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Freescale has developed an unparalleled expertise in embedded processing. Our portfolio of 14,000 products represents the brains behind dozens of things you see and use every day. Freescale technology powers everything from automobiles to refrigerators, to mobile phones, to the networking devices that run the Internet. We have more than 10,000 end customers, including over 100 of the world’s top electronics manufacturers. We own and operate nine manufacturing facilities and 50 design centers around the world.
2004 will be remembered as an important and exciting year for our company. But more importantly, it was a year in which we began to lay the groundwork for bigger things in the years to come. In July, we began our separation from Motorola with an initial public offering of approximately 30 percent of the company’s equity. This IPO, combined with a debt offering, raised approximately $2 billion to fund our future. The Freescale IPO was the second-largest technology offering of the year. On December 2, we became fully independent, as the remaining equity, approximately 70 percent of the company, was distributed to Motorola stockholders. Shortly thereafter, our size and strength was recognized when Freescale Semiconductor became the newest member of the Standard and Poor’s® index of 500 U.S. stocks.
The confidence shown in us by the financial markets is justified by both our 2004 performance and the momentum we have carried into 2005. We have a solid balance sheet, and in 2004 we significantly enhanced our profitability, while reducing the amount of capital needed to run the business. Looking ahead, our focus is on accelerating our financial momentum, building a more efficient and profitable operation and creating a high performance culture within our company.