Motorola Solutions Reports Strong First Quarter 2024 Financial Results

In the first quarter of 2024, Motorola Solutions showcased robust financial performance, as evidenced by their recently released financial report. The company reported a solid increase in revenue, driven by strong demand for its innovative products and solutions across various sectors.

“Q1 was an outstanding quarter, with record Q1 revenue in both segments and record Q1 cash flow,”

Greg Brown, chairman and CEO, Motorola Solutions.

“Our continued robust backlog and strong balance sheet position us well going forward. As a result, we’re raising both our revenue and earnings expectations for the full year,” added Greg Brown.

Othere selected financial results

• Revenue – Sales were $2.4 billion, up 10% from the year-ago quarter driven by growth in North America and International. Revenue from acquisitions was $10 million and currency tailwinds were $1 million in the quarter. The Products and Systems Integration segment grew 14%, driven by growth in land mobile radio communications (“LMR”) and video security and access control (“Video”). The Software and Services segment grew 4%, driven by growth in Video and Command Center, partially offset by lower revenue in the U.K. related to the CMA’s decision to implement a prospective price control on Airwave (the “Charge Control”) and our exit from the Emergency Services Network (“ESN”) contract.
• Operating margin – GAAP operating margin was 21.7% of sales, up from 18.4% in the year-ago quarter. Non-GAAP operating margin was 26.7% of sales, up 220 basis points from 24.5% in the year-ago quarter.  The increase in both GAAP and Non-GAAP operating margin was driven by higher sales, favorable mix and improved operating leverage, partially offset by the Charge Control.
• Taxes – The GAAP effective tax rate during the quarter was 57.8%, driven by the non deductible loss on the extinguishment of Silver Lake convertible debt, offset by utilization of foreign tax credit carryovers. This compares to a tax rate of 22.1% in the year-ago quarter. The non-GAAP effective tax rate was 22.1%, compared to 21.9% in the year-ago quarter.
• Cash flow – Operating cash flow was $382 million, compared to a usage of $8 million in the year-ago quarter and free cash flow was $336 million compared to a usage of $62 million in the year-ago quarter. Both the operating cash flow and free cash flow for the quarter increased primarily due to improved working capital and higher earnings, net of non-cash charges.
• Capital allocation – During the quarter, the company paid $163 million in cash dividends, incurred $46 million of capital expenditures and repurchased $39 million of common stock.  Additionally, the company settled the Silver Lake convertible debt for $1.59 billion in cash, inclusive of the conversion premium, resulting in an overall reduction in the company’s diluted share count and eliminating any further share dilution related to the note.  The company received credit rating upgrades to BBB from both S&P and Fitch, issued $1.3 billion in long-term debt during the quarter, and closed the acquisition of Silent Sentinel, a provider of specialized long-range cameras, for $37 million, net of cash acquired.
• Backlog – The company ended the quarter with record backlog of $14.4 billion, up 2% or $331 million from the year-ago quarter. Products and Systems Integration segment backlog was down $74 million, or 2%, driven primarily by unfavorable foreign exchange rates.  Software and Services segment backlog was up $404 million, or 4%, driven by increases in multi-year software and services contracts in both regions.

For the entire report visit Motorola Solutions.