Early Access

10-KPeriod: FY2016

Motorola Solutions, Inc. Annual Report, Year Ended Dec 31, 2016

Filed February 21, 2017For Securities:MSI

Summary

Motorola Solutions, Inc. (MSI) reported net sales of $6.04 billion for the fiscal year ended December 30, 2016, a 6% increase from $5.7 billion in 2015. This growth was primarily driven by strong performance in the Services segment, bolstered by the significant acquisition of Guardian Digital Communications Limited (GDCL) for approximately $1 billion, which expanded their Managed & Support services. The Products segment saw a slight decline in net sales, though operating margins improved. The company generated $1.2 billion in operating cash flow, an increase from the prior year, and returned $1.1 billion to shareholders through $842 million in share repurchases and $280 million in dividends. MSI continues to invest in future growth areas, particularly in software solutions for command centers and next-generation public safety broadband networks based on LTE technology, indicating a strategic shift towards a more services and software-centric business model.

Financial Highlights

56 data points
Beta

Revenue

$6.04B

0.5% Gross Margin

Net Income

$560.00M

0.1% Net Margin

EPS (Diluted)

$3.24

Total Assets

$8.46B

Cash & Equivalents

$967.00M

Free Cash Flow

$1.17B

Financial Statements
Beta
Revenue$6.04B
Cost of Revenue$3.17B
Gross Profit$2.87B
R&D Expenses$553.00M
SG&A Expenses$1.04B
Operating Income$1.05B
Interest Expense$225.00M
Net Income$560.00M
EPS (Basic)$3.30
EPS (Diluted)$3.24
Shares Outstanding (Basic)169.60M
Shares Outstanding (Diluted)173.10M

Key Highlights

  • 1Net sales increased by 6% to $6.04 billion in 2016, up from $5.7 billion in 2015, driven by growth in the Services segment.
  • 2The acquisition of Guardian Digital Communications Limited (GDCL) for approximately $1 billion significantly boosted the Services segment, particularly Managed & Support services.
  • 3Operating earnings increased to $1.07 billion in 2016 from $994 million in 2015, reflecting improved operational efficiencies.
  • 4Motorola Solutions returned $1.1 billion in capital to shareholders through share repurchases ($842 million) and dividends ($280 million).
  • 5Operating cash flow strengthened to $1.2 billion in 2016, up from $1.0 billion in 2015.
  • 6The company is strategically investing in software solutions for command centers and next-generation public safety broadband (LTE) to drive future growth.
  • 7Backlog grew to a record $8.4 billion at the end of 2016, up 29% from the previous year, indicating strong future revenue potential.

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