***Motorola SEC filing May18 Going to war on the buggreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread |
FolksThe SEC filings are in for May folks and this is the last set till after Koskinen's Community Conversations has started. This would be a good start for getting a grip on the subject eh? So here is an edited section of the latest Motorola filing. Check into their contingency planning, they have not got assurances from utilities so it sounds like they will be going to war
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Critical facilities have been identified and the Company's plans prioritize their continued operations. These sites will be supported by generators capable of maintaining health, safety, communications and environmental operations if locally provided power sources fail. These sites will have a number of means of communicating including Intranet, pagers, cellular phones, and satellite phones.
The businesses are identifying key individuals in a variety of functions to be on-site at the Company's facilities to monitor the rollover to the Year 2000. Additionally, the Company is establishing rapid response teams that can be sent to major customer locations when and if needed in connection with the rollover. There are also plans to shift operations to different facilities if there are interruptions to operations in particular areas, countries or regions.
The plans also include procedures to maintain and recover business operations such as stockpiling critical supplies, identifying alternate supply sources, inspecting critical functions, reporting operational status, communicating with interdependent operations, and operating in contingency mode until a return to normal.
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Two points in reading the filings, they always say that they aren't assured by the utilities that services will continue, and they rarely mention an expected time period for the possible failures.
If this is due diligence by a major corp to get Generators, will there be enough to go around once the communities determine that it is in their best interest?
You read this document and Motorola sounds like some kind of dammmm survivalist, hoarding, bunker building, litigation fearing and down right conserned over its business issues.
The whole Y2K filing is interesting but long (WOW) and detailed in regards to the separate divisions.
Senetor Bennett said to stockpile information. I can do that *VBG* I suggest you do to. This document would be a good start
Yahoo! Finance - MOT form 10-Q http://sec.yahoo.com/e/l/m/mot.html
May 18, 1999
MOTOROLA INC (MOT) Quarterly Report (SEC form 10-Q)
As described in the Company's discussion of most reasonably likely worst case scenarios, the Company is particularly concerned about energy and transportation suppliers. Many of these suppliers are unwilling to provide assurances that they will be "year 2000 ready."
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Most Reasonably Likely Worst Case Scenarios for the Company and Company Contingency Plans
The Company has and will continue to devote substantial resources to address its Year 2000 issues. However, there can be no assurances that the Company's products do not contain undetected Year 2000 issues. Further, there can be no assurances that the Company's assessment of suppliers and vendors will be accurate. Customers of Motorola could be impacted by Year 2000 issues causing them to reduce purchases from the Company. In addition, many commentators believe that there will be a significant amount of litigation arising out of "year 2000 readiness" issues, especially for product liability. Because of the unprecedented nature of this litigation, it is impossible for the Company to predict the impact of such litigation although it could be significant to the Company. In addition to the unique reasonably likely worst case scenarios described by the specific businesses and potential litigation, the Company believes its scenarios include: (i) corruption of data contained in the Company's internal information systems; (ii) hardware failures; (iii) the failure of infrastructure services provided by government agencies and other third-party suppliers (including energy, water, and transport); and (iv) health, environmental and safety issues relating to its facilities. If any of these were to occur, the Company' operations could be interrupted, in some cases for a sustained period of time. These interruptions could be more severe in countries outside the U.S., where the Company does sizeable business.
The Company's contingency plans focus on customers, products, supplies and internal operations. Each sector is establishing emergency operations centers at key locations. These centers will be staffed ahead of the Year 2000 rollover and well into the Year 2000. During critical times they will be staffed 24-hours a day. The first priority of these centers is to ensure the performance of a customer's network or system.
Critical facilities have been identified and the Company's plans prioritize their continued operations. These sites will be supported by generators capable of maintaining health, safety, communications and environmental operations if locally provided power sources fail. These sites will have a number of means of communicating including Intranet, pagers, cellular phones, and satellite phones.
