Two Way Radio Industry News Blog

Radio Industry news from around the world.

Chilean Forests Are Safer with Expansion of Emergency Communications Technology

on Wednesday, 09 September 2015. Posted in Two Way Radio Industry News Blog

Expansion of Chile’s largest private digital radio system will improve security, safety, operational efficiency and environmental impact of Forestal Mininco

SANTIAGO DE CHILE – Sept. 8, 2015 – Motorola Solutions (NYSE: MSI) today announced the expansion of its managed services agreement supporting Forestal Mininco’s mission-critical communications system. The system improves employee safety and security, operational efficiency and Forestal Mininco’s impact on the environment.

The system supports a number of Motorola Solutions’ high-tech innovations, such as the TETRA messaging application, which enables lighthouse keepers to deliver weather data, such as air humidity, wind and rainfall, from radios in the forest to the dispatch center. The data is then analyzed to generate forecasts and statistics, predict the behavior of fires and used to develop action plans.

“As the operations of Forestal Mininco are very diverse and carried out in a rugged landscape, they need to be coordinated. We had to keep improving the technology deployed some years ago. In order to extend coverage, we were looking to seamlessly cover the area between Regions 7 – 9. In addition, thanks to Motorola Solutions technology, we have been improving our communications, which will enable us to enhance operational efficiency and safety,” said Luis Rodriguez, administration manager at Forestal Mininco.

Through the fleet management application, radios in the field can be tracked, improving security in the forest while saving time and fuel, reducing the environmental impact of Forestal Mininco’s operations.

New electronic dispatch guides are bringing another innovation to the forestry industry in Chile. The cranes located in the forest generate the guides, enabling workers to conduct online tracking of materials, from the harvesting of the raw material to the end of the process.

“The managed communication system provided by Motorola Solutions helps our customers reduce their initial capital expenses and avoid errors as it operates with different technology options,” explained Mitchel Zúñiga, services manager at Motorola Solutions for Forestal Mininco Operation. “In cases like Forestal Mininco, we can manage the entire system from initial deployment, and develop it based on their business needs.”

“One of the keys to our success with Mininco has been the investment we’ve made in learning more about forestry industry operations,” Zúñiga added. “During the course of years of collaboration, we gained extended experience in the industry, allowing us to develop innovative solutions that anticipate business needs and make operations both safer and more efficient.”

The Terrestrial Trunked radio (TETRA) system will include 10 new radio frequency sites, new applications and portable devices to increase coverage due to the rugged geography, spanning over 49,000 square kilometers in the areas of Maule, Biobío and La Araucanía. The new solutions include two sites connected to the system via satellite links. These links provide communications in difficult-to-access places and enable mobile coverage, a feature specifically designed to support harvesting tasks in the large areas of the forest.

These enhancements will provide considerable increase in signal coverage and service quality. The renewal of the agreement entered into Motorola Solutions and Forestal Mininco in 2010 includes the extension of coverage with new sites and 2,350 new terminals.

 

Motorola Solutions Announces Preliminary Results of Tender Offer

on Monday, 07 September 2015. Posted in Two Way Radio Industry News Blog

SCHAUMBURG, Ill. – Sept. 4, 2015 – Motorola Solutions (NYSE: MSI) announced today the preliminary results of its modified “Dutch Auction” tender offer, which expired at midnight, Eastern Daylight time, at the end of the day on Thursday, Sept. 3, 2015.

Based on the preliminary count by the depositary for the tender offer, a total of approximately 21.6 million shares of the company’s common stock were properly tendered and not withdrawn at or below a price of $66.50 per share. Additionally, approximately 11.4 million shares were tendered through notice of guaranteed delivery at or below the price of $66.50.

In accordance with the terms and conditions of the tender offer and based on the preliminary count by the depositary, Motorola Solutions expects to accept for payment an aggregate of approximately 30.1 million shares of its common stock at a purchase price of $66.50 per share, for an aggregate cost of approximately $2.0 billion, excluding fees and expenses relating to the tender offer. As such, Motorola Solutions has determined that the preliminary proration factor for the tender offer is approximately 94 percent. These shares represent approximately 14.5 percent of the shares that were outstanding as of Aug. 7, 2015.

The tender offer was made pursuant to Motorola Solutions’ Offer to Purchase dated Aug. 7, 2015, and the related Letter of Transmittal, in which the company offered to purchase up to $2.0 billion of shares of its common stock at a price per share not less than $61.00 and not greater than $66.50, which documents were filed with the Securities and Exchange Commission on Aug. 7, 2015.

The number of shares expected to be purchased in the tender offer and the purchase price per share are preliminary and subject to change. The preliminary information contained in this press release is subject to confirmation by the depositary and is based on the assumption that all shares tendered through notice of guaranteed delivery will be delivered within the three trading day settlement period. The final number of shares to be purchased in the tender offer and the final purchase price per share will be announced following the expiration of the guaranteed delivery period and the completion by the depositary of the confirmation process. Payment for the shares accepted for purchase pursuant to the tender offer, and the return of all other shares tendered and not purchased, will occur promptly thereafter. Payment for shares will be made in cash, without interest.

Motorola Solutions may purchase additional shares in the future in the open market subject to market conditions and private transactions, tender offers or otherwise. Under applicable securities laws, however, Motorola Solutions may not repurchase any shares until Sept. 21, 2015. Whether Motorola Solutions makes additional repurchases in the future will depend on many factors, including but not limited to its business and financial performance, the business and market conditions at the time, including the price of the shares, and other factors Motorola Solutions considers relevant.

Goldman, Sachs & Co. and J.P. Morgan are the dealer managers for the tender offer and Alliance Advisors LLC is the information agent. The depositary is Wells Fargo Bank, N.A. Wachtell, Lipton, Rosen & Katz is Motorola Solutions’ legal counsel for the tender offer.

Any questions regarding the tender offer may be directed to the information agent toll-free at 855-737-3810.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of applicable federal securities law, and generally includes words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent the company’s views only as of today and should not be relied upon as representing the company’s views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to statements relating to the preliminary results of the tender offer and the company’s intention to repurchase shares. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 9 through 20 in Item 1A of Motorola Solutions, Inc.’s 2014 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com, could cause Motorola Solutions’ actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions and factors that may impact forward-looking statements include, but are not limited to: (1) the economic outlook for the government communications industry; (2) the impact of foreign currency fluctuations on the company; (3) the level of demand for the company’s products; (4) the company’s ability to introduce new products and technologies in a timely manner; (5) negative impact on the company’s business from global economic and political conditions, which may include: (i) continued deferment or cancellation of purchase orders by customers; (ii) the inability of customers to obtain financing for purchases of the company’s products; (iii) increased demand to provide vendor financing to customers; (iv) increased financial pressures on third-party dealers, distributors and retailers; (v) the viability of the company’s suppliers that may no longer have access to necessary financing; (vi) counterparty failures negatively impacting the company’s financial position; (vii) changes in the value of investments held by the company’s pension plan and other defined benefit plans, which could impact future required or voluntary pension contributions; and (viii) the company’s ability to access the capital markets on acceptable terms and conditions; (6) the impact of a security breach or other significant disruption in the company’s IT systems, those of its partners or suppliers or those the company sells to or operates or maintains for its customers; (7) the outcome of ongoing and future tax matters; (8) the company’s ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions and reductions in the company’s purchasing power; (9) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (10) the impact on the company’s performance and financial results from strategic acquisitions or divestitures; (11) risks related to the company’s manufacturing and business operations in foreign countries; (12) the creditworthiness of the company’s customers and distributors, particularly purchasers of large infrastructure systems; (13) exposure under large systems and managed services contracts, including risks related to the fact that certain customers require that the company build, own and operate their systems, often over a multi-year period; (14) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Trademark Holdings, LLC; (15) variability in income received from licensing the company’s intellectual property to others, as well as expenses incurred when the company licenses intellectual property from others; (16) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (17) the impact of the percentage of cash and cash equivalents held outside of the United States; (18) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (19) the ability of the company to repurchase shares under its repurchase program due to possible adverse market conditions or adverse impacts on the company’s cash flow; (20) the impact of changes in governmental policies, laws or regulations; (21) negative consequences from the company’s outsourcing of various activities, including certain business operations, information technology and administrative functions; and (22) the impact of the sale of the company’s enterprise legacy information systems, including components of the enterprise resource planning (ERP) system and the implementation of a new ERP system, and (23) the final amount of the tender offer for the Company’s shares. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise. 

