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Motorola Solutions, Inc. Annual Report (Amendment), Year Ended Dec 31, 1993

Filing Date
Filed October 21, 1994
Period End
December 31, 1993
Security
MSI
In the record · 2016–202610-K1110-Q328-K124

MSI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 124 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Apr ’17Apr ’17
  2. Material agreement8-K · Sep ’19Sep ’19
  3. Leadership change8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K/A filed October 21, 1994. Cited figures are marked; the original filing is the authoritative source.

Motorola's 1993 results, as restated in this Form 10-K Amendment No. 1, show record sales and earnings.

Sales rose 28% to about $17.0 billiona from $13.3 billion, and earnings reached $1.02 billion, or $3.55 per fully diluted share, versus $576 million ($2.09) a year earlier before a 1992 accounting change. Net margin improved to 6.0% from 4.3%. Growth was broad-based: Semiconductor Products grew 28% to $5.7 billion and remained the largest segment at 31% of sales, General Systems rose 43% to $5.2 billion on cellular subscriber growth, and the Communications segment grew 24% to $4.8 billion.

Operating profit reached $1.94 billionb, and operating cash flow was a record $2.31 billion. Capital spending rose to $2.13 billion and R&D to $1.52 billion, about 9% of sales. The filing also highlights several areas of risk and commitment.

International sales were 54% of the total, and China/Hong Kong contributed $1.56 billionc, so exposure to Chinese trade policy is significant. Motorola's strategic commitment to the Iridium satellite system is large: it cut its ownership from 100% to about 29%, has about $231 million in equity investments and commitments, and holds roughly $6.3 billion in construction and operation contracts over ten years, for which it may remain liable even if Iridium cannot pay. The planned transfer of 800 MHz SMR businesses to Nextel, Dial Page and CenCall involves about $440 million in loans or guarantees.

The February 1994 two-for-one stock split and a 27%d dividend increase also signal confidence in future growth. Because this document is an amendment supplementing only specific sections of the original 10-K, investors should consult the full annual report for complete financial statements.

02—Key points

Key Highlights

  1. Record 1993 sales of approximately $17.0 billion, up 28% from $13.3 billion, with net margin rising to 6.0% from 4.3%.
  2. Fully diluted EPS of $3.55 on net earnings of $1.02 billion, compared with $2.09 in 1992 before the accounting change.
  3. General Systems Sector sales rose 43% to $5.2 billion, driven by worldwide cellular subscriber growth; Semiconductor Products grew 28% to $5.7 billion and remained the largest segment at 31% of sales.
  4. Record operating cash flow of $2.31 billion, with improved working capital efficiency (receivables weeks down to 6.1 from 7.1; inventory turns up to 5.8 from 5.1).
  5. Capital expenditures rose to $2.13 billion from $1.39 billion, with 1994 spending expected to be higher; R&D reached $1.52 billion, about 9% of sales.
  6. Iridium commitments are large: ownership cut to about 29%, roughly $231 million invested or committed, and about $6.3 billion in contracts over ten years, with continuing subcontract obligations.
  7. Balance sheet strengthened: net debt to net debt plus equity fell to 11.9% from 15.2%, and a two-for-one stock split and 27% dividend increase were approved for 1994.

03—Questions

Frequently Asked Questions

  1. How did Motorola perform financially in 1993?

    Motorola reported record results. Sales increased 28% to about $17.0 billion, net earnings were $1.02 billion ($3.55 per fully diluted share), and net margin improved to 6.0% from 4.3%. Operating profit was $1.94 billion, and the effective tax rate was 33%, up from 28% in 1992.

  2. Which business segments drove growth?

    General Systems (cellular phones and infrastructure) grew 43% to $5.2 billion, and Semiconductor Products grew 28% to $5.7 billion. The Communications segment, which includes land mobile radio and paging, rose 24% to $4.8 billion, and the Government and Systems Technology Group grew 32% to $858 million. The Information Systems Group declined 2%.

  3. What are the main financial risks investors should consider?

    Key risks include heavy international exposure (54% of sales), with China/Hong Kong contributing $1.56 billion and vulnerable to possible U.S. or Chinese trade restrictions such as loss of Most Favored Nation status. Motorola also faces foreign currency exposure in non-tradable currencies, and its Iridium contracts (about $6.3 billion) could leave it liable for subcontracts even if Iridium cannot pay. Additional risks include about $440 million in loans or guarantees tied to the SMR asset transfers and environmental remediation accruals of about $42 million that could differ significantly from actual costs.

  4. How strong is Motorola's liquidity and balance sheet?

    Liquidity is solid. Operating cash flow reached a record $2.31 billion, and the net debt to capital ratio improved to 11.9% from 15.2%. Credit facilities totaled $1.88 billion, with $1.48 billion unused. Debt activity included $200 million in 6.5% notes and $480 million principal amount at maturity of new LYONs due 2013, which raised $301 million in net proceeds.

04—Continue

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