Motorola Solutions Inc (NYSE:MSI) reported its earnings before opening bell this morning, posting a 21 percent increase in first-quarter profits thanks to more business from the government. The company’s net income from communications equipment continuing operations, was 68 cents per share or $192 million, compared to 50 cents per share or $159 million in the same quarter a year ago.
Revenue was $1.97 billion—a 1 percent increase over the same quarter a year ago. Analysts were expecting the company to report earnings per share of approximately 67 cents on revenue of about $2.1 billion.
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“Despite a challenging enterprise market and modest revenue growth in the first quarter, our disciplined focus on cost management and return of capital to shareholders delivered double-digit growth in earnings per share,” said Chairman and CEO Greg Brown in a statement. “We remain confident in the fundamental drivers of the business and our ability to drive improved operating earnings for the year.”
Motorola Solutions Inc (NYSE:MSI)’s government division posted 70 percent of its full-year revenue in 2012, and it rose by 3 percent to $1.35 billion. The company reported multi-million dollar contracts with multiple strategic agencies, including the State of Tennessee, the Las Vegas Metropolitan Police Department, the Provincial Police in China and other agencies in several countries. However, with cuts in government spending planned for this year, the company warned that its second-quarter revenue growth will likely be stagnant.
The company’s enterprise sales offset the increase in government sales, falling by 4 percent in the quarter, but it did report contracts with major customers like Tesco, Macy’s and other companies in a few different countries.
Motorola Solutions Inc (NYSE:MSI) returned $429 million to shareholders through dividends and share buybacks during the quarter. As of the moment of this writing, shares of the company’s stock were down 4.53 percent at the New York Stock Exchange.