TETRA  |  2015-05-06

Motorola Solutions Delivers Strong Double-Digit Profitability Growth in Q1

Source: MCCResources

Motorola Solutions, Inc. today reported its earnings results for the first quarter of 2015.

“The company delivered strong double-digit profitability growth in the first quarter, driven primarily by strength in our North America business and a leaner cost structure,” said Greg Brown, chairman and CEO of Motorola Solutions. “We remain committed to driving growth through innovation as well as improving operating leverage and cash flow generation.”

Highlights

  • Sales of $1.2 billion, flat from a year ago, including $40 million of unfavorable foreign currency impact
  • North America sales grew 6 percent, driven by Product segment sales
  • GAAP earnings per share (EPS) from continuing operations1 of $0.40
  • Non-GAAP2 earnings per share (EPS) from continuing operations of $0.38 driven by lower overall operating expenses
  • Generated $151 million in operating cash flow
  • Returned $728 million to shareholders through share repurchases and cash dividends, including the repurchase of $653 million of stock in the quarter

Strategic wins

  • $135 million system upgrade and multi-year managed services contract for the South Australia Government Radio Network that integrates voice and data capabilities, and covers more than 20 first responder agencies
  • $46 million contract with $32 million of services for multi-year software upgrades and maintenance services with Hamilton County, Ohio
  • $20 million contract for both expansion services and core products in Columbus, Georgia, that incorporates Smart Public Safety Services and P25 equipment and software
  • $19 million contract to provide 25,000 digital TETRA radios, accessories, training and logistics services to the Central Procurement Office of Schleswig-Holstein AöR (GMSH) Germany
  • A Real Time Crime Center win with the St. Louis Metropolitan Police Department to deploy an intelligence-led policing solution that integrates video management systems with computer-aided dispatch and public safety applications


Innovation and investments in growth

  • Completed two acquisitions in the Smart Public Safety business: Emergency CallWorks and PublicEngines, leading providers of software-based solutions that solidify Motorola Solutions’ offerings in command and control, next-generation 9-1-1 call center and intelligence-led policing solutions that enable predictive policing and citizen engagement capabilities for law enforcement and government entities
  • Invested in three businesses that complement the company’s Smart Public Safety technology portfolio, through the company’s venture capital arm
  • Announced the APX8000, the first all-band, Wi-Fi-enabled APX P25 portable two-way radio
  • Upgraded the MTP3000 Series TETRA radios to meet mission-critical demands for improved ruggedness, coverage, encryption and other public safety-specific functionality

    BUSINESS OUTLOOK
  • Second quarter 2015 – Motorola Solutions expects a revenue decline of 3 to 5 percent compared with the second quarter of 2014. This assumes a $45 million5 unfavorable currency impact, which translates to revenue of flat to down 2 percent in constant currency. The company expects non-GAAP earnings per share from continuing operations in the range of $0.51 to $0.56 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 now expects non-GAAP earnings per share from continuing operations in the range of $3.20 to $3.40 per share.