EX-99.1 2 d524760dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Motorola Solutions Reports First-Quarter 2013

Financial Results

 

   

Sales up 1 percent driven by 3 percent growth in Government

 

   

GAAP earnings per share (EPS) from continuing operations* up 36 percent from a year ago

 

   

Non-GAAP** EPS from continuing operations up 12 percent from a year ago

 

   

Repurchased $357 million of shares in the quarter

 

     First Quarter  
     2013      2012      Change  

Total sales ($M)

   $ 1,973       $ 1,956         1

GAAP operating earnings ($M)

   $ 216       $ 232         -7

Non-GAAP operating earnings ($M)

   $ 278       $ 290         -4

GAAP EPS from continuing operations

   $ 0.68       $ 0.50         36

Non-GAAP EPS from continuing operations

   $ 0.66       $ 0.59         12

Click here for printable press release and financial tables.

SCHAUMBURG, III. – April 24, 2013 – Motorola Solutions, Inc. (NYSE: MSI) announced today first-quarter 2013 sales of $2 billion, up 1 percent from the first quarter of 2012. Government sales were up 3 percent while Enterprise sales were down 4 percent.

“Despite a challenging enterprise market and modest revenue growth in the first quarter, our disciplined focus on cost management and return of capital to shareholders delivered double-digit growth in earnings per share,” said Greg Brown, chairman and CEO of Motorola Solutions. “We remain confident in the fundamental drivers of the business and our ability to drive improved operating earnings for the year.”

GAAP operating earnings in the first quarter of 2013 were $216 million or 10.9 percent of sales, compared to $232 million or 11.9 percent of sales in the first quarter of 2012. GAAP earnings per share from continuing operations were $0.68, compared to $0.50 in the first quarter of 2012.

Non-GAAP operating earnings in the first quarter of 2013 were $278 million or 14.1 percent of sales, compared to $290 million or 14.8 percent of sales in the first quarter of 2012. Non-GAAP earnings per share from continuing operations were $0.66, compared to $0.59 in the first quarter of 2012. Non-GAAP financial information excludes after-tax net loss of approximately $0.02 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.

During the quarter, the company used $31 million in operating cash flow from continuing operations. The company ended the quarter with total cash*** of $3.7 billion while returning $429 million to shareholders through share repurchases and cash dividends.

Government segment sales were $1.3 billion, up 3 percent from the year-ago quarter. GAAP operating earnings were $180 million or 13.4 percent of sales compared to $150 million or 11.5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $217 million or 16.1 percent of sales compared to $184 million or 14.1 percent of sales in the year-ago quarter.


Government highlights:

 

   

Secured multimillion-dollar contracts with strategic customers such as Las Vegas Metropolitan Police Department; State of Tennessee; Wyandotte County in Kansas; Butler County in Ohio; Houston Airport; SIBUR in Russia; Medellín Metro in Colombia; Colombia Ministry of Defense; Queensland Gas Company in Australia; Macau Light Rail, Chengdu Government Radio Network and Shangdong Provincial Police in China; and Klang Valley Mass Rail Transit System in Malaysia

 

   

Introduced Real-Time Crime Center solution, incorporating input from multiple data sources such as video, sensors, alarms, computer-aided dispatch and records to deliver one operational view and help public safety stay one step ahead of criminals through proactive policing

 

   

Launched the new MTP6750 handheld, the world´s first TETRA radio with a 5 megapixel camera that embeds a special encrypted marking to validate metadata and ensure images have not been tampered with before presentation in court

 

   

Introduced AME 2000 Secure Mobile Solution based on Motorola’s Assured Mobile Environment, providing end-to-end encrypted voice and data communications through private or public wireless networks to support the missions of federal agencies

Enterprise segment sales were $627 million, down 4 percent from the year-ago quarter. Excluding Psion, sales were down 12 percent. GAAP operating earnings were $36 million or 5.7 percent of sales compared to $82 million or 12.5 percent of sales in the year-ago quarter. Non-GAAP operating earnings were $61 million or 9.7 percent of sales compared to $106 million or 16.2 percent of sales in the year-ago quarter.

