Motorola Expects Growth In Government, Enterprise Segments

Motorola Solutions announced its first-quarter 2011 results highlighted by sales of US$1.9 billion, up eight percent from the first quarter of 2010 and driven by solid demand across both its government and enterprise segments.

“Motorola Solutions had an outstanding first quarter with revenue growth in all four of our geographic regions,” said Greg Brown, president and CEO, Motorola Solutions.

“We maintained our focus on solid earnings and cash generation as our government and enterprise customers continued to seek solutions that drive improved efficiency and strong return on investment.”

GAAP operating earnings in the first quarter of 2011 were $170 million or nine percent of sales, compared to $120 million or seven percent of sales in the first quarter of 2010. GAAP earnings per share from continuing operations were $1.06, compared to $0.29 in the first quarter of 2010.

Non-GAAP operating earnings in the first quarter of 2011 were $267 million or 14 percent of sales, compared to $175 million or 10 percent of sales in the first quarter of 2010. Non-GAAP earnings per share from continuing operations were $0.54, compared to $0.33 in the first quarter of 2010. Non-GAAP financial information excludes after-tax benefits of approximately $0.52 per diluted share related to stock-based compensation expense, intangible assets amortization expense and highlighted items.

During the first quarter of 2011, the company generated $231 million in operating cash flow from continuing operations and $191 million in operating cash flow from discontinued operations. It ended the quarter with total cash of $6.2 billion and net cash of $3.5 billion.

Government segment sales were $1.2 billion, up five percent from the year-ago quarter. GAAP operating earnings were $104 million or nine percent of sales compared to $92 million or eight percent of sales in the year-ago quarter. Non-GAAP operating earnings were $139 million or 12 percent of sales compared to $98 million or nine percent of sales in the year-ago quarter.

Enterprise segment sales were $695 million, up 14 percent from the year-ago quarter. GAAP operating earnings were $66 million or nine percent of sales compared to $28 million or five percent of sales in the year-ago quarter. Non-GAAP operating earnings were $128 million or 18 percent of sales compared to $77 million or 13 percent of sales in the year-ago quarter.

The company expects to see growth across both government and enterprise segments. Second-quarter sales are expected to grow between four and five percent over the second quarter of 2010 with EPS from continuing operations of $0.46 to $0.51.

This outlook excludes the portion of the networks business expected to be acquired by Nokia Siemens Networks as well as stock-based compensation expense, intangible assets amortization expense and charges associated with items of the variety typically highlighted by the company in its quarterly earnings releases.

The company now expects full-year revenue growth to track toward 4 to 4.5 percent with operating earnings of 16 to 16.5 percent of sales.