Motorola Solutions to Present at Sept. 9 Citi Global Technology Conference

on Wednesday, 02 September 2015. Posted in Two Way Radio Industry News Blog

SCHAUMBURG, Ill. — Sept. 2, 2015 — Motorola Solutions, Inc. (NYSE: MSI) today announced that Greg Brown, chairman and chief executive officer, will speak at the Citi Global Technology Conference on Wednesday, Sept. 9, in New York.

The presentation will begin at approximately 9:30 a.m. Eastern Daylight Time and will be webcast live at www.motorolasolutions.com/investor. A replay will be available approximately one hour later at www.motorolasolutions.com/investor. 

Cape Town Invests in Advanced Communications to Make City Safer

on Thursday, 27 August 2015. Posted in Two Way Radio Industry News Blog

City of Cape Town extends TETRA digital radio communications network with latest Motorola Solutions technology to enhance community safety

  • Largest public service and safety communications network in South Africa -- serving more than 13,500 users -- receives upgrade investment
  • Highly reliable radio communications improve response times of public safety agencies across entire municipality
  • Enables better protection for citizens as well as public safety, security and utility services workers

Cape Town, South Africa – Aug. 27, 2015 – Motorola Solutions and radio distributor Altech Alcom Matomo have completed an extension of the digital Terrestrial Trunked Radio (TETRA) communications network in the city of Cape Town, South Africa. The city’s technology investment provides resilient and feature-rich communications for public safety agencies and utilities to help protect its citizens and visitors.

In 2000, the City of Cape Town commissioned a Motorola Solutions Dimetra IP digital TETRA radio system providing coverage over the Cape Metropolitan Area (CMA). It remains one of three municipalities in South Africa that operates its own TETRA network, and it is by far the largest, serving 11,000 of the City’s public safety, security and utility services. The system also provides reliable communication to 2,500 external users from surrounding municipalities, including the emergency medical services of the provincial government.

“Investment in the TETRA system serves as an enabler for improved service delivery to the citizens of the CMA,” says Councillor Xanthea Limberg, mayoral committee member for corporate services, City of Cape Town. “This is achieved by providing reliable and effective communications and improving interoperability and response times during special events, emergencies and disasters.”

The city has upgraded the radio communications infrastructure to the latest version of the Motorola Solutions TETRA system -- Dimetra IP 8.2 -- to provide increased resilience.

“With built-in redundancy for maximum reliability and uptime, Cape Town’s TETRA network is now better able to continue operating despite power outages or major incidents such as the recent floods and mountain fires,” says Vikela Rankin, managing director, Motorola Solutions South Africa. “This enhanced TETRA system will provide clear, reliable and accurate communications to the police and other users in the field for many years to come.”

Operational efficiency, officer safety and incident response time are all improved through enhanced network management, security and new location-based capabilities.

The system is set up so that all the public safety agencies’ communications – across a range of radio groups and interconnected with the telephone network – remain secure and private. Encryption ensures those with police radio scanners cannot listen in on conversations, while real-time Global Positioning System (GPS) location tracking and mapping enables the command centre to monitor users, such as police officers, and instantly dispatch support to their exact location.

“This new TETRA technology provides sustained reliability and also the capacity to further expand to cater for the changing needs of Cape Town,” says Brett Nash, managing director, Altech Alcom Matomo. “The city can now confidently equip key stakeholders with TETRA radios to serve as an emergency communications group during incidents when all other means of communication might fail.”

Motorola Solutions Provides Secure and Efficient Communications for Milan Airports

on Tuesday, 25 August 2015. Posted in Two Way Radio Industry News Blog

SEA Group selects Motorola Solutions’ TETRA digital radio system for Linate and Malpensa airports

  • TETRA Dimetra IP Compact solutions ensure secure and reliable communication, improving operations and customer service
  • The TETRA solution can be extended to meet evolving operational requirements

MILAN, ITALY – Aug. 25, 2015 – Airport operator SEA Group (Società Esercizi Aeroportuali S.p.A.) has selected Motorola Solutions to improve operations and ensure the highest levels of security, efficiency and effectiveness at Milan’s Linate and Malpensa airports. Deploying a TETRA Dimetra IP Compact radio communications system to connect both of Milan’s airports, SEA is able to provide enhanced customer services with rapid flight turnaround and more efficient terminal operations.

"With 1,200 operating radios and an increase in operations, SEA needed a more dynamic solution for communications," says Fabio Degli Esposti, information & communication technology director, SEA. "Faced with the need to replace an outdated system and the need to cope with an increasing demand of services, the only choice for us was to switch to digital technology, which is able to guarantee a safe and effective service."

In Malpensa - where the old and the new systems had to coexist in the migration phase - everything was fully operational within just two weeks, including the configuration of 1,000 new radios. At Linate airport, the system, supporting 400 new radios, was set up in just a week.

“SEA could not afford any inefficiency," says Giuliano Posenato, customer service manager, Motorola Solutions Italy. "The implementation had to be very fast, because the requirement was to change the engine on the machine while it was still running.”

Motorola Solutions’ high-performance TETRA base stations now deliver TETRA network coverage in both airports. Old radios used by personnel throughout the airports where also replaced with new TETRA digital handsets.

Motorola Solutions has signed a four-year managed services agreement with SEA, guaranteeing technology evolution including the replacement of its complete telecommunication system (controller, base stations and radios). Motorola Solutions will provide global integrated services infrastructure with highly qualified technical support and certified repair centres that will provide fast repair times and expert technical support for the system for many years to come.

In September 2015, Motorola Solutions will upgrade the connections at both airports with the latest generation of Motorola Solutions TETRA system Dimetra 8.2 enhancing data transmission and offering the SEA the opportunity to develop rich data services to further improve both operations and the customer experience at Milan’s airports.

Motorola Solutions Declares Quarterly Dividend

on Wednesday, 19 August 2015. Posted in Two Way Radio Industry News Blog

SCHAUMBURG, Ill. – Aug. 18, 2015 – Motorola Solutions, Inc. (NYSE: MSI) today announced that its board of directors has approved a regular quarterly dividend of 34 cents per share payable in cash on Oct. 15, 2015, to stockholders of record at the close of business on Sept. 15, 2015.

No Second Guessing As 9-1-1 Calls Instantly Mapped

on Thursday, 13 August 2015. Posted in Two Way Radio Industry News Blog

Stafford County, Virginia, deploys Motorola Solutions’ Emergency CallWorks software, instantly displaying 9-1-1 caller location to enhance dispatcher situational awareness

  • Motorola Solutions’ Emergency CallWorks platform helps police, fire and other first responders better manage critical incidents with features such as interactive maps
  • Stafford County sees improvement in call taker efficiency and effectiveness while preparing for next-generation 9-1-1 features such as text-to-9-1-1

SCHAUMBURG, Ill – Aug. 12, 2015 – When officials in Stafford County, Virginia, decided to update their emergency phone system, they wanted to lay the groundwork for implementing next generation 9-1-1 (NG9-1-1) capabilities such as text-to-9-1-1 and multimedia. County officials chose Emergency CallWorks CallStation, which is a browser-based platform acquired earlier this year by Motorola Solutions (NYSE:MSI).

