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Form 10QSB for QUEPASA CORP

Stock Market Trading — Mon, 21 Aug 2006 15:53:00 +0000

Form 10QSB for QUEPASA CORP

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14-Aug-2006

Quarterly Report

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Information

This Quarterly Report on Form 10-QSB and the information incorporated by reference may include "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, we direct your attention to Item 1. Financial Statements, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and Item 3. Quantitative and Qualitative Disclosures About Market Risk. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in these sections. All statements regarding our expected financial position and operating results, our business strategy, our future business operations and the outcome of any contingencies are forward-looking statements. These statements can sometimes be identified by our use of forward-looking words such as "may," "believe," "plan," "will," "anticipate," "estimate," "expect," "intend" and other phrases of similar meaning. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Although we believe that our expectations expressed in these forward-looking statements are reasonable, we cannot promise that our expectations will turn out to be correct. Our actual results could be materially different from our expectations.

The following discussion of our financial condition and results of operations for the six months ended June 30, 2006 and 2005 should be read in conjunction with our condensed consolidated financial statements, the notes related thereto, and the other financial data included elsewhere in this Form 10-QSB.

Company Overview

Quepasa.com is the largest and longest-established, bicultural, Hispanic online community. We seek to entertain, enrich, and empower the members of our rapidly growing internet community. Our interactive website delivers content, products, and services to our users in both English and Spanish. We are focusing our business on our online social network which is comprised chiefly of Hispanic and Latino 18-to-34 year olds living in the United States and in Central and South America.

During the second quarter of 2006, we initiated significant changes in our enterprise, including the appointment of an experienced and disciplined Chief Executive Officer, a review and reorientation of our corporate strategy, a complete redesign of our site, the implementation of a branding campaign, the hiring of additional product development, financial, and technical staff, and a revamping of various corporate financial and operating procedures designed to improve internal controls and speed new product introductions. Importantly, we have proactively eliminated or reduced the sale of some products and advertisements that, when fully accounted for, either negatively impacted margins and/or detracted from the brand image we seek to build.

During the second quarter, we launched Quepasa Market Intelligence (QMI), a market research/political polling enterprise. QMI provides real-time access to the opinions of our community members. Through QMI, we intend to conduct paid surveys on behalf of clients that generate data from our members. We intend that the information gleaned from these research projects will assist QMI's clients in making decisions related to product use, brand preferences, and potential voting behavior.

During the second quarter, we generated revenues from three primary sources; pay-for-performance search advertisements, Google AdSense, and third-party banner advertisements on our site. Pay-for-performance search revenue is recognized in the period in which the "click-throughs" occur. "Click-throughs" are defined as the number of times an internet user clicks on an advertisement or search result. Pay-for-performance revenue is recognized when there is evidence that the qualifying transactions have occurred at a set price. Google AdSense revenue is recognized in the period in which it is earned. We recognize revenue related to banner advertisements ratably over the contract period. Advertisers generally make advance deposits, which are recorded as deferred revenue, for pay-for-performance services which are recorded as revenue when an internet user clicks on a sponsored advertisement. Most advertisers utilize self-service tools to open and manage accounts online including tracking, price management and measurement features.

Our operating expenses during the second quarter consisted mainly of search services, sales and marketing, product and content development, and general and administrative expenses.

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Table of Contents
We intend to provide an increasing array of services to our site visitors that are designed to promote social interaction and information sharing. These entertaining, enriching, or empowering products are designed to attract and adhere traffic to our site. Our intention during the remainder of this year and next is to introduce a variety of entertaining, enriching, and empowering products and services that grow large enough to produce positive cash flows. We expect these products and services to drive increased visitors to our site. As traffic grows, we expect that an increasing number of major consumer product firms, healthcare providers, financial institutions, and other enterprises seeking a nexus with the emerging Hispanic majority will advertise on our site. We intend to actively pursue such advertising by mounting a reinvigorated sales program targeting large advertising agencies and their clients.

Critical Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various other factors and circumstances. We believe that our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

We recognize that subjective and sometimes complex judgments affect important accounting policies. These critical accounting policies relate to revenue recognition including the viability and worth of receivables, valuation and useful lives of long-lived assets, valuation of equity transactions such as the fair value assigned to common stock options and warrants, and litigation. Revenue recognition resulting from sales of paid search advertising placement is discussed in Note 1 to our consolidated financial statements. We believe our estimates and assumptions related to these critical accounting policies are appropriate under the circumstances. However, should future events or occurrences result in unanticipated consequences, there could be a material adverse impact on future financial condition and results of operations.

Liquidity and Capital Resources

We have generated significant net losses and negative cash flows from our inception and anticipate that we will experience continued net losses and negative cash flows for the remainder of 2006. These losses will be primarily attributable to the costs of developing and introducing new products and the lag time between product introductions and sales volumes significant enough to drive positive cash flows. We intend to control costs tightly and speedily either adjust or pare unprofitable products.

At June 30, 2006, we had $1.3 million in cash and cash equivalents compared to $1.4 million at June 30, 2005. We anticipate, however, a bolstering of our cash reserves in the remaining quarters of 2006, primarily due to the exercise of outstanding options and warrants.

Net cash used in operating activities was $1.1 million for the six months ended June 30, 2006 as compared to $1.4 million for the six months ended June 30, 2005. For the six months ended June 30, 2006, net cash used by operations consisted of a net loss of $3.0 million offset by non-cash expenses of $1.5 million in executive acquisition expense, $380 thousand in stock based compensation and $42 thousand in depreciation and amortization expense. Net cash used by operations for the six months ended June 30, 2005 consisted of the net loss of $1.6 million, which was offset by non-cash expenses of $52 thousand in depreciation and amortization plus $247 thousand in stock options granted for professional services.

Net cash used in investing activities was $72 thousand for the six months ended June 30, 2006 as compared to net cash used by investing activities of $30 thousand for the six months ended June 30, 2005. The primary use of cash was for investments in capital equipment.

Net cash provided by financing activities was $1.1 million for the six months ended June 30, 2006 as compared to $431 thousand for the six months ended June 30, 2005. In the six months ended June 30, 2006, we received $1.1 million from the issuance of common stock. In the six months ended June 30, 2005, we received $435 thousand, net of commissions, from the issuance of common stock.

On July 31, 2006, the Company received $2.87 million in cash related to the exercise of warrants from Richard L. Scott Investments, LLC and affiliates. In exchange for $2.87 million, the Company issued 1,000,000 shares of common stock. In addition, the Company issued 134,820 shares of common stock for cash of $597,003 related to the exercise of warrants.

We believe that our current cash balances, cash generated from our operations, and our financing activities are sufficient to finance our level of operations through 2007.

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Table of Contents
Results of Operations

Comparison of the six months ended June 30, 2006 with the six months ended June 30, 2005

For the six months ended June 30, 2006, the net loss attributable to common stockholders was $3.0 million compared to a net loss of $1.6 million for the six months ended June 30, 2005. The increased loss was attributable primarily to a one time charge in executive acquisition expense of $1.5 million for the six months ended June 30, 2006.

Comparison of the three months ended June 30, 2006 with the three months ended June 30, 2005

For the three months ended June 30, 2006, the net loss attributable to common stockholders was $883 thousand compared to a net loss of $956 thousand for the three months ended June 30, 2005. The decreased loss was attributable, in part, to the reduction in professional fees and is partially offset by the increase in stock based compensation.

Revenues

For the three months ended June 30, 2006, the Company generated revenues of $84 thousand compared to $160 thousand in revenue for the three months ended June 30, 2005. For the six months ended June 30, 2006, the Company generated revenues of $248 thousand compared to $286 thousand in revenue for the six months ended June 30, 2005. For the six months ended June 30, 2006, our revenue was primarily generated from three principal sources: revenue earned from pay-for-performance search advertisements, Google AdSense and banner advertisements. During the six months ended June 30, 2006, we have made some changes to our business model that focus more on profitable revenues and, as a result, the amount of revenues generated in recent periods has declined while our gross margins have increased compared to the six months ended June 30, 2005.

Pay-for-Performance Revenue. Pay-for-performance search advertisements are recognized in the period in which the "click-throughs" occur. "Click-throughs" are defined as the number of times a user clicks on an advertisement or search result. Pay-for-performance revenue is recognized when there is evidence that the qualifying transactions have occurred. During the three months ended June 30, 2006 and 2005, pay-for-performance revenue accounted for 84% and 98% of total revenue, respectively. During the six months ended June 30, 2006 and 2005, pay-for-performance revenue accounted for 78% and 99% of total revenue, respectively.

Google AdSense. The Company recognizes revenue from Google AdSense in the period it is earned as reported by Google. During the three months ended June 30, 2006 and 2005, Google AdSense revenue accounted for 16% and 0% of total revenue, respectively. During the six months ended June 30, 2006 and 2005, Google AdSense revenue accounted for 17% and 0% of total revenue, respectively.

Banner Advertising Revenue. The Company recognizes revenue related to banner advertisements ratably over the contract period. During the three months ended June 30, 2006 and 2005, banner advertising revenue accounted for 0% and 2% of total revenue, respectively. For the six months ended June 30, 2006 and 2005, banner advertising revenue accounted for 5% and 1% of total revenue, respectively. Payments received from advertisers prior to displaying their advertisements on our website are recorded as deferred revenue, as are all payments received from advertisers for performance based marketing initiatives.

