Motorola Solutions, Inc. (NYSE: MSI) announced today its fourth-quarter and full-year 2013 results highlighted by fourth-quarter sales of $2.5 billion, up 3 percent from the fourth quarter of 2012, and full-year sales of $8.7 billion, flat compared with 2012. For the fourth quarter, Government sales were up 4 percent and Enterprise sales were up slightly.
“I’m pleased with the way we finished the year,” said Greg Brown, chairman and CEO of Motorola Solutions. “In Q4, we had revenue growth in both our Government and Enterprise businesses. We also had strong cash generation, expanded operating margin, grew backlog in both businesses, and continued to return capital to shareholders.”
The fourth quarter was led by strong growth in Government infrastructure and deployment services while Enterprise posted its second consecutive quarter of growth. Backlog ended the year at a record $6.2 billion, primarily driven by large multi-year projects in Government.
GAAP operating earnings in the fourth quarter of 2013 were $413 million or 16.5 percent of sales, compared to $423 million or 17.3 percent of sales in the fourth quarter of 2012. GAAP earnings per share from continuing operations were $1.31, compared to $1.18 in the fourth quarter of 2012. For the full year 2013, GAAP operating earnings were $1.2 billion or 14.0 percent of sales, compared to $1.3 billion or 14.4 percent of sales in 2012. GAAP earnings per share from continuing operations were $4.06, compared to $2.95 in 2012.
Non-GAAP operating earnings in the fourth quarter of 2013 were $519 million or 20.7 percent of sales, compared to $476 million or 19.5 percent of sales in the fourth quarter of 2012. Non-GAAP earnings per share from continuing operations were $1.67, compared to $1.10 in the fourth quarter of 2012. Non-GAAP financial information excludes after-tax charges of approximately $0.36 per diluted share related to stock-based compensation, intangible amortization and highlighted items. Details on these Non-GAAP adjustments and the use of Non-GAAP measures are included later in this press release. For the full year 2013, Non-GAAP operating earnings were $1.5 billion or 17.6 percent of sales, compared to $1.5 billion or 17.3 percent of sales in 2012. Non-GAAP earnings per share from continuing operations were $4.73, compared to $3.20 in 2012. These GAAP and Non-GAAP earnings results include the favorable impact of $337 million or $1.25 per share of net tax benefits associated with the recognition of certain foreign tax credits as a result of our implementation of a holding company structure for certain non-U.S. subsidiaries.
During the fourth quarter of 2013, the company generated $741 million in operating cash flow from continuing operations. The company ended the year with total cash*** of $3.2 billion while returning $442 million to shareholders through share repurchases and cash dividends during the quarter. The company repurchased 5.6 million shares of stock during the quarter and 28.6 million shares for the full year.
Government segment sales were $1.8 billion, up 4 percent from the year-ago quarter. GAAP operating earnings were $332 million or 18.8 percent of sales compared to $346 million or 20.3 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $398 million or 22.5 percent of sales compared to $373 million or 21.8 percent of sales in the year-ago quarter.
For the full year 2013, Government segment sales were $6.0 billion, up 1 percent from 2012. GAAP operating earnings were $979 million or 16.2 percent of sales compared to $965 million or 16.1 percent of sales in 2012. Non-GAAP operating earnings were $1.2 billion or 19.4 percent of sales compared to $1.1 billion or 18.5 percent of sales in 2012.
Government highlights:
- Secured multimillion-dollar contracts with U.S. customers such as the cities of Charlotte and Greensboro, N.C., and Grand Prairie, Texas; Los Angeles Department of Power and Water; the state of Ohio/Schools; San Bernardino County in California; Cobb County in Georgia; Hamilton County in Indiana; Harford and Prince George’s counties in Maryland; Camden County in New Jersey; Albany County in New York; Florence County in South Carolina; Milwaukee and Waukesha counties in Wisconsin; Tennessee Department of Safety; and the U.S. Navy
- Secured multimillion-dollar contracts with international customers such as the Military Police of São Paulo State in Brazil; Royal Brunei Police Force; Shandong Police, Chongqing Metro, Qingdao Metro Police and Wahan/Fuzhou airports in China; Israel Fire Brigade; Bundang Metro in Korea; Latvian Ministry of Interior; Myanmar Police; Belle Grande Casino in the Philippines and Sentosa Development Corp. in Singapore
- Acquired Twisted Pair Solutions to accelerate push-to-talk (PTT) over broadband inter-operability with our MOTOTRBOTM radio network; also announced new PTT application, Unified PTT, that extends the reach of ASTRO™ 25 networks by allowing users with smartphones to connect to Project 25 (P25) users and talkgroups
Enterprise segment sales were $736 million, up slightly compared
to the year-ago quarter. GAAP operating earnings were $81 million or
11.0 percent of sales compared to $77 million or 10.5 percent of sales
in the year-ago quarter. Non-GAAP operating earnings were $121 million
or 16.4 percent of sales compared to $103 million or 14.1 percent of
sales in the year-ago quarter.