Enterprise highlights:

 

   

Secured contracts with key customers such as Tesco in the U.K., Macy’s, District of Carpenters, OnTrac shipping, Universal Hospital Services, Sligro food wholesaler in the Netherlands, GEPP bottling in Mexico, and Federation of Coffee Growers of Colombia

 

   

Launched MC45 mobile computer, the company’s first WAN-based solution that addresses the needs of field-based mobile workers in cost-sensitive enterprises

 

   

Introduced the company’s first-ever bioptic scanner, the MP6000 multi-plane scanner embedded in point-of-sale terminals for retailers

 

   

Honored with prestigious Red Dot Product Design Awards for MC40 mobile computer and HC1 headset computer for excellence in product design quality

Second-Quarter Outlook

Motorola Solutions’ outlook for the second quarter of 2013 is for revenues that are flat to down 2 percent compared with the second quarter of 2012 and Non-GAAP earnings per share from continuing operations of $0.66 to $0.71 per share. For the full-year 2013, the company now expects revenue growth of approximately 3 to 4 percent compared with 2012 and Non-GAAP operating margins of approximately 18 percent of sales. This outlook excludes stock-based compensation, intangible amortization and charges associated with items typically highlighted by the company in its quarterly earnings releases.


Consolidated GAAP Results

A comparison of results from operations is as follows:

 

     First Quarter  
     2013      2012  

Net sales ($M)

   $ 1,973       $ 1,956   

Gross margin ($M)

     955         973   

Operating earnings ($M)

     216         232   

Earnings from continuing operations ($M)

     192         159   

Net earnings ($M)

     192         157   

Diluted EPS from continuing operations

   $ 0.68       $ 0.50   

Weighted average diluted common shares outstanding

     280.7         317.7   

Highlighted Items, Stock-Based Compensation Expense and Intangible Assets Amortization Expense

The table below includes highlighted items, stock-based compensation expense and intangible assets amortization expense for the first quarter of 2013.

 

     First Quarter  
(per diluted common share)    2013  

GAAP Earnings per Common Share from Continuing Operations*

   $ 0.68   

Highlighted Items:

  

Reorganization of business charges

     0.03   

Tax benefit for prior period R&D tax credit

     (0.04

Reduction in deferred tax asset valuation allowance

     (0.04

Reduction in deferred tax liability for undistributed earnings

     (0.09

Total Highlighted Items

     (0.14

Stock-based compensation expense

     0.11   

Intangible assets amortization expense

     0.01   

Stock-Based Compensation Expense and Intangible Assets Amortization Expense

     0.12   

Total Non-GAAP Adjustments

     (0.02

Non-GAAP Earnings per Common Share

   $ 0.66   


Conference Call and Webcast

Motorola Solutions will host its quarterly conference call beginning at 7 a.m. U.S. Central Daylight Time (8 a.m. U.S. Eastern Daylight Time) on Wednesday, April 24. The conference call will be webcast live with audio and slides at www.motorolasolutions.com/investor.

Use of Non-GAAP Financial Information

In addition to the GAAP results included in this presentation, Motorola Solutions also has included Non-GAAP measurements of results. We have provided these Non-GAAP measurements to help investors better understand our core operating performance, enhance comparisons of core operating performance from period to period and allow better comparisons of operating performance to our competitors. Among other things, management uses these operating results, excluding the identified items, to evaluate performance of the businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results excluding these items because it believes this measurement enables it to make better period-to-period evaluations of the financial performance of core business operations. The Non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the company compensates for the limitations inherent in the use of Non-GAAP measurements by using GAAP measures in conjunction with the Non-GAAP measurements. As a result, investors should consider these Non-GAAP measurements in addition to, and not in substitution for or as superior to, measurements of financial performance prepared in accordance with GAAP.

