Summary
Motorola Solutions, Inc. (MSI) in its 2010 10-K filing is characterized by a significant corporate transformation, namely the separation of its Mobile Devices and Home businesses into a new independent entity, Motorola Mobility Holdings, Inc., which was completed on January 4, 2011. Post-separation, Motorola Solutions will focus solely on its Enterprise Mobility Solutions segment, which provides communication products and services to government and public safety agencies, as well as commercial enterprises. This segment demonstrated resilience, with sales increasing by 10% in 2010, driven by improved demand in retail markets and continued government spending. The company also announced an agreement to sell a majority of its Networks infrastructure assets to Nokia Siemens Networks (NSN) in early 2011. This divestiture further sharpens the company's strategic focus on its core Enterprise Mobility Solutions business. Despite operational challenges such as component shortages and a complex economic environment, Motorola Solutions reported an improvement in operating earnings in 2010 compared to a loss in 2009, signaling progress in its turnaround efforts. The company maintained a strong liquidity position with significant cash and cash equivalents at year-end 2010.
Financial Highlights
56 data points| Revenue | $7.62B |
| Cost of Revenue | $3.81B |
| Gross Profit | $3.81B |
| R&D Expenses | $1.04B |
| SG&A Expenses | $1.87B |
| Operating Income | $751.00M |
| Interest Expense | $217.00M |
| Net Income | $633.00M |
| EPS (Basic) | $1.90 |
| EPS (Diluted) | $1.87 |
| Shares Outstanding (Basic) | 333.30M |
| Shares Outstanding (Diluted) | 338.10M |
Key Highlights
- 1Completion of the separation of Motorola Mobility Holdings, Inc. into a separate publicly traded entity on January 4, 2011, leaving Motorola Solutions focused on its Enterprise Mobility Solutions segment.
- 2Agreement to sell a majority of its Networks infrastructure assets to Nokia Siemens Networks (NSN) in the first quarter of 2011.
- 3Net sales increased by 6% to $19.3 billion in 2010, with the Enterprise Mobility Solutions segment growing by 10% to $7.9 billion.
- 4Operating earnings improved significantly to $789 million in 2010 from an operating loss of $492 million in 2009.
- 5Research and development expenditures decreased by 3% to $2.5 billion in 2010, reflecting cost-reduction initiatives.
- 6The company ended 2010 with a strong liquidity position, reporting $4.2 billion in cash and cash equivalents.
- 7A total of approximately 51,000 employees were employed by the company at the end of 2010, with approximately 19,000 transferring with Motorola Mobility.