

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    Transistorized power line carrier. U s e o f t r a n s i s t o r si n b o t h tr a n s m i t t e r a n d r e c e i v e r p r o v i d e s g r e a t e r r e l ia -b i l i t y i n M o t o r o l a ' s f r eq u enc y- s h i f t p ow er l i ne c a r r i e r . E v enw h e n b a t t e r y o p e r a t e d d u r i n g a n e m e r g e n c y , t h i s t r a n s i s -t o r i z e d e q u i p m e n t f u r n i s h e s d e p e n d a b l e , h i g h - s p e e dc o m m u n i c a t i o n a n d c o n t r o l f a c il i ti e s f o r po w e r c o m p a n i e s .

    COME OF AGEare obvious. Why, then, have they not found universal use?The answer is simple. Up to now it has not been possible tomass produce, economically, a radio-frequency transistor ofsatisfactory characteristics.Now, however, Motorola can report that it not only hasdeveloped several new types, including a power transistor,but has perfected a technique for mass producing a radio-frequency transistor as well.

    This, together with the development of transistorizedcircuitry, firmly establishes Motorola's pioneering positionin this new field of semi-conductors.

    "Silent paging" for hospitals. T h i sn e w M o t o r o l a s e l e c t i v e r a d i o p a g e re n a b l e s t h e h o s p i t a l t o p a g e a n y d o c -t o r w a n t e d w i t h o u t d i s t u r b i n g o t h e r s .D e s i g n e d w i t h t r a n s i s t o r s , i t f i t s e a s i l yi n a s h i r t p o c k e t .

    New Transistor Pocket Radio. U s e o f5 t r a n s i s t o r s a s s u r es u p t o 100 h ou r s o fb a t t e r y l i f e . . . a nd g i v es t h i s r a d i o u p t o 3t i m e s m o r e p o w e r t h a n o t h e r p o c k e t p o r t -a b l e s . I t 's t h e w o r l d s o n l y p o c k e t p o r t a b l ew i t h a r o t a t i n g a n t e n n a h a n d l e .

    N ew t r a n s i s t o r powered car radios. I n s o m e n e wM o t o r o l a c a r r a d i o s , t h i s ti n y t r a n s i s t o r r e p l a c e s a l lo f t he 2 0 p a r t s s h o w n n e x t to i t . In a d d i t i o n , t r a n -s i s t o r s p r o v i d e g r e a t e r r e l i a b i l i t y a n d r e d u c e b a t -t e r y d r a i n .

    New Handie -Ta lk ie rad io -phone . A llt h e fe a t u r e s o f a tw o - w a y r a d i o s t a t i o n i na s m a l l , s e l f -c o n t a i n e d u n i t t ha t c a n b ec a r r i e d a n y w h e r e . T r a n s i s t o r s h e l pe dm a k e i t p o s s i b l e .

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    communications and electronics

    WHAT WILL THEYTHINK OF NEXT?

    "The word ' revolution' may not be too strong to apply to thechange which will take place in electronic equipment ofall kindswithin the next five years. The development of the transistor andother semi-conductor devices will reduce the size of equipment,improve the reliability ofoperation, and substantially reduce theoperational power requirements. Not only will transistors replacevacuum tubes in many electronic equipments, but they will makepossible the development of new devices for instrumentation,metering, controlling, detection, communications, and computing.The electronic art is on the m ove, and th e changes in the old devicesand the introduction of the new will demonstrate the dynamics ofa young indu stry that is just getting started. Only the co mpan iesalert to the impact of solid state physics research in the semi-conductor field can hope to keep abreast of the changes. M otorolais well prepared, and we shall contribute our full share of th epioneering and gain the expected rewards of pioneering in thisnext stage in the flowering of the electronics industry."

    Vice President In Charge ofCommunicat ions and Elect ron ics Division

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    CLOCK RADIOS

    P H O N O G R A P H S TABLE RAD IO S

    COLOR TELEVISION

    CAR RADIOS

    HI FIDELITY

    quality is engineeredinto every MOTOROLA product

    PORTABLE RADIOS

    BLACK AND WHITE TELEVISION

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    27 years of leadershipin electronics exclusivelyM MOTOROLA, INC.CHICAGO 51, ILLINOIS

    Printed in U.S.A.