10-KPeriod: FY2021

Motorola Solutions, Inc. Annual Report, Year Ended Dec 31, 2021

Filed February 16, 2022For Securities:MSI

Summary

Motorola Solutions, Inc. (MSI) reported strong financial performance for the fiscal year ending December 30, 2021, with net sales increasing by 10% to $8.2 billion and operating earnings rising by 21% to $1.7 billion. This growth was driven by robust demand across both its "Products and Systems Integration" and "Software and Services" segments, with particular strength noted in LMR Communications, Video Security and Access Control, and Command Center Software. The company demonstrated effective capital allocation, returning over $1 billion to shareholders through share repurchases and dividends. The backlog also saw a significant increase, reaching $13.6 billion, indicating strong future revenue potential. MSI continues to invest in research and development and strategic acquisitions to enhance its integrated technology ecosystem, focusing on public safety and enterprise security solutions. Despite ongoing supply chain challenges, particularly in semiconductors, the company expressed confidence in its growth trajectory and ability to meet customer demand.

Financial Highlights

55 data points
Beta

Revenue

$8.17B

49.4% Gross Margin

Net Income

$1.25B

15.2% Net Margin

EPS (Diluted)

$7.17

Total Assets

$12.19B

Cash & Equivalents

$1.87B

Free Cash Flow

$1.84B

Financial Statements
Beta
Revenue$8.17B
Cost of Revenue$4.13B
Gross Profit$4.04B
R&D Expenses$734.00M
SG&A Expenses$1.35B
Operating Income$1.67B
Interest Expense$215.00M
Net Income$1.25B
EPS (Basic)$7.36
EPS (Diluted)$7.17
Shares Outstanding (Basic)169.20M
Shares Outstanding (Diluted)173.60M

Key Highlights

  • 1Net sales increased by 10% to $8.2 billion in 2021, driven by strong performance across both operating segments.
  • 2Operating earnings saw a significant increase of 21% to $1.7 billion, demonstrating improved profitability.
  • 3The company returned over $1.0 billion to shareholders via share repurchases ($528 million) and dividends ($482 million) in 2021.
  • 4Backlog increased by $2.2 billion to $13.6 billion, signaling strong future revenue prospects.
  • 5Investments in R&D totaled $734 million, underscoring the company's commitment to innovation in its core technologies.
  • 6The company completed multiple strategic acquisitions in 2021, including Envysion, Openpath, and 911 Datamaster, to bolster its offerings in video security, access control, and command center software.
  • 7Despite supply chain constraints, particularly in semiconductors, the company anticipates continued growth, supported by government stimulus funding (ARPA).

Frequently Asked Questions

Revenue growth was primarily driven by increased demand across both the Products and Systems Integration segment and the Software and Services segment. Key contributing product lines included LMR Communications, Video Security and Access Control, and Command Center Software. Acquisitions also contributed to the revenue increase.

Motorola Solutions is actively monitoring its supply chain and maintaining close communication with key suppliers. They are developing mitigation plans and exploring alternative sourcing for semiconductor components. While acknowledging these challenges may impact the ability to meet demand in 2022, they are working to prevent major delays.

Motorola Solutions strategically invests in acquisitions to expand its technology portfolio and enhance its integrated ecosystem. The company aims to unite voice, software, video security, and access control solutions to create a unified system. Recent acquisitions in 2021 focused on strengthening capabilities in video security, access control, and command center software, with an emphasis on integrating these technologies to offer end-to-end public safety and enterprise security solutions.

Motorola Solutions returns capital to shareholders through a combination of share repurchases and dividend payments. In 2021, the company repurchased $528 million of its stock and paid $482 million in dividends. The company also increased its quarterly dividend by 11% to $0.79 per share in November 2021, and has $2.1 billion of authority remaining under its share repurchase program.