Summary
Motorola Solutions, Inc. reported solid financial results for the second quarter and the first half of 2012. Net sales increased by 8% year-over-year in the second quarter to $2.1 billion, driven by a significant 14% increase in the Government segment, which now represents a larger portion of overall sales. While the Enterprise segment saw a slight 2% decline in net sales, the company's overall revenue growth reflects a recovery and strong performance in its core public safety and government communications business. The company demonstrated improved profitability, with operating earnings rising to $278 million in Q2 2012 from $159 million in Q2 2011, resulting in a higher operating margin of 12.9%. Earnings from continuing operations per diluted share more than quadrupled to $0.60 from $0.14 year-over-year. Motorola Solutions also returned substantial capital to shareholders, repurchasing approximately $1.8 billion in stock during the first half of the year, and announced an increase in its quarterly dividend. Financially, the company maintained a healthy cash position and managed its debt effectively, including issuing new senior notes and redeeming existing ones.
Financial Highlights
54 data points| Revenue | $2.15B |
| Cost of Revenue | $1.09B |
| Gross Profit | $1.06B |
| R&D Expenses | $269.00M |
| SG&A Expenses | $496.00M |
| Operating Income | $278.00M |
| Interest Expense | $25.00M |
| Net Income | $182.00M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.61 |
| Shares Outstanding (Basic) | 290.60M |
| Shares Outstanding (Diluted) | 296.10M |
Key Highlights
- 1Net sales increased by 8% to $2.1 billion in Q2 2012, driven by strong performance in the Government segment.
- 2Operating earnings more than doubled to $278 million in Q2 2012, with operating margin improving to 12.9% from 8.0% in Q2 2011.
- 3Earnings from continuing operations per diluted share surged to $0.60 in Q2 2012, up from $0.14 in Q2 2011.
- 4The Government segment saw a 14% increase in net sales, while the Enterprise segment experienced a 2% decrease.
- 5The company returned approximately $1.9 billion to shareholders through share repurchases and dividends in the first half of 2012.
- 6Motorola Solutions issued $750 million in new senior notes and redeemed $400 million of existing notes, strengthening its debt profile.
- 7The company announced a planned acquisition of Psion Plc. for approximately $200 million, aiming to bolster its mobile computing solutions.