Highlighted items: The company has excluded the effects of highlighted items (and any reversals of highlighted items recorded in prior periods) from its Non-GAAP operating expenses and net income measurements because the company believes that these historical items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the company’s current operating performance or comparisons to the company’s past operating performance.

Stock-based compensation expense: The company has excluded stock-based compensation expense from its Non-GAAP operating expenses and net income measurements. Although stock-based compensation is a key incentive offered to our employees and the company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues, the company continues to evaluate its performance excluding stock-based compensation expense primarily because it represents a significant non-cash expense. Stock-based compensation expense will recur in future periods.

Intangible assets amortization expense: The company has excluded intangible assets amortization expense from its Non-GAAP operating expenses and net income measurements, primarily because it represents a significant non-cash expense and because the company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the company’s acquisitions. Investors should note that the use of intangible assets contributed to the company’s revenues earned during the periods presented and will contribute to the company’s future period revenues as well. Intangible assets amortization expense will recur in future periods.

Details of the above items and reconciliations of the Non-GAAP measurements to the corresponding GAAP measurements can be found at the end of this press release.


Business Risks

This press release contains “forward-looking statements” within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, Motorola Solutions’ financial outlook for the second quarter and the full year of 2013, payment of a regular quarterly dividend and purchases of shares under the company’s share repurchase program. Motorola Solutions cautions the reader that the risk factors below, as well as those on pages 8 through 19 in Item 1A of Motorola Solutions, Inc.‘s 2012 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com, could cause Motorola Solutions’ actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions and factors that may impact forward-looking statements include, but are not limited to: (1) the economic outlook for the government and enterprise communications industries; (2) the level of demand for the company’s products, particularly if businesses and governments defer or cancel purchases in response to tighter credit; (3) the company’s ability to introduce new products and technologies in a timely manner; (4) negative impact on the company’s business from global economic conditions, including sequestration in the United States, which may include: (i) potential deferment or cancellation of purchase orders by customers; (ii) the inability of customers to obtain financing for purchases of the company’s products; (iii) increased demand to provide vendor financing to customers; (iv) increased financial pressures on third-party dealers, distributors and retailers; (v) the viability of the company’s suppliers that may no longer have access to necessary financing; (vi) counterparty failures negatively impacting the company’s financial position; (vii) changes in the value of investments held by the company’s pension plan and other defined benefit plans, which could impact future required or voluntary pension contributions; and (viii) the company’s ability to access the capital markets on acceptable terms and conditions; (5) the company’s ability to purchase sufficient materials, parts and components to meet customer demand, particularly in light of global economic conditions; (6) risks related to dependence on certain key suppliers, subcontractors, third-party distributors and other representatives; (7) the impact on the company’s performance and financial results from strategic acquisitions or divestitures, including Psion and those that may occur in the future; (8) risks related to the company’s manufacturing and business operations in foreign countries; (9) the creditworthiness of the company’s customers and distributors, particularly purchasers of large infrastructure systems; (10) exposure under large systems and managed services contracts, including risks related to the fact that certain customers require that the company build, own and operate their systems, often over a multi-year period; (11) the ownership of certain logos, trademarks, trade names and service marks including “MOTOROLA” by Motorola Mobility Holdings, Inc.; (12) variability in income received from licensing the company’s intellectual property to others, as well as expenses incurred when the company licenses intellectual property from others; (13) unexpected liabilities or expenses, including unfavorable outcomes to any pending or future litigation or regulatory or similar proceedings; (14) the impact of foreign currency fluctuations on the company when competing for business in foreign markets;


(15) the impact of the percentage of cash and cash equivalents held outside of the United States; (16) the ability of the company to pay future dividends due to possible adverse market conditions or adverse impacts on the company’s cash flow; (17) the ability of the company to repurchase shares under its repurchase program due to possible adverse market conditions or adverse impacts on the company’s cash flow; (18) the impact of changes in governmental policies, laws or regulations; (19) the outcome of currently ongoing and future tax matters; (20) negative consequences from the company’s outsourcing of various activities, including certain business operations, information technology and administrative functions; and (21) the impact of our multi-year phased upgrade and consolidation of our enterprise resource planning systems into a single global platform. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.