Operating Expenses

Our principal operating expenses are, or have been: Search Services, Sales and Marketing, Product and Content Development, General and Administrative, and Depreciation and Amortization. Operating expenses for the three months ended June 30, 2006 were $975 thousand, a decrease from $1.1 million for the three months ended June 30, 2005. The decreased expenses are principally attributable to the decrease in general and administrative expenses to $797 thousand for the three months ended June 30, 2006, from $865 thousand for the three months ended June 30, 2005, a decrease in search services expenses to $47 thousand for the three months ended June 30, 2006, from $122 thousand for the three months ended June 30, 2005, a decrease in sales and marketing expense to $34 thousand for the three months ended June 30, 2006, from $58 thousand for the three months ended June 30, 2005 and a decrease in depreciation and amortization expense to $20 thousand for the three months ended June 30, 2006 from $27 thousand for the three months ended June 30, 2005. These decreases were offset by the increase in product and content development expenses to $77 thousand for the three months ended June 30, 2006, from $32 thousand for the three months ended June 30, 2005.

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Table of Contents
For the six months ended June 30, 2006, the operating expenses increased to $3.3 million, from $1.9 million for the six months ended June 30, 2005. The increased expenses are principally attributable to the increase in general and administrative expenses to $2.9 million for the six months ended June 30, 2006, from $1.4 million for the six months ended June 30, 2005 and an increase in product and content development expenses to $118 thousand for the six months ended June 30, 2006, from $74 thousand for the six months ended June 30, 2005. These increases were partially offset by the decreases in search services expenses to $165 thousand for the six months ended June 30, 2006, from $227 thousand for the six months ended June 30, 2005, a decrease in sales and marketing expense to $58 thousand for the six months ended June 30, 2006, from $147 thousand for the six months ended June 30, 2005, and a decrease in depreciation and amortization expense to $42 thousand for the six months ended June 30, 2006, from $52 thousand for the six months ended June 30, 2005.

Search Services Expenses. Our search services expenses decreased to $47 thousand in the three months ended June 30, 2006, from $122 thousand in the three months ended June 30, 2005. For the six months ended June 30, 2006, search services expenses decreased to $165 thousand from $227 thousand for the six months ended June 30, 2005. These decreases are attributable to our focus on more profitable segments of our revenue model and correspond to our decreases in revenue for the same periods.

Sales and Marketing Expenses. Our Sales and marketing expenses decreased to $34 thousand in the three months ended June 30, 2006, from $58 thousand for the three months ended June 30, 2005. For the six months ended June 30, 2006, sales and marketing expenses decreased to $58 thousand from $147 thousand for the six months ended June 30, 2005. These changes are mainly attributable to restructuring within our sales and marketing workforce through June 30, 2006. In July 2006, we expanded our sales and marketing efforts and anticipate increased costs associated with these changes.

Product and Content Development Expenses. Our product and content development expenses increased to $77 thousand in the three months ended June 30, 2006, from $32 thousand in the three months ended June 30, 2005. For the six months ended June 30, 2006, product and content development expenses increased to $118 thousand from $74 thousand for the six months ended June 30, 2005. This increase is attributable to changes in our development staff. Quepasa.com de Mexico provides significantly all of our design, translation services, and website management and development services for the Company. We have recently expanded our product and content development efforts and anticipate increased costs associated with these changes.

General and Administrative Expenses. Our general and administrative expenses decreased to $797 thousand in the three months ended June 30, 2006, from $865 thousand in the three months ended June 30, 2005. This decrease is principally attributable to the decrease in professional fees expense to $158 for the three months ended June 30, 2006, from $390 thousand for the three months ended June 30, 2006 and the decrease in advertising expense to $45 for the three months ended June 30, 2006, from $79 thousand for the three months ended June 30, 2005. These decreases are partially offset by the increase in stock-based compensation to $156 thousand for the three months ended June 30, 2006, from $0 for the three months ended June 30, 2005, and the increase in travel and entertainment expenses to $36 thousand for the three months ended June 30, 2006 from $11 thousand for the three months ended June 30, 2005.

For the six months ended June 30, 2006, our general and administrative expenses increased to $2.9 million in the six months ended June 30, 2006, from $1.4 million in the six months ended June 30, 2005. This increase is principally attributable to the increase in Executive acquisition costs to $1.5 million for the six months ended June 30, 2006, from $0 for the six months ended June 30, 2005, the increase in stock-based compensation to $380 thousand for the six months ended June 30, 2006, from $0 for the six months ended June 30, 2005 and an increase in dues and subscriptions expense to $57 thousand for the six months ended June 30, 2006, from $20 thousand for the six months ended June 30, 2005. These increases were partially offset by the decrease in professional fees expense to $247 thousand for the six months ended June 30, 2006, from $490 thousand for the six months ended June 30, 2005, the decrease in advertising expense to $72 thousand for the six months ended June 30, 2006, from $117 thousand for the six months ended June 30, 2005, and postage and printing expense to ($3) thousand for the six months ended June 30, 2006, from $18 thousand for the six months ended June 30, 2005.

Depreciation and Amortization Expense. Our depreciation and amortization expense decreased to $20 thousand in the three months ended June 30, 2006 from $27 thousand for the three months ended June 30, 2005. For the six months ended June 30,2006, depreciation and amortization expense decreased to $42 thousand from $52 thousand for the six months ended June 30, 2005. This decrease is associated with the fixed assets that have become fully depreciated.

Other Income (Expense). Other income (expense), which primarily consists of interest income offset by interest expense, was $8 thousand in the three months ended June 30, 2006, an increase from $2 thousand in the three months ended June 30, 2005. For the six months ended June 30,2006, interest income (expense) increased to $15 thousand from $1 thousand for the six months ended June 30, 2005. This increase is attributable to income on our cash deposits in interest bearing accounts.

Affinity Technology Group, Inc. (OTCBB:AFFI - News) - Affinity Announces Second Quarter Results

Stock Market Trading — Fri, 18 Aug 2006 19:22:28 +0000

Affinity Technology Group, Inc. (OTCBB:AFFI - News) - Affinity Announces Second Quarter Results

Affinity Technology Group, Inc. (OTCBB:AFFI - News) announced financial results for the second quarter and six months ended June 30, 2006.

Revenues for the quarter were $8 thousand, with a net loss of $220 thousand, or $0.00 per share. Second quarter 2005 revenues were $4 thousand and the Company reported a net loss of $165 thousand or $0.00 per share. The weighted average number of shares outstanding during the three months ended June 30, 2006 was 44.2 million, compared to 42.2 million for the same period in 2005.

For the first six months of 2006, revenues were $17 thousand, with a net loss of $310 thousand, or $0.01 per share. Revenues for the comparable period in 2005 were $9 thousand, with a net loss of $295 thousand, or $0.01 per share. The weighted average number of shares outstanding during the six months ended June 30, 2006, was 43.2 million, compared to 42.2 million for the same period in 2005.

Joe Boyle, Chairman, President and Chief Executive Officer of Affinity, stated, "We believe that we have made significant progress during the first six months of 2006. The highlight was the successful conclusion in March of the reexamination of our financial and credit account patent (U.S. Patent No. 6,105,007). That event has created forward momentum for the Company, and since that time we have secured the services of Morgan Keegan to assist us in raising capital, restructured our legal services agreement to include the McBride Law firm and engaged Parsons Behle & Latimer and Dr. Mark Glick as part of our legal team.

"Additionally, the stays on the lawsuits with Ameritrade, Federated Department Stores and Household have been lifted and the lawsuits are proceeding. As announced last week, we have also extended the maturity of our convertible notes, which resolves their default status. In the near future our objective is to continue to explore capital raising options with Morgan Keegan and to attract new capital to further strengthen the financial base of the Company."

About Affinity Technology Group, Inc.

Through its subsidiary, decisioning.com, Inc., Affinity Technology Group, Inc. owns a portfolio of patents that covers the automated processing and establishment of loans, financial accounts and credit accounts through an applicant-directed remote interface, such as a personal computer or terminal touch screen. Affinity's patent portfolio includes U.S. Patent No. 5,870,721C1, No. 5,940,811C1, and No. 6,105,007C1.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We cannot offer any assurances that Affinity will prevail on its claims of patent infringement against third parties or that such claims will result in monetary damages to Affinity. Investors are cautioned that our business is subject to several substantial risks and uncertainties, including the Company's very limited capital resources and the possibility that we may be unable to raise additional capital in amounts sufficient to permit us to continue operations; the risk that we may lose all or part of the claims covered by our patents as a result of challenges to our patents; the risk that our patents may be subject to additional reexamination by the U.S. Patent and Trademark Office or challenge by third parties; the result of ongoing litigation, including patent litigation; and unanticipated costs and expenses affecting the Company's cash position. If the Company is not able to raise additional capital immediately, it may be forced to consider alternatives for winding down its business, which may include offering its patents for sale or filing for bankruptcy protection. These and other factors may cause actual results to differ materially from those anticipated.

Affinity Technology Group, Inc.

