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Motorola Solutions Reports Fourth-Quarter and Full-Year 2013 Financial Results

on Thursday, 23 January 2014. Posted in Two Way Radio Industry News Blog

January 22, 2014

CORPORATE ENGLISH NORTH AMERICA

  • Fourth-quarter sales up 3 percent from a year ago; flat for the full year
  • Fourth-quarter Government sales up 4 percent from a year ago; up 1 percent for the full year
  • Fourth-quarter GAAP earnings per share (EPS) from continuing operations* up 11 percent from a year ago; up 38 percent for the full year
  • Fourth-quarter Non-GAAP** EPS from continuing operations up 52 percent from a year ago; up 48 percent for the full year, including a one-time tax benefit of $1.25
  • Generated $741 million in operating cash flow during the quarter; $944 million for the full year
  • Repurchased $362 million of shares in the quarter; $1.7 billion for the full year
 

Fourth Quarter

Full Year

 

2013

2012

Change

2013

2012

Change

Total sales ($M)

$2,504

$2,441

3%

$8,696

$8,698

0%

GAAP operating earnings ($M)

$413

$423

-2%

$1,215

$1,256

-3%

Non-GAAP operating earnings ($M)

$519

$476

9%

$1,527

$1,503

2%

GAAP EPS from continuing operations

$1.31

$1.18

11%

$4.06

$2.95

38%

Non-GAAP EPS from continuing operations

$1.67

$1.10

52%

$4.73

$3.20

48%

SCHAUMBURG, Ill. – Jan. 22, 2014 – Motorola Solutions, Inc. (NYSE: MSI) announced today its fourth-quarter and full-year 2013 results highlighted by fourth-quarter sales of $2.5 billion, up 3 percent from the fourth quarter of 2012, and full-year sales of $8.7 billion, flat compared with 2012. For the fourth quarter, Government sales were up 4 percent and Enterprise sales were up slightly.

“I’m pleased with the way we finished the year,” said Greg Brown, chairman and CEO of Motorola Solutions. “In Q4, we had revenue growth in both our Government and Enterprise businesses. We also had strong cash generation, expanded operating margin, grew backlog in both businesses, and continued to return capital to shareholders.”

The fourth quarter was led by strong growth in Government infrastructure and deployment services while Enterprise posted its second consecutive quarter of growth. Backlog ended the year at a record $6.2 billion, primarily driven by large multi-year projects in Government.

GAAP operating earnings in the fourth quarter of 2013 were $413 million or 16.5 percent of sales, compared to $423 million or 17.3 percent of sales in the fourth quarter of 2012. GAAP earnings per share from continuing operations were $1.31, compared to $1.18 in the fourth quarter of 2012. For the full year 2013, GAAP operating earnings were $1.2 billion or 14.0 percent of sales, compared to $1.3 billion or 14.4 percent of sales in 2012. GAAP earnings per share from continuing operations were $4.06, compared to $2.95 in 2012.

Non-GAAP operating earnings in the fourth quarter of 2013 were $519 million or 20.7 percent of sales, compared to $476 million or 19.5 percent of sales in the fourth quarter of 2012. Non-GAAP earnings per share from continuing operations were $1.67, compared to $1.10 in the fourth quarter of 2012. Non-GAAP financial information excludes after-tax charges of approximately $0.36 per diluted share related to stock-based compensation, intangible amortization and highlighted items. Details on these Non-GAAP adjustments and the use of Non-GAAP measures are included later in this press release. For the full year 2013, Non-GAAP operating earnings were $1.5 billion or 17.6 percent of sales, compared to $1.5 billion or 17.3 percent of sales in 2012. Non-GAAP earnings per share from continuing operations were $4.73, compared to $3.20 in 2012. These GAAP and Non-GAAP earnings results include the favorable impact of $337 million or $1.25 per share of net tax benefits associated with the recognition of certain foreign tax credits as a result of our implementation of a holding company structure for certain non-U.S. subsidiaries.

During the fourth quarter of 2013, the company generated $741 million in operating cash flow from continuing operations. The company ended the year with total cash*** of $3.2 billion while returning $442 million to shareholders through share repurchases and cash dividends during the quarter. The company repurchased 5.6 million shares of stock during the quarter and 28.6 million shares for the full year.

Government segment sales were $1.8 billion, up 4 percent from the year-ago quarter. GAAP operating earnings were $332 million or 18.8 percent of sales compared to $346 million or 20.3 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $398 million or 22.5 percent of sales compared to $373 million or 21.8 percent of sales in the year-ago quarter.

For the full year 2013, Government segment sales were $6.0 billion, up 1 percent from 2012. GAAP operating earnings were $979 million or 16.2 percent of sales compared to $965 million or 16.1 percent of sales in 2012. Non-GAAP operating earnings were $1.2 billion or 19.4 percent of sales compared to $1.1 billion or 18.5 percent of sales in 2012.

Government highlights:

Secured multimillion-dollar contracts with U.S. customers such as the cities of Charlotte and Greensboro, N.C., and Grand Prairie, Texas; Los Angeles Department of Power and Water; the state of Ohio/Schools; San Bernardino County in California; Cobb County in Georgia; Hamilton County in Indiana; Harford and Prince George’s counties in Maryland; Camden County in New Jersey; Albany County in New York; Florence County in South Carolina; Milwaukee and Waukesha counties in Wisconsin; Tennessee Department of Safety; and the U.S. Navy

Secured multimillion-dollar contracts with international customers such as the Military Police of São Paulo State in Brazil; Royal Brunei Police Force; Shandong Police, Chongqing Metro, Qingdao Metro Police and Wahan/Fuzhou airports in China; Israel Fire Brigade; Bundang Metro in Korea; Latvian Ministry of Interior; Myanmar Police; Belle Grande Casino in the Philippines and Sentosa Development Corp. in Singapore

Acquired Twisted Pair Solutions to accelerate push-to-talk (PTT) over broadband inter-operability with our MOTOTRBO™ radio network; also announced new PTT application, Unified PTT, that extends the reach of ASTRO™ 25 networks by allowing users with smartphones to connect to Project 25 (P25) users and talkgroups

Enterprise segment sales were $736 million, up slightly compared to the year-ago quarter. GAAP operating earnings were $81 million or 11.0 percent of sales compared to $77 million or 10.5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $121 million or 16.4 percent of sales compared to $103 million or 14.1 percent of sales in the year-ago quarter.

For the full year 2013, Enterprise segment sales were $2.7 billion, down 2 percent from 2012. GAAP operating earnings were $236 million or 8.9 percent of sales compared to $291 million or 10.7 percent of sales in 2012. Non-GAAP operating earnings were $358 million or 13.4 percent of sales compared to $395 million or 14.6 percent of sales in 2012.

Enterprise highlights:

Secured contracts with key customers such as retailers Walmart, David Jones in Australia, Yonghui Superstores in China and Jumbo Supermarkets in the Netherlands; as well as China Healthcare; Xcel Energy; and couriers TNT Express, Poste Italiane, Correos in Spain and APC Overnight in the U.K.