The businesses are identifying key individuals in a variety of functions to be on-site at the Company's facilities to monitor the rollover to the Year 2000. Additionally, the Company is establishing rapid response teams that can be sent to major customer locations when and if needed in connection with the rollover. There are also plans to shift operations to different facilities if there are interruptions to operations in particular areas, countries or regions.
The plans also include procedures to maintain and recover business operations such as stockpiling critical supplies, identifying alternate supply sources, inspecting critical functions, reporting operational status, communicating with interdependent operations, and operating in contingency mode until a return to normal.
The sectors and groups continue to perform various tests, including on manufacturing production lines and internal networks. Each business will also be testing its contingency plans during the third quarter of 1999. In addition, the Company has planned a test of its overall contingency plans for the third quarter of 1999.
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Management believes that the most reasonably likely worst case scenario involving its business is the failure of a public safety system on January 1, 2000 (or thereafter). As a result, the two-way radio business could potentially be sued as the supplier of those systems. Management believes that its efforts to identify the customers of these systems and provide software solutions should reduce these risks.
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SSG believes the most reasonably likely worst case scenario related to the Year 2000 issue is the failure of a product or system to operate for a short period of time after January 1, 2000. As a result, SSG may be sued as a manufacturer of products or systems that failed. Many of these products or systems were sold to government customers. Management believes it generally does not have legal liability to these customers.
Semiconductor Products Segment
The segment, consisting of the Semiconductor Product Sector ("SPS"), has completed an extensive review of its products to determine if they are Year 2000 Ready. The vast majority of these products are Year 2000 Ready. A limited number of products that contain a real-time clock function are identified as having a potential Year 2000 issue with the manner in which years are tracked. In addition, it is possible that an SPS semiconductor may experience "year 2000 readiness" issues due to the manner in which a customer has programmed the semiconductor or due to the manner in which the semiconductor is incorporated into a customer system or product. SPS is also making information available to its customers on these potential Year 2000 readiness issues.
Literature on the Year 2000 issue references what is referred to as the "embedded chip" Year 2000 issue or the "embedded systems" Year 2000 issue. (The word "chip" is a short-hand reference for a semiconductor product.) Many common electronic products contain "chips" or "systems" containing chips that are incorporated or "embedded" into the product. If these "chips" or "systems" experience Year 2000 readiness issues, due to the manner in which they are programmed, the product may malfunction. Because this programming is customer defined, the extent to which the malfunctioning of these products may occur due to a Year 2000 Readiness issue with a SPS semiconductor is unknown at this time.
Integrated Electronic Systems Sector (IESS)
The Integrated Electronic Systems Sector (IESS) manufactures and sells automotive and industrial electronics, energy storage products and systems, electronic fluorescent ballasts and computer system products.
IESS has completed formal assessment of "Year 2000 Readiness" of its products manufactured within the last eight years and its manufacturing facilities. Other than embedded board and system products, and Global Positioning System receivers, these products do not contain date-sensitive functions, excluding customer provided software incorporated in such products, for which IESS does not have sufficient information in most cases to conduct an evaluation of whether such functions are included.
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In the case of embedded boards, systems and software products that are manufactured by the Motorola Computer Group (MCG), some of the older products do not meet Motorola's definition of Year 2000 Ready. In many of these cases, MCG has made fixes available to its customers to cure the problem. Although it is difficult to measure any potential liability from non-Year 2000 Ready products, MCG believes the risks are relatively small based on the following. Since October 1, 1998, MCG has ceased shipping any products that are not Year 2000 Ready without a waiver from the customer. Fixes have been made available for products that may remain under warranty after 1999. Many products which are outside the warranty period, have been updated over the years with products that are Year 2000 Ready. Other potential liability may arise in cases where it is not known in what applications the products are being used. There is always the possibility that some products have been incorporated by customers into critical use applications. All of the known cases are being evaluated but Motorola believes that this is the customer's responsibility.