Motorola Solutions, Inc. Quarterly Report for Q2 Ended Apr 1, 2017

Summary

Motorola Solutions, Inc. (MSI) reported solid financial results for the first quarter of 2017, demonstrating significant year-over-year improvement. Net sales increased by 7% to $1.3 billion, driven by a robust 18% growth in the Services segment, largely attributed to the acquisition of Airwave. The Products segment remained stable. Profitability saw a substantial boost, with operating earnings nearly doubling to $176 million, reflecting improved gross margins and effective cost management. This translated into a significant increase in net earnings attributable to common shareholders, which grew to $77 million ($0.45 per diluted share) from $17 million ($0.10 per diluted share) in the prior year's quarter. The company also generated strong operating cash flow of $142 million, a marked improvement from the previous year, and continued to return capital to shareholders through dividends and share repurchases.

Key Highlights

• 1Net sales increased by 7% year-over-year to $1.3 billion, driven by strong Services segment growth.
• 2Services segment revenue grew by 18%, significantly boosted by the Airwave acquisition and organic growth.
• 3Operating earnings more than doubled year-over-year to $176 million, with operating margin expanding to 13.7% from 8.4%.
• 4Net earnings attributable to Motorola Solutions, Inc. shareholders surged to $77 million ($0.45 per diluted share) from $17 million ($0.10 per diluted share) in the prior year.
• 5Operating cash flow improved dramatically to $142 million from $13 million in the same period last year.
• 6The company returned $255 million to shareholders via dividends and share repurchases.
• 7Motorola Solutions announced its intention to acquire Kodiak Networks to further build its software portfolio.

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