After just a few months, Stafford County was already seeing improvement in call taker efficiency and effectiveness. As soon as a call comes in, whether it’s from a mobile device or landline, it is mapped and prioritized so emergency personnel can be on the way within minutes. Previously, call takers had to actually answer the call before obtaining a mapped location.

The Emergency CallWorks interactive map is an important feature for Stafford County due to the diverse makeup of the region. When a major incident occurs on an interstate highway, for example, it could potentially generate 10 or more calls reporting the same event. By glancing at the interactive map, the call taker can now quickly determine the caller’s location before answering, helping to enhance situational awareness and possibly determine if the calls are related.

Emergency CallWorks helps police, fire and other first responders better manage critical incidents by allowing more information to flow from the public to emergency personnel. It combines call taking, computer-aided dispatch (CAD), incident management and mapping systems into a single platform.

“The key things we looked for were features such as the interactive map and the ability to turn on additional features such as text-to-9-1-1, video, pictures and transfer of medical information as they become available,” says Carol Adams, 9-1-1 director for Stafford County. “It may be a few years before NG9-1-1 comes to fruition for Stafford County but we wanted to be ready with a solution that would provide a simple transition at an affordable price with minimal impact on our staff.”

“Stafford County wanted a system that would facilitate the handling and processing of emergency calls that would be easy to use, and simple to maintain and administer,” said Tom Guthrie, vice president, Motorola Solutions Smart Public Safety. “The Emergency CallWorks software supports older systems and facilitates a smooth migration to NG9-1-1 without incurring a major expense."

Stafford County 9-1-1 staff attended the Emergency CallWorks Online University prior to implementing the new software. This enabled call takers, on their schedule, to become familiar with the new system before the in-class sessions with a live trainer, helping to ease the transition.

Stafford County is situated roughly half way between Richmond, Virginia and Washington D.C. The county occupies approximately 270 square miles and is the fifth fastest growing area in Virginia. The Stafford County Emergency Call Center serves more than 130,000 residents, has 21 call-taking positions with six additional seats at a second location and handles more than 52,000 calls annually.

ENERGA-OPERATOR SA Trusts TETRA Communications to Ensure Power Stays On for Millions in Poland

on Tuesday, 11 August 2015. Posted in Two Way Radio Industry News Blog

Solutions’ Dimetra TETRA technology selected by ENERGA-OPERATOR SA, one of Poland’s largest energy distributors, to upgrade critical radio communications

  • Digital radio communications to increase safety and reliability of power distribution
  • Cost effective integration with customer’s existing control infrastructure
  • Motorola Solutions’ largest utility communications contract in Poland

KRAKOW, Poland – Aug. 11, 2015 – To ensure power stays on 24/7, the biggest power distribution company in Northern Poland, with more than 2.9 million private and business customers, has chosen to migrate to digital radio communications. To enable best-in-class communications for employees and control rooms, ENERGA-OPERATOR SA will use a comprehensive Dimetra IP Terrestrial Trunked Radio system (TETRA) from Motorola Solutions. It is Motorola Solutions’ largest contract win to date with a utility company in Poland.

According to the agreement, Motorola Solutions will deliver and implement a TETRA radio system including Dimetra IP TETRA switches, TETRA base stations, TETRA mobile radios, TETRA portable radios and TETRA radio modems.

Motorola Solutions will also integrate third-party solutions including a supervisory control and data acquisition (SCADA) system from Elkomtech and Mikronika to control power distribution equipment at remote sites. Motorola Solutions will also provide network integration services, dispatch console solutions plus post-sale service and maintenance.

“By choosing our Dimetra IP TETRA system, ENERGA-OPERATOR SA has selected a truly sustainable communications solution that can be upgraded and expanded to support Smart Metering, Smart Grid applications and LTE evolution when needed,” said Axel Rettig, MSSI vice president of Eastern Europe, Russia and Central Asia, Motorola Solutions.

More than 900,000 to benefit from grant-funded science and math programs as they head back to the classroom

on Tuesday, 11 August 2015. Posted in Two Way Radio Industry News Blog

Motorola Solutions Foundation provides $3.35 million for Innovation Generation Grants

  • Organizations that received 2015 Motorola Solutions Foundation Innovation Generation grants will use the funds for science, technology, engineering and math (STEM) education programming, especially for women and minorities
  • In its eighth year, the grant program totaled $3.35 million and benefits 88 organizations in North America
  • More than 900,000 students and teachers will receive an average of 100 programming hours

SCHAUMBURG, Ill. – Aug. 10, 2015 – Motorola Solutions Foundation, the charitable arm of Motorola Solutions, announced today that it will grant $3.35 million to organizations to promote science, technology, engineering and math (STEM) education, with a focus on women and minorities.

More than 900,000 students and teachers will receive an average of 100 programming hours from the foundation’s partner non-profit organizations this school year. Programs will support students of all backgrounds with a special emphasis on special populations underrepresented in STEM fields.

“These grants support educational experiences that inspire students to create the innovations that will shape our society’s future,” said Matt Blakely, executive director of the Motorola Solutions Foundation. “We want to show the leaders of tomorrow that careers in engineering and technology are not only fun, but also within their reach.”

The Innovation Generation grant program, in its eighth year, was awarded through a competitive review process to 88 organizations.

Here are just a few examples of the impact the grants have had so far this year:

  • The Center for Neighborhood Technology's apps competition, based in Chicago, tasked students with creating and presenting innovative and fully functioning prototypes to benefit local Chicago communities.
  • DiscoverE's Global Marathon engaged more than 1,000 participants and featured White House science advisor Megan Smith as well as other successful female STEM leaders who helped connect the dots between STEM concepts and real-world applications.
  • FIRST Robotics, which provides students mentor-based programming that builds STEM skills increased participation across all of its programs, which foster well-rounded professional skills such as self-confidence, communication and leadership.
  • The Ryerson University ROPE program, located in Ontario, Canada, provided a unique opportunity for 16 non-traditional engineering students to engage in research activities in engineering through a one-on-one mentor relationship with graduate students and faculty.
  • The Brentwood STEM Enrichment camp, located in Long Island, NY, encouraged its 300 participants to improve their initial rocket designs to gain a better understanding of the iteration process, fostering creativity and innovation.
  • The Consortium of Florida Education Foundations (CFEF) supported nine STEM projects throughout Florida, supporting more than 2,000 students with a robust network of more than two dozen STEM education providers and businesses.
  • The Tech Museum of Innovation, located in San Jose, Calif., increased the number of female participants and its nearly 3,000 participants reported a significant increase in the following areas: STEM knowledge, collaboration, creativity and ability to solve real-world problems using STEM.

See the full list of grant recipients at http://responsibility.motorolasolutions.com/index.php/solutions-for-community/

Motorola Solutions Commences Modified Dutch Auction Tender Offer to Repurchase up to $2 Billion of Its Common Stock

on Friday, 07 August 2015. Posted in Two Way Radio Industry News Blog

SCHAUMBURG, Ill. – Aug. 7, 2015 – Motorola Solutions (NYSE: MSI) announced today that it has commenced a modified "Dutch Auction" tender offer to repurchase shares of its common stock for an aggregate purchase price of up to $2 billion (subject to a customary increase if the tender offer is oversubscribed).

Motorola Solutions stockholders may tender all or a portion of their shares (1) at a price specified by the tendering stockholder of not less than $61.00 per share and not more than $66.50 per share or (2) without specifying a purchase price, in which case their shares will be purchased at the purchase price determined in accordance with the tender offer. When the tender offer expires, Motorola Solutions will determine the lowest price within the range of prices specified above that allows it to purchase up to an aggregate of $2 billion of its common stock.