Statements of Operations

Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenues:
Patent license
revenue $ 8,334 $ 4,412 $ 16,667 $ 8,824
Costs and expenses:
Cost of revenues 834 441 1,667 882
General and
administrative
expenses 206,458 145,259 278,177 255,506
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Total costs
and
expenses 207,292 145,700 279,844 256,388
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Operating loss (198,958) (141,288) (263,177) (247,564)
Other income (expense):
Interest income 478 - 722 61
Interest
expense (21,485) (24,042) (47,456) (47,452)
----------- ----------- ----------- -----------
Net loss $ (219,965) $ (165,330) $ (309,911) $ (294,955)
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Net loss per share -
basic and diluted: $ (0.00) $ (0.00) $ (0.01) $ (0.01)
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Shares used in
computing net loss
per share 44,217,651 42,215,096 43,235,883 42,187,348
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Balance Sheets June 30,
2006 2005
----------- -----------

Cash and Short
Term Investments $ 72,101 $ 26,429

Total Current
Assets 103,689 54,225

Total Assets 106,708 61,474

Total Liabilities 1,925,853 1,839,513

Stockholders'
Deficiency (1,819,145) (1,778,039)

Contact:
Affinity Technology Group, Inc.
Joe Boyle, 803-758-2511

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Source: Affinity Technology Group, Inc.

Motorola, Women in Law Enforcement Honor Executive of the Year

Stock Market Trading — Thu, 10 Aug 2006 18:01:49 +0000

Motorola, Women in Law Enforcement Honor Executive of the Year

Maryland Police Chief also leads international police organization

SCHAUMBURG, Ill., Aug. 10 Gaithersburg, Md., Police Chief Mary Ann Viverette has distinguished herself as a leader who is respected for her innovative programs and her willingness to step outside her comfort zone. Today, she will be recognized as Woman Law Enforcement Executive of the Year by her peers at the National Association of Women Law Enforcement Executives (NAWLEE) annual conference.

NAWLEE and Motorola, Inc. (NYSE: MOT - News) will honor Viverette during the group's 11th annual conference and she will share her experiences and guidance gleaned through her 27 years with the police department located 12 miles outside of Washington, D.C. Motorola is hosting the conference.

"I am very grateful to be recognized by my peers, and happy to be able to make a contribution at the national level," Viverette said.

The police chief of the second largest city in Maryland also currently serves as the first woman president of the International Association of Chiefs of Police (IACP), an 18,000-member organization working on behalf of law enforcement officials worldwide. "I am glad that I am able to provide a visual reminder to other women that we are making contributions to law enforcement everywhere," Viverette said. "Other women have told me how important it is to see me up there on the dais." She estimated that there are only about 150 women police chiefs in the country.

It was Viverette's involvement in IACP, along with other women in the 1990s, which planted the seeds of NAWLEE. Networking with other women at IACP events, they sought out further opportunities to share their knowledge. "As a mentoring organization, NAWLEE is a very comfortable place for a woman to be," she said. Today NAWLEE has about 400 members, including law enforcement agency leaders and future leaders nationwide.

"Mary Ann's (Viverette's) dedication to law enforcement, and her national stature as IACP president, make her an excellent choice for this year's Executive of the Year," said NAWLEE president Susan Kyzer, bureau chief, Florida Department of Law Enforcement.

Gaithersburg's progressive police force, which partners closely with the Montgomery County (Md.) Police Department, has instituted its own Street Crimes Unit, which blends features of uniformed and undercover work to concentrate on rooting out repeat offenders and narcotics suspects. The department has its own drug-sniffing dog which rides along with officers in "hot spots" where illegal substances often surface during traffic stops. These programs are unusual within a force of 49 sworn officers, but they are crucial given Gaithersburg's proximity to the nation's capital.

Viverette was named police chief in 1986. She graduated from the FBI National Academy in 1988. She is active on the Commission on Accreditation for Law Enforcement Agencies (CALEA), and her department has been accredited since 1993.

In addition to recognizing Viverette's achievements, the conference will honor the six founders of the organization. They include:

-- Chief Susan Riseling, University of Wisconsin-Madison Police
Department
-- Barbara O'Brien, government affairs director, Cash America
International
-- Chief Joy Rikala, City of Minnetonka, Minn.
-- Chief (Ret.) Alana Ennis, director, General Dynamics Armament
-- Chief Anne Glavin, California State University at Northridge
Department of Public Safety
-- Chief Ellen Hanson, Lenexa Police Department, Lenexa, Kan.

Schaumburg Village President Al Larson and Motorola executives Mark Moon, corporate vice president, Motorola Networks and Enterprise, and Jackie Wasni, Motorola Communications & Electronics Inc. vice president, will welcome guests to the Renaissance Schaumburg Hotel and Conference Center. The conference runs through Aug. 13.

"Motorola is proud of NAWLEE's efforts to support women who are leaders in law enforcement and who devote their careers to public safety," Wasni said. In addition to remarks from Viverette, conferees will hear from keynote speaker Zulima V. Farber, attorney general of New Jersey. Both are scheduled to speak on Aug. 10.

About NAWLEE

The National Association of Women Law Enforcement Executives (NAWLEE) is the first organization established to address the unique needs of women holding senior management positions in law enforcement.

NAWLEE is a non-profit organization sponsored and administered directly by law enforcement practitioners. Its mission is to serve and further the interests of women executives and those who aspire to be executives in law enforcement. For more information, please visit http://www.nawlee.com.

About Motorola

Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit http://www.motorola.com.

MOTOROLA and the stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners.

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Source: Motorola, Inc.

IBM Brings Electronic Medical Records One Step Closer Through Open Technology

Stock Market Trading — Wed, 09 Aug 2006 19:13:29 +0000

IBM Brings Electronic Medical Records One Step Closer Through Open Technology

Contributes Technology to Open Source Community
Establishes Innovation Centers to Work with Major Players, Business Partners

Aug. 9, 2006--IBM (NYSE: IBM - News) today announced a major step in the drive toward a national electronic medical records system by contributing software technology that supports the exchange of healthcare information to the open source community.

The software, contributed to the Eclipse Foundation's Open Healthcare Framework (OHF) project, provides a mechanism to connect isolated "islands" of information that today reside throughout the healthcare system to any Health Information Exchange (HIE). Software developers will also be able to build applications that can aggregate and sift through this information to improve healthcare delivery and research while protecting individual privacy.

According to the Center for Information Technology Leadership, systems that enable standardized information exchange are by far the best investment for the nation as a whole, with net savings that likely represent 5 percent of current U.S. healthcare expenditures. Such capabilities stand to enable more accurate, timely diagnoses that could markedly improve treatments.

OHF, one of the leading efforts to deliver an open source, standards-based platform for healthcare software, has close ties to leading healthcare standards organizations. Any Independent Software Vendor (ISV) will be able to use the tools in OHF to connect their applications to any standards-based infrastructure, including IBM's HIE.

IBM Research has also established new Healthcare and Life Sciences Innovation Centers spanning its Almaden, Watson, Haifa and Zurich Research Labs. These centers provide a focal point for collaborative work with healthcare clients and qualified IBM Business Partners in the application of key IBM Research expertise and technologies in this field.

"One of the more significant challenges in creating a national interoperable electronic healthcare information infrastructure is the ability to access disparate health records stored in proprietary medical IT systems," said Dan Pelino, general manager, IBM Healthcare and Life Sciences Industry. "By making the client side components of our HIE technology available through OHF, we hope to help solve this problem by providing an easy and affordable way for ISVs to connect their applications to any HIE, where medical data can be accessed and integrated as if stored in a single repository. As a result of this patient-centric systems approach, clinicians will be able to access health records from virtually any medical IT system, regardless of where the information resides."

IBM Research launched the Interoperable Healthcare Information Infrastructure, or IHII project, in 2005 with a prototype health information exchange platform capable of supporting local, regional and national healthcare organizations. The platform, which implements important interoperability standards, includes advanced data management algorithms and data mining techniques developed by IBM scientists. It enables doctors to access and view a patient's electronic medical records even if those records originate in disparate systems. The IHII project is validating software code components required to instantiate a HIE that conforms to IBM's Health Information Framework, a Services Oriented Architecture (SOA) approach to connecting the healthcare and life sciences ecosystem.

IBM has since validated open, standards-based healthcare interoperability with more than 20 ISVs, including Blueware, CapMed, Mandriva, PossibilityForge, SynSeer and WellLogic, as well as its ability to provide the client side interfaces for application vendors. With this contribution to the Eclipse open source community, software developers can now begin building open standards-based applications that tap the technology to help doctors, labs and hospitals adopt electronic medical records.

"The features in OHF will enable a new ecosystem to develop in the healthcare industry," said Grahame Grieve, project leader, Eclipse OHF project. "The availability of a lightweight, open source framework will allow eHealth Record (eHR) vendors and other open source eHR efforts to build and test standards-based solutions for interoperability, enabling small and medium clinics and hospitals to participate in the market with large healthcare enterprises."

The ability to share health information could create new services for consumers, researchers and practitioners. Beyond lowering costs and improving quality of healthcare, the electronic storage of medical data may also allow public health officials to more easily analyze that data to identify emerging health trends.

IBM Opens Research Innovation Centers to Business Partners

Demonstrating its commitment to fostering innovation in the healthcare and life sciences industries, IBM announced in March 2006 that it will open access for its Business Partners to one of its most valuable assets - intellectual capital created by the scientists and engineers in its world-class Research division.

