25 Jul 2013 05:03 PM

Motorola Solutions revenue down 2% to £1.3 billion in Q2 2013

Declines of 5% in enterprise and 1% in government sales hit revenue, while operating earners fall by 4% to £173m

Motorola Solutions revenue down 2% to £1.3 billion in Q2 2013

Motorola Solutions saw sales decline by 2% to $2.1 billion (£1.3 billion) in the second quarter of 2013 compared with the same quarter a year ago. Government sales were down 1%, while Enterprise sales declined 5%.

GAAP operating earnings in the second quarter of 2013 fell 4% from $266m (£173m) from $278m (£181m) in the second quarter of 2012. Non-GAAP operating earnings in the second quarter of 2013 declined by 5% to $334m (£217m) compared with $350m (£228m) in the same period in 2012.

Greg Brown, chairman and CEO of Motorola Solutions, said: “Our Government business performed well in the second quarter though our Enterprise business continues to be challenged primarily due to market conditions. We remain confident in the fundamental drivers of the business. We will maintain our focus on growing our revenues, managing our cost structure and expanding our operating margins.”

During the quarter, the company generated $82m (£53m) in operating cash flow from continuing operations. The company ended the quarter with total cash of $3.2 billion (£2.0 billion) while returning $621m (£404m) to shareholders through share repurchases and cash dividends.

Government segment sales were $1.5 billion (£978m), down 1% from the year-ago quarter. GAAP operating earnings were $215m (£140m) compared with $197m (£128m) in the year-ago quarter. Non-GAAP operating earnings were $256m (£166m) compared with $240m (£156m) in the year-ago quarter.

Enterprise segment sales were $656m (£427m), down 5% from the year-ago quarter. Excluding Psion, which Motorola acquired last year, sales were down 12%. GAAP operating earnings were $51m (£33m) compared to $81m (£52m). Non-GAAP operating earnings were $78m (£50m) compared with $110m (£71m) in the year-ago quarter.

Motorola Solutions’ outlook for the third quarter of 2013 is for revenues that are flat to down 3% compared with the third quarter of 2012. For the full-year 2013, the company now expects revenues that are flat to up 1% compared with 2012. The company still expects to achieve Non-GAAP operating margins of approximately 18% of sales. 



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