Motorola Solutions saw a 15 per cent increase in revenue in both 2018 (YoY) and 4Q18 (from 4Q17), supported by growth in the Americas and EMEA (Europe, Middle East and Africa region). Organic growth (which excludes acquisitions and an accounting change) was up by six per cent for both periods.
The full year results were also supported by 13 and 20 per cent increases in sales from its products & systems and services & software activities, which rose to $5.1 billion and $2.2 billion, respectively. Full year revenue for 2018 amounted to $7.3 billion, of which $2.3 billion was generated in the fourth quarter.
Motorola Solutions achieved a gross margin of $3.48 billion in 2018 and operating earnings of $1.255 billion. GAAP operating margin was 17.1 per cent of sales, compared with 20.1 per cent in the prior year. The company saw the value of its backlog grow by nearly $1 billion (10 per cent) in 2018 to $10.6 billion, and in the same year signed the UK Airwave extension contract through to the end of 2022 for $1.1 billion (see below for more 2018 contract wins).
Motorola Solutions expects to see 11 per cent revenue growth in 1Q19 (compared with 1Q18) and 6-7 per cent revenue growth for 2019 as a whole.
2018 Services and Software wins
• $1.1 billion contract extension through 2022 for the Airwave network in the UK
• $71 million services award from Maricopa County, Arizona
• $26 million Next Gen 911 Core Services contract in North America
• $16 million services award in Australia
2018 Products and Systems Integration wins
• $47 million P25 order with Snohomish County, Washington
• $24 million P25 order with Ingham County, Michigan
• $16 million P25 order with Riverside County, California
Author: Sam Fenwick