Definitions

 

* Amounts attributable to Motorola Solutions, Inc. common shareholders
** 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

About Motorola Solutions

Motorola Solutions is a leading provider of mission-critical communication solutions and services for enterprise and government customers. Through leading-edge innovation and communications technology, it is a global leader that enables its customers to be their best in the moments that matter. Motorola Solutions trades on the New York Stock Exchange under the ticker “MSI.” To learn more, visit www.motorolasolutions.com. For ongoing news, please visit our media center or subscribe to our news feed.

Media Contacts

Nick Sweers

Motorola Solutions

+1 847-576-2462

nicholas.sweers@motorolasolutions.com

Tama McWhinney

Motorola Solutions

+1 847-538-1865

tama.mcwhinney@motorolasolutions.com

Investor Contacts

Shep Dunlap

Motorola Solutions

+1 847-576-6899

shep.dunlap@motorolasolutions.com

Jason Winkler

Motorola Solutions

+1 847-576-4995

jason.winkler@motorolasolutions.com


MOTOROLA, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. ©2013 Motorola Solutions, Inc. All rights reserved.


Exhibit 99.1A

 

       GAAP-1   
Motorola Solutions, Inc. and Subsidiaries   
Condensed Consolidated Statements of Operations   
(In millions, except per share amounts)   
     Three Months Ended  
     March 30, 2013     March 31, 2012  

Net sales from products

   $ 1,381      $ 1,444   

Net sales from services

     592        512   
  

 

 

   

 

 

 

Net sales

     1,973        1,956   

Costs of products sales

     651        658   

Costs of services sales

     367        325   
  

 

 

   

 

 

 

Costs of sales

     1,018        983   
  

 

 

   

 

 

 

Gross margin

     955        973   
  

 

 

   

 

 

 

Selling, general and administrative expenses

     460        472   

Research and development expenditures

     262        254   

Other charges

     11        9   

Intangibles amortization

     6        6   
  

 

 

   

 

 

 

Operating earnings

     216        232   
  

 

 

   

 

 

 

Other income (expense):

    

Interest expense, net

     (25     (14

Gain on sales of investments and businesses, net

     7        17   

Other

     7        9   
  

 

 

   

 

 

 

Total other income (expense)

     (11     12   
  

 

 

   

 

 

 

Earnings from continuing operations before income taxes

     205        244   

Income tax expense

     13        85   
  

 

 

   

 

 

 

Earnings from continuing operations

     192        159   

Loss from discontinued operations, net of tax

     —          (2
  

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

   $ 192      $ 157   
  

 

 

   

 

 

 

Earnings (loss) per common share

    

Basic:

    

Continuing operations

   $ 0.70      $ 0.51   

Discontinued operations

     —          (0.01
  

 

 

   

 

 

 
   $ 0.70      $ 0.50   
  

 

 

   

 

 

 

Diluted:

    

Continuing operations

   $ 0.68      $ 0.50   

Discontinued operations

     —          (0.01
  

 

 

   

 

 

 
   $ 0.68      $ 0.49   
  

 

 

   

 

 

 

Weighted average common shares outstanding

    

Basic

     274.5        311.3   

Diluted

     280.7        317.7   
     Percentage of Net Sales*  

Net sales from products

     70.0     73.8

Net sales from services

     30.0     26.2
  

 

 

   

 

 

 

Net sales

     100     100
  

 

 

   

 

 

 

Costs of products sales

     47.1     45.6

Costs of services sales

     62.0     63.5
  

 

 

   

 

 

 

