Summary
Motorola Solutions, Inc. (MSI) reported solid financial results for the third quarter and first nine months of fiscal year 2011, demonstrating a significant rebound from the prior year's performance. The company saw a substantial increase in net sales, driven by growth in both its Government and Enterprise segments. This top-line growth translated into improved operating earnings and profitability from continuing operations, signaling effective execution of its business strategies post-spin-off of Motorola Mobility. Key financial maneuvers included a substantial share repurchase program and the initiation of a quarterly dividend, underscoring a commitment to returning value to shareholders. The company also continued to streamline its operations through the divestiture of non-core businesses, such as the Wireless Broadband businesses and the recently completed sale of its Networks business to Nokia Siemens Networks. These strategic actions appear to be strengthening the company's focus and financial position.
Key Highlights
- 1Net sales increased by 10% year-over-year to $2.1 billion for the third quarter of 2011, and by 9% to $6.0 billion for the first nine months.
- 2Earnings from continuing operations, net of tax, were $152 million ($0.45 per diluted share) for Q3 2011, a significant improvement from a loss of $13 million ($0.04 per diluted share) in Q3 2010.
- 3The company repurchased $744 million of its common stock during the third quarter of 2011 under a newly authorized $2.0 billion share repurchase program.
- 4Motorola Solutions initiated a quarterly cash dividend of $0.22 per share, with the first payment made in October 2011.
- 5The Government segment reported a 9% increase in net sales for Q3 2011, and the Enterprise segment saw a 13% increase, indicating broad-based growth.
- 6Operating earnings for continuing operations increased by 20% to $253 million in Q3 2011.
- 7The company completed the sale of its Networks business to Nokia Siemens Networks and reported the Wireless Broadband businesses as discontinued operations.
- 8Cash flow from operating activities from continuing operations was strong, generating $803 million for the first nine months of 2011, up from $471 million in the prior year.