Launched TC55 touch computer, which combines the best features of a traditional enterprise-class mobile computer with the form factor and functionality of a smartphone running the Jelly Bean version of the Android operating system supported by new Extensions (Mx); also introduced MC55HC rugged mobile computer, MC75AO-HC rugged enterprise digital assistant and ET1 tablet customized for healthcare use, delivering one of the industry’s broadest healthcare portfolios of mobile computer products

Earned CRN’s Product of the Year and Most Innovative Products of the Year designations for SB1 Smart Badge, and received prestigious GOOD DESIGN™ awards for MC40, MC45 and VC70 and mobile computers

First-Quarter and Full-Year Outlook

Motorola Solutions’ outlook for the first quarter of 2014 is for revenue decline of 4 to 6 percent compared with the first quarter of 2013 and Non-GAAP earnings per share from continuing operations of $0.46 to $0.52 per share. For the full-year 2014, the company expects revenue growth of flat to 2 percent compared with 2013 and Non-GAAP operating earnings of approximately 18.5 percent of sales. This outlook excludes stock-based compensation, intangible amortization and charges associated with items typically highlighted by the company in its quarterly earnings releases.


Consolidated GAAP Results

A comparison of results from operations is as follows:

 

Fourth Quarter

Full Year

 

2013

2012

2013

2012

Net sales ($M)

$2,504

$2,441

$8,696

$8,698

Gross margin ($M)

1,214

1,229

4,241

4,348

Operating earnings ($M)

413

423

1,215

1,256

Earnings from continuing operations ($M)

343

336

1,099

878

Net earnings ($M)

343

336

1,099

881

         

Diluted EPS from continuing operations

$1.31

$1.18

$4.06

$2.95

         

Weighted average diluted common shares outstanding

261.2

284.4

270.5

297.4

 


Highlighted Items, Stock-Based Compensation Expense and Intangible Assets Amortization Expense

The table below includes highlighted items, stock-based compensation expense and intangible assets amortization expense for the fourth quarter of 2013.

(per diluted common share)

Fourth Quarter 2013

   

GAAP Earnings per Common Share from Continuing Operations*

$1.31

   

Highlighted Items:

 

Reorganization of business charges

0.16

Tax expense related to Sigma termination

0.08

   

Total Highlighted Items

0.24

   

Stock-based compensation expense

0.10

Intangible assets amortization expense

0.02

Stock-Based Compensation Expense and Intangible Assets Amortization Expense

0.12

   

Total Non-GAAP Adjustments

0.36

   

Non-GAAP Earnings per Common Share

$1.67

Conference Call and Webcast

Motorola Solutions will host its quarterly conference call beginning at 7 a.m. U.S. Central Standard Time (8 a.m. U.S. Eastern Standard Time) on Wednesday, Jan. 22. The conference call will be webcast live with audio and slides at www.motorolasolutions.com/investor.

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. We have provided these Non-GAAP measurements to help investors better understand our core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to our 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 GAAP.

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.

Stock-based compensation expense: The company has excluded stock-based compensation expense from its Non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our 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 stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-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 income measurements, primarily because it represents a significant 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 Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our 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 our actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, Motorola Solutions’ financial outlook for the first quarter and full year of 2014, payment of a regular quarterly dividend and purchases of shares under the company’s share repurchase program. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 8 through 19 in Item 1A of Motorola Solutions, Inc.'s 2012 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 and enterprise communications industries; (2) the level of demand for the company's products, particularly if businesses and governments defer or cancel purchases in response to tighter credit; (3) the company's ability to introduce new products and technologies in a timely manner; (4) negative impact on the company's business from global economic conditions, including sequestration in the United States, 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; (5) the impact of foreign currency fluctuations on the company when competing for business in foreign markets; (6) the outcome of currently ongoing and future tax matters; (7) the company's ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions; (8) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (9) the impact on the company's performance and financial results from strategic acquisitions or divestitures, including Psion and those that may occur in the future; (10) risks related to the company's manufacturing and business operations in foreign countries; (11) the creditworthiness of the company's customers and distributors, particularly purchasers of large infrastructure systems; (12) 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; (13) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Mobility Holdings, Inc.; (14) 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; (15) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (16) the impact of the percentage of cash and cash equivalents held outside of the United States; (17) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (18) 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; (19) the impact of changes in governmental policies, laws or regulations; (20) negative consequences from the company's outsourcing of various activities, including certain business operations, information technology and administrative functions; and (21) the impact of our multi-year phased upgrade and consolidation of our enterprise resource planning systems into a single global platform. 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.

Definitions

* Amounts attributable to Motorola Solutions, Inc. common shareholders

** Non-GAAP financial information excludes from GAAP results the effects of stock-based compensation expense, intangible assets amortization expense and highlighted items

*** Total cash = Cash and cash equivalents + Sigma Fund and short-term investments

City of Charlotte, N.C. Works with Motorola Solutions to Prepare Its Public Safety Network for the Future

on Friday, 17 January 2014. Posted in Two Way Radio Industry News Blog

January 16, 2014

GOVERNMENT & PUBLIC SAFETY ENGLISH NORTH AMERICA

Migration Assurance Program delivers optimum system performance while adapting to future needs

SCHAUMBURG, Ill. – Jan. 16, 2014 – As cities across the country look for ways to leverage new technologies and applications, the City of Charlotte, N.C. is working with Motorola Solutions Inc. (NYSE: MSI) to keep its network evolving. Motorola’s Migration Assurance Program (MAP) helps customers establish and implement a multi-year strategic technology plan with a predictable annual payment structure. A National Association of Counties survey shows 90 percent of mission-critical agencies are not well prepared to implement their technology visions.

Charlotte officials will utilize MAP to keep their ASTRO® P25 network software and hardware refreshed as well as implement technology enhancements over the coming years, helping to ensure their first responders are always equipped with the best technology needed to meet public safety communications demands. By simplifying ongoing system maintenance and future upgrades to the City of Charlotte Radio Advanced Digital Interoperable (R.A.D.I.O.) ASTRO P25 regional network, Charlotte officials will be able to focus more attention on their mission, and less time on the technology that helps them carry it out.

KEY FACTS

MAP provides a customized plan based on the goals and needs of the Charlotte-Mecklenburg network in a predictable and budgeted manner.

MAP gives customers the flexibility to modify their existing networks over a period of years, allowing them to adjust to changes in business priorities, technologies, standards requirements and the political environment.

MAP allows customers to operate, upgrade, migrate and expand their systems over time while continuously planning for long-term, controlled network migration costs.

The City of Charlotte R.A.D.I.O. Network is a regional ASTRO P25 System that supports multiple counties and municipalities in the Urban Area Security Initiative region. The system consists of numerous simulcast cells, remote sites and dispatch positions with thousands of radio users.

The Charlotte-Mecklenburg Police Department has more than 1,700 sworn officers and 500 non-sworn employees protecting more than 800,000 city and county residents.