As part of that initiative, qualified Business Partners in the healthcare industry can collaborate with IBM's leading researchers and industry experts through the Innovation Centers at the Almaden and Haifa labs to deliver more innovative solutions to a broader range of clients, in both SMB and large enterprise markets. Additionally, Business Partners in the life sciences industry can collaborate with IBM researchers in the field of computational biology at the Innovation Centers at the Almaden, T.J. Watson and Zurich labs.

IBM offers this resource to qualified partners through the PartnerWorld Industry Networks, a set of industry-tailored offerings designed to help business partners develop, market and sell solutions that meet their customers' requirements. Business Partners will be able to access research and analysis never before published externally and will also be eligible for consultations with any of IBM's community of over 3,000 research engineers and scientists - offering for the first time ever the opportunity for IBM Research and IBM Business Partners to collaborate on delivering new solutions to the marketplace.

AFFI.OB > SEC Filings for AFFI.OB > Form 8-K on 18-Jul-2006 All Recent SEC Filings

Stock Market Trading — Tue, 01 Aug 2006 17:17:00 +0000

AFFI.OB > SEC Filings for AFFI.OB > Form 8-K on 18-Jul-2006 All Recent SEC Filings

Show all filings for AFFINITY TECHNOLOGY GROUP INC | Request a Trial to NEW EDGAR Online Pro

Form 8-K for AFFINITY TECHNOLOGY GROUP INC

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18-Jul-2006

Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement.
(a) On July 14, 2006, the Compensation Committee (the "Committee") and the Board of Directors (the "Board") of Affinity Technology Group, Inc., a Delaware corporation ("Affinity"), approved the following compensation related matters:

o The base salary payable to Joseph A. Boyle, President and Chief Executive Officer of Affinity, was increased to $250,000 per year. Effective July 3, 2006, Mr. Boyle resumed full-time employment with Affinity.

o The base salary payable to S. Sean Douglas, Chief Operating Officer of Affinity, was increased to $125,000 per year.

o The following stock option awards were granted to the officers of

Affinity:

No. of Shares
of Common Stock
Officer Underlying Award Exercise Price Term
------- ---------------- -------------- ----

Joseph A. Boyle 2,500,000 $0.50 10 years

S. Sean Douglas 850,000 $0.50 10 years

One-third of such options are immediately exercisable, and the other two-thirds become exercisable in two equal annual installments on the first and second anniversaries of the date of grant.

o The following stock option awards were granted to non-employee directors of Affinity:

No. of Shares
of Common Stock
Director Underlying Award Exercise Price Term
-------- ---------------- -------------- ----

Robert M. Price 250,000 $0.35 10 years
250,000 $0.50 10 years

Peter R. Wilson 250,000 $0.35 10 years
250,000 $0.50 10 years

The options to acquire 250,000 shares for $0.35 per share are immediately exercisable, and the options to acquire 250,000 shares for $0.50 per share become exercisable in two equal annual installments on the first and second anniversaries of the date of grant.

The Committee and the Board also reaffirmed Affinity's bonus program under which Affinity may award cash and non-cash bonuses to officers of Affinity in the discretion of the Committee.

U.S. Department of Agriculture Approves Digital Angel Livestock RFID Tagging System for National Animal Identification Program

Stock Market Trading — Tue, 01 Aug 2006 16:56:00 +0000

U.S. Department of Agriculture Approves Digital Angel Livestock RFID Tagging System for National Animal Identification Program

First Livestock Tagging System to Win Government Approval for Program to Protect the Health of U.S. Livestock

Digital Angel Corporation (Amex: DOC - News), an advanced technology company in the field of rapid and accurate identification, location tracking, and condition monitoring of high-value assets, announced today that its electronic RFID (radio frequency identification) livestock tagging system has been approved by the U.S. Department of Agriculture (USDA) for use in the National Animal Identification System (NAIS). Digital Angel is the first animal tag manufacturer to be designated as an Animal Identification (AIN) tag manufacturer by the USDA, which signifies that the Company's tagging system is capable of identifying livestock with the unique, lifetime animal identification number that is being established as a national standard through the NAIS.

The NAIS, a cooperative program between the state and federal governments and the livestock industry to help trace, manage and eradicate animal diseases like Mad Cow Disease, Foot and Mouth Disease, Pseudo-Rabies Disease and Porcine Reproductive and Respiratory Syndrome in pigs, is being run by the USDA's Animal and Plant Health Inspection Service (APHIS). APHIS launched the voluntary NAIS in 2004 with the premises registration system and is now continuing its advancement by implementing the animal identification component. While USDA has established visual tags as the minimum standard for some species, cattle for example, producers may elect to use ear tags with RFID technology incased in the official identification tags.

"This is a stamp of approval and an important acknowledgement of the integrity of our tagging system," said Digital Angel President and CEO Kevin N. McGrath. "The USDA underwent a thorough review of our identification tags and came away convinced that we can produce livestock tags that are up to its standards, but also ensure the uniqueness of the numbers attributed to individual animals that assist in tracking the animal's origin and movement throughout its life. The flexibility to use the AIN tags in other programs outside the scope of NAIS, like source and age verification programs as well as basic management practices, provides the opportunity for producers to fully utilize the capability of our electronic ear tags."

Digital Angel, which has been in the livestock tagging business since 1945, has developed a proprietary and comprehensive RFID traceability system that includes electronic tags and scanners as well as a related IT system that can provide for the identification and tracking of all animals tagged as part of the NAIS. The target date for having all livestock identified that are covered in the NAIS guidelines is early 2009.

Digital Angel sells its electronic tags under the brand names e.Tag(TM) and Destron Combo e.Tag(TM).

About Digital Angel Corporation

Digital Angel Corporation develops and deploys sensor and communications technologies that enable rapid and accurate identification, location tracking, and condition monitoring of high-value assets. Applications for the Company's products include identification and monitoring of humans, pets, fish, poultry and livestock through its patented implantable microchips; location tracking and message monitoring of vehicles and aircraft in remote locations through systems that integrate GPS and geosynchronous satellite communications; and monitoring of asset conditions such as temperature and movement, through advanced miniature sensors.

Digital Angel Corporation is majority-owned by Applied Digital Inc. (Nasdaq: ADSX - News). For more information about Digital Angel, please visit www.DigitalAngelCorp.com.

The statements in this press release that are not strictly historical, are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbors created by these sections. The forward-looking statements are subject to risks and uncertainties and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to, that Applied Digital Inc. owns 55.4% of the Company's common stock, that new accounting pronouncements regarding expensing of share based compensation may impact the Company's future results of operations, the Company may continue to incur net losses, infringement by third parties on the Company's intellectual property or development of substantially equivalent proprietary technology by the Company's competitors could negatively impact the Company's business, domestic and foreign government regulation and other factors could impair the Company's ability to develop and sell its products in certain markets, the Company relies on sales to government contractors for its animal identification and search and rescue beacon products, and any decline in the demand by these customers for such products could negatively affect the Company's business, the Company depends on a single production arrangement for its patented syringe-injectable microchips, and the loss of or any significant reduction in the production could have an adverse effect on the Company's business, technological change could cause the Company's products to become obsolete, the loss of one of the Company's principal customers could negatively impact the Company's net revenue, the Company's earnings will decline if the Company writes off goodwill and other intangible assets, options and warrants outstanding and available for issuance may adversely affect the market price of the Company's common stock, currency exchange rate fluctuations could have an adverse effect on the Company's sales and financial results, the Company depends on a small team of senior management. A detailed statement of risks and uncertainties is contained in the Company's reports to the Securities and Exchange Commission, including in particular the Company's Form 10-K for the fiscal year ended December 31, 2005. Investors and stockholders are urged to read this document carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this release will be met, and investors should understand the risks of investing solely due to such projections. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

quotes

AffinityTechnology Group Engages Morgan Keegan

Stock Market Trading — Mon, 31 Jul 2006 00:01:20 +0000

Affinity Engages Morgan Keegan to Raise Additional Capital and the McBride Firm to Assist with Patent Licensing and Litigation

July 11, 2006--Affinity Technology Group, Inc. (OTCBB:AFFI - News) today announced that it has engaged Morgan Keegan & Company as its exclusive financial advisor to assist the company in raising additional capital and to assist with its patent licensing program. In addition, Affinity has engaged McBride Law, PC of Santa Monica, California as additional counsel with Withrow & Terranova, the Company's current patent licensing representative, to join ongoing patent litigation and the Company's patent licensing program.

Joe Boyle, President and Chief Executive Officer, stated, "We are very pleased to have Morgan Keegan and the McBride Law firm join us as a part of our team." As previously reported, Affinity was notified on March 30, 2006 that the U.S. Patent and Trademark Office had concluded its two year reexamination process, which was initiated by third parties, and resulted in the full allowance of all the claims of the Company's U.S. Patent No. 6,105,007. This decision was preceded by similar successful reexaminations of the Company's U.S. Patent No. 5,870,721C1 and U.S. Patent No. 5,940,811C1. "With the successful reexamination process now behind us and the addition of Morgan Keegan and the McBride Law Firm, Affinity is better positioned to move forward with a vigorous commercialization effort for its broad intellectual property position."

