Motorola Solutions raises profit on flat revenues in Q1

Motorola Solutions reported strong profit figures on lower revenues for the first quarter, reversing expectations, with CEO Greg Brown attributing the increase to solid demand for video security and software & services. Brown said the company was well positioned to navigate the crisis caused by the covid-19 pandemic, thanks to its mission critical services and strong balance sheet. Nevertheless, the company has withdrawn its full year guidance, due to the uncertainty around the pandemic. 

Revenues for the quarter were virtually flat, going to USD 1.655 billion from 1.657 billion the year before. Net profit attributable to shareholders rose however to USD 197 million from 151 million, with diluted earnings per share reaching USD 1.12 from 0.86 and adjusted diluted EPS going 16 percent higher to USD 1.49. The company recorded a backlog of USD 10.4 billion, up by USD 48 million from the year before, including negative forex effects of USD 482 million. The operating cash flow climbed 23 percent to USD 308 million. 

Revenues from North America rose 4 percent but were unable to offset the 7 percent decline at International, Revenues from acquisitions went to USD 48 million, with currency headwinds at USD 7 million. The Products and Systems Integration segment fell 7 percent, mainly due to lower sales of professional and commercial radio (PCR) products, partially offset by growth at video security. The Software and Services segment grew 13 percent, driven by growth in command centre software and services. 

For the second quarter, Motorola is guiding for revenue declines of 14-17 percent and adjusted EPS at USD 1.18-1.27.