SUPPORTING QUOTES

Chuck Robinson, director of shared services, City of Charlotte

“The flexibility of Motorola Solutions’ Migration Assurance Program allows us to concentrate resources on our overall mission of protecting our residents while our network remains at peak performance. The service is an efficient and cost-effective way to meet our ongoing technology needs with a predictable funding structure that eliminates surprises.”

Marshall Wright, vice president, Motorola Solutions Sales and Service

“The leading capabilities of Motorola Solutions’ Migration Assurance Program will provide Charlotte officials with a technology management strategy that helps maintain optimum system performance while ensuring their network continues to evolve.”

Motorola Solutions Helps Fashion Institute of Technology Students Flex Their Design Muscles

on Tuesday, 14 January 2014. Posted in Two Way Radio Industry News Blog

January 13, 2014

ENTERPRISE ENGLISH NORTH AMERICA

Competition for Motorola’s booth at National Retail Federation Annual Convention & EXPO provides students with experience, scholarships, opportunity for exposure

SCHAUMBURG, Ill. – Jan. 13, 2014 – A design competition sponsored by Motorola Solutions, Inc. (NYSE: MSI); its charitable arm, the Motorola Solutions Foundation; and the NRF Foundation gives students at the Fashion Institute of Technology (FIT) a chance to flex their design muscles, gain exposure for their work and earn scholarships. This competition represents a unique opportunity for students to work inside a real-world process and learn important design skills from leading designers and executives.

KEY FACTS

  • Thirty-seven students from the Studio Design classes at the Fashion Institute of Technology in New York City, led by Assistant Professors Mary Constantini and Glenn Sokoli, were invited to join a competition focused on designing the “store windows” for Motorola’s booth at the National Retail Federation Annual Convention and EXPO being held on Jan. 12-15, 2014, at the Jacob K. Javits Convention Center in New York City.
  • Working in teams, students were challenged to develop retail store-like window displays for the Motorola booth that reflect the numerous ways that consumers can shop – online, in-store or via mobile – and Motorola’s role in enabling retailers to meet the needs of empowered, omni-channel consumers with its communications technology solutions.

The four winning window designs include:

  • “The Motorola Experience,” which uses a large, interactive touch screen to tell the story of how Motorola works with retailers, was designed by Danielle Pham, Corey Ring and Olga Yarmak. “Time-Efficient Bar Code,” which uses cardboard boxes to form a giant bar code that illustrates the connection between retail associates and consumers, was designed by Lauren Dawson, Chihiro Fujiwara and Min Kyoung Kim.
  • “Puzzle,” which uses puzzle pieces to illustrate how Motorola technology brings together the many shopping options in a seamless delivery model for retailers, was designed by Lauren Dumler, Raelynn Hawkins, Mitchell Lai and Marissa Pelley.
  • “The Path to Omni-Bliss,” which uses a maze of PVC piping surrounding a peaceful customer to demonstrate the improved shopping experience available with the right technology solutions, was designed by Erina Hosono, Elizabeth Kim and Jean Savage.
  • The Motorola Solutions Foundation provided $9,000 in scholarships for the participants and partnered with the NRF Foundation to judge the competition.
  • Motorola marketing professionals have been involved with the FIT classes throughout the past semester, sharing their experiences in business-to-business marketing and serving as consultants to the students. Motorola's face-to-face agency, MC2, provided briefs to help the students with their design, messaging and execution challenges.
  • The students’ creations will be seen by approximately 30,000 retail industry professionals at the NRF Annual Convention and EXPO.

SUPPORTING QUOTE

Matt Blakely, director, Motorola Solutions Foundation

“The Motorola Solutions Foundation is proud to support the next generation of innovative technology professionals. The NRF competition provided FIT students with a real-life learning environment and exposed them to new technologies and exciting opportunities in business-to-business marketing.”

Craig Berger, chair, Visual Presentation and Exhibition Design at the Fashion Institute of Technology

“We would like to thank Motorola Solutions for supporting the FIT students. The competition provided them with an unprecedented opportunity to work with a corporation and participate in translating the company’s brand identity to a display environment. In addition seeing their ideas translated to an environment on view by thousands of people will give the students an exciting view of how crucial their designs are to the way we view companies and products.”

Ellen Davis, executive director, NRF Foundation

“The NRF Foundation supports tomorrow’s future retail leaders and provides opportunities for them to gain success in the retail industry. Congratulations to the students whose designs were chosen to be featured in front of thousands of retail industry executives.”

Motorola’s Staff Communications and Management Solution Connects Retail Teams to Each Other and Customers

on Tuesday, 14 January 2014. Posted in Two Way Radio Industry News Blog

January 13, 2014

ENTERPRISE ENTERPRISE NETWORKS AND COMMUNICATIONS RETAIL ENGLISH NORTH AMERICA

Utilizing a customized visioning session, assessments and proven reference architecture, Motorola Solutions can help retailers optimize their mobile environments and enhance storefront operations

NEW YORK (NRF, Motorola Solutions Booth #1501) – Jan. 13, 2014 – Increased competition from online and brick and mortar stores, combined with higher customer expectations driven by the convenience of online shopping, is making it more challenging for retailers to maintain customer loyalty and stay on budget. In a recent KPMG Retail Industry Outlook Survey, retailers cited losing share to low-cost producers (30 percent) and customer/employee mobility (21 percent) as two of the top three biggest threats to their business models. However, a fully connected and informed retail team can ultimately help deliver an enhanced experience for shoppers, driving loyalty while giving store owners a return on their technology investment.

During the 103rd National Retail Federation (NRF) Annual Convention & EXPO this week at the Jacob K. Javits Convention Center in New York City, Motorola Solutions (NYSE: MSI) is showcasing its latest Staff Communications and Management solution which keeps store staff mobile and connected via voice and applications to the information needed to assist shoppers and improve storefront operations. Tasks, work orders and group and private calls can be initiated, routed and escalated across or within work groups to keep associates accessible and enhance collaboration. Inventory and detailed product information can be accessed anywhere in the store at a moment’s notice to answer shoppers’ questions and perform consultative selling.

More than half of shoppers (58 percent) surveyed as part of Motorola’s Holiday Shopping Study agreed that they have a better experience when sales associates are using the latest technology to assist them. Handheld devices such as Motorola’s MC40, SB1 Smart Badge and ET1 tablet allow retail associates to connect and respond to customer needs without leaving the shopper’s side. Productivity-enhancing software such as Mobile Workforce Management provides associates with up-to-the-minute prioritized task lists and equips store managers with the visibility required to further optimize storefront operations.