Under the terms of the two-year agreement, Affinity has issued Morgan Keegan a five-year warrant to acquire 2,500,000 shares of Affinity's common stock for $0.50 per share. Affinity's stock price closed at $0.18 per share at the end of trading on Monday. In addition, Affinity has agreed to pay Morgan Keegan a cash fee ranging from 1% to 5% of the amount of capital raised by Morgan Keegan for financings over $5 million. Morgan Keegan has agreed to assist Affinity in placing the remaining $1.4 million under its convertible debenture program for no additional cash fee.

Under the revised agreement with Withrow & Terranova and the addition of the McBride Law firm, Affinity has maintained its existing 25% contingency fee structure, which is payable on all amounts received by the Company as a result of patent litigation and/or patent licensing, with 19% payable to Withrow & Terranova and 6% payable to the McBride Firm. In connection with contingency fees payable to the attorneys for patent licensing unrelated to litigation, the 25% fee structure decreases on a sliding scale to a minimum of 5% as the cumulative amount of patent licensing revenues exceeds $100 million. In addition, Affinity has agreed to pay 50% of these firms' billing rates for work done for the Company.

About Affinity Technology Group, Inc.

Through its subsidiary, decisioning.com, Inc., Affinity Technology Group, Inc. owns a portfolio of patents that covers the automated processing and establishment of loans, financial accounts and credit accounts through an applicant-directed remote interface, such as a personal computer or terminal touch screen. Affinity's patent portfolio includes U. S. Patent No. 5,870,721C1, No. 5,940,811C1, and No. 6,105,007.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that our business is subject to several substantial risks and uncertainties, including the Company's very limited capital resources and the possibility that we may be unable to raise additional capital in amounts sufficient to permit us to continue operations; the risk that we may lose all or part of the claims covered by our patents as a result of challenges to our patents; the risk that our patents may be subject to additional reexamination by the U.S. Patent and Trademark Office or challenge by third parties; the possibility that all or some of the holders of the convertible secured notes issued by the Company may take action to collect the amounts outstanding under these notes; the result of ongoing litigation; and unanticipated costs and expenses affecting the Company's cash position. If the Company is not able to raise additional capital immediately, it may be forced to consider alternatives for winding down its business, which may include offering its patents for sale or filing for bankruptcy protection. Moreover, if any of the holders of the convertible notes issued by the Company take action to collect the amounts owed by the Company under these notes, the Company will be forced to consider alternatives for winding down its business, which may include offering its patents for sale or filing for bankruptcy protection. These and other factors may cause actual results to differ materially from those anticipated.

Intevac, Illumina, Hansen Natural Corporation and Celgene Corporation

Stock Market Trading — Thu, 27 Jul 2006 19:54:45 +0000

Zacks.com Announces That Jim Collins Highlights the Following Stocks: Intevac, Illumina, Hansen Natural Corporation and Celgene Corporation

Jim Collins, editor of the OTC Insight newsletter, believes that fundamentals suggest stocks will eventually come back strong. Read about Intevac (Nasdaq:IVAC), Illumina (Nasdaq:ILMN), Hansen Natural Corporation (Nasdaq:HANS) and Celgene Corporation (Nasdaq:CELG). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84.

Highlights from the July 17 Featured Expert column by Jim Collins include:

A Sampling of Company News...

Intevac (Nasdaq:IVAC) shares are higher after the company said last Tuesday full-year sales would top previous projections. Earlier, the company announced it received orders from multiple customers for a total of eleven 200 Lean magnetic disk sputtering systems. Intevac said that with these orders they have booked enough systems to not only exceed the high end of their previous revenue guidance for 2006, but also provide an excellent start for 2007.

Illumina (Nasdaq:ILMN) has signed a genotyping services agreement with Johnson & Johnson Pharmaceutical Research & Development. Under the terms of the agreement, Illumina will develop custom SNP (single nucleotide polymorphism) content for a multi-sample Sentrix BeadChip. The BeadChip platform enables analysis of 12 samples and up to 60,000 SNPs per sample on a single BeadChip.

Stock Picks include...

Hansen Natural Corporation (Nasdaq:HANS) is a holding company and carries on no operating business except through its direct wholly-owned subsidiaries, Hansen Beverage Company and Hard e Beverage Company. Hansen is engaged in the business of marketing, selling and distributing so-called alternative beverage category, such as natural sodas, fruit juices, juice cocktails.

Celgene Corporation (Nasdaq:CELG) is an independent biopharmaceutical company engaged primarily in the discovery, development and commercialization of orally administered, small molecule drugs for the treatment of cancer and immunological diseases.

Read Jim Collins' outlook regarding the stock market's come back and receive more company news as well as stock picks by clicking: http://at.zacks.com/?id=85.

About Zacks Featured Experts

Successful investing requires professional advice from knowledgeable experts who can help investors achieve their financial goals in good markets and improve their portfolios, especially in bad ones. That is why Zacks Investment Research has assembled the best investment experts in the business to offer their powerful advisory newsletters on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc.

Additional recommendations from Zacks.com Featured Experts are highlighted in the free investment newsletter, Profit from the Pros. Each issue highlights several Featured Experts in this free e-mail newsletter. Register for a free subscription to "Profit from the Pros" at: http://at.zacks.com/?id=86.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=87.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Legislation Introduced to Dramatically Expand Study Abroad Among American College Students; Bill Proposes Visionary Program to Ensure Americans are In

Stock Market Trading — Thu, 27 Jul 2006 17:40:00 +0000

Legislation Introduced to Dramatically Expand Study Abroad Among American College Students; Bill Proposes Visionary Program to Ensure Americans are Internationally Educated

NAFSA issued the following release today:

The Abraham Lincoln Study Abroad Act, introduced yesterday by Sens. Dick Durbin (D–Ill.) and Norm Coleman (R–Minn.), offers a historic opportunity to ensure that future generations of Americans are prepared with the international skills and knowledge they will need to effectively manage foreign-policy challenges and to succeed in an interconnected world. It proposes an innovative partnership between the federal government and higher education to dramatically expand participation by U.S. undergraduates in study abroad programs.

This bipartisan legislation's vision is that one million U.S. college students will study abroad annually in ten years' time, and that study abroad opportunities will become more diverse in terms of participants, fields of study, and destinations, especially in the developing world. Today, only about one percent of U.S. college undergraduates have studied abroad, despite opinion polls that indicate that more than three-quarters of Americans believe it is important to do so.

The United States' ability to lead responsibly in the world, to effectively confront emerging threats, and to thrive in the global economy, will depend on preparing our citizens with foreign-language competence and cross-cultural knowledge. One of the best ways to do this is through study abroad. As such, it must be an integral part of a complete college education and the centerpiece of a national effort to ensure that the next generation of Americans is ready for life and leadership in the 21st century. Study abroad is more than an education issue -– it is a national security and foreign policy issue.

The Abraham Lincoln Study Abroad Act was inspired by the work of the late Sen. Paul Simon and informed by the report of a national commission. In his preface to the 2003 NAFSA task force report Securing America's Future: Global Education for a Global Age, Sen. Simon laid out his vision: that with many more of our college students studying abroad, the United States would be "more understanding of the world ... creating a base of public opinion that would encourage responsible action." In 2005, a bipartisan federal commission, appointed by Congress and President Bush, submitted a report recommending a national effort to dramatically increase study abroad by American students, with special attention to expanding study abroad opportunities in the developing world.

The legislation introduced by Sens. Durbin and Coleman focuses attention on the fact that the biggest obstacles to study abroad are not purely financial ones. While some students need financial support to study abroad, it is more often on-campus factors -- those related to curriculum, faculty involvement, institutional leadership, and programming -- that make the biggest difference. In addition to proposing a pool of direct scholarships, the Abraham Lincoln Study Abroad Program also encourages institutions to address on-campus barriers to study abroad, by making a commitment to institutional reform a prerequisite for access to federal funds.

NAFSA places its full support behind this important and innovative proposal. We urge Congress to pass and fully fund the Abraham Lincoln Study Abroad Act, and we encourage our colleagues in higher education to do their part to make study abroad the norm, not the exception, among American college students.

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NAFSA: Association of International Educators is the world's largest nonprofit association dedicated to international education.

US Census Bureau Report indicates that Businesses With No Paid Employees have Increased to 19.5 Million

Stock Market Trading — Thu, 27 Jul 2006 17:36:00 +0000

US Census Bureau Report indicates that Businesses With No Paid Employees have Increased to 19.5 Million

The image of a typical "mom and pop" business is getting a makeover, according to new data on these burgeoning enterprises released today by the U.S. Census Bureau. Yesterday's notion of a family-run corner store is giving way to Internet-based auctions, nail salons and even motorcycle dealerships, according to "Nonemployer Statistics: 2004."

The nation added nearly a million businesses with no paid employees between 2003 and 2004 to reach 19.5 million, a growth rate of 4.7 percent over a one-year period. Businesses without a payroll make up more than 70 percent of the nation's 27 million- plus firms, with annual receipts over $887 billion.

The report has data on 17 million individual proprietorships and on more than 1.3 million corporations and 1.2 million partnerships. Nonemployer firms may be run by one or more individuals, can range from home-based businesses to corner stores or construction contractors and are often part-time ventures with owners operating more than one business.