Costs of sales

     51.6     50.3
  

 

 

   

 

 

 

Gross margin

     48.4     49.7
  

 

 

   

 

 

 

Selling, general and administrative expenses

     23.3     24.1

Research and development expenditures

     13.3     13.0

Other charges

     0.6     0.5

Intangibles amortization

     0.3     0.3
  

 

 

   

 

 

 

Operating earnings

     10.9     11.9
  

 

 

   

 

 

 

Other income (expense):

    

Interest expense, net

     -1.3     -0.7

Gain on sales of investments and businesses, net

     0.4     0.9

Other

     0.4     0.5
  

 

 

   

 

 

 

Total other income (expense)

     -0.6     0.6
  

 

 

   

 

 

 

Earnings from continuing operations before income taxes

     10.4     12.5

Income tax expense

     0.7     4.3
  

 

 

   

 

 

 

Earnings from continuing operations

     9.7     8.1

Loss from discontinued operations, net of tax

     0.0     -0.1
  

 

 

   

 

 

 

Net earnings attributable to Motorola Solutions, Inc.

     9.7     8.0
  

 

 

   

 

 

 

 

* Percentages may not add up due to rounding


        GAAP-2   
Motorola Solutions, Inc. and Subsidiaries   
Condensed Consolidated Balance Sheets   
(In millions)   
     March 30,      December 31,  
     2013      2012  

Assets

     

Cash and cash equivalents

   $ 1,470       $ 1,468   

Sigma Fund and short-term investments

     2,248         2,135   

Accounts receivable, net

     1,644         1,881   

Inventories, net

     515         513   

Deferred income taxes

     621         604   

Other current assets

     868         800   
  

 

 

    

 

 

 

Total current assets

     7,366         7,401   
  

 

 

    

 

 

 

Property, plant and equipment, net

     825         839   

Investments

     148         144   

Deferred income taxes

     2,422         2,416   

Goodwill

     1,505         1,510   

Other assets

     331         369   
  

 

 

    

 

 

 

Total assets

   $ 12,597       $ 12,679   
  

 

 

    

 

 

 

Liabilities and Stockholders’ Equity

     

Current portion of long-term debt

   $ 4       $ 4   

Accounts payable

     593         705   

Accrued liabilities

     2,292         2,626   
  

 

 

    

 

 

 

Total current liabilities

     2,889         3,335   
  

 

 

    

 

 

 

Long-term debt

     2,450         1,859   

Other liabilities

     4,136         4,195   

Total Motorola Solutions, Inc. stockholders’ equity

     3,097         3,265   
  

 

 

    

 

 

 

Noncontrolling interests

     25         25   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 12,597       $ 12,679   
  

 

 

    

 

 

 

Total cash*

   $ 3,718       $ 3,603   

Net cash**

     1,264         1,740   

 

* Total cash = Cash and cash equivalents + Sigma Fund (current and non-current) + Short-term investments
** Net cash = Total cash - Notes payable and current portion of long-term debt - Long-term debt


       GAAP-3   
Motorola Solutions, Inc. and Subsidiaries   
Condensed Consolidated Statements of Cash Flows   
(In millions)   
     Three Months Ended  
     March 30, 2013     March 31, 2012  

Operating

    

Net earnings attributable to Motorola Solutions, Inc.

   $ 192      $ 157   

Loss from discontinued operations, net of tax

     —          (2
  

 

 

   

 

 

 

Earnings from continuing operations

     192        159   

Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:

    

Depreciation and amortization

     52        53   

Non-cash other expense (income)

     (1     1   

Share-based compensation expense

     45        43   

Gain on sales of investments and businesses, net

     (7     (17

Deferred income taxes

     (11     27   

Changes in assets and liabilities, net of effects of acquisitions and dispositions:

    

Accounts receivable

     200        141   

Inventories

     (5     9   

Other current assets

     (75     (100

Accounts payable and accrued liabilities

     (417     (249

Other assets and liabilities

     (4     2   
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities from continuing operations