KEY FACTS

  • Motorola’s Professional Services experts work with retailers to develop a mobility strategy that is aligned across business functions to help manage the omni-channel shopping experience, assess current technology, analyze return on investment and improve storefront operations to keep shoppers coming back.
  • Motorola’s customer-facing device portfolio offers a range of capabilities and price points to enable retailers to right-size a deployment, digitally connecting the store staff and providing access to the right tools and information. By leveraging the data from customized mobile devices, retailers can maintain a storefront that combines efficient operations and the highest level of customer service.
  • Motorola’s Voice Readiness Assessment helps retailers determine if their current wireless and wireline network can support a planned deployment. Motorola’s purpose-built retail voice portfolio provides workers anywhere, anytime access to PBX-based telephony and enterprise-grade push-to-talk (PTT) services over the wireless local-area network (WLAN) and their professional radio infrastructure.
  • As new technology is rolled out to the workforce, Motorola’s Application Design and Porting service can seamlessly port applications to new devices to help retailers accelerate the deployment of mobile solutions and leverage the capabilities of emerging technologies for a competitive advantage.
  • Motorola’s Mobility Lifecycle Management (MLM) is a service aimed at retailers who see the advantages of mobilizing key business operations. MLM is designed to provide insight into the most important aspects of full lifecycle management and the operating environment and processes needed to accelerate the return on a customer’s mobility investment. Motorola experts can perform an MLM assessment and visioning session to define a retailer’s mobility strategy and future improvement possibilities.

SUPPORTING QUOTE

Bruce Brda, senior vice president, Motorola Global Solutions and Services

“Shoppers today walk into a store armed with nearly infinite amounts of information along with high expectations of service. Motorola’s Staff Communications and Management solution gives associates access to the right tools, devices and information, which allows them to provide even better, personalized customer service.”

Motorola Solutions to Issue Fourth-Quarter and Full- Year 2013 Earnings Results on Jan. 22

on Tuesday, 14 January 2014. Posted in Two Way Radio Industry News Blog

January 13, 2014

CORPORATE ENGLISH NORTH AMERICA

Webcast presentation by executives to follow earnings release

SCHAUMBURG, Ill. – Jan.13, 2014 – Motorola Solutions, Inc. (NYSE: MSI) will issue its fourth-quarter and full-year 2013 earnings results at approximately 6 a.m. U.S. Central Standard Time (7 a.m. EST) on Wednesday, Jan. 22.

Motorola Solutions will host its quarterly conference call with financial analysts at 7 a.m. U.S. Central Standard Time (8 a.m. EST) on Jan. 22. The conference call will be webcast live with audio and slides at www.motorolasolutions.com/investors. A replay of the conference call will be available approximately three hours after the call has been completed at www.motorolasolutions.com/investors.

Motorola Solutions Acquires Twisted Pair Solutions

on Thursday, 09 January 2014. Posted in Two Way Radio Industry News Blog

January 2, 2014

CORPORATE ENGLISH NORTH AMERICA

Transaction accelerates push-to-talk over broadband interoperability with land mobile radios

SCHAUMBURG, Ill. and SEATTLE – Jan. 2, 2014 – Motorola Solutions, Inc. (NYSE: MSI) today announced that it has acquired Twisted Pair Solutions, a recognized leader in push-to-talk over broadband applications for secure, real-time communication anywhere, on any device. Terms of the transaction were not disclosed.

Twisted Pair is a privately held software communications company whose WAVE® software transforms smartphones, tablets and PCs into powerful, secure communication solutions that provide integrated voice, text messaging, location and presence in one application that serves global public and private sector customers. Twisted Pair’s WAVE Desktop, Dispatch and Web applications provide customers choices in their dispatch communications and unify communications among teams of workers, whether in their office or mobile. The WAVE communications platform provides interoperability to extend land mobile radios, PBXs and other communication systems, allowing teams of employees, whether mobile or in their offices, to effectively communicate through voice, text and data – securely, reliably and in real time – regardless of network, carrier, protocol or device.

“Motorola Solutions is committed to continuing to provide its customers and partners with leading, best-in-class push-to-talk solutions. We recognize that our customers have multiple communications technology options for connecting land mobile radios, wireless broadband networks and smart devices. The acquisition of Twisted Pair enables Motorola Solutions to address all of those choices and accelerate push-to-talk expansion across multiple technologies,” said Bob Schassler, senior vice president, Government Solutions, Motorola Solutions. “We are excited to expand Motorola Solutions’ thought leadership in this space with Twisted Pair’s industry-proven technology and talent who know how to effectively extend the boundaries of land mobile radio.”

“Twisted Pair complements Motorola Solutions’ business, and we look forward to working with the Motorola team to leverage its strengths as a global industry leader to continue to enhance push-to-talk over broadband,” said Tom Guthrie, president and CEO of Twisted Pair.

Twisted Pair now is a wholly owned subsidiary of Motorola Solutions and will be integrated into Motorola Solutions’ Government Solutions business.

Grand Hyatt Kauai Improves Guest Satisfaction with Motorola Solutions’ Wireless Access Infrastructure

on Thursday, 19 December 2013. Posted in Two Way Radio Industry News Blog

Motorola wireless technology helps Hawaiian resort and spa guest satisfaction ratings skyrocket

December 17, 2013

ENTERPRISE ENTERPRISE NETWORKS AND COMMUNICATIONS HOSPITALITY NORTH AMERICA

Motorola wireless technology helps Hawaiian resort and spa guest satisfaction ratings skyrocket

SCHAUMBURG, Ill. – Dec. 17, 2013 – When replacing an outdated wireless communication system, the Grand Hyatt Kauai Resort & Spa in Hawaii turned to Motorola Solutions (NYSE: MSI) to increase reliability, provide faster guestroom and premises Internet service, and position the property for the future. Motorola and Pacific DirectConnect, a regional systems integrator, replaced a microwave communications system that was unreliable, costly to maintain and slow. In fact, the poor wireless connectivity was driving down guest satisfaction scores for the property. Since installation, the property has risen from near the bottom to the top ten in Hyatt’s internal property satisfaction rankings. In addition to guestroom service, improved network performance in meeting rooms and public spaces is helping the Grand Hyatt Kauai attract new corporate business.

KEY FACTS

The new system provides high-speed wireless network using Motorola indoor access points (APs) and 3-port wall plates in guestrooms, outdoor APs for property-wide roaming and an RFS controller for consistent, reliable coverage everywhere on the resort.

The hotel deployed the AP 6511 to provide reliable, high-speed connectivity to guest rooms. Wi-Fi service is enabled in public spaces using the AP 622 in locations including the lobby, concierge and registration areas - for web check-in and check-out - along with restaurants and retail.

The Grand Hyatt Kauai utilized the AP 7161 and AP 6562 to enable wireless access for areas such as the pool, beach and spa.

For unified management of the access points and wall plates, the hotel is utilizing the RFS 7000 wireless RF switch, which facilitates more efficient network operations.

SUPPORTING QUOTES

Lydia Villanueva, IT director, Grand Hyatt Kauai Resort & Spa

“Customer satisfaction scores improved as soon as we deployed Motorola Solutions’ technology, and our overall satisfaction ranking also has skyrocketed. Soon after going live, we were excited to get our first ‘10’ rating ever. Now we get them all the time. We went from near the bottom for internet connectivity satisfaction to the Top 10 in a very short period of time, including being No. one in customer satisfaction in Hyatt’s North American operations. We now find ourselves on the leading edge of hospitality communications technology.”

