Motorola Solutions Quarterly Profits Decline Despite Improving Revenues
Published on: 22nd Jan 2014
By: Ian Mansfield
Motorola Solutions has reported that its fourth quarter revenues were up by 3 percent compared to a year ago but that its full year sales were flat compared to the previous year due to weaker performance in 2013.
For the fourth quarter, Government sales were up 4 percent and Enterprise sales were up slightly. Backlog ended the year at a record $6.2 billion, primarily driven by large multi-year projects in Government.
Profits for the quarter were down by 2 percent at USD413 million on revenues of USD2.5 billion.
"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."
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
Motorola Solutions' outlook for the first quarter of 2014 is for revenue decline of 4 to 6 percent compared with the first quarter of 2013.