Among the fastest-growing: building finishing contractors (22.5 percent), Internet service providers (18.7 percent), nail salons (14.7 percent), electronic shopping and mail-order houses -- including Internet-based consumer trade (12.7 percent), lessors of real estate (9.7 percent), formal wear and costume rental stores (8 percent) and motorcycle dealers (7.4 percent).

Florida led the nation in the growth of these small businesses with a 7.6 percent increase between 2003 and 2004. Georgia climbed to second place with a 7.1 percent increase, while Nevada fell from first to third place with a 6.4 percent increase.

The Census Bureau cautioned that the numbers released today may be understated because the hurricane-impacted areas of Alabama, Florida, Louisiana, Mississippi and Texas were granted additional time by the Internal Revenue Service (IRS) to file 2004 tax returns.

Other highlights:

-- Utah and Arizona had small business increases of 6.1 percent and 5.8 percent, respectively, to round out the top five states. Despite a slight drop in its rate of self-employed business people, Nevada led the nation in receipts with a gain of 12.9 percent.

-- Among the nation's most populous counties, Los Angeles County, Calif., had 777,103 nonemployer businesses, with Cook County, Ill., second at 363,365. They were followed by Miami-Dade County, Fla., at 273,016.

-- In Miami-Dade, Fla., real estate businesses accounted for more than 21 percent of the $10.2 billion total receipts.

-- Other counties with increases in nonemployer business growth included Orange County, Fla. (11.2 percent); Clark County, Nev. (7.9 percent); San Bernardino County, Calif. (7.1 percent); Maricopa County, Ariz. (6.7 percent); Montgomery County, Md., (4.9 percent); and Fairfax County, Va. (4.7 percent).

The detailed Internet tables show the number of establishments in nearly 300 industries and their receipts for the nation, states, counties and metropolitan areas. The data do not cover all self-employed individuals, since many self-employed business owners have paid employees.

Regal Securities First to Implement Online Trading Solution Offered Jointly By Nexa Technologies and QuoteMedia

Stock Market Trading — Thu, 27 Jul 2006 17:24:00 +0000

Regal Securities First to Implement Online Trading Solution Offered Jointly By Nexa Technologies and QuoteMedia

Nexa Rolls Out Meridian Trading Platform Enhanced With QuoteMedia Content

Nexa Technologies, Inc.
(http://www.nexatech.com ), a leading provider of advanced trading
solutions and a subsidiary of Penson Worldwide, Inc. (Nasdaq: PNSN), and
QuoteMedia, Inc. (OTC Bulletin Board: QMCI), a leading provider of market
data services and financial applications, today announced that Regal
Securities has become the first client to implement the new Meridian online
trading platform provided jointly by Nexa and QuoteMedia.
Earlier this year, QuoteMedia and Nexa entered into a strategic
relationship in which Nexa would incorporate QuoteMedia content into
Meridian, Nexa's advanced and flexible browser-based trading platform for
equities, options and futures. Regal Securities is the first client to take
advantage of this joint offering.
Regal Securities and their online discount brokerage division
Investrade Securities, which provide custody functions, state-of-the-art
technology and execution capabilities in all major markets for their
clients, will have access to QuoteMedia's comprehensive financial market
data and research solutions through Meridian.
"We have been extremely impressed with QuoteMedia and Nexa," said
Robert Villaflor, Chief Operating Officer of Regal Securities. "The
seamless integration of QuoteMedia's technologies into our trading platform
enhanced our client offerings instantly. We were especially pleased with
Nexa's and QuoteMedia's ability and willingness to incorporate our
suggestions when tailoring the products to meet our needs. We are committed
to providing our clients with the best possible trading technologies, and
Nexa and QuoteMedia's innovative solutions have enabled us to continue
toward this goal."
"By incorporating QuoteMedia's products into our Meridian offering, we
are able to create a more robust and dynamic offering while expanding the
depth of market data content made available to our clients," said Mark
Munoz, SVP Corporate Development, Nexa Technologies. "Regal is the first to
take advantage of some of the industries most advanced trading tools and
financial content available today."
"The synergies realized through our strategic partnership with Nexa are
profound to both of our businesses," said Dave Shworan, CEO of QuoteMedia
Ltd. "Through this relationship, QuoteMedia is able to reach the broadest
possible audience with our applications. Together, Nexa and QuoteMedia can
provide customers with one of the most comprehensive online trading systems
on the market."
About QuoteMedia, Inc.: http://www.quotemedia.com
QuoteMedia is a leading software developer and syndicator of financial
market information and streaming financial data solutions to media,
corporations, online brokerages and financial services companies. The
Company licenses interactive stock research tools such as streaming
real-time quotes, market research, news, charting, option chains, NASDAQ
level 2, TSX/TSXV market depth, SEC filings, corporate financials, insider
reports, market indices, portfolio management systems, and data feeds.
QuoteMedia provides data and services for companies such as the NASDAQ, the
OTCBB, Forbes.com, Scotia Capital, Southwest Securities, Automated
Financial Systems, FBR Direct, AIM Trimark, Zacks Investment Research,
ChoiceTrade, QTrade, Schaeffer's Investment Research, WallStreet*E,
Business Wire and others. For more information, please visit:
http://www.quotemedia.com.
Statements about QuoteMedia's future expectations, including future
revenue, earnings, and transactions, as well as all other statements in the
press release other than historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
QuoteMedia intends that such forward-looking statements be subject to the
safe harbors created thereby. These statements involve risks and
uncertainties that are identified from time to time in the company's SEC
reports and filings, and are subject to change at any time. QuoteMedia's
actual results and other corporate developments could differ materially
from that which has been anticipated in such statements.
About Nexa Technologies, Inc.: http://www.nexatech.com
Nexa Technologies, Inc., is a provider of online and direct access
trading solutions. Founded in 1999, Nexa Technologies is a subsidiary of
Penson Worldwide, Inc. Its comprehensive product set incorporates
multi-asset direct access trading systems, FIX-compliant order routing,
comprehensive data and market access to European & North American equity,
options and derivatives exchanges and ECNs.
Nexa Technologies added historical intraday time series data into its
product range in January 2005 when Penson Worldwide acquired Tick Data,
Inc. The Tick Data division, which provides clean, reliable historical
intraday time series data for the equities and futures markets, employs
proprietary compression algorithms, price-filtering techniques, and ticker
symbol mapping processes to produce complete, research-ready historical
data. From efficient data collection and distribution to seamless
integration with third-party analytical software, the Tick Data division
removes the frustration from building and maintaining historical databases.
About Penson Worldwide, Inc.: http://www.penson.com
Penson Worldwide, Inc. is the parent company for Penson Financial
Services, Inc., Penson Financial Services Canada, Inc., Penson Financial
Services, Ltd., Nexa Technologies, Inc. and Penson Financial Futures, Inc.
among other companies. The Penson Worldwide group of companies provides
execution, clearing, custody, settlement, and technology infrastructure
products and services to securities firms and others servicing the
securities industry. Penson Financial Services, Inc., headquartered in
Dallas, Texas, has served the clearing needs of all types of broker/dealers
since 1995. Penson is the flexible choice in global securities services. TM
Forward-Looking Statements
Statements contained in this news release that are not based on current
or historical fact are forward-looking in nature. Such forward-looking
statements are based on current plans, estimates and expectations.
Forward-looking statements are based on known and unknown risks,
assumptions, uncertainties and other factors. Penson's actual results,
performance, or achievements may differ materially from any future results,
performance, or achievements expressed or implied by such forward-looking
statements. Penson undertakes no obligation to publicly update or revise
any forward-looking statement.

SOURCE Nexa Technologies, Inc.

Motorola Announces Decision to Terminate Shareholder Rights Plan

Stock Market Trading — Thu, 27 Jul 2006 17:22:00 +0000

Motorola Announces Decision to Terminate Shareholder Rights Plan

Also Implements Policy to Seek Shareholder Approval of Any Future Plan

Motorola, Inc. (NYSE: MOT - News) announced that its Board of Directors has voted to terminate the company's shareholder rights plan (a device which is sometimes referred to as a "poison pill"). Additionally, Motorola has established a new governance policy providing that any new shareholder rights plan must be subject to shareholder approval within twelve months of its adoption. Subject to this requirement, the Board, by a majority vote of its independent directors, maintains the flexibility to adopt a new shareholder rights plan in the future.

"Our decision to terminate the shareholder rights plan and establish this new policy reflects the Board's continuing commitment to corporate governance best practices," said Ed Zander, Motorola Chairman and Chief Executive Officer. "The Board believes that our new policy is responsive to our shareholders' concerns and also adequately protects our shareholders' best interests."

The Board's actions will accelerate the expiration date of the Company's current shareholder rights plan to August 1, 2006. It was due to expire in November 2008. The shareholder rights plan being terminated was put in place in 1998 to help assure that all Motorola shareholders receive fair treatment and value in the event of an unsolicited attempt to gain control of the Company.

About Motorola

Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit http://www.motorola.com .

MOTOROLA and the stylized M Logo are registered in the U.S. Patent & Trademark Office. All other product or service names are the property of their respective owners.

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Source: Motorola, Inc.

