Motorola Solutions, Inc. (NYSE: MSI) has reported its earnings results for the third quarter of 2017, the company said.
The company also has announced that its board of directors has increased its regular quarterly dividend by 11 percent to 52 cents per share. The next quarterly dividend will be payable in cash on Jan. 12, 2018, to stockholders of record at the close of business on Dec. 15, 2017.
Sales increased 7 percent overall from the year-ago quarter and grew 5 percent organically driven by the Americas region. Products segment sales grew 8 percent driven by the Americas and Europe, Middle East & Africa (EMEA) regions. The Services segment grew 7 percent driven by the Americas, with global Managed & Support Services growth of 8 percent.
Operating margin — GAAP operating margin was 20.5 percent of sales, compared with 22.3 percent in the year-ago quarter. The decline reflects higher costs related to non-US pension settlement losses and intangible amortization expenses. Non-GAAP operating margin was 25.7 percent of sales, compared with 25.8 percent in the year-ago quarter.
Cash flow — The company generated $270 million in operating cash, a decrease of $78 million from the year-ago quarter. Free cash flow3 was $185 million, down $95 million. Cash flow for the quarter was down due to higher working capital and higher capital expenses associated with the implementation of a new enterprise resource planning (ERP) system, and higher tax payments.
Motorola Solutions creates innovative, mission-critical communication solutions and services that help public safety and commercial customers build safer cities and thriving communities.