Motorola Announces Second Quarter Financial Results (7/25/12)
Motorola Solutions announced its second-quarter 2012 results, highlighting sales of $2.1 billion, up 8 percent from the second quarter of 2011. Sales were driven by strong worldwide demand in Motorola’s government segment.
“Our strong revenue and earnings growth continues to demonstrate the strength and resiliency of our business,” said Greg Brown, chairman and CEO of Motorola Solutions. “We also are pleased to continue to return capital to our shareholders through an increased dividend and expanded share repurchase program.”
GAAP operating earnings in the second quarter of 2012 were $278 million or 12.9 percent of sales, compared with $159 million or 8 percent of sales in the second quarter of 2011.
During the second quarter of 2012, the company generated $254 million in operating cash flow from continuing operations. Additionally, the company repurchased $439 million in shares, paid $64 million in dividends and ended the quarter with total cash of $3.7 billion.
Government segment sales were $1.5 billion, up 14 percent from the year-ago quarter, driven by growth in all regions. GAAP operating earnings were $197 million or 13.5 percent of sales compared with $105 million or 8.2 percent of sales in the year-ago quarter.
Motorola highlighted the following in its government segment:
• Secured multimillion dollar contracts with the states of Arkansas, Louisiana and Ohio; the City of Lakeland, Fla.; Pennsylvania State Police; Centre County in Pennsylvania; Utah Communication Agency Networks; London Underground; Chilean Investigative Police; Ecuador’s National Telecommunications Corporation for the National Police; Beijing Metro Line and Hong Kong Mass Transit Railway
• Launched a public-safety Long Term Evolution (LTE) test with the Brazilian Army and contracted with Randall County, Texas, for CAD solutions that also incorporate a public-safety LTE network and expand the LTE core owned by Harris County, Texas
• With the city of Apopka, Fla., announced the world’s first deployment and acceptance of a dual-mode Project 25 (P25) TDMA trunking, which is being used by Apopka police, fire and emergency management personnel, and public works
• Introduced three new models in the MTP3000 TETRA handheld radio series that answer core user demands for increased user safety and reliability
Enterprise segment sales were $689 million, down 2 percent from the year-ago quarter, which included the anticipated decline in iDEN sales. GAAP operating earnings were $81 million or 11.8 percent of sales compared with $54 million or 7.7 percent of sales in the year-ago quarter.
Motorola expects third-quarter sales to grow about 3 percent compared with the third quarter of 2011. The company is increasing its full-year 2012 outlook of sales growth to 5 to 6 percent from about 5 percent compared with 2011. The operating earnings outlook remains at about 17 percent of sales.
The board of directors increased its regular quarterly cash dividend by 18 percent to 26 cents per share. The next quarterly dividend will be payable Oct. 15, to stockholders of record at the close of business Sept. 14. The company’s board also authorized an additional $2 billion in share repurchases, with no expiration date. This increase is in addition to the $3 billion currently authorized, $2.9 billion of which has been use in the past year.
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