Summary
Motorola Solutions, Inc. (MSI) reported strong financial performance for the second quarter of 2011, with net sales increasing by 6% year-over-year to $2.1 billion. This growth was driven by an 11% increase in the Enterprise segment and a 4% increase in the Government segment. The company achieved operating earnings of $170 million, maintaining an operating margin of 8.3%. Significant events during the period included the completion of the Networks business sale to Nokia Siemens Networks, which resulted in a substantial pre-tax gain of $488 million recognized in discontinued operations. The company also successfully completed the distribution of Motorola Mobility Holdings, Inc. in January 2011. Following these strategic separations, Motorola Solutions is focused on its two core segments: Government and Enterprise. Financially, MSI generated robust operating cash flow of $333 million in the first half of 2011. The company ended the quarter with $2.2 billion in cash and cash equivalents. Notably, on July 28, 2011, the company announced a $2.0 billion share repurchase program and the initiation of a quarterly cash dividend, signaling a commitment to returning value to shareholders.
Financial Highlights
54 data points| Revenue | $1.98B |
| Cost of Revenue | $977.00M |
| Gross Profit | $1.01B |
| R&D Expenses | $260.00M |
| SG&A Expenses | $482.00M |
| Operating Income | $159.00M |
| Interest Expense | $40.00M |
| Net Income | $349.00M |
| EPS (Basic) | $1.02 |
| EPS (Diluted) | $1.00 |
| Shares Outstanding (Basic) | 341.20M |
| Shares Outstanding (Diluted) | 348.50M |
Key Highlights
- 1Net sales grew 6% to $2.1 billion in Q2 2011, driven by strong performance in both Government and Enterprise segments.
- 2Operating earnings were $170 million, with operating margin holding steady at 8.3%.
- 3Completed the sale of the Networks business, recognizing a significant pre-tax gain of $488 million in discontinued operations.
- 4Generated strong operating cash flow of $333 million in the first half of 2011.
- 5Ended the quarter with a healthy cash balance of $2.2 billion.
- 6Announced a $2.0 billion share repurchase program and initiated a quarterly cash dividend, demonstrating a focus on shareholder returns.
- 7Enterprise segment sales increased 11% year-over-year, highlighting strong demand for its products and services.