Motorola Solutions, Inc. (NYSE:MSI - News) announced today its first-quarter 2011 results highlighted by sales of $1.9 billion, up 8 percent from the first quarter of 2010 and driven by solid demand across both its Government and Enterprise segments.
“Motorola Solutions had an outstanding first quarter with revenue growth in all four of our geographic regions,” said Greg Brown, president and CEO, Motorola Solutions. “We maintained our focus on solid earnings and cash generation as our government and enterprise customers continued to seek solutions that drive improved efficiency and strong return on investment.”
GAAP operating earnings in the first quarter of 2011 were $170 million or 9 percent of sales, compared to $120 million or 7 percent of sales in the first quarter of 2010. GAAP earnings per share from continuing operations were $1.06, compared to $0.29 in the first quarter of 2010.
Non-GAAP operating earnings in the first quarter of 2011 were $267 million or 14 percent of sales, compared to $175 million or 10 percent of sales in the first quarter of 2010. Non-GAAP earnings per share from continuing operations were $0.54, compared to $0.33 in the first quarter of 2010. Non-GAAP financial information excludes after-tax benefits of approximately $0.52 per diluted share related to stock-based compensation expense, intangible assets amortization expense and highlighted items. Details on these Non-GAAP adjustments and the use of Non-GAAP measures are included later in this press release.
During the first quarter of 2011, the company generated $231 million in operating cash flow from continuing operations and $191 million in operating cash flow from discontinued operations. We ended the quarter with total cash of $6.2 billion and net cash**** of $3.5 billion.
Government segment sales were $1.2 billion, up 5 percent from the year-ago quarter. GAAP operating earnings were $104 million or 9 percent of sales compared to $92 million or 8 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $139 million or 12 percent of sales compared to $98 million or 9 percent of sales in the year-ago quarter.
* Secured multi-million dollar contracts with Airwave in the United Kingdom; Fondo de Vigilancia y Seguridad in Colombia; Guarda Civil Metropolitana in Sao Paulo, Brazil; Cortland County in New York; Johnson County in Kansas; Berks County in Pennsylvania; and Brown County in Wisconsin
* Announced with Verizon Wireless a first-of-its-kind solution that combines a private public safety-controlled broadband network tailored for mission-critical operations with the benefits of a leading commercial network
* Began shipping APX7000XE Extreme P25 two-way radios for extreme environments with enhanced controls and increased noise suppression. Additionally, validated the strength of APX 7000XE product design with prestigious Red Dot Award, an internationally recognized quality label for excellent design that emphasizes the importance of design in business
Enterprise segment sales were $695 million, up 14 percent from the year-ago quarter. GAAP operating earnings were $66 million or 9 percent of sales compared to $28 million or 5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $128 million or 18 percent of sales compared to $77 million or 13 percent of sales in the year-ago quarter.
* Continued strong growth across all regions, and particularly in Europe with major contracts such as transportation and logistics wins with General Logistics Systems in Germany and Correos in Spain
* Reported results of annual retail survey, in which 55 percent of retailers cited shoppers are better connected to information than store associates, emphasizing the need for technology solutions that deliver real-time information in store settings
* Recognized by RFID Journal as best-known brand in radio-frequency identification (RFID)
Networks Financial Results
First-quarter net earnings from discontinued operations were $132 million. Discontinued operations substantially relate to the portion of the company’s Networks business expected to be acquired by Nokia Siemens Networks on April 29, 2011.
Second-Quarter 2011 Outlook
The company expects to see growth across both government and enterprise segments. Second-quarter sales are expected to grow between 4 and 5 percent over the second quarter of 2010 with EPS from continuing operations of $0.46 to $0.51. This outlook excludes the portion of the Networks business expected to be acquired by Nokia Siemens Networks as well as stock-based compensation expense, intangible assets amortization expense and charges associated with items of the variety typically highlighted by the company in its quarterly earnings releases. The company now expects full-year revenue growth to track toward 4 to 4.5 percent with operating earnings of 16 to 16.5 percent of sales.