One-time charges dent Motorola Solutions 4Q
Motorola Solutions, which sells communications equipment to government and corporate customers, said Wednesday that its fourth-quarter net income shrank because of the cost of stock-based compensation for employees and other charges. But adjusted results beat expectations as client demand rose.
Motorola Inc. split into Motorola Mobility Holdings Inc., which makes cellphones and cable set-top boxes and is being acquired by Google Inc., and Motorola Solutions in January 2011. Motorola Solutions makes police radios, bar code scanners and other products for clients such as city and state police forces and companies including retailer Lord & Taylor and shipper UPS Inc.
Motorola Solutions' net income for the three months ended Dec. 31 fell 37 percent to $184 million, or 56 cents per share, from $292 million, or 86 cents per share last year. Net income from the company's ongoing business, excluding one-time items, totaled 87 cents per share. That beat analyst expectations of 82 cents per share, according to FactSet.
Revenue rose 5 percent to $2.3 billion from $2.19 billion last year. Analysts expected $2.28 billion. The company said sales in its government and corporate businesses both rose.
For the full year, net income nearly doubled to $1.16 billion, or $3.41 per share. That compares with net income of $633 million, or $1.87 per share, in the prior year quarter.
Revenue rose nearly 8 percent to $8.2 billion from $7.62 billion a year ago.
The company expects adjusted net income in the current quarter of 50 cents to 55 cents per share on about 4 percent revenue growth, implying revenue of $1.96 billion. Analysts expect net income of 56 cents per share on revenue of $1.95 billion.
For 2012, the Schaumburg, Ill., company expects revenue growth of 5 percent, suggesting revenue of $8.61 billion, which matches analysts' prediction.
Motorola Solutions shares dipped 2 cents to $47.84 in premarket trading.