Motorola Solutions down on Q1 earnings for 2016

Motorola Solutions has released its first quarter earnings for 2016, and while the company can claim a healthy $1.2 billion in sales, that is down 2% from this time last year, even with $61 million in revenues associated with the Airwave acquisition.

Despite this, Greg Brown, chairman and CEO of Motorola Solutions, is happy with the company’s position.

“We delivered strong earnings growth in the first quarter driven by our North America business and Managed & Support services,” said Greg Brown, chairman and CEO of Motorola Solutions. “We’re encouraged by the progress in our services business and overall backlog, which positions us well for continued earnings and cashflow growth.”

North America sales grew 2%, largely driven by both products and services segment sales.

Some of the big wins celebrated this quarter include a $77 million value of orders with five US state and local customers to upgrade their mission-critical communication networks to Motorola’s latest P25 solution, and continued wins and expansion of the Emergency CallWorks Next Gen 9-1-1 solution that now has deployments in more than half of the US states.

In releasing its financial results, however, the company said that overall product sales declined due to weakness in Latin America and Europe as well as currency headwinds.

In face of the slowdown in several significant markets, Motorola Solutions expects a revenue increase of 1–3% next quarter compared with the second quarter of 2015. This assumes approximately $130 million in revenues associated with the Airwave acquisition.

The company also expects non-GAAP earnings per share from continuing operations to continue to rise in the range of $0.82 to $0.88 per share, a fair amount higher than its Q1 return of $0.52 (which was up 37% YOY).

Image courtesy of Kevin Dooley under CC-BY-2.0