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Motorola Solutions Q4 revenue $2.4 billion

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Christian Fernsby ▼ | February 7, 2020
Motorola Solutions yesterday reported its earnings results for the fourth quarter of 2019.
Motorola Solutions
Motorola Solutions   Fourth quarter revenue was $2.4 billion, up $123 million or 5%
Fourth quarter revenue was $2.4 billion, up $123 million or 5% primarily on strength in the Americas.

Topics: Motorola Solutions

Revenue from acquisitions was $82 million and currency headwinds were $17 million.

The Products and Systems Integration segment was flat with growth in the Americas and AsiaPac offset by declines in EMEA related to large LMR deployments in the Middle East and Africa in the prior year.

The Software and Services segment grew 21% with growth in all regions.

GAAP operating margin was 24.8% of sales compared with 22.9% in the year ago quarter driven by higher sales and gross margin in the current quarter and higher costs related to the closure of certain supply chain operations in Europe in the prior year, partially offset by higher operating expenses related to acquisitions.

Non GAAP operating margin was 29.7% of sales, up from 28.8% in the year ago quarter due to higher sales and gross margins, partially offset by higher operating expenses related to acquisitions.

The company de risked $1 billion in pension obligations through a lump sum window offered to certain participants of the U.S.

Pension Plan.

Approximately $836 million was paid out of pension plan assets to the participants who elected lump sums as part of this offer.

The Company recorded a non cash GAAP charge of $359 million in 2019 as a result of this initiative, representing the write off of pension losses previously deferred within equity.

The GAAP effective tax rate was (26.4)%, compared to 8.8% in the year ago quarter.

The year over year decline in the GAAP rate was primarily due to lower profit before tax as a result of the $359 million U.S.

pension settlement charge taken in the current quarter.

The Non GAAP effective tax rate was 22%, compared to 23.5% in the year ago quarter.

The company generated $795 million in operating cash, compared with $812 million in the year ago quarter.

Free cash flow was $736 million, compared with $743 million in the year ago quarter.

The year over year decline in cash flow was primarily driven by changes in working capital in the current quarter, partially offset by higher operating earnings in the current quarter.


 

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