The company will fund the tender offer with a combination of existing cash on the company’s balance sheet and proceeds from the previously announced $1 billion strategic investment from Silver Lake.

Stockholders will receive the purchase price in cash, subject to applicable withholding and without interest. The stockholders’ shares must have been tendered at prices equal to or less than the purchase price determined after the tender offer window closes, subject to conditions of the offer. These conditions include provisions related to proration, “odd lot” priority and conditional tenders in the case that the total cost to purchase all of the shares tendered at or below the purchase price is more than $2 billion.

These provisions are described in the “Offer to Purchase” and the “Letter of Transmittal” relating to the tender offer that are being filed with the U.S. Securities and Exchange Commission. Motorola Solutions also reserves the right to purchase up to an additional 2 percent of its shares outstanding without extending the tender offer. All shares purchased by Motorola Solutions will be purchased at the same price. All shares tendered at prices higher than the purchase price will be promptly returned to stockholders at Motorola Solutions’ expense.

The tender offer will not be conditioned on any minimum number of shares being tendered; however, the tender offer will be subject to a number of other terms and conditions specified in the Offer to Purchase. The tender offer and withdrawal rights will expire at midnight, at the end of the day on Sept. 3, 2015, unless extended or terminated by Motorola Solutions.

Tenders of shares must be made prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer. Stockholders wishing to tender their shares but who are unable to deliver them physically or by “book-entry transfer” prior to the expiration of the tender offer, or who are unable to make delivery of all required documents to the depositary prior to the expiration of the tender offer, may tender their shares by complying with the procedures set forth in the Offer to Purchase for tendering by notice of guaranteed delivery. Alliance Advisors is serving as information agent for the tender offer. Goldman, Sachs & Co. and J.P. Morgan Securities LLC are acting as dealer managers. Wells Fargo Bank, N.A. is acting as the depositary for the tender offer.

Motorola Solutions’ board of directors has authorized the tender offer. However, none of the company, the company's board of directors, the dealer managers, the information agent, the depositary or any of their affiliates makes any recommendation to stockholders as to whether to tender or refrain from tendering their shares or as to the price or prices at which stockholders may choose to tender their shares. No person is authorized to make any such recommendation. Stockholders must make their own decision as to whether to tender their shares and, if so, how many shares to tender and the price or prices at which their shares should be tendered. In doing so, stockholders should read carefully the information in, or incorporated by reference in, the Offer to Purchase and the Letter of Transmittal (as they may be amended or supplemented), including the purposes and effects of the offer. Stockholders are urged to discuss their decisions with their own tax advisors, financial advisors and/or brokers.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable federal securities law, and generally includes words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent the company’s views only as of today and should not be relied upon as representing the company’s views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to statements relating to the investment by Silver Lake and the use of proceeds from that investment, including through the intended tender offer. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 9 through 20 in Item 1A of Motorola Solutions, Inc.'s 2014 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com, could cause Motorola Solutions’ actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions and factors that may impact forward-looking statements include, but are not limited to: (1) the economic outlook for the government communications industry; (2) the impact of foreign currency fluctuations on the company; (3) the level of demand for the company's products; (4) the company's ability to introduce new products and technologies in a timely manner; (5) negative impact on the company's business from global economic and political conditions, which may include: (i) continued deferment or cancellation of purchase orders by customers; (ii) the inability of customers to obtain financing for purchases of the company's products; (iii) increased demand to provide vendor financing to customers; (iv) increased financial pressures on third-party dealers, distributors and retailers; (v) the viability of the company's suppliers that may no longer have access to necessary financing; (vi) counterparty failures negatively impacting the company’s financial position; (vii) changes in the value of investments held by the company's pension plan and other defined benefit plans, which could impact future required or voluntary pension contributions; and (viii) the company’s ability to access the capital markets on acceptable terms and conditions; (6) the impact of a security breach or other significant disruption in the company’s IT systems, those of its partners or suppliers or those the company sells to or operates or maintains for its customers; (7) the outcome of ongoing and future tax matters; (8) the company's ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions and reductions in the company’s purchasing power; (9) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (10) the impact on the company's performance and financial results from strategic acquisitions or divestitures; (11) risks related to the company's manufacturing and business operations in foreign countries; (12) the creditworthiness of the company's customers and distributors, particularly purchasers of large infrastructure systems; (13) exposure under large systems and managed services contracts, including risks related to the fact that certain customers require that the company build, own and operate their systems, often over a multi-year period; (14) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Trademark Holdings, LLC; (15) variability in income received from licensing the company's intellectual property to others, as well as expenses incurred when the company licenses intellectual property from others; (16) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (17) the impact of the percentage of cash and cash equivalents held outside of the United States; (18) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (19) the ability of the company to repurchase shares under its repurchase program due to possible adverse market conditions or adverse impacts on the company’s cash flow; (20) the impact of changes in governmental policies, laws or regulations; (21) negative consequences from the company's outsourcing of various activities, including certain business operations, information technology and administrative functions; (22) the impact of the sale of the company’s enterprise legacy information systems, including components of the enterprise resource planning (ERP) system and the implementation of a new ERP system; (23) the satisfaction of the conditions to closing the investment by Silver Lake, and (24) the ability of Motorola Solutions to commence and complete the intended tender offer for its shares, including the amount of such tender offer. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.

Additional Information for Investors

This communication is for informational purposes only, is not a recommendation to buy or sell Motorola Solutions common stock, and does not constitute an offer to buy or the solicitation to sell shares of Motorola Solutions common stock. The tender offer will be made only pursuant to the Offer to Purchase, Letter of Transmittal and related materials to be filed contemporaneously by Motorola Solutions with the Securities and Exchange Commission. STOCKHOLDERS ARE URGED TO CAREFULLY READ THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND CONDITIONS TO, THE TENDER OFFER, THAT STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Stockholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the Offer to Purchase, Letter of Transmittal and other documents that Motorola Solutions will be filing with the Securities and Exchange Commission at the Commission’s website at www.sec.gov. Additional copies of these materials may be obtained for free by contacting Motorola Solutions at 1303 E. Algonquin Road, Schaumburg, Illinois, 60196, Attn: Investor Relations, or Alliance Advisors, LLC, the information agent for the tender offer, at (855) 737-3180.

New Secure Radios for Critical Operations

on Friday, 07 August 2015. Posted in Two Way Radio Industry News Blog

  • Radios are ideal for users who require effective, budget-friendly communications, such as municipalities and utilities
  • Operating on the ASTRO® P25 standard, the radios provide the security needed for mission-critical tasks
  • These P25 Phase 2 compatible radios can double their voice capacity, enabling customers to add more users without the need for additional frequencies or infrastructure

Miami, Florida — August 6, 2015 — A power outage, a failure in the water supply system and a flood warning have something in common; they are community-sensitive events that require dependable communications. Motorola Solutions (NYSE: MSI) is addressing these critical operational needs with the new APX 1000 portable two-way radio and its mobile version, the APX 1500, which ensure communication and connectivity.

Both devices allow users to communicate with each other and with different public safety and emergency response agencies to respond to incidents within minutes, better control situations, speed response times and ensure the safety of people and the operation.

The compact APX 1000 radio combines simplified controls, excellent radio quality and advanced noise suppression in a form factor that includes a dual microphone, adaptive algorithm, embedded digital signaling, user programmable voice announcement, and the optional feature of global positioning to identify the outdoor location of workers. The APX 1500 mobile radio is equipped with a control head with a built-in speaker for easy installation.

These radios include Advanced Digital Privacy (ADP) software encryption, which provides secure and confidential communications while preventing criminals, the media or curiosity seekers from listening. They also come equipped with an intelligent color display that alerts the user when a call comes in, an emergency occurs or the user is out of range.

