Record fourth-quarter and full-year sales and operating earnings driven by 12% rise in government sales and despite a 5% decline in enterprise sales compared with 2011
Motorola Solutions has posted fourth-quarter sales for 2012 of $2.4bn (£1.5bn), up 6% from the fourth quarter of 2011, and full-year sales for 2012 of $8.7bn (£5.5bn), up 6% from 2011.
Non-GAAP operating earnings in the fourth quarter of 2012 were $476m (£300m) or 19.5% of sales, compared with $444m (£280m) or 19.3% of sales in the fourth quarter of 2011. For the full year 2012, non-GAAP operating earnings were $1.5bn (£947m) or 17.3% of sales, compared with $1.4bn (£884m) or 16.7% of sales in 2011.
For the full year, Government sales were up 12% and Enterprise sales declined 5%. These results include revenue for Psion, which was acquired on 1 October 2012.
Announcing the results this week (23 January 2013), Greg Brown, chairman and CEO of Motorola Solutions, (pictured) said: ‘It was another outstanding year for Motorola Solutions as we continued to deliver strong operational and financial results. We strengthened our product portfolio, expanded operating margins, generated $1.1bn (£694m) in operating cash and returned $2.7bn (£1.7bn) in capital to our shareholders.’
During the fourth quarter of 2012, the company generated $564m (£356m) in operating cash flow from continuing operations. The company ended the quarter with total cash of $3.6bn (£2.2bn) while returning $399m (£252m) to shareholders through share repurchases and cash dividends during the quarter.
Government segment sales were $1.7bn (£1.0bn), up 10% from the year-ago quarter. Non-GAAP operating earnings were $373m (£235m) or 21.8% of sales compared with $307m (£194m) or 19.8% of sales in the year-ago quarter.
For the full year 2012, Government segment sales were $6.0bn (£3.7bn), up 12% from 2011. Non-GAAP operating earnings were $1.1bn (£694m) or 18.5% of sales compared with $833m (£526m) or 15.5% of sales in 2011.
Enterprise segment sales were $733m (£462m), down 3% from the year-ago quarter. Excluding Psion, sales were down 12%. Non-GAAP operating earnings were $103m (£65m) or 14.1% of sales compared with $137m (£86.5m) or 18.2% of sales in the year-ago quarter.
For the full year 2012, Enterprise segment sales were $2.7bn (£1.7bn), down 5% from 2011. Non-GAAP operating earnings were $395m (£249m) or 14.6% of sales compared to $540m (£341m) or 19.0% of sales in 2011.
First quarter and full year outlook for 2013
Motorola Solutions’ outlook for the first quarter of 2013 is for revenue growth of 4% to 5% compared with the first quarter of 2012. For the full-year 2013, the company expects revenue growth of approximately 5% to 5.5% compared with 2012 and non-GAAP operating earnings of approximately 18% of sales.
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