01—Abstract
Summary
Summary of the 10-K filed February 15, 2012. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
The company generated operating earnings of $858 millionb 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 billionc 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.
02—Key points
Key Highlights
- Net sales increased 8% to $8.2 billion, driven by growth in both Government and Enterprise segments.
- Operating earnings reached $858 million, with an improved operating margin of 10.5%.
- Earnings from continuing operations were $747 million, or $2.20 per diluted share.
- Government segment net sales grew 6% to $5.4 billion, supported by demand for mission-critical communications.
- Enterprise segment net sales increased 11% to $2.8 billion, boosted by retail and transportation sectors.
- The company returned $1.1 billion to shareholders through share repurchases and paid $72 million in dividends.
- Operating cash flow was $848 million, demonstrating healthy cash generation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Motorola Solutions, Inc. kept $0.14.
- Revenue$8.20B100.0%
- Cost of revenue−$4.06B49.5%
- Gross profit$4.15B50.5%
- Operating costs−$3.29B40.1%
- Operating income$858.0M10.5%
- Interest, other & tax$300.0M3.7%
- Net income$1.16B14.1%
Where FY2011 revenue went
$8.20B- Cost of revenue: $4.06B, 49% of revenue
- SG&A: $1.91B, 23% of revenue
- R&D: $1.03B, 13% of revenue
- Operating income: $858.0M, 10% of revenue
- Other operating costs: $341.0M, 4.2% of revenue
Kept 10% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 15, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $8.20B$7.62B | +7.7% |
| Cost of Revenue | $4.06B$3.81B | +6.6% |
| Gross Profit | $4.15B$3.81B | +8.8% |
| R&D Expenses | $1.03B$1.04B | −0.2% |
| SG&A Expenses | $1.91B$1.87B | +2.0% |
| Operating Income | $858.00M$751.00M | +14.2% |
| Interest Expense | $132.00M$217.00M | −39.2% |
| Net Income | $1.16B$633.00M | +82.9% |
| EPS (Basic) | $3.47$1.90 | +82.6% |
| EPS (Diluted) | $3.41$1.87 | +82.4% |
| Shares Outstanding (Basic) | 333.80M333.30M | +0.2% |
| Shares Outstanding (Diluted) | 339.70M338.10M | +0.5% |
05—Questions
Frequently Asked Questions
What was Motorola Solutions' revenue in 2011, and how did it compare to 2010?
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%).
How did the company manage its debt and capital resources in 2011?
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.
What were the main drivers of growth for each of Motorola Solutions' segments in 2011?
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.
What significant divestitures or spin-offs occurred around this period?
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.
06—Continue