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10-QPeriod: Q2 FY2011

Motorola Solutions, Inc. Quarterly Report for Q2 Ended Apr 2, 2011

Filed May 2, 2011For Securities:MSI

Summary

Motorola Solutions, Inc. reported strong performance for the first quarter of 2011, with net sales increasing by 8% year-over-year to $1.9 billion. This growth was driven by a 14% increase in the Enterprise segment and a 5% increase in the Government segment. Operating earnings saw a significant improvement, rising to $170 million from $120 million in the prior year, leading to an improved operating margin of 9.0%.

Financial Statements
Beta

Key Highlights

  • 1Net sales increased 8% to $1.9 billion, driven by growth in both Enterprise (+14%) and Government (+5%) segments.
  • 2Operating earnings grew to $170 million, with operating margin expanding to 9.0% from 6.9% in the prior year.
  • 3Earnings from continuing operations were $365 million, or $1.06 per diluted share, a substantial increase from $97 million, or $0.29 per diluted share, in Q1 2010.
  • 4A significant tax benefit of $244 million from the reversal of a valuation allowance on U.S. deferred tax assets contributed to the net earnings increase.
  • 5Cash flow from operations improved significantly, reaching $231 million compared to $59 million in the prior year.
  • 6The company completed the sale of its Networks business to Nokia Siemens Networks on April 29, 2011, and continues to focus on mission-critical communication solutions.
  • 7The company terminated its previous credit facility and entered into a new $1.5 billion unsecured syndicated revolving credit facility maturing in June 2014.

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