Tom Moore, director, Hospitality, Motorola Solutions

“Motorola Solutions’ wireless technology enables hotels like the Grand Hyatt Kauai to transform the wireless experience for their guests. With guests bringing on average two to three mobile devices with them to hotels, it is paramount to provide them fast, reliable wireless access. Our technology allows hotels to meet these growing needs and improve the overall guest experience.”

Mike Browning, president, Pacific DirectConnect

“With their breadth of products, solutions and services, we knew Motorola Solutions was the clear choice to work with our high-speed integrated solution and get the best result for this complex property.”

Motorola Solutions Helps Connect Toronto Subway Riders with High-Speed Access to Real-time Information

on Wednesday, 11 December 2013. Posted in Two Way Radio Industry News Blog

December 10, 2013

ENTERPRISE NETWORKS AND COMMUNICATIONS TRANSPORTATION & LOGISTICS NORTH AMERICA

Motorola’s WLAN driving Wi-Fi for two busiest stations in Canada’s largest city

SCHAUMBURG, Ill. – Dec. 10, 2013 – Motorola Solutions, Inc. (NYSE: MSI) and BAI Canada are working together on a two-station installation of a shared Wi-Fi network using Motorola’s proven wireless local area network (WLAN) technology in Toronto Transit Commission (TTC) underground subway stations. The initial two-station network includes the St. George and Bloor & Yonge stations and will cover all public areas including platforms, mezzanines, walkways and stairwells. The deployment has the capability to support cellular connectivity, and the network will eventually cover TTC’s 65 current and planned underground subway stations, serving more than 1.7 million riders daily.

Motorola’s ruggedized outdoor wireless access points and controller running Wireless Next Generation (WiNG) technology were selected by BAI Canada based on Motorola’s leadership position in the transportation vertical, proven radio performance in harsh environments and global reach with local expertise. The Motorola WLAN solution for transit was chosen in part for its previous successful subway deployments around the world as well as the company’s recognized expertise providing reliable, high-speed wireless networks in underground and other demanding, rugged environments.

KEY FACTS

Motorola’s WLAN platform will allow transit riders access to real-time alerts, arrival and departure information, and transit updates from their personal wireless devices. The networks will also offer high-speed connectivity for the internet, social media, email and many web-based applications.

BAI Canada is building the robust Wi-Fi and cellular distributed antenna system (DAS) within TTC’s two busiest stations, creating its TCONNECT Wi-Fi brand with high-speed internet connectivity.

The fiber-optic lines installed for the two-station pilot alone equal three times the height of the 1,815-foot CN Tower in Toronto.

The number of TTC riders that enter the busy Bloor & Yonge station each day could fill the 50,000-seat Rogers Center multi-purpose stadium in Toronto seven times over.

SUPPORTING QUOTES

Brian Jacks, Chief Executive Officer, BAI Canada

“BAI Canada and Transit Wireless selected Motorola Solutions for its depth of expertise including helping governments and enterprises deliver their best in the moments that matter. We look forward to working with Motorola to deliver its leading WLAN solution to help provide high-speed Wi-Fi connectivity for Toronto Transit Commission customers.”

George Krausz, President, Motorola Solutions Canada

“Motorola Solutions is eager to work with BAI Canada to launch the initial two-station network and bring much-needed Wi-Fi to the third most heavily used urban mass-transit system in North America. The TTC is a transportation lifeline for Toronto, and Motorola has the expertise to provide it with the same reliable connectivity we have demonstrated with similar major transit deployments in the United States, Asia, Europe, Middle East and elsewhere.”

Saginaw County Live

on Friday, 06 December 2013. Posted in Two Way Radio Industry News Blog

Saginaw County Live on PremierOne 3.1.7 CAD System to Streamline Incident Management, Enhance Officer, Citizen Safety

December 5, 2013

GOVERNMENT & PUBLIC SAFETY ENGLISH NORTH AMERICA

Completion of PremierOne CAD and Mobile Project Brings New Functionality and Capabilities to Saginaw

SCHAUMBURG, Ill. – Dec. 5, 2013 – Motorola Solutions, Inc. (NYSE: MSI) announces the successful completion of a new emergency communications system for Saginaw County, Michigan. The system includes the implementation of a new PremierOne™ Computer-Aided Dispatch (CAD) system, PremierOne Mobile application, ASTRO® 25 Radio System, MCC7500 IP Radio Console, 9-1-1 call taking and logging recorder equipment. This complete, unified incident management solution provides seamless voice and data workflows designed to help Saginaw improve response times, efficiently allocate resources and provide better information to assist first responders.

The integration of the new 9-1-1 and voice radio dispatch systems with the Michigan Public Safety Communications System (MPSCS) statewide network enables greater interoperability, coverage levels and data sharing capabilities and will allow Saginaw to realize cost savings in the maintenance of their radio infrastructure. As a result of the completion of the project, Saginaw County is able to immediately benefit from the latest technological advances and time-saving features and is well positioned to address next generation public safety demands.

KEY FACTS

Saginaw County 9-1-1 serves a population of approximately 200,000 and covers over 815 square miles. The 9-1-1 center manages more than 400,000 calls each year through nine dispatch positions and provides dispatch services for 17 police and 21 fire departments.

The new emergency communications system streamlines Saginaw’s operational environment by automating dispatch workflows and data retrieval to simplify incident and resource management. With the PremierOne standards-based, next generation architecture, the County now has a modular foundation to implement future technology improvements and requirements such as NG9-1-1 and multimedia communications.

PremierOne CAD provides Saginaw with a powerful GIS-driven incident management solution that uses Esri technology to display the pinpoint location and identity of mobile units, enabling a more efficient and coordinated response.

SUPPORTING QUOTES

Tom McIntyre, Director, Saginaw County 9-1-1

“We have had a long-standing relationship with Motorola over the years and have been pleased with the products and level of support they bring to the public safety space. The PremierOne CAD product provides us a number of benefits, including real time awareness of our first responders through location tracking that allows us to dispatch the right resources and improve delivery of emergency services in the county.”

John Zidar, Vice President, Motorola Sales and Solutions

“Motorola understands the importance of providing our customers with powerful solutions that will easily grow and adapt to future needs, including next generation demands such as NG9-1-1. This successful implementation of PremierOne CAD and Mobile products brings new functionality and next generation capabilities to Saginaw County.”

About Saginaw County

Saginaw County has been a Motorola customer since the mid-90’s, when Motorola installed the first 800 MHz Analog radio system. Printrak, a company purchased by Motorola, installed the first Computer Aided Dispatch (CAD) System in Saginaw, in 1999. Today, Saginaw County is a total Motorola customer, recently upgrading to the 800 MHz Digital radio system, PremierOne CAD, and a powerful new GIS system.