     (31     69   
  

 

 

   

 

 

 

Investing

    

Acquisitions and investments, net

     (4     92   

Proceeds from (used for) sales of investments and businesses, net

     19        (54

Capital expenditures

     (46     (49

Proceeds from sales of (purchases of) Sigma Fund and short term investments, net

     (113     1,163   
  

 

 

   

 

 

 

Net cash provided by (used for) investing activities from continuing operations

     (144     1,152   
  

 

 

   

 

 

 

Financing

    

Net proceeds from issuance of debt

     593        —     

Repayment of debt

     (1     (1

Issuance of common stock

     40        30   

Purchase of common stock

     (357     (1,365

Excess tax benefits from share-based compensation

     9        6   

Payment of dividends

     (72     (70

Distribution to discontinued operations

     —          (11
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities from continuing operations

     212        (1,411
  

 

 

   

 

 

 

Discontinued Operations

    

Net cash provided by operating activities from discontinued operations

     —          2   

Net cash provided by from discontinued operations

     —          11   

Effect of exchange rate changes on cash and cash equivalents from discontinued operations

     —          (13
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities from discontinued operations

     —          —     
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents from continuing operations

     (35     29   
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     2        (161

Cash and cash equivalents, beginning of period

     1,468        1,881   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 1,470      $ 1,720   
  

 

 

   

 

 

 

Financial Ratios:

    

Free cash flow*

   $ (77   $ 20   

 

* Free cash flow = Net cash provided by operating activities - Capital expenditures


           GAAP-4   
Motorola Solutions, Inc. and Subsidiaries   
Segment Information   
(In millions)   
Summarized below are the Company’s Net sales and Operating earnings by segment for the three months ended March 30, 2013 and March 31, 2012.    
Net Sales   
     Three Months Ended         
     March 30, 2013      March 31, 2012      % Change  

Government

   $ 1,346       $ 1,301         3

Enterprise

     627         655         -4
  

 

 

    

 

 

    

Company Total

   $ 1,973       $ 1,956         1
  

 

 

    

 

 

    
Operating Earnings   
     Three Months Ended         
     March 30, 2013      March 31, 2012      % Change  

Government

   $ 180       $ 150         20

Enterprise

     36         82         -56
  

 

 

    

 

 

    

Company Total

   $ 216       $ 232         -7
  

 

 

    

 

 

    


                Non-GAAP-1   
Motorola Solutions, Inc. and Subsidiaries   
Non-GAAP Adjustments (Intangibles Amortization Expense, Stock-Based Compensation Expense and Highlighted Items)   
Q1 2013   

Highlighted Items

  

Statement Line

   PBT
(Inc)/Exp
     Tax
Inc/(Exp)
     PAT
(Inc)/Exp
    EPS impact  
Intangibles amortization expense    Intangibles amortization    $ 6       $ 2       $ 4      $ 0.01   
Stock-based compensation expense    Cost of sales, SG&A and R&D      45         14         31        0.11   
Reorganization of business charges    Cost of sales and Other charges (income)      11         3         8        0.03   
Tax benefit for prior period R&D tax credit    Income tax expense         12         (12     (0.04

Reduction in deferred tax asset valuation allowance

   Income tax expense         11         (11     (0.04

Reduction in deferred tax liability for undistributed earnings

   Income tax expense         25         (25     (0.09
     

 

 

    

 

 

    

 

 

   

 

 

 

Total continuing operations impact

      $ 62       $ 67       $ (5   $ (0.02


         Non-GAAP-2   
Motorola Solutions, Inc. and Subsidiaries   
Non-GAAP Segment Information   
(In millions)   
Net Sales   
     Three Months Ended        
     March 30, 2013     March 31, 2012     % Change  

Government

   $ 1,346      $ 1,301        3

Enterprise

     627        655        -4
  

 

 

   

