10-KPeriod: FY2011

Motorola Solutions, Inc. Annual Report, Year Ended Dec 31, 2011

Filed February 15, 2012For Securities:MSI

Summary

Motorola Solutions, Inc. (MSI) reported strong financial performance for the fiscal year ended December 31, 2011, with net sales increasing by 8% to $8.2 billion. The company generated operating earnings of $858 million and earnings from continuing operations of $747 million, with a notable improvement in operating margin to 10.5%. This growth was driven by solid performance in both the Government segment, which accounted for 65% of net sales, and the Enterprise segment, representing 35% of net sales. Key strategic achievements in 2011 included the expansion of the APX radio lineup and the first commercial shipment of public safety LTE devices in the Government segment, while the Enterprise segment saw increased demand from retail and transportation sectors, leading to new product introductions like the ET1 tablet. MSI also demonstrated a commitment to shareholder returns by repurchasing $1.1 billion in shares and paying $72 million in dividends. The company maintained a strong liquidity position with $1.9 billion in cash and cash equivalents at year-end.

Financial Highlights

57 data points
Beta

Revenue

$8.20B

50.5% Gross Margin

Net Income

$1.16B

14.1% Net Margin

EPS (Diluted)

$3.41

Total Assets

$13.93B

Cash & Equivalents

$1.88B

Free Cash Flow

$848.00M

Financial Statements
Beta
Revenue$8.20B
Cost of Revenue$4.06B
Gross Profit$4.15B
R&D Expenses$1.03B
SG&A Expenses$1.91B
Operating Income$858.00M
Interest Expense$132.00M
Net Income$1.16B
EPS (Basic)$3.47
EPS (Diluted)$3.41
Shares Outstanding (Basic)333.80M
Shares Outstanding (Diluted)339.70M

Key Highlights

  • 1Net sales increased 8% to $8.2 billion, driven by growth in both Government and Enterprise segments.
  • 2Operating earnings reached $858 million, with an improved operating margin of 10.5%.
  • 3Earnings from continuing operations were $747 million, or $2.20 per diluted share.
  • 4Government segment net sales grew 6% to $5.4 billion, supported by demand for mission-critical communications.
  • 5Enterprise segment net sales increased 11% to $2.8 billion, boosted by retail and transportation sectors.
  • 6The company returned $1.1 billion to shareholders through share repurchases and paid $72 million in dividends.
  • 7Operating cash flow was $848 million, demonstrating healthy cash generation.

Frequently Asked Questions

Motorola Solutions reported net sales of $8.2 billion in 2011, an 8% increase compared to $7.6 billion in 2010. This growth was driven by an increase in net sales in both the Government segment (up 6%) and the Enterprise segment (up 11%).

In 2011, Motorola Solutions reduced its total debt by approximately $1.2 billion, bringing the total debt down to $1.5 billion by year-end. The company also generated $848 million in cash from operating activities and returned $1.1 billion to shareholders through share repurchases and $72 million through dividends, while maintaining $1.9 billion in cash and cash equivalents.

The Government segment's growth was driven by increased sales of mission-critical and commercial radio products and services, supported by continued customer prioritization of public safety communication needs and new product enhancements like the first commercial shipment of public safety LTE devices. The Enterprise segment experienced growth due to improved demand in the retail and transportation and logistics markets, as customers invested in technology for productivity and efficiency, with new product introductions like the ET1 tablet.

In January 2011, Motorola Solutions completed the distribution of Motorola Mobility Holdings, Inc. to its shareholders. During 2011, the company also completed the sale of its Wireless Broadband businesses and certain assets and liabilities of the Networks business to Nokia Siemens Networks B.V. The financial results of these divested businesses were reclassified to discontinued operations.