“Secure and uninterrupted communications are required for situation where dependability in the process can keep a large community safe and at ease. This two-APX radio solution is the perfect solution to handle any contingency without having to make a large investment,” said Francisco Urdaz, product director, Motorola Solutions Latin America.

Motorola Solutions Announces Strategic Partnership and $1 Billion Investment by Silver Lake

on Wednesday, 05 August 2015. Posted in Two Way Radio Industry News Blog

Partnership Expected to Drive Growth‎ of Global Market Leader in Public Safety Communications Technology
 
SCHAUMBURG, Ill. – Aug. 5, 2015 – Motorola Solutions (NYSE: MSI), the leading global provider of innovative mission-critical communications solutions for public safety and commercial customers, today announced that Silver Lake, the global leader in technology investing, will make a $1 billion investment in Motorola Solutions. The company expects to use the Silver Lake investment to accelerate growth in its smart public safety solutions and services businesses through new partnerships, investments and acquisitions.
 
“Silver Lake has a proven track record of creating value by partnering with leading technology companies around the world,” said Greg Brown, chairman and CEO of Motorola Solutions. “This strategic partnership and investment combine Silver Lake’s expertise in technology products, services and information solutions with our vision to create safer communities and more successful businesses. It represents a strong vote of confidence in our company’s strategy and future growth opportunities.”
 
Motorola Solutions serves more than 100,000 customers in 100 countries, including local, state and national public safety agencies as well as businesses in industries such as utilities, mining and transportation. The company’s communications technology portfolio includes devices used by professionals in the field, problem-solving software that drives effectiveness, mission-critical systems for command centers, network infrastructure and a range of services.
 
In connection with Silver Lake’s investment, Egon Durban and Greg Mondre, managing partners of Silver Lake, will be appointed to Motorola Solutions’ board of directors when the transaction closes, which is expected to occur in the third quarter of 2015.
 
“Motorola Solutions is an iconic company and the global market leader in public safety technology,” said Durban and Mondre. “We believe it is creating a new era in data-rich public safety communications and has significant potential for growth. Its core business is unrivaled in the United States and around the world with a broad and loyal customer base, an outstanding record of reliability, and growing reach and scale driven by technology innovation. Greg Brown and his talented management team have a strong record of performance and corporate transformation that has created exciting new opportunities to innovate and expand the company’s next-generation software, smart public safety and service offerings.”
 
Brown added, “The addition of Egon and Greg will provide our board with valuable insight and expertise as we grow through new partnerships, investments and acquisitions. Both have a history of working closely with management teams to create value by identifying and delivering unique business opportunities in the technology industry.”
 
Durban is a managing partner and managing director of Silver Lake, which he joined in 1999 as a founding principal. He is based in the firm's Menlo Park, Calif., office and has previously worked in the New York office as well as the London office, which he launched and managed from 2005 to 2010. Durban serves on the board of directors of Dell and Intelsat S.A., and is chairman of the board of directors of WME Entertainment. Durban graduated from Georgetown University with a bachelor’s degree in finance.
 
Mondre joined Silver Lake in 1999 and is a managing partner and managing director based in New York. He currently serves as a director of Avaya, Inc., Go Daddy, Inc., Red Ventures, Sabre Holdings and Vantage Data Centers, and is on the operating committee of SunGard Capital Corp. Mondre graduated from The Wharton School of the University of Pennsylvania with a bachelor’s degree in economics.
 
Motorola Solutions also today announced its intent to repurchase up to $2 billion of stock through a tender offer, reflecting confidence in the future value of the business while maintaining considerable financial flexibility to pursue further growth. The company will fund the tender offer with a combination of existing cash on the company’s balance sheet and a portion of the proceeds from the $1 billion strategic investment by Silver Lake.
 
Under the terms of the agreement, Silver Lake is purchasing $1 billion aggregate principal amount of 2.0 percent convertible senior notes due 2020 with an initial conversion price of $68.50 per share. The initial conversion price represents a conversion premium of 17.0 percent over the volume-weighted average price of the company’s common stock sale price of $58.55 per share on the New York Stock Exchange during the 30 trading days ended Aug. 4, 2015. Additional information may be found in the Form 8-K that will be filed today with the U.S. Securities and Exchange Commission.
 
Goldman, Sachs & Co and J.P. Morgan acted as financial advisors to Motorola Solutions, and Wachtell, Lipton, Rosen & Katz served as Motorola Solutions’ legal advisor in the transaction.
 
DBO Partners served as financial advisors to Silver Lake, and Simpson Thacher & Bartlett acted as Silver Lake’s legal advisor.
 
About Motorola Solutions
Motorola Solutions (NYSE: MSI) creates innovative, mission-critical communication solutions and services that help public safety and commercial customers build safer cities and thriving communities. For ongoing news, visit www.motorolasolutions.com/newsroom or subscribe to a news feed.
 
About Silver Lake
Silver Lake is the global leader in technology investing, with over $26 billion in combined assets under management and committed capital. The firm’s portfolio of investments collectively generates more than $85 billion of revenue annually and employs more than 170,000 people globally. Silver Lake has a team of approximately 100 investment and value creation professionals located in New York, Menlo Park, San Mateo, London, Hong Kong and Tokyo. The firm’s current portfolio includes leading technology and technology-enabled businesses such as Alibaba Group, Avago, Avaya, Dell, Global Blue, Go Daddy, Hillstone Networks, Intelsat, Interactive Data Corporation, Qunar, Quorum Business Solutions, Red Ventures, Sabre, SMART Modular, SunGard, Vantage Data Centers, Virtu Financial and WME/IMG. For more information about Silver Lake and its entire portfolio, please visit www.silverlake.com.
 
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable federal securities law, and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent the company’s views only as of today and should not be relied upon as representing the company’s views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to statements relating to the investment by Silver Lake and the use of proceeds and benefits thereof and the intent to commence a tender offer. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 9 through 20 in Item 1A of Motorola Solutions, Inc.'s 2014 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com, could cause Motorola Solutions’ actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions and factors that may impact forward-looking statements include, but are not limited to: (1) the economic outlook for the government communications industry; (2) the impact of foreign currency fluctuations on the company; (3) the level of demand for the company's products; (4) the company's ability to introduce new products and technologies in a timely manner; (5) negative impact on the company's business from global economic and political conditions, which may include: (i) continued deferment or cancellation of purchase orders by customers; (ii) the inability of customers to obtain financing for purchases of the company's products; (iii) increased demand to provide vendor financing to customers; (iv) increased financial pressures on third-party dealers, distributors and retailers; (v) the viability of the company's suppliers that may no longer have access to necessary financing; (vi) counterparty failures negatively impacting the company’s financial position; (vii) changes in the value of investments held by the company's pension plan and other defined benefit plans, which could impact future required or voluntary pension contributions; and (viii) the company’s ability to access the capital markets on acceptable terms and conditions; (6) the impact of a security breach or other significant disruption in the company’s IT systems, those of its partners or suppliers or those the company sells to or operates or maintains for its customers; (7) the outcome of ongoing and future tax matters; (8) the company's ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions and reductions in the company’s purchasing power; (9) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (10) the impact on the company's performance and financial results from strategic acquisitions or divestitures; (11) risks related to the company's manufacturing and business operations in foreign countries; (12) the creditworthiness of the company's customers and distributors, particularly purchasers of large infrastructure systems; (13) exposure under large systems and managed services contracts, including risks related to the fact that certain customers require that the company build, own and operate their systems, often over a multi-year period; (14) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Mobility Holdings, Inc.; (15) variability in income received from licensing the company's intellectual property to others, as well as expenses incurred when the company licenses intellectual property from others; (16) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (17) the impact of the percentage of cash and cash equivalents held outside of the United States; (18) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (19) the ability of the company to repurchase shares under its repurchase program due to possible adverse market conditions or adverse impacts on the company’s cash flow; (20) the impact of changes in governmental policies, laws or regulations; (21) negative consequences from the company's outsourcing of various activities, including certain business operations, information technology and administrative functions; (22) the impact of the sale of the company’s enterprise legacy information systems, including components of the enterprise resource planning (ERP) system and the implementation of a new ERP system; (23) the satisfaction of the conditions to closing the investment by Silver Lake; and (24) the ability of Motorola Solutions to commence and complete the intended tender offer for its shares, including the amount of such tender offer. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
 