 

 

   

Company Total

   $ 1,973      $ 1,956        1
  

 

 

   

 

 

   
Non-GAAP Operating Earnings   
     Three Months Ended        
     March 30, 2013     March 31, 2012     % Change  

Government

   $ 217      $ 184        18

Enterprise

     61        106        -42
  

 

 

   

 

 

   

Company Total

   $ 278      $ 290        -4
  

 

 

   

 

 

   
Non-GAAP Operating Earnings %   
     Three Months Ended        
     March 30, 2013     March 31, 2012     % Change  

Government

     16.1     14.1     14

Enterprise

     9.7     16.2     -40
  

 

 

   

 

 

   

Company Total

     14.1     14.8     -5
  

 

 

   

 

 

   


         Non-GAAP-3   
Motorola Solutions, Inc. and Subsidiaries   
Operating Earnings after Non-GAAP Adjustments   
Q1 2013   
     TOTAL     Government     Enterprise  

Net sales

   $ 1,973      $ 1,346      $ 627   

Operating earnings

   $ 216      $ 180      $ 36   
  

 

 

   

 

 

   

 

 

 

Above-OE non-GAAP adjustments:

      

Stock-based compensation expense

     45        30        15   

Reorganization of business charges

     11        7        4   

Intangibles amortization expense

     6        0        6   
  

 

 

   

 

 

   

 

 

 

Total above-OE non-GAAP adjustments

     62        37        25   
  

 

 

   

 

 

   

 

 

 

Operating earnings after non-GAAP adjustments

   $ 278      $ 217      $ 61   
  

 

 

   

 

 

   

 

 

 

Operating earnings as a percentage of net sales - GAAP

     10.9     13.4     5.7

Operating earnings as a percentage of net sales - after non-GAAP adjustments

     14.1     16.1     9.7


                                Non-GAAP-4   
Motorola Solutions, Inc. and Subsidiaries   
Regional Revenue Information   
(In millions)   
The Company restructured its regions operationally to improve the delivery of its products and services, by realigning the net sales for the Middle East. Accordingly, the Company now reports net sales into the following four geographic regions: North America; Latin America; Europe and Africa (“EA”); and Asia Pacific and Middle East (“APME”). The Company has updated all periods presented to reflect this change in presentation.      

The Company’s regional net sales under the new regional alignment and as previously reported were as follows:

 

     Revised regional sales  
     FY      Q1      Q2      Q3      Q4      FY      Q1      Q2      Q3      Q4      FY  
     2010      2011      2011      2011      2011      2011      2012      2012      2012      2012      2012  

NA

     4,422         1,028         1,145         1,183         1,300         4,656         1,124         1,258         1,286         1,415         5,083   

LA

     663         195         164         186         188         733         185         180         169         180         714   

EA

     1,491         366         389         417         491         1,663         366         398         394         505         1,663   

APME

     1,041         245         286         299         321         1,151         281         312         304         341         1,238   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 7,617       $ 1,834       $ 1,984       $ 2,085       $ 2,300       $ 8,203       $ 1,956       $ 2,148       $ 2,153       $ 2,441       $ 8,698   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Regional sales as previously reported  
     FY      Q1      Q2      Q3      Q4      FY      Q1      Q2      Q3      Q4      FY  
     2010      2011      2011      2011      2011      2011      2012      2012      2012      2012      2012  

NA

     4,422         1,028         1,145         1,183         1,300         4,656         1,124         1,258         1,286         1,415         5,083   

LA

     663         195         164         186         188         733         185         180         169         180         714   

EMEA

     1,617         392         407         444         527         1,770         397         428         430         546         1,801   

APAC

     915         219         268         272         285         1,044         250         282         268         300         1,100   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
   $ 7,617       $ 1,834       $ 1,984       $ 2,085       $ 2,300       $ 8,203       $ 1,956       $ 2,148       $ 2,153       $ 2,441       $ 8,698