Motorola Solutions Reports Q4, FY Financial Results

Motorola Solutions, Inc. (NYSE: MSI) has reported its earnings results for the fourth quarter and full year of 2019, the company said.

Fourth-quarter revenue was USD 2.4 billion, up USD 123 million or 5% primarily on strength in the Americas.

Revenue from acquisitions was USD 82 million and currency headwinds were USD 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.

Full-year revenue was USD 7.9 billion, up USD 544 million, or 7% driven by growth in the Americas.

Revenue from acquisitions was USD 312 million and currency headwinds were USD 113 million. The Products and Systems Integration segment grew 5% driven by the Americas. The Software and Services segment grew 14% driven by growth in the Americas and EMEA.

For the full year, GAAP operating margin was 20% of revenue, compared with 17.1% for the prior year. The increase was primarily driven by higher revenue and gross margin in the current year as well as an increase to an existing environmental reserve related to a legacy business booked in the prior year, partially offset by higher operating expenses related to acquisitions in the current year.

Non-GAAP operating margin was 25% of revenue, compared with 23.7% for the prior year, driven by higher revenue and gross margin, partially offset by higher operating expenses related to acquisitions.

Motorola Solutions is a global provider of mission-critical communications and analytics. Learn more at www.motorolasolutions.com.