Motorola Solutions reports strong Q1

As expected, Motorola Solutions (NYSE:MSI) today released strong earnings that beat Wall Street's estimates and highlighted its recent focus on enterprise wins in Europe and on its continued success selling to the government segment. The wireless technology company, which also plays in the VoIP segment, said revenues for the quarter were $1.9 billion, up 8 percent, topping analyst projections of $1.81 billion; adjusted EPS were 54 cents, outdistancing analyst forecasts of 32 cents.

In January, Motorola split into two companies, Motorola Solutions and Motorola Mobility--which focuses on set-top boxes for televisons and mobile phones.

"Motorola Solutions had an outstanding first quarter with revenue growth in all four of our geographic regions," said Greg Brown, president and CEO of Motorola Solutions. "We maintained our focus on solid earnings and cash generation as our government and enterprise customers continued to seek solutions that drive improved efficiency and strong return on investment."

GAAP operating earnings in the first quarter of 2011 were $170 million or 9 percent of sales, compared to $120 million or 7 percent of sales in the first quarter of 2010. GAAP earnings per share from continuing operations were $1.06, compared to $0.29 in the first quarter of 2010.

During the first quarter of 2011, the company generated $231 million in operating cash flow from continuing operations and $191 million in operating cash flow from discontinued operations. It ended the quarter with total cash of $6.2 billion and net cash of $3.5 billion.

Moto said sales to the government segment increased 5 percent to $1.2 billion, from a year ago, and enterprise sale rose 14 percent to $695 million.

First-quarter net earnings from discontinued operations were $132 million. Discontinued operations substantially relate to the portion of the company's Networks business expected to be acquired by Nokia Siemens Networks on Friday.

The company said it anticipates continued growth across both government and enterprise segments in the second quarter, forecasting sales to rise between 4 and 5 percent over the second quarter of 2010 with EPS from continuing operations of 46 cents to 51 cents.

The company now expects full-year revenue growth to track toward 4 to 4.5 percent with operating earnings of 16 to 16.5 percent of sales.

For more:
- see this release