Additional Information for Investors
This communication is for informational purposes only, is not a recommendation to buy or sell Motorola Solutions common stock, and does not constitute an offer to buy or the solicitation to sell shares of Motorola Solutions common stock. The tender offer described in this communication has not yet commenced, and there can be no assurances that Motorola Solutions will commence the tender offer on the terms described in this communication or at all. The tender offer will be made only pursuant to the Offer to Purchase, Letter of Transmittal and related materials that Motorola Solutions expects to file with the Securities and Exchange Commission upon commencement of the tender offer. STOCKHOLDERS ARE URGED TO CAREFULLY READ THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND CONDITIONS TO, THE TENDER OFFER, THAT STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Once the tender offer is commenced, stockholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the Offer to Purchase, Letter of Transmittal and other documents that Motorola Solutions will be filing with the Securities and Exchange Commission at the Commission’s website at www.sec.gov.  Additional copies of these materials may be obtained for free by contacting Motorola Solutions at 1303 E. Algonquin Road, Schaumburg, Illinois, 60196, Attn: Investor Relations, or Alliance Advisors, LLC, the information agent for the tender offer, at (855) 737-3180.

Motorola Solutions Reports Second-Quarter 2015 Financial Results

on Wednesday, 05 August 2015. Posted in Two Way Radio Industry News Blog

  • Sales of $1.4 billion, down 2 percent, including $53 million of unfavorable foreign currency impact
  • North America sales grew 5 percent, driven primarily by Product segment sales
  • GAAP earnings per share (EPS) from continuing operations1 of $0.72
  • Non-GAAP*  EPS from continuing operations of $0.68 driven by lower overall operating expenses
  • Generated $140 million in operating cash flow and $92 million in free cash flow2
  • Silver Lake to invest $1 billion in company to further accelerate growth of smart public safety solutions and services businesses
  • Company intends to commence tender offer to repurchase up to $2 billion of common stock

SCHAUMBURG, Ill. - August 5, 2015 - Motorola Solutions, Inc. (NYSE: MSI) today reported its earnings results for the second quarter of 2015. Click here for a printable news release and financial tables.
 
SUPPORTING QUOTE
 
“The company delivered double-digit earnings and free cash flow per share growth in the second quarter, driven by strong North America results and improved operating leverage,” said Greg Brown, chairman and CEO of Motorola Solutions.
 
“We believe the partnership with Silver Lake will accelerate growth in our smart public safety solutions and services businesses and represents a strong vote of confidence in our company’s strategy. We also announced our intent to repurchase up to $2 billion of our stock through a tender offer. These steps reflect our confidence in the future value of our business while allowing us to maintain considerable financial flexibility to pursue further growth.”
 
KEY FINANCIAL RESULTS (presented in millions, except per share data and percentages)
 

  Q2 2015  Q2 2014 % Change
  Sales $1,368 $1,393 (2)%
 
GAAP
  Operating earnings $254 $138 84%
  % of Sales 18.6% 9.9%  
  EPS from continuing operations $0.72 $0.30 140%
 
Non-GAAP
  Operating earnings $260 $201 29%
  % of Sales 19.0% 14.4%  
  EPS from continuing operations $0.68 $0.47 45%
 
Product Segment
  Sales $867 $887 (2)%
  GAAP Operating Earnings $171 $95 80%
  % of Sales 19.7% 10.7%  
  Non-GAAP Operating Earnings $176 $133 32%
  % of Sales 20.3% 15.0%  
 
Services Segment
  Sales $501 $506 (1)%
  GAAP Operating Earnings $83 $43 93%
  % of Sales 16.6% 8.5%  
  Non-GAAP Operating Earnings $84 $68 24%
  % of Sales 16.8% 13.4%  

 
* Non-GAAP financial information excludes the after-tax impact of approximately $0.04 per diluted share related to share-based compensation, 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 news release.
 
OTHER SELECTED FINANCIAL RESULTS
 

  • Revenue - Sales declined 2 percent, including $53 million of unfavorable foreign currency impact. Sales increased 2 percent in constant currency. These results reflect 5 percent growth in North America driven by increased product sales. Overall product sales declined 2 percent due to currency headwinds and weakness in Europe and Africa and Latin America, while Services declined 1 percent primarily due to unfavorable currency impact and lower iDEN revenue.
  • Operating margin - GAAP operating margin was 18.6 percent of sales in the second quarter of 2015, compared with 9.9 percent in the second quarter of 2014; non-GAAP operating margin was 19.0 percent of sales, compared with 14.4 percent in the second quarter of 2014. These results were driven by $69 million in lower operating expenses compared with the second quarter of 2014, due largely to cost reduction and simplification initiatives across all categories as well as lower pension expense and a stronger dollar.
  • Taxes - The second quarter of 2015 GAAP effective tax rate was 30 percent. This compares with a tax rate of 20 percent in the second quarter of 2014, which included $30 million of net tax benefit associated with the net reduction in previously unrecognized tax benefits. The second quarter of 2015 non-GAAP tax rate was 35 percent, compared with a tax rate of 25 percent in the second quarter of 2014. The full-year non-GAAP tax rate is expected to be approximately 33 percent. The full-year cash tax rate3 is expected to be approximately 15 percent.
  • Cash flow - The company generated $140 million in operating cash from continuing operations during the quarter, reflecting an increase of $22 million over the prior year. Free cash flow was $92 million in the quarter. The increase was largely driven by improved earnings and lower pension contributions.
  • Cash and cash equivalents - The company ended the quarter with cash and cash equivalents of $3.1 billion and a net debt position of approximately $300 million4. The company repurchased $285 million of common stock in the second quarter of 2015 and paid $72 million in cash dividends.
  • Backlog - The company grew sequential backlog for the third straight quarter, ending at $6 billion. These results were primarily due to growth in North America, Asia Pacific and the Middle East regions.

STRATEGIC PARTNERSHIP WITH SILVER LAKE
 
Silver Lake, the global leader in technology investing, intends to invest $1 billion in Motorola Solutions to accelerate the company’s growth of smart public safety solutions and services businesses through strategic partnerships, investments, and acquisitions. As part of the partnership with Silver Lake, Egon Durban and Greg Mondre, managing partners of Silver Lake, will be appointed to Motorola Solutions’ board of directors when the transaction closes, which is expected to occur in the third quarter of 2015.
 
COMPANY ANNOUNCES INTENTION TO COMMENCE TENDER OFFER
 
Motorola Solutions also announced today that its board of directors approved proceeding with a tender offer to repurchase up to $2 billion of common stock (subject to a customary increase if the tender offer is oversubscribed). The company intends to commence a modified "Dutch Auction" tender offer at a specified price range to be determined. The company expects to commence the tender offer on or about August 7.
 
The company will fund the tender offer with a combination of existing cash on the company’s balance sheet and a portion of the proceeds from the $1 billion strategic investment by Silver Lake.
 
After these actions, the company will maintain robust liquidity and a strong balance sheet and investment grade credit ratings.
 