Motorola to Acquire Broadbus Technologies, Extend Portfolio of ‘Seamless Video Anywhere’ Solutions

Stock Market Trading — Thu, 27 Jul 2006 01:29:12 +0000

Motorola to Acquire Broadbus Technologies, Extend Portfolio of ‘Seamless Video Anywhere’ Solutions

SCHAUMBURG, Il. – 25 July 2006 – Motorola, Inc. (NYSE: MOT) today announced that it will acquire privately-held Broadbus Technologies, Inc., a Boxborough, Ma.-based provider of technology solutions for Television On-Demand (TOD®).

Broadbus Technologies’ industry-leading, carrier-class technology solutions enable the distribution of on-demand content to consumers through multiple devices. The company's innovative solid-state server architecture is based on the intelligent configuration and management of dynamic random-access memory (DRAM). As a result, the platform can use less space and power than traditional hard-disk based technology, while providing performance, reliability and scalability improvements for video ingest, streaming, and storage.

With the acquisition, Motorola will extend its robust video delivery platform with new content management and distribution capabilities that address growing market opportunities such as mobile video, video on-demand (VOD), time-shifted TV, network-based digital video recording (nDVR), on-demand ad insertion (ODAI) and switched digital video (SDV).

“Today, consumers expect to access video entertainment on the different devices they have, inside and outside of their home, in varying formats – and to have it available upon request. The addition of Broadbus Technologies will bring Motorola’s video delivery platform one step closer to enabling this vision of seamless mobility by providing us with field-proven content management and delivery solutions,” said Dan Moloney, President, Motorola Connected Home Solutions. “Service providers will be able to take advantage of a complete end-to-end seamless video experience enabled by Motorola technology to extend their customer relationships.”

Broadbus Technologies, Inc. was founded in 1999 and currently has more than 60 video-on-demand deployments with service providers worldwide, including Comcast, Charter Communications, and Time Warner Cable. Key financial investors included Battery Ventures, Charles River Ventures, Comcast Interactive Capital and Star Ventures.

Financial terms of the transaction were not disclosed. The acquisition, which is subject to regulatory and other customary approvals, is expected to close in the third quarter.

Business Risks
Statements in this press release that are not historical facts, including statements about impact of the proposed transaction and the uses for the technology, are forward-looking statements based on current expectations that involve risks and uncertainties. Motorola cautions the reader that the factors below, as well as other factors in Motorola's most recent annual report on Form 10-K and in its other SEC filings, could cause actual results to differ materially from the forward-looking statements. These factors include: (1) the ability to consummate the transaction; (2) the possibility that Motorola may be unable to achieve expected synergies and operating efficiencies from the transaction within the expected time-frames or at all; (3) the possibility of customer loss and business disruption following the transaction; and (4) unanticipated technology limitations.

About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com

Motorola Declares Quarterly Dividend

Stock Market Trading — Thu, 27 Jul 2006 01:27:48 +0000

Motorola Declares Quarterly Dividend

SCHAUMBURG, Ill. – 26 July – Motorola, Inc. (NYSE: MOT) declared a regular quarterly dividend of 5 cents ($0.05) per share, payable in cash on October 13, 2006 to stockholders of record at the close of business on September 15, 2006.

This will be Motorola’s 238th consecutive quarterly dividend.

About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com.

Motorola Announces Record Second-Quarter Sales and Earnings

Stock Market Trading — Wed, 19 Jul 2006 20:18:00 +0000

Motorola Announces Record Second-Quarter Sales and Earnings
Wednesday July 19, 4:05 pm ET

Second-Quarter Financial Highlights

- Record quarterly sales of $10.88 billion, up 29 percent compared to
second-quarter 2005 sales of $8.41 billion

- Earnings of $.55 per share, versus earnings of $.37 per share in the
year-ago quarter

- Record handset shipments of 51.9 million units

- Global handset market share estimated at 22 percent, up 4.3 percentage
points versus the year-ago quarter

- Record digital entertainment set-top devices shipments of 2.4 million

SCHAUMBURG, Ill., July 19 Motorola, Inc. (NYSE: MOT - News) today reported the following sales and earnings.

Second Quarter %
2006 2005 Increase
Sales $10.88B $8.41B 29%
Earnings Per Share:
Continuing operations $0.54 $0.37 46%
Net earnings $0.55 $0.37 49%

Second-quarter earnings from continuing operations in 2006 and 2005 include the following significant items:

EPS Impact
2006 2005
Stock compensation expense $(0.02)
Reorganization of business charges (0.01) (0.01)
Tax benefits 0.11 0.02
Telsim settlement 0.10
Gain on investments, including derivative gain 0.03 0.10
Repayment of previously reserved loan 0.01
Total EPS Impact $0.21 $0.12

During the quarter, the company continued to maintain a very strong balance sheet, generating operating cash flow from continuing operations of approximately $500 million, its 22nd consecutive quarter of positive operating cash flow. In addition, the company repurchased 39 million shares of its stock for $838 million.

"Motorola continues to deliver excellent quarterly sales and earnings growth. With our solid financial performance and unrelenting focus on innovation and customer satisfaction, Motorola is among the fastest growing large-cap technology companies in the world," said Ed Zander, chairman and CEO. "In the second quarter, all of our businesses improved sales and grew profits sequentially versus the first quarter. Mobile Devices led the way, setting records for unit shipments, sales and profits. With our strong balance sheet, leading technologies and proven record of growth, Motorola is well-positioned to continue creating value for its shareholders."

Operating Results

Mobile Devices Segment sales were $7.14 billion, up 46 percent compared with the year-ago quarter. Operating earnings increased to $799 million, compared with operating earnings of $493 million in the year-ago quarter. The company also captured headlines by launching the highly anticipated MOTO Q, which is transforming consumer expectations and experiences for QWERTY devices. During the quarter, Mobile Devices also:

-- Shipped 51.9 million handsets, up 53 percent compared to the second
quarter of 2005 -- and up 12.4 percent compared to 46.1 million
handsets shipped during the first quarter of 2006.
-- Expanded global market share to an estimated 22 percent, up
4.3 percentage points from a year ago and up 1.3 percentage points from
the first quarter of 2006.
-- Increased brand strength and market share leadership in both North
America and Latin America; remained the solid No. 2 with growing brand
momentum in Western Europe, North Asia and the high-growth markets
(Middle East, Africa, India and Southeast Asia); and expanded market
share to greater than 20 percent in China, up 8.9 percentage points
from the second quarter of 2005.
-- Launched 11 new handsets: 5 for GSM networks, 4 for CDMA and 2 for
iDEN. Notably, shipments for iDEN handsets posted a record second-
quarter performance.
-- Since the third quarter of 2005, we have shipped nearly 10 million
music handsets and launched the MOTO (RED) SLVR, joining with Bono and
Project Red to fight AIDS and poverty in Africa.

Networks and Enterprise Segment sales were $2.90 billion, up 3 percent compared with the year-ago quarter and up 15 percent compared with the first quarter of 2006. Operating earnings decreased to $386 million, compared with operating earnings of $494 million in the year-ago quarter, but increased sequentially compared with operating earnings of $299 million in the first quarter of 2006. The second quarter of 2006 included restructuring charges of $37 million. Backlog for the segment increased for the second consecutive quarter. During the quarter, Networks and Enterprise also:

-- Received a contract for a nationwide TETRA system in Portugal that will
provide mission-critical voice and data communications to more than
50,000 users in the police, fire and ambulance services as well as
other public safety and civil protection agencies.
-- Received a contract for a nationwide WiMAX wireless broadband network
from Wateen Telecom in Pakistan.
-- Received a contract from TeliaSonera in Denmark for a commercial
Unlicensed Mobile Access (UMA) fixed mobile convergence solution.
-- Received a contract from Shanghai Telecom to provide a TETRA-based
digital trunking network for Shanghai.

After the end of the quarter, Networks and Enterprise:

-- Completed the sale of the automotive electronics business to
Continental AG for approximately $1 billion.
-- Announced an investment in Clearwire Corporation and our intent to
acquire NextNet as further steps in Motorola's focused strategy to
continue to expand and profitably grow our wireless broadband business
and advance our vision of seamless mobility.

Connected Home Solutions Segment sales were $803 million, up 8 percent compared with the year-ago quarter and up 10 percent compared with the first quarter of 2006. Operating earnings increased to $56 million, compared with operating earnings of $33 million in the year-ago quarter and an operating loss of $11 million in the first quarter of 2006. Motorola continued to maintain and grow its market leadership with strong shipments of video, voice and data infrastructure and consumer devices. During the quarter, the segment:

-- Shipped a record 2.4 million digital entertainment set-top devices,
including approximately 680,000 with digital video recorders (DVR).
-- Shipped a record 900,000 voice-enabled modems.
-- Announced that Sentivision of Japan will deploy Motorola's IP video
set-top platform.
-- Announced the world's first commercial implementation of PacketCable
MultiMedia(TM) (PCMM), through deployment of an end-to-end solution
with StarHub of Singapore.
-- Introduced the Motorola Follow Me TV solution, which enables the
seamless movement of multimedia content within the home and to the
mobile device.
-- Announced that Cox Communications will begin field trials of Motorola's
Open Cable Applications Platform (OCAP) software.

Third Quarter 2006 Outlook
The company's outlook for the third quarter of 2006 is for sales of between $10.9 billion and $11.1 billion, an increase of 20 to 23 percent versus the prior-year quarter, driven primarily by continuing momentum in the Mobile Devices business.

