Summary
Motorola Solutions, Inc. reported its first quarter 2013 financial results, showing a slight increase in net sales to $1.97 billion, up 1% year-over-year. While overall sales grew modestly, profitability metrics saw some pressure. Operating earnings decreased to $216 million from $232 million in the prior year, and the operating margin compressed to 10.9% from 11.9%. Despite these headwinds, the company delivered strong earnings per diluted share of $0.68, an increase from $0.50 in Q1 2012, driven by a lower effective tax rate and a reduced share count due to ongoing share repurchases. The company's Government segment demonstrated resilience with a 3% increase in net sales, while the Enterprise segment experienced a 4% decline. This performance shift highlights the growing importance of the Government segment in driving top-line growth. Motorola Solutions continued its capital return program, repurchasing $357 million of its stock and paying $72 million in dividends, while also issuing $600 million in senior notes to bolster its balance sheet.
Financial Highlights
55 data points| Revenue | $1.40B |
| Cost of Revenue | $703.00M |
| Gross Profit | $693.00M |
| R&D Expenses | $187.00M |
| SG&A Expenses | $325.00M |
| Operating Income | $174.00M |
| Interest Expense | $30.00M |
| Net Income | $192.00M |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 274.50M |
| Shares Outstanding (Diluted) | 280.70M |
Key Highlights
- 1Net sales increased 1% year-over-year to $1.97 billion.
- 2Earnings per diluted share rose to $0.68 from $0.50, primarily due to a lower effective tax rate and fewer outstanding shares.
- 3The Government segment saw a 3% increase in net sales, while the Enterprise segment experienced a 4% decrease.
- 4Operating earnings decreased by $16 million to $216 million, with operating margin contracting to 10.9%.
- 5The company utilized $357 million for share repurchases and paid $72 million in dividends, demonstrating a commitment to returning capital to shareholders.
- 6Motorola Solutions issued $600 million in senior notes, increasing its long-term debt and strengthening its liquidity position.
- 7Net cash used for operating activities from continuing operations was $31 million, a decrease compared to $69 million provided in the prior year period.