Motorola solutions reports first-quarter

Motorola Solutions, Inc. (NYSE: MSI) announced today its first-quarter 2012 results highlighted by sales of $2 billion, up 7 percent from the first quarter of 2011 and driven by strong worldwide demand in its Government segment. “Motorola Solutions had a great start to the year by posting record first-quarter sales and operating earnings while also returning approximately $1.4 billion to shareholders,” said Greg Brown, chairman and CEO. GAAP operating earnings in the first quarter of 2012 were $232 million or 11.9 percent of sales, compared to $169 million or 9.2 percent of sales in the first quarter of 2011. GAAP earnings per share (EPS) from continuing operations* were $0.50, compared to $1.07 in the first quarter of 2011. The first-quarter 2011 GAAP EPS from continuing operations includes $0.69 of income from highlighted items primarily related to a $244 million non-cash gain related to the reversal of valuation allowances on tax assets. Non-GAAP** operating earnings in the first quarter of 2012 were $290 million or 14.8 percent of sales, compared to $266 million or 14.5 percent of sales in the first quarter of 2011. Non-GAAP earnings per share from continuing operations were $0.59, compared to $0.54 in the first quarter of 2011. Non-GAAP financial information excludes after-tax benefits of approximately $0.09 per diluted share related to stock-based compensation expense, intangible assets amortization expense and highlighted items. Details on these Non-GAAP adjustments and the use of Non-GAAP measures are included later in this press release. During the first quarter of 2012, the company generated $69 million in operating cash flow from continuing operations. Operating cash flows in the quarter were impacted by approximately $200 million related to the timing of certain annual incentives historically paid in the second quarter and a legal settlement. During the quarter, the company repurchased $1.4 billion in stock, paid $70 million in dividends and ended the quarter with total cash*** of $3.8 billion. Government segment sales were $1.3 billion, up 11 percent from the year-ago quarter, driven by growth in all regions. GAAP operating earnings were $150 million or 11.5 percent of sales compared to $99 million or 8.5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $184 million or 14.1 percent of sales compared to $134 million or 11.5 percent of sales in the year-ago quarter. Government highlights: * Awarded prime contractor for the Norwegian nationwide TETRA project, with anticipated revenues of approximately $750 million through 2026 * Secured multi-million dollar contracts with the U.S. Department of Defense, the Canada Department of National Defense, the Royal Australian Airforce, Sumter County in Florida, Colombia County in Georgia, Warren County in Ohio, Adams County in Pennsylvania, Pierce County in Washington, Mumbai Airport, Aerothai Airways in Thailand and Hong Kong Mass Transit * Continued to demonstrate leadership in public safety LTE with contract to expand the Harris County, Texas, Public Safety LTE wide-area broadband network * Introduced the LEX 700, the first handheld Public Safety LTE device, which delivers unprecedented access to “street ready” data in a compact, rugged format * Expanded the MOTOTRBO™ professional digital communications portfolio with the SL Series, the world’s thinnest, lightest digital mobile radio portable for industries such as hospitality, services, security and airlines Enterprise segment sales were $655 million, down 2 percent from the year-ago quarter, which included a $31 million decline in iDEN sales. Sales excluding iDEN were up, driven by growth in North America and Asia Pacific. GAAP operating earnings were $82 million or 12.5 percent of sales compared to $70 million or 10.5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $106 million or 16.2 percent of sales compared to $132 million or 19.8 percent of sales in the year-ago quarter. Enterprise highlights: * Continued growth with contracts from key customers such as United Airlines, TNT Express (Germany), Commonwealth Edison, Macy’s, and Goya Foods * Began shipping ET1 tablets with early customer wins such as Mayer Electric, a wholesale-distributor of electrical equipment and supplies, which deployed ET1 tablets in its trucks for drivers to use a direct store delivery application to capture signatures at point of delivery * Launched the NX Integrated Services Platform to simplify retailers’ deployment and management of branch office networking and communications, allowing retail associates to have mobile access to voice, data and advanced applications, all delivered by a single platform * Introduced the DS3500-ER series of scanners, capable of scanning 1D, 2D and GS1 codes at extended ranges to improve worker productivity and reduce the need for businesses to purchase multiple devices Second-Quarter and Full-Year 2012 Outlook The company expects second-quarter sales to grow approximately 6 percent compared with the second quarter of 2011, with earnings per share from continuing operations of $0.65 to $0.70. The company reaffirms its full year 2012 outlook of sales growth of approximately 5 percent compared with 2011 and operating earnings of approximately 17 percent of sales. This outlook excludes 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. Definitions * Amounts attributable to Motorola Solutions, Inc. common stockholders ** Non-GAAP financial information excludes from GAAP results the effects of stock-based compensation expense, intangible assets amortization expense and highlighted items *** Total cash = Cash and cash equivalents + Sigma Fund (current) and short-term investments