Motorola Solutions to Present at Dec. 4 Credit Suisse Annual Technology Conference

on Tuesday, 26 November 2013. Posted in Two Way Radio Industry News Blog

Motorola Solutions to Present at Dec. 4 Credit Suisse Annual Technology Conference November 25, 2013

CORPORATE ENGLISH NORTH AMERICA

SCHAUMBURG, Ill. — Nov. 25, 2013 — Motorola Solutions Inc. (NYSE: MSI) today announced that Chairman and CEO Greg Brown will speak at the Credit Suisse Annual Technology Conference on Wednesday, Dec. 4 in Scottsdale, Ariz.

The presentation will begin at approximately 9:30 a.m. Mountain Standard Time and will be webcast live at www.motorolasolutions.com/investors. A replay will be available approximately three hours later at www.motorolasolutions.com/investors.

New RFD5500 Sled Transforms Motorola Solutions’ Enterprise Mobile Computers into State-of-the-Art RFID Handheld Readers

on Thursday, 21 November 2013. Posted in Two Way Radio Industry News Blog

November 19, 2013

ENTERPRISE MANUFACTURING RETAIL TRANSPORTATION & LOGISTICS WHOLESALE DISTRIBUTION ENGLISH NORTH AMERICA

MC55, MC65 and MC67 mobile computers now capable of capturing both bar code and RFID data

SCHAUMBURG, Ill. – Nov. 19, 2013 – Motorola Solutions, Inc. (NYSE: MSI), a leading provider of mission-critical communication solutions and services for enterprise and government customers, today announced the RFD5500 UHF RFID sled that can instantly turn the MC55N0, MC55A0, MC65 and MC67 mobile computers into lightweight, rugged, handheld RFID readers that deliver fast read rates and improved productivity for retail storefronts, warehouses and field applications.

KEY FACTS

The easy-grip RFD5500 sled uses Motorola’s leading UHF RFID technology that offers superior read range and coverage area. There is no need to precisely align the reader with the tag so RFID data can be quickly and accurately captured – even on the most challenging items.

The RFD5500 offers a unique combination of intuitive audible and visual cues to quickly guide a worker to the precise location of any desired item. As the device moves closer to a specific item, a tone beeps louder and faster, while a sliding graphical bar increases in size enabling mobile workers to quickly locate any individual item.

By building on the enterprise mobile computers’ leading bar code data capture capabilities, the RFD5500 offers dual data capture functionality in a single device. Mobile workers can locate products, read non-line-of-sight RFID data, and capture damaged and poor quality bar codes without interrupting workflows.

The RFD5500 is supported with a comprehensive portfolio of services including Service from the Start Bronze, which provides coverage for normal wear and tear and a three-day repair turnaround time. Service from the Start with Advance Exchange Support provides advance replacement of devices requiring repair and coverage of accidental damage to internal and external components. These services help minimize equipment downtime and significantly reduce unforeseen repair expenses.

SUPPORTING QUOTE

Bob Sanders, senior vice president of Data Capture Solutions, Motorola Solutions “Motorola Solutions’ new RFD5500 sled expands the industry’s broadest RFID reader portfolio adding state-of-the-art RFID functionality to the bar code scanning capability already available in the MC55, MC65 and MC67 mobile computers. By bundling two best-in-class data capture technologies in one accessory, businesses can now purchase and manage fewer devices helping improve productivity and lower their total cost of ownership.”

Motorola Solutions completes digital communications network for QGC Liquefied Natural Gas Project

on Thursday, 14 November 2013. Posted in Two Way Radio Industry News Blog

Motorola Solutions completes digital communications network for QGC Liquefied Natural Gas Project

November 13, 2013

Enterprise Enterprise Networks and Communications English Asia Pacific & Middle East

Network expanded to take entire communications needs to the field

MELBOURNE, Australia – Nov. 13, 2013 – Motorola Solutions, Inc. (NYSE: MSI) is pleased to announce the successful completion of a dedicated communications network for Queensland Gas Corporation’s (QGC) liquefied natural gas project in southern Queensland.

The network, valued at AUD$32 million, is now one of the largest TETRA wireless networks in the Australia, having expanded from its original scope to include all communications in the field while the organisation’s fibre network is being deployed.

The expanded scope has ensured the company successfully meets its exploration schedule, by enabling the gathering of telemetry information at the wellhead and transmission of data in real-time to its central command centres.

In addition, the evolving data capabilities of the digital technology have enabled QGC to use the TETRA network for all of its critical communications in the field. The backbone microwave network is currently supporting CCTV cameras in remote areas, as well as operational functions such as email, telephony and printing.

KEY FACTS

Motorola Solutions has been working with QGC on the deployment of the 28-site digital radio network since 2011. The microwave and TETRA digital radio system provides a wide area communication network, linking the central processing plant in the gas fields to its processing plants, field compression stations, main line valve stations, Chinchilla office and logistics facility and its corporate office in Brisbane.

The microwave and TETRA telecommunications infrastructure includes vehicle terminals with GPS tracking, hand-held terminals, desk terminals, dispatcher console and voice recording facility. To date, more than 1,500 subscribers have been deployed for staff on the ground.

With microwave infrastructure throughput capacity reaching 200MB on larger links within the network, QGC has been able to utilise the network to not only enhance safety, but also meet its exploration schedule through the gathering of telemetry information and transmission of critical data such as maps and seismic readings across its remote sites.

QGC’s liquefied natural gas project is one of Australia’s largest capital infrastructure projects, involving expanding exploration and development in southern and central Queensland, and transporting gas through a 540km underground pipeline network to Curtis Island near Gladstone where it will be liquefied.

SUPPORTING QUOTE

Steven Crutchfield, managing director, Motorola Solutions Australia and New Zealand “Digital communications is fast becoming an integral part of unified communications across the resources industry – particularly to mobilise workers quickly and enhance safety across what are often remote and rugged locations. The ability to support business applications as well as provide secure, cost effective voice communications in the field not only ensures increased worker safety, but also increased efficiency, opening greater opportunities for critical data to be transmitted across sites as remote as wellheads.”

Motorola Solutions Names Gino Bonanotte Chief Financial Officer

on Thursday, 14 November 2013. Posted in Two Way Radio Industry News Blog

November 13, 2013

Corporate English North America

SCHAUMBURG, Ill. – Nov. 13, 2013 -- Motorola Solutions, Inc. (NYSE: MSI) today announced that Gino A. Bonanotte, acting chief financial officer and corporate vice president, has been named chief financial officer and executive vice president. Bonanotte, whose appointment is effective immediately and who will continue to report to Greg Brown, chairman and CEO of Motorola Solutions, was named to the acting CFO role in August.

“Since assuming the acting CFO role, Gino has consistently demonstrated his deep knowledge of our business and his strong operational orientation,” Brown said. “I have been very pleased with his immediate impact and leadership.”