KEY HIGHLIGHTS
 
Strategic wins
 
Significant wins in core business
 

  • $112 million P25 system upgrade for King County in Washington covering 39 cities and 25,000 radio users.  By leveraging the customer’s existing technology, the system upgrade will remain cost-effective and will keep the system fully operational and at the current release until the year 2039.
  • $45 million of orders with two law enforcement agencies for the APX 8000, the company’s newest P25 radio that integrates LMR and broadband via WiFi enabling customers to continually and efficiently upgrade their devices over-the-air with new software features
  • $29 million contract with Bell Mobility for a province-wide P25 system, subscribers, and 10 years of hardware and software support for the government of New Brunswick in Canada

Significant wins in key growth areas
 

  • $153 million of multi-year managed and lifecycle services contracts for 10 customers in North America, Asia and Europe
  • $66 million in key vertical expansion areas of petro-chemical and utility industries, with four separate customers worldwide
  • $12.5 million purchase from the U.S. Federal Government for WAVE push-to-talk software application related to the company’s recent acquisition of Twisted Pair

 
Innovation and investments in growth
 

  • Opened multi-tenant network operations center in North America to support managed services growth
  • Strengthened Smart Public Safety analytics offerings by partnering with Wynyard Group on big data analysis to help customers solve crimes faster and more efficiently
  • Announced new line of intrinsically safe TETRA radios specifically built for safety in hazardous working conditions in target verticals of Oil & Gas, Fire & Rescue, Mining and Airports

BUSINESS OUTLOOK
 

  • Third quarter 2015 - Motorola Solutions expects a revenue decline of 1 to 3 percent compared with the third quarter of 2014. This assumes a $50 million unfavorable currency impact5, which translates to revenue of flat to 2 percent in constant currency. The company expects non-GAAP earnings per share from continuing operations in the range of $0.68 to $0.73 per share.
  • Full-year 2015 - The company revenue outlook remains unchanged as revenue is expected to be flat to down 2 percent compared to 2014.  This outlook translates to revenue growth of 1 to 3 percent in constant currency. The company still expects non-GAAP earnings per share from continuing operations in the range of $3.20 to $3.40 per share.

CONFERENCE CALL AND WEBCAST
 
Motorola Solutions will host its quarterly conference call beginning at 7:30 a.m. U.S. Central Daylight Time (8:30 a.m. U.S. Eastern Daylight Time) Wednesday, August 5. The conference call will be webcast live with audio and slides at http://investors.motorolasolutions.com/.
 
CONSOLIDATED GAAP RESULTS (presented in millions, except per share data)
 
A comparison of results from operations is as follows:
 

  Q2 2015 Q2 2014
Net sales $1,368 $1,393
Gross margin 648 656
Operating earnings 254 138
Amounts attributable to Motorola Solutions, Inc. common stockholders
Earnings from continuing operations

150

78
Net earnings 142 824
Diluted EPS from continuing operations $0.72 $0.30
Weighted average diluted common shares outstanding 209.5 256.2

 
HIGHLIGHTED ITEMS AND SHARE-BASED COMPENSATION EXPENSE
 
The table below includes highlighted items, share-based compensation expense and intangible amortization for the second quarter of 2015.
 

(per diluted common share) Q2 2015
   
GAAP Earnings from Continuing Operations $0.72
   
Highlighted Items:  
Share-based compensation expense and intangible amortization 0.06
Reorganization of business charges 0.05
Non-U.S. pension curtailment gain (0.15)
Total Highlighted Items (0.04)
   
Non-GAAP Diluted EPS from Continuing Operations $0.68

 

USE OF NON-GAAP FINANCIAL INFORMATION
 
In addition to the GAAP results included in this presentation, Motorola Solutions also has included non-GAAP measurements of results. The company has provided these non-GAAP measurements to help investors better understand its core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to its competitors. Among other things, management uses these operating results, excluding the identified items, to evaluate performance of the businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results excluding these items because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with generally accepted accounting principles.
 
Highlighted items: The company has excluded the effects of highlighted items (and any reversals of highlighted items recorded in prior periods) from its non-GAAP operating expenses and net income measurements because the company believes that these historical items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the company’s current operating performance or comparisons to the company’s past operating performance.
 
Share-based compensation expense: The company has excluded share-based compensation expense from its non-GAAP operating expenses and net income measurements. Although share-based compensation is a key incentive offered to the company’s employees and the company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues, the company continues to evaluate its performance excluding share-based compensation expense primarily because it represents a significant non-cash expense. Share-based compensation expense will recur in future periods.
 
Intangible assets amortization expense: The company has excluded intangible assets amortization expense from its Non-GAAP operating expenses and net earnings measurements, primarily because it represents a non-cash expense and because the company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the company’s acquisitions. Investors should note that the use of intangible assets contributed to the company’s revenues earned during the periods presented and will contribute to the company’s future period revenues as well. Intangible assets amortization expense will recur in future periods.
 
Details of the above items and reconciliations of the non-GAAP measurements to the corresponding GAAP measurements can be found at the end of this press release.

 

BUSINESS RISKS
 
This press release contains "forward-looking statements" within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the applicable federal securities laws and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent the company’s views only as of today and should not be relied upon as representing the company’s views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, Motorola Solutions’ expected full-year non-GAAP tax rate, full-year cash tax rate and financial outlook for the third quarter and full year of 2015, including the impact of currency rates, as well as statements relating to the investment by Silver Lake and the use of the proceeds and benefits thereof, the intent to commence a tender offer and our intent to maintain liquidity and investment grade ratings. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 9 through 20 in Item 1A of Motorola Solutions, Inc.'s 2014 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com, could cause Motorola Solutions’ actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions and factors that may impact forward-looking statements include, but are not limited to: (1) the economic outlook for the government communications industry; (2) the impact of foreign currency fluctuations on the company; (3) the level of demand for the company's products; (4) the company's ability to introduce new products and technologies in a timely manner; (5) negative impact on the company's business from global economic and political conditions, which may include: (i) continued deferment or cancellation of purchase orders by customers; (ii) the inability of customers to obtain financing for purchases of the company's products; (iii) increased demand to provide vendor financing to customers; (iv) increased financial pressures on third-party dealers, distributors and retailers; (v) the viability of the company's suppliers that may no longer have access to necessary financing; (vi) counterparty failures negatively impacting the company’s financial position; (vii) changes in the value of investments held by the company's pension plan and other defined benefit plans, which could impact future required or voluntary pension contributions; and (viii) the company’s ability to access the capital markets on acceptable terms and conditions; (6) the impact of a security breach or other significant disruption in the company’s IT systems, those of our partners or suppliers or those we sell to or operate or maintain for our customers; (7) the outcome of ongoing and future tax matters; (8) the company's ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions and reductions in the company’s purchasing power; (9) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (10) the impact on the company's performance and financial results from strategic acquisitions or divestitures; (11) risks related to the company's manufacturing and business operations in foreign countries; (12) the creditworthiness of the company's customers and distributors, particularly purchasers of large infrastructure systems; (13) exposure under large systems and managed services contracts, including risks related to the fact that certain customers require that the company build, own and operate their systems, often over a multi-year period; (14) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Mobility Holdings, Inc.; (15) variability in income received from licensing the company's intellectual property to others, as well as expenses incurred when the company licenses intellectual property from others; (16) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (17) the impact of the percentage of cash and cash equivalents held outside of the United States; (18) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (19) the ability of the company to repurchase shares under its repurchase program due to possible adverse market conditions or adverse impacts on the company’s cash flow; (20) the impact of changes in governmental policies, laws or regulations; (21) negative consequences from the company's outsourcing of various activities, including certain business operations, information technology and administrative functions;  (22) the impact of the sale of the company’s enterprise legacy information systems, including components of the enterprise resource planning (ERP) system and the implementation of a new ERP system; (23) the satisfaction of the conditions to closing the investment by Silver Lake; (24) the the ability of Motorola Solutions to commence and complete the intended tender offer for its shares, including the amount of such tender offer ; and (25) the ability of Motorola Solutions to maintain liquidity and an investment grade rating.  Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
 
