Summary
Motorola Solutions, Inc. (MSI) reported net sales of $5.9 billion for the year ended December 30, 2014, a decrease from $6.2 billion in 2013. The company experienced an operating loss of $1.0 billion in 2014, primarily due to a significant $1.9 billion pension settlement charge. This resulted in a net loss from continuing operations of $697 million, or $(2.84) per diluted share, a stark contrast to the $933 million in earnings, or $3.45 per diluted share, reported in 2013. The company completed the sale of its Enterprise business to Zebra Technologies for $3.5 billion, reclassifying these results as discontinued operations. This strategic divestiture allows Motorola Solutions to focus on its core mission-critical communication infrastructure, devices, software, and services for government and public safety customers. Despite the overall financial loss in continuing operations, the company highlighted structural improvements such as a reduced cost base, a growing backlog, and a strengthened financial profile with lower pension obligations. Looking ahead, Motorola Solutions aims to leverage its leadership in digital migration, expand its services offerings, and capitalize on opportunities in public safety LTE solutions. The company continues to prioritize R&D, returning capital to shareholders through repurchases and dividends, and aims for further operational expense reductions in the coming year.
Financial Highlights
56 data points| Revenue | $5.88B |
| Cost of Revenue | $3.05B |
| Gross Profit | $2.83B |
| R&D Expenses | $681.00M |
| SG&A Expenses | $1.18B |
| Operating Income | -$1.01B |
| Interest Expense | $147.00M |
| Net Income | $1.30B |
| EPS (Basic) | $5.29 |
| EPS (Diluted) | $5.29 |
| Shares Outstanding (Basic) | 245.60M |
| Shares Outstanding (Diluted) | 245.60M |
Key Highlights
- 1Reported a net loss from continuing operations of $697 million in 2014, compared to net earnings of $933 million in 2013, heavily impacted by a $1.9 billion pension settlement charge.
- 2Completed the sale of its Enterprise business to Zebra Technologies for $3.5 billion in October 2014, reclassifying those results as discontinued operations.
- 3Net sales decreased by 6% to $5.9 billion in 2014 from $6.2 billion in 2013, with declines across both Products and Services segments, particularly in North America and APME.
- 4Operating expenses were reduced by over $200 million in 2014 through restructuring and efficiency measures.
- 5Returned approximately $2.9 billion in capital to shareholders in 2014 through share repurchases ($2.5 billion) and dividends ($318 million).
- 6Ended 2014 with a record backlog of $5.8 billion, a 6% increase year-over-year, with a significant portion in the Services segment.
- 7Invested in next-generation public safety broadband solutions based on LTE technology, winning significant deals in this area.