Bonanotte, 48, joined Motorola in 1988 and previously served as corporate vice president overseeing financial operations for the company’s sales and product operations organization. During his 25-year career with the company, he has held a number of key global financial leadership positions, including corporate financial planning, supply chain, strategy and market business development, mergers and acquisitions, and joint ventures. In addition, he has served on the board of directors for Vertex and other joint ventures in Latin America.

Bonanotte earned a bachelor’s degree in business from Northern Illinois University and a master’s degree in business administration from the University of Chicago’s Booth School of Business.

Improve the Patient Experience

on Wednesday, 06 November 2013. Posted in Two Way Radio Industry News Blog

Improve the Patient Experience, Quality of Care by Connecting Every Healthcare Staff Member with the Right Mobile Devices

November 5, 2013

Enterprise English North America

Motorola’s new MC40-HC and SB1-HC help mobilize workers for on-the-spot care

SCHAUMBURG, Ill. – Nov. 5, 2013 – Motorola Solutions, Inc. (NYSE: MSI), a leading provider of mission-critical communication solutions and services for enterprise and government customers, today announced two new mobile solutions specifically designed to meet the needs of healthcare providers.

The MC40-HC is the first multi-purpose mobile computer for healthcare to incorporate point of care with collaboration and inventory management capabilities in an all-touch, consumer-like form factor running on the familiar Android™ Operating System 4.1. The SB1-HC smart badge is a wearable, thin-client mobile device that empowers healthcare staff including biomed, facilities maintenance, dieticians, nurses, orderlies and others with communications and collaboration solutions that drive cost savings, improved productivity and better patient service. With health systems focused on improving the patient experience, these tools can help institutions with a mobility strategy that supports smooth hand-off and transitioning of patient care in a mission-critical environment that demands reliability, scalability and true interoperability.

These new offerings, combined with Motorola’s MC55HC rugged mobile computer, the MC75AO-HC rugged enterprise digital assistant and the ET1 tablet customized for healthcare use, deliver one of the industry’s broadest healthcare portfolios of mobile computer products.

KEY FACTS

MC40-HC

This sleek, pocket-sized device enables healthcare staff to access patient information, verify the right medication is about to be administered to the right patient, monitor patient vital signs, place pharmacy and lab orders, access test results and more. These tasks can all be performed within seconds over the air in real-time, anywhere inside the healthcare facility. Data links back and immediately populates the electronic medical record maintained in the Clinical Information System.

Featuring the same all-touch display and stylish form factor of popular consumer smartphones, this device delivers the benefits of a true enterprise communication tool: durability, advanced data capture, security and manageability and long lifecycle. This protects TCO and maximizes ROI for health systems.

This solution also includes unique features that transform Android from a consumer operating system (OS) to a true enterprise-class OS with Extensions (Mx) from Motorola Solutions.

The MC40-HC is ideally suited to meet healthcare workflow requirements with its ergonomic design, integrated bar code scanner, disinfectant-ready housing, and tightly integrated, pre-loaded push-to-talk (PTT) solution. It can also provide voice-optimized WiFi telephony performance and ensures out-of-the-box compatibility to most commercial, off the shelf programs.

SB1-HC

This new category of mobile device can be deployed across the health system to those mobile, non-clinical staff who often struggle in the hand-off of patient care. This low-cost smart badge is designed to address the needs of the ‘unserved’ or disconnected staff member, providing the right information at the right time on the right technology at an affordable cost.

Available in disinfectant-ready white housing to complement the healthcare environment, the SB1-HC includes an integrated speaker, PTT and headset jack to provide PTT voice features without the need to switch out adapter accessories. It can be worn via several accessories: neck lanyard with safety break-away, belt clip or armband. Its 3-inch E Ink® display is easy to read in virtually all lighting conditions, and its low-power consumption provides more than 14 hours of battery life from a single charge.

The SB1-HC supports HTML5 apps which provide healthcare staff with medical inventory lookup, dynamic task lists and patient identification for improved quality of care. Its integrated omni-directional 1D and 2D bar code reader helps streamline task execution and improve accuracy, from equipment and building maintenance to patient transport.

With its small form factor and durable enterprise features, the SB1-HC can withstand the harsh cleaning agents used to disinfect items in the healthcare environment. Its military standard drop specification and environmental sealing help ensure dependable operation, despite bumps, drops or spills.

SUPPORTING QUOTES

Joe White, vice president, Enterprise Mobile Computing, Motorola Solutions

“With the availability of the MC40-HC and SB1-HC, Motorola Solutions provides an end-to-end healthcare technology solution – from infrastructure to data capture. This solution, which includes durable products that help improve operational efficiency and patient safety, is ideal for healthcare organizations who want to work with a single vendor to support their healthcare IT needs.”

Randy Briley, director, Healthcare, Motorola Solutions

“Devices used in hospitals and other healthcare facilities need maximum processing power, rugged design, flexibility in extending reach, data capture capability, connectivity options, security and manageability. In addition to addressing all of these needs, the MC40-HC and SB1-HC are durable, sealed and disinfectant-ready, making them the ideal, patient-friendly solution for point of care use.”

Motorola Solutions Reports Third-Quarter 2013 Financial Results

on Thursday, 24 October 2013. Posted in Two Way Radio Industry News Blog

      October 23, 2013

Corporate
English
North America

 

  • Sales of $2.1 billion, down 2 percent from a year ago
  • GAAP earnings per share (EPS)* of $1.16, up 61 percent from a year ago
  • Non-GAAP** EPS of $1.32, up 57 percent from a year ago
  • Returned $494 million to shareholders through share repurchase, dividends

 

 

 

 

Third Quarter

 

2013

2012

Change

Total sales ($M)

$2,112

$2,153

-2%

GAAP operating earnings ($M)

$320

$324

-1%

Non-GAAP operating earnings ($M)

$397

$387

3%

GAAP EPS

$1.16

$0.72

61%

Non-GAAP EPS

$1.32

$0.84

57%

 

Click here for printable press release and financial tables.

SCHAUMBURG, Ill. Oct. 23, 2013 Motorola Solutions, Inc. (NYSE: MSI) announced today third-quarter 2013 sales of $2.1 billion, down 2 percent from the third quarter of 2012. Government sales were down 4 percent, while Enterprise sales grew 2 percent.

“In the third quarter, we expanded operating margins, reduced costs and delivered double-digit EPS growth,” said Greg Brown, chairman and CEO, Motorola Solutions. “In addition, we are on track to achieve 18 percent operating margin for the full year.”

GAAP operating earnings in the third quarter of 2013 were $320 million or 15.2 percent of sales, compared to $324 million or 15.0 percent of sales in the third quarter of 2012. GAAP earnings per share were $1.16, compared to $0.72 in the third quarter of 2012.

