Motorola Solutions Reports First-Quarter 2013 Financial Results
Sales up 1 percent driven by 3 percent growth in Government
GAAP earnings per share (EPS) from continuing operations* up 36 percent from a year ago
Non-GAAP** EPS from continuing operations up 12 percent from a year ago
Repurchased $357 million of shares in the quarter
SCHAUMBURG, Ill. – April 24, 2013 – Motorola Solutions, Inc. (NYSE: MSI) announced today first-quarter 2013 sales of $2 billion, up 1 percent from the first quarter of 2012. Government sales were up 3 percent while Enterprise sales were down 4 percent.
|Total Sales ($M)
|GAAP operating earnings ($M)
|Non-GAAP operating earnings ($M)
|GAAP EPS from continuing operations
|Non-GAAP EPS from continuing operations
“Despite a challenging enterprise market and modest revenue growth in the first quarter, our disciplined focus on cost management and return of capital to shareholders delivered double-digit growth in earnings per share,” said Greg Brown, chairman and CEO of Motorola Solutions. “We remain confident in the fundamental drivers of the business and our ability to drive improved operating earnings for the year.”
GAAP operating earnings in the first quarter of 2013 were $216 million or 10.9 percent of sales, compared to $232 million or 11.9 percent of sales in the first quarter of 2012. GAAP earnings per share from continuing operations were $0.68, compared to $0.50 in the first quarter of 2012.
Non-GAAP operating earnings in the first quarter of 2013 were $278 million or 14.1 percent of sales, compared to $290 million or 14.8 percent of sales in the first quarter of 2012. Non-GAAP earnings per share from continuing operations were $0.66, compared to $0.59 in the first quarter of 2012. Non-GAAP financial information excludes after-tax net loss of approximately $0.02 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 used $31 million in operating cash flow from continuing operations. The company ended the quarter with total cash*** of $3.7 billion while returning $429 million to shareholders through share repurchases and cash dividends.
Government segment sales were $1.3 billion, up 3 percent from the year-ago quarter. GAAP operating earnings were $180 million or 13.4 percent of sales compared to $150 million or 11.5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $217 million or 16.1 percent of sales compared to $184 million or 14.1 percent of sales in the year-ago quarter.
Secured multimillion-dollar contracts with strategic customers such as Las Vegas Metropolitan Police Department; State of Tennessee; Wyandotte County in Kansas; Butler County in Ohio; Houston Airport; SIBUR in Russia; Medellín Metro in Colombia; Colombia Ministry of Defense; Queensland Gas Company in Australia; Macau Light Rail, Chengdu Government Radio Network and Shangdong Provincial Police in China; and Klang Valley Mass Rail Transit System in Malaysia
Introduced Real-Time Crime Center solution, incorporating input from multiple data sources such as video, sensors, alarms, computer-aided dispatch and records to deliver one operational view and help public safety stay one step ahead of criminals through proactive policing
Launched the new MTP6750 handheld, the world´s first TETRA radio with a 5 megapixel camera that embeds a special encrypted marking to validate metadata and ensure images have not been tampered with before presentation in court
Introduced AME 2000 Secure Mobile Solution based on Motorola’s Assured Mobile Environment, providing end-to-end encrypted voice and data communications through private or public wireless networks to support the missions of federal agencies
Enterprise segment sales were $627 million, down 4 percent from the year-ago quarter.
Excluding Psion, sales were down 12 percent. GAAP operating earnings were $36 million or 5.7 percent of sales compared to $82 million or 12.5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $61 million or 9.7 percent of sales compared to $106 million or 16.2 percent of sales in the year-ago quarter.
Secured contracts with key customers such as Tesco in the U.K., Macy’s, District of Carpenters, OnTrac shipping, Universal Hospital Services, Sligro food wholesaler in the Netherlands, GEPP bottling in Mexico, and Federation of Coffee Growers of Colombia Launched MC45 mobile computer, the company’s first WAN-based solution that addresses the needs of field-based mobile workers in cost-sensitive enterprises
Introduced the company’s first-ever bioptic scanner, the MP6000 multi-plane scanner embedded in point-of-sale terminals for retailers
Honored with prestigious Red Dot Product Design Awards for MC40 mobile computer and HC1 headset computer for excellence in product design quality
Motorola Solutions’ outlook for the second quarter of 2013 is for revenues that are flat to down 2 percent compared with the second quarter of 2012 and Non-GAAP earnings per share from continuing operations of $0.66 to $0.71 per share. For the full-year 2013, the company now expects revenue growth of approximately 3 to 4 percent compared with 2012 and 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.