Conference Call and Web-cast

Motorola's quarterly earnings conference call is scheduled to begin at 4:00 p.m. Central Time (USA) on Wednesday July 19, 2006. Motorola plans a live web-cast of the conference call over the Internet, featuring both audio and slides. Investors can view the slides and join the web-cast at http://www.motorola.com/investor .

Consolidated GAAP Results
A comparison of results from operations is as follows:

Second Quarter
(In millions, except per share amounts) 2006 2005
Net sales $10,876 $8,408
Gross margin 3,359 2,757
Operating earnings 1,522 958
Earnings from continuing operations 1,349 919
Net earnings 1,384 933
Diluted earnings per common share:
Continuing operations $0.54 $0.37
Discontinued operations 0.01 --
$0.55 $0.37
Weighted average diluted common shares
outstanding 2,522.0 2,504.0

Business Risks
Statements in this press release that are not historical facts are forward-looking statements based on current expectations that involve risks and uncertainties, including, but not limited to, Motorola's guidance for third quarter 2006 sales. Motorola cautions the reader that the factors below and those on pages 19 through 27 in Item 1A of Motorola's 2005 Annual Report on Form 10-K and in its other SEC filings, could cause Motorola's actual results to differ materially from those stated in the forward-looking statements. These factors include: (1) the uncertainty of current economic and political conditions, as well as the economic outlook for the telecommunications and broadband industries; (2) the company's ability to continue to increase profitability and market share in its wireless handset business; (3) demand for the company's products, including products related to new technologies; (4) the company's ability to introduce new products and technologies in a timely manner; (5) the company's ability to purchase sufficient materials, parts and components to meet customer demand; (6) unexpected negative consequences from the realignment of our Networks and Enterprise business; (7) risks related to dependence on certain key suppliers; (8) the impact on the company's performance and financial results from strategic acquisitions or divestitures that are currently pending or may occur in the future; (9) risks related to the company's high volume of manufacturing and sales in Asia; (10) the creditworthiness of the company's customers, particularly purchasers of large infrastructure systems; (11) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation, including without limitation any relating to the Iridium project; (12) the timing and levels at which design wins become actual orders and sales; (13) the impact of foreign currency fluctuations; (14) the impact on the company from continuing hostilities in Iraq and conflict in other countries; (15) the impact on the company from ongoing consolidation in the telecommunications and broadband industries; (16) the impact of changes in governmental policies, laws or regulations; (17) the outcome of currently ongoing and future tax matters with the IRS, and (18) unforeseen negative consequences from the company's outsourcing of various activities, including certain manufacturing, information technology and administrative functions.

About Motorola

Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit http://www.motorola.com .

MOTOROLA and the stylized M Logo are registered in the U.S. Patent & Trademark Office. All other product or service names are the property of their respective owners.

Motorola, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In millions, except per share amounts)

Quarter Ended Quarter Ended
July 1, 2006 July 2, 2005
--------------- ---------------
Net sales $10,876 $8,408
Costs of sales 7,517 5,651
--------------- ---------------
Gross margin 3,359 2,757
--------------- ---------------

Selling, general and administrative
expenses 1,195 915
Research and development expenditures 1,016 878
Other charges (income) (374) 6
--------------- ---------------
Operating earnings 1,522 958
--------------- ---------------

Other income (expense):
Interest income (expense), net 70 4
Gains on sales of investments and
businesses, net 5 409
Other 126 20
--------------- ---------------
Total other income 201 433
--------------- ---------------
Earnings from continuing operations
before income taxes 1,723 1,391
Income tax expense 374 472
--------------- ---------------
Earnings from continuing operations 1,349 919

Earnings from discontinued operations,
net of tax 35 14
--------------- ---------------

Net earnings $1,384 $933
=============== ===============

Earnings per common share
-------------------------
Basic:
Continuing operations $0.55 $0.37
Discontinued operations 0.01 0.01
--------------- ---------------
$0.56 $0.38
=============== ===============

Diluted:
Continuing operations $0.54 $0.37
Discontinued operations 0.01 -
--------------- ---------------
$0.55 $0.37
=============== ===============

Weighted average common shares outstanding
------------------------------------------
Basic 2,464.4 2,460.2
Diluted 2,522.0 2,504.0

Dividends paid per share $0.04 $0.04

Six Months Ended Six Months Ended
July 1, 2006 July 2, 2005
---------------- ----------------

Net sales $20,484 $16,175
Costs of sales 14,199 10,837
---------------- ----------------
Gross margin 6,285 5,338
---------------- ----------------

Selling, general and administrative
expenses 2,296 1,838
Research and development expenditures 1,962 1,685
Other charges (income) (344) 1
---------------- ----------------
Operating earnings 2,371 1,814
---------------- ----------------

Other income (expense):
Interest income (expense), net 137 (4)
Gains on sales of investments and
businesses, net 156 648
Other 107 12
---------------- ----------------
Total other income 400 656
---------------- ----------------
Earnings from continuing operations
before income taxes 2,771 2,470
Income tax expense 766 866
---------------- ----------------
Earnings from continuing operations 2,005 1,604

Earnings from discontinued operations,
net of tax 65 21
---------------- ----------------

Net earnings $2,070 $1,625
================ ================

Earnings per common share
-------------------------
Basic:
Continuing operations $0.81 $0.65
Discontinued operations 0.03 0.01
---------------- ----------------
$0.84 $0.66
================ ================

Diluted:
Continuing operations $0.79 $0.64
Discontinued operations 0.03 0.01
---------------- ----------------
$0.82 $0.65
================ ================

Weighted average common shares outstanding
------------------------------------------
Basic 2,477.7 2,454.1
Diluted 2,538.8 2,495.4

Dividends paid per share $0.08 $0.08

Motorola, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)

ASSETS July 1, December 31,
2006 2005
----------- ------------
Cash & cash equivalents $3,401 $3,774
Sigma funds 10,801 10,867
Short-term investments 188 144
Accounts receivable, net 6,420 5,635
Inventories, net 2,716 2,422
Deferred income taxes 2,123 2,355
Other current assets 2,440 2,360
Current assets held for sale 339 312
----------- ------------
Total current assets 28,428 27,869
----------- ------------

Property, plant and equipment, net 2,084 2,020
Investments 1,395 1,644
Deferred income taxes 991 1,196
Other assets 2,804 2,597
Non-current assets held for sale 302 323
----------- ------------
Total assets $36,004 $35,649
=========== ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Notes payable and current portion of
long-term debt $490 $448
Accounts payable 4,134 4,295
Accrued liabilities 7,149 7,376
Current liabilities held for sale 281 320
----------- ------------
Total current liabilities 12,054 12,439
----------- ------------
Long-term debt 3,758 3,806
Other liabilities 2,907 2,727
Non-current liabilities held for sale 8 4

Stockholders' equity 17,277 16,673
----------- ------------

Total liabilities and stockholders' equity $36,004 $35,649
=========== ============

Motorola, Inc. and Subsidiaries
Segment Information
(In millions)

Summarized below are the Company's net sales by reportable segment for
the quarters and six months ended July 1, 2006 and July 2, 2005.

Net Sales
---------------------------------------
Quarter Ended Quarter Ended % Change
July 1, 2006 July 2, 2005 from 2005
---------------------------------------
Mobile Devices $7,140 $4,902 46%
Networks and Enterprise 2,903 2,825 3%
Connected Home Solutions 803 743 8%
-----------------------------
Segment Totals 10,846 8,470 28%
Other and Eliminations 30 (62) 148%
-----------------------------
Company Totals $10,876 $8,408 29%
=============================

Net Sales
------------------------------------------
Six Months Ended Six Months Ended % Change
July 1, 2006 July 2, 2005 from 2005
------------------------------------------
Mobile Devices $13,543 $9,317 45%
Networks and Enterprise 5,423 5,562 -2%
Connected Home Solutions 1,535 1,425 8%
--------------------------------
Segment Totals 20,501 16,304 26%
Other and Eliminations (17) (129) 87%
--------------------------------
Company Totals $20,484 $16,175 27%
================================

Motorola, Inc. and Subsidiaries
Segment Information
(In millions)

Summarized below are the Company's operating earnings (loss) by reportable
segment for the quarters and six months ended July 1, 2006 and July 2,
2005.

Operating Earnings (Loss)
------------------------------
Quarter Ended Quarter Ended
July 1, 2006 July 2, 2005
--------------- --------------
Mobile Devices $799 $493
Networks and Enterprise 386 494
Connected Home Solutions 56 33
--------------- --------------
Segment Totals 1,241 1,020
Other and Eliminations 281 (62)
--------------- --------------
Company Totals $1,522 $958
=============== ==============

Operating Earnings (Loss)
-----------------------------------
Six Months Ended Six Months Ended
July 1, 2006 July 2, 2005
---------------- -----------------
Mobile Devices $1,498 $931
Networks and Enterprise 685 909
Connected Home Solutions 45 42
---------------- -----------------
Segment Totals 2,228 1,882
Other and Eliminations 143 (68)
---------------- -----------------
Company Totals $2,371 $1,814
================ =================

--------------------------------------------------------------------------------
Source: Motorola, Inc.