Non-GAAP operating earnings in the third quarter of 2013 were $397 million or 18.8 percent of sales, compared to $387 million or 18.0 percent of sales in the third quarter of 2012. Non-GAAP earnings per share were $1.32, compared to $0.84 in the third quarter of 2012. These earnings results reflect lower incentive payments and structural cost improvements. A tax benefit of $96 million in the quarter for both GAAP and Non-GAAP earnings was associated with excess foreign tax credits. Non-GAAP financial information excludes after-tax net charges of approximately $0.16 per diluted share related to stock-based compensation, intangible amortization 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 quarter, the company generated $152 million in operating cash flow. The company ended the quarter with total cash*** of $2.9 billion while returning $494 million to shareholders through share repurchases and dividends.

 

Government segment sales were $1.5 billion, down 4 percent from the year-ago quarter. GAAP operating earnings were $252 million or 17.2 percent of sales compared to $273 million or 17.9 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $299 million or 20.4 percent of sales compared to $310 million or 20.4 percent of sales in the year-ago quarter.

Government highlights:

 

  • Secured multimillion dollar contracts with U.S. customers such as Los Angeles Regional Interoperable Communications System Authority; the cities of Arlington, Texas, Indianapolis, Ind., Phoenix, Ariz., Portland, Ore., and Midland, Mich.; Fulton County in Georgia; Prince George's County in Maryland; Franklin County in Ohio; El Paso County in Texas; state of Maryland; and Colorado / Pikes Peak Regional Communication Network
  • Secured multimillion dollar contracts with international customers such as Queensland, Australia, government; Brazilian Army; city of Montreal and Quebec Government in Canada; Guangdong Province Police, Chengdu Metro, Dalian Metro, Shanxi Police and Wuxi Metro Police in China; Delhi Metro in India; and Seoul Metro in Korea
  • Continued leadership in public safety LTE technology with the new LEX 700 Mission Critical Handheld with Android 4.2.2 operating system and collaboration with Verizon to deliver the VML 700 LTE Vehicle Modem R1.1, which also can serve as a mobile Wi-Fi hot spot

 

 

Enterprise segment sales were $647 million, up 2 percent from the year-ago quarter. Excluding Psion, sales were down 5 percent. GAAP operating earnings were $68 million or 10.5 percent of sales compared to $51 million or 8.1 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $98 million or 15.1 percent of sales compared to $77 million or 12.2 percent of sales in the year-ago quarter.

Enterprise highlights:

 

  • Secured contracts with key customers such as Jumbo Supermarkets in the Netherlands; courier companies TNT Global Express in Italy, TNT Express and Mondial Relay in France, Yodel in the UK and Blue Dart in India; State Grid Corporation of China; Haier Group electronics in China; Reject Shop variety stores in Australia; and Ministry of Environment and Public Space in Buenos Aires, Argentina
  • Positioned in Gartner’s new Magic Quadrant for Managed Mobility Services†
  • Introduced LI2208 linear imager that captures virtually every 1D bar code, enabling workers to scan faster and farther to improve productivity and reduce customer wait times

 

 

Full-Year Outlook

Motorola Solutions’ outlook for full-year 2013 is for revenues to be approximately flat compared with full-year 2012 and Non-GAAP earnings per share from continuing operations of $4.63 to $4.70. The company expects to achieve Non-GAAP operating margins of approximately 18 percent of sales. This outlook excludes stock-based compensation, intangible amortization and charges associated with items typically highlighted by the company in its quarterly earnings releases.

 

Consolidated GAAP Results

A comparison of results from operations is as follows:

 

 

Third Quarter

 

2013

2012

Net sales ($M)

$2,112

$2,153

Gross margin ($M)

1,043

1,087

Operating earnings ($M)

320

324

Earnings before income taxes ($M)

325

324

Net earnings ($M)

307

206

     

Diluted EPS

$1.16

$0.72

     

Weighted average diluted common shares outstanding (in millions)

265.3

287.4

 

Highlighted Items, Stock-Based Compensation Expense and Intangible Assets Amortization Expense

The table below includes highlighted items, stock-based compensation expense and intangible assets amortization expense.

 

 

Third Quarter

(per diluted common share)

 

2013

2012

     

GAAP Diluted Earnings Per Common Share*

$1.16

$0.72

     

Highlighted Items:

   

Reorganization of business charges

$0.08

$0.03

Result of tax rate change in foreign subsidiary

$0.02

--

Gain on sale of investment

($0.06)

($0.03)

Total Highlighted Items

$0.04

--

     

Stock-based compensation expense

$0.10

$0.11

Intangible assets amortization expense

$0.02

$0.01

Total Stock-Based Compensation Expense and Intangible Assets Amortization Expense

$0.12

$0.12

     

Total Non-GAAP Adjustments

$0.16

$0.12

     

Non-GAAP Diluted Earnings Per Common Share

$1.32

$0.84

       

 

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) Wednesday, Oct. 23. The conference call will be webcast live with audio and slides at www.motorolasolutions.com/investor.

 

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. We have provided these Non-GAAP measurements to help investors better understand our core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to our 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 GAAP.

 

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 earnings 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.

 

Stock-based compensation expense: The company has excluded stock-based compensation expense from its Non-GAAP operating expenses and net earnings measurements. Although stock-based compensation is a key incentive offered to our 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 stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-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 significant 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 Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our 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 our actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, Motorola Solutions’ financial outlook for the full year of 2013, payment of a regular quarterly dividend and purchases of shares under the company’s share repurchase program. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 8 through 19 in Item 1A of Motorola Solutions, Inc.'s 2012 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 and enterprise communications industries; (2) the level of demand for the company's products, particularly if businesses and governments defer or cancel purchases in response to tighter credit; (3) the company's ability to introduce new products and technologies in a timely manner; (4) negative impact on the company's business from global economic conditions, including sequestration in the United States, 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; (5) the impact of foreign currency fluctuations on the company when competing for business in foreign markets; (6) the outcome of currently ongoing and future tax matters; (7) the company's ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions; (8) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (9) the impact on the company's performance and financial results from strategic acquisitions or divestitures, including Psion and those that may occur in the future; (10) risks related to the company's manufacturing and business operations in foreign countries; (11) the creditworthiness of the company's customers and distributors, particularly purchasers of large infrastructure systems; (12) 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; (13) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Mobility Holdings, Inc.; (14) 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; (15) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (16) the impact of the percentage of cash and cash equivalents held outside of the United States; (17) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (18) 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; (19) the impact of changes in governmental policies, laws or regulations; (20) negative consequences from the company's outsourcing of various activities, including certain business operations, information technology and administrative functions; and (21) the impact of our multi-year phased upgrade and consolidation of our enterprise resource planning systems into a single global platform. 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.

 

Definitions

* Amounts attributable to Motorola Solutions, Inc. common shareholders

** Non-GAAP financial information excludes from GAAP results the effects of stock-based compensation expense, intangible assets amortization expense and highlighted items

*** Total cash = Cash and cash equivalents + Sigma Fund and short-term investments

Gartner, “Magic Quadrant for Managed Mobility Services,” by Eric Goodness, Gianluca Tramacere, Katja Ruud,July 25, 2013

About Motorola Solutions
Motorola Solutions is a leading provider of mission-critical communication solutions 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.”

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