ADDITIONAL INFORMATION REGARDING THE TENDER OFFER
 
This communication is for informational purposes only, is not a recommendation to buy or sell Motorola Solutions common stock, and does not constitute an offer to buy or the solicitation to sell shares of Motorola Solutions common stock. The tender offer described in this communication has not yet commenced, and there can be no assurances that Motorola Solutions will commence the tender offer on the terms described in this communication or at all.  The tender offer will be made only pursuant to the Offer to Purchase, Letter of Transmittal and related materials that Motorola Solutions expects to file with the Securities and Exchange Commission upon commencement of the tender offer.  STOCKHOLDERS ARE URGED TO CAREFULLY READ THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND CONDITIONS TO, THE TENDER OFFER, THAT STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Once the tender offer is commenced, stockholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the Offer to Purchase, Letter of Transmittal and other documents that Motorola Solutions will be filing with the Securities and Exchange Commission at the Commission’s website at www.sec.gov.  Additional copies of these materials may be obtained for free by contacting Motorola Solutions at 1303 E. Algonquin Road, Schaumburg, Illinois, 60196, Attn: Investor Relations or Alliance Advisors, LLC, the information agent for the tender offer, at 855-737-3180.

  DEFINITIONS
 
1 Amounts attributable to Motorola Solutions, Inc. common shareholders.
2 Free cash flow represents operating cash flow less capex
3 Cash tax rate represents taxes paid divided by pre-tax income
4Net debt represents cash and cash equivalents less long-term debt, including current portion
5 Based on currency rates as of August 3, 2015.

Innovative technology gives Western Australia Police the edge in decision making and rapid response

on Tuesday, 04 August 2015. Posted in Two Way Radio Industry News Blog

Motorola Solutions’ computer aided dispatch and locally developed mobility application prepare the force for the future of policing

Perth, Australia – August 4, 2015 – Western Australia Police (WAPOL) has made a long-term investment in productivity gains for its teams through an agreement with Motorola Solutions to upgrade the technology system used to place officers where they are needed most.

The deployment of Motorola Solutions' PremierOne CAD™ (Computer Aided Dispatch) system and locally developed frontline mobility application, Mobile Intelligence Client, will integrate critical information between the agency’s databases, command centre and operational officers. WAPOL’s incident management capabilities will be amplified by sharing precise, resource-based location and identity information.

This will assist the police force to efficiently manage its daily operations while ensuring officers can access key operational data anywhere, at any time, and on a choice of technology-agnostic devices best suited to their roles including smart phones, tablets and laptops. Together, these projects will benefit frontline officers by providing critical, timely and accurate information to help them make better informed decisions.

The technology upgrade also positions WAPOL to take advantage of future technological advancements for enhanced efficiency and improved front line support.

A complex system upgrade

CAD systems are the essential information hub between public safety agencies and the general public. They include critical information from Triple Zero (000) calls, one of the first points of contact for community members before information is dispatched to first responders in the field.

These systems collect and collate information that is essential to an officer’s daily workflow.

With WAPOL’s current CAD system approaching the end of its operational life, the force required new technology to maintain its current service levels. This led WAPOL to conduct an extensive review of CAD products globally.

Motorola Solutions, in conjunction with WAPOL, will manage complex software integration for the project. This includes gathering business intelligence and analysis, extensive design initiation works and rigorous stress testing.

It is essential for WAPOL’s CAD system transition to be managed without disrupting business continuity of policing services to the Western Australian community. Therefore, the system will be deployed within a ‘live’ environment of IT infrastructure and applications with full backup at a different location to maintain uninterrupted service.

A next generation mobility solution developed in Australia

The combination of the Mobile Intelligence Client and the upgraded CAD platform will enable WAPOL to rapidly and securely place information into the hands of first responders in the field to increase their overall situational awareness.

The upgrade is connected with WAPOL’s Connect 2020 program, which supports the agency’s Frontline 2020 reform program by significantly strengthening the connection between internal systems, external agencies and the public as well as providing access to the right information anywhere, anytime.

Motorola Solutions’ Managing Director Australia and New Zealand, Steve Crutchfield, said “At a time when public safety agencies around the world are facing increased pressure on costs and resources, WAPOL’s investment in PremierOne™ CAD and Mobile Intelligence Client technologies will enable the force to efficiently manage its resources so officers can be deployed for the greatest possible impact on community safety.

“Over time, we see an increasing role for technology solutions that maximise the use of limited resources to deliver better community safety outcomes,” Mr Crutchfield said.

The new contract with WAPOL, valued at more than $11 million, is another example of how Motorola Solutions is developing the next generation of technology solutions to help public safety agencies in Australia and New Zealand reach new levels of safety and productivity.

King County Public Safety Goes Digital

on Friday, 31 July 2015. Posted in Two Way Radio Industry News Blog

Motorola Solutions begins 55-month, $112 million project to upgrade mission-critical communications systems

  • Motorola Solutions is about to begin a $112 million upgrade to the Puget Sound Emergency Radio Network that covers 39 cities and 2 million residents
  • Enhanced network will work seamlessly with most existing equipment, improve radio reception in county’s more rural areas
  • The upgrade will improve public safety by letting first responders do their jobs more efficiently when responding to crime, fires, medical emergencies or natural disasters

SEATTLE, WASHINGTON – July 30, 2015 – Motorola Solutions (NYSE: MSI) has begun upgrading the Puget Sound Emergency Radio Network (PSERN) infrastructure in a $112 million contract to bring King County first responders the latest ASTRO® 25 digital radio technology that will enhance public safety every year as the project progresses.

The 55-month upgrade leverages new transmission towers to elevate the system’s reliability to help protect the fast-growing county’s more than 2 million residents. King County voters this spring authorized $273 million in overall spending to fortify the network’s structure, update its technology to modern standards and allow its first responders to communicate more effectively with each other and with agencies outside the county.

“Motorola Solutions shares King County’s vision to implement a highly-reliable next-generation voice radio system that will provide improved coverage and capacity for first responder agencies throughout the region,” said Mark Schmidl, vice president of sales for Motorola Solutions. “Our combination of experience, proven technology and strong local presence ensures the cost-effective and timely upgrade will be seamless and make King County a safer place to live.”

Seamless upgrade to digital technology

New transmission towers and equipment will elevate PSERN to Motorola Solutions Project 25 (P25) national interoperable standards, enhancing the system’s reliability throughout the county and working seamlessly with existing equipment both in King County and in neighboring counties.

King County needed a solution that would boost signals in cities such as Federal Way, Auburn and Bothell, as well as in the county’s eastern areas, and the project will meet the system requirements for as long as 20 years while limiting costs to taxpayers.

The upgrades will allow PSERN users to take advantage of features such as “Over the Air Programming” and “Over the Air Rekeying,” which give users the ability to update equipment remotely instead of having to remove devices from service. That will give first responders more time in the field and let managers choose when they want equipment updated to ensure crucial operations aren’t interrupted.

Upgrading PSERN presents a scope and size that demands a vendor with long-term experience in this type of upgrade who also understands the customers’ requirements and operational needs. Motorola Solutions has operated in the Pacific Northwest for more than 50 years and has built 30 systems for first responders, including 10 that are P25. By leveraging PSERN’s existing technology, the upgrade project will remain cost-effective and will keep the system fully operational and at the current release until 2039.

The proposed project team will manage service and upgrade activities for all components of the system, including radio infrastructure, call logging systems, video surveillance, consoles and subscribers. The PSERN team includes project managers and engineers who have occupied similar roles on systems for King County Metro Transit, South Sound, the City of Houston and the states of Mississippi and Missouri.

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