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Motorola Solutions Reports Third-Quarter Results
 
 
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* Record Third Quarter in Sales and Operating Earnings
* Sales of $2.1 billion, up 10 percent from third-quarter 2010
* Government sales of $1.4 billion, up 9 percent from third-quarter 2010
* Enterprise sales of $726 million, up 13 percent from third-quarter 2010
* Cash flow from continuing operations during the quarter of $477 million and ended the quarter with total cash* of $6.3 billion
* Repurchased $744 million of shares in the quarter

DUBAI, United Arab Emirates - Oct. 27, 2011 - Motorola Solutions, Inc. (NYSE: MSI) announced today its third-quarter 2011 results highlighted by sales of $2.1 billion, up 10 percent from the third quarter of 2010 and driven by solid demand in all regions across both its Government and Enterprise segments.

"Our customers continue to invest in solutions that increase revenues and improve operating efficiency," said Greg Brown, chairman and CEO of Motorola Solutions. "In addition to our robust growth this quarter, we returned significant capital to shareholders. We repurchased $744 million of stock, initiated our dividend and generated very strong operating cash flow."

GAAP operating earnings in the third quarter of 2011 were $253 million or 12 percent of sales, compared to $211 million or 11 percent of sales in the third quarter of 2010. GAAP earnings per share from continuing operations** were $0.45, compared to a GAAP loss of $0.04 in the third quarter of 2010.

Non-GAAP*** operating earnings in the third quarter of 2011 were $358 million or 17 percent of sales, compared to $289 million or 15 percent of sales in the third quarter of 2010. Non-GAAP earnings per share from continuing operations were $0.65, compared to $0.54 in the third quarter of 2010. Non-GAAP financial information excludes after-tax benefits of approximately $0.20 per diluted share related to stock-based compensation expense, intangible assets amortization expense and highlighted items. Details on these Non-GAAP adjustments and the use of Non-GAAP measures are included later in this press release.

During the third quarter of 2011, the company generated $477 million in operating cash flow from continuing operations. The company ended the quarter with total cash* of $6.3 billion while returning $744 million to shareholders through share repurchases during the quarter.

Government segment sales were $1.4 billion, up 9 percent from the year-ago quarter. GAAP operating earnings were $185 million or 13 percent of sales compared to $159 million or 13 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $223 million or 16 percent of sales compared to $175 million or 14 percent of sales in the year-ago quarter.
Government highlights:
- Secured multi-million dollar public safety contracts with Jefferson County 911 Dispatch in Missouri; Morris County in New Jersey; the city of Cleveland; the state of Hessen, Germany; the National Police of Colombia; the Public Safety State Council of Jalisco, Mexico; and Shangdong Police in China

- Renewed a $95 million managed services and support agreement with Airwave for its UK TETRA network, the largest TETRA network in the world with 250,000 subscribers and nationwide coverage

- Shipped one millionth MOTOTRBO™ digital two-way radio, the first digital radio in the professional market that Motorola Solutions introduced in 200

- Continued to demonstrate leadership in public safety LTE with an agreement to help the Brazilian Army test 4G LTE technologies for mobile broadband applications for public security operating in the 700MHz frequency range; also released first devices for LTE, a vehicle modem and a USB modem, which allow public safety personnel to access a Band Class 14 Public Safety LTE network

Enterprise segment sales were $726 million, up 13 percent from the year-ago quarter. GAAP operating earnings were $68 million or 9 percent of sales compared to $52 million or 8 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $135 million or 19 percent of sales compared to $114 million or 18 percent of sales in the year-ago quarter.
Enterprise highlights:
- Continued strong mobile computing growth in Europe with awards from customers such as PostenLogistik Group in Sweden, DHL Express in France, GDF Suez in France and Jumbo Supermarkets in the Netherlands

- Completed the acquisition of Rhomobile, a mobile application development platform company, which reinforces Motorola Solutions' commitment to enable its partner communities to deliver rich, highly tailored applications across multiple operating system environments that will help customers mobilize and connect across devices today and in the future

- Secured a significant managed services win with Sears, and a WLAN contract that includes deployment and maintenance services with Raley's grocery stores in western United State

- Announced the sale of point-to-point (Orthogon) and point-to-multipoint (Canopy) businesses to Vector Capital

Results from Discontinued Operations
The third-quarter net loss from discontinued operations was $24 million, which substantially relates to an after-tax charge for an expected purchase price adjustment associated with the sale of the company's Networks business in the second quarter of 2011.Fourth-Quarter and Full-Year 2011 Outlook

The company has raised its expected full-year revenue outlook to approximately 7 percent growth with operating earnings of approximately 16.5 percent of sales. Fourth-quarter sales are expected to grow between 2 and 3 percent compared with the fourth quarter of 2010 and approximately 7 percent compared with the third quarter of 2011. Earnings per share from continuing operations are expected to be $0.78 to $0.83. This outlook excludes stock-based compensation expense, intangible assets amortization expense and charges associated with items of the variety typically highlighted by the company in its quarterly earnings releases.

Conference Call and Webcast
Motorola Solutions will host its quarterly conference call beginning at 7 a.m. U.S. Central Daylight Time (8 a.m. U.S. Eastern Daylight Time) on Thursday, Oct. 27. The conference call will be webcast live with audio and slides at www.motorolasolutions.com/investor.

Posted on: Oct 27 2011


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CategoryDescription
Telecommunications
 
http://www.motorola.com
Country: USA

We’re scientists. We’re artists. Most of all, we are a global communications leader, powered by, and driving, seamless mobility. Motorola is revolutionizing broadband, embedded systems and wireless networks – bringing cutting-edge technologies into your everyday life, with style.

GLOBAL HEADQUARTERS
Motorola, Inc.
1303 East Algonquin Road
Schaumburg, Illinois 60196 USA
Telephone: +1 847 576 5000

Motorola Solutions (www.motorolasolutions.com)
Motorola Solutions is a leading provider of mission-critical communication products and services for enterprise and government customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter. Motorola Solutions trades on the New York Stock Exchange under the ticker “MSI.”

Media Contact:
Naheed S. Ahmed
Communications Manager
Middle East and Africa (MEA)
Motorola Solutions
Office: +971-4-308-1329
Mobile: +971-56-603-4371
Naheed.ahmed@motorolasolutions.com

Stephanie Forrest
Motorola Mobility, Inc.
+44 (0)7739 884452
stephanie.forrest@motorola.com







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