Motorola Solutions(US:MSI)2023-11-01 16:00Financial Performance - Net sales for Q3 2023 were $2.6 billion, a 8.3% increase from $2.4 billion in Q3 2022[109] - Operating earnings rose to $639 million in Q3 2023, compared to $373 million in Q3 2022, reflecting a 71.5% increase[109] - Net earnings attributable to Motorola Solutions, Inc. were $464 million, or $2.70 per diluted share, up from $279 million, or $1.63 per diluted share in Q3 2022[109] - Net sales increased by $724 million, or 11%, in the first nine months of 2023 compared to the same period in 2022, driven by a 28% increase in the International region and a 6% increase in North America[136] - Operating earnings rose by $586 million, or 60%, in the first nine months of 2023, reaching $1,556 million compared to $970 million in the same period of 2022[141] Cash Flow and Investments - Operating cash flow increased by $249 million to $799 million in the first nine months of 2023 compared to $550 million in the same period of 2022[109] - Cash flows from operating activities increased to $799 million in the first nine months of 2023, up from $550 million in the same period of 2022[151] - Cash used for investing activities decreased to $(172) million in the first nine months of 2023, compared to $(735) million in the first nine months of 2022, primarily due to a $578 million decrease in cash used for acquisitions[154] Expenses and Margins - The gross margin for Q3 2023 was 50.1%, compared to 43.4% in Q3 2022[116] - Selling, general and administrative expenses rose by 1% to $380 million, accounting for 14.9% of net sales in Q3 2023, down from 15.9% in Q3 2022[124] - Research and development expenditures were $215 million in Q3 2023, up from $197 million in Q3 2022[116] - Research and development expenditures increased by 11% to $640 million in the first nine months of 2023, maintaining 9.0% of net sales[139] Shareholder Returns - The company repurchased $686 million of common stock and paid $443 million in dividends in the first nine months of 2023[109] - Cash dividends paid to common stockholders amounted to $443 million in the first nine months of 2023[163] - Share repurchases totaled approximately 2.5 million shares for $686 million in the first nine months of 2023, with an average price of $277.96 per share[162] Segment Performance - The Products and Systems Integration segment accounted for 63% of net sales in Q3 2023, while the Software and Services segment represented 37%[120] - Net sales in the Products and Systems Integration segment increased by $83 million, or 5%, driven by a 26% increase in the International region[121] - The Software and Services segment saw a $100 million, or 12%, increase in net sales, primarily due to a 21% increase in the North America region[121] Tax and Other Charges - The effective tax rate increased to 21% in Q3 2023 from 16% in Q3 2022, primarily due to lower excess tax benefits of share-based compensation[133] - Other charges decreased by $37 million in Q3 2023 compared to Q3 2022, reflecting improved operational efficiency[128] - The company recorded net reorganization of business charges of $22 million in the first nine months of 2023, including $16 million in Other charges[146] Debt and Financing - The company had outstanding debt of $4.7 billion as of September 30, 2023, down from $6.0 billion at December 31, 2022[158] - The company has a $2.25 billion revolving credit facility maturing in March 2026, with compliance to financial covenants as of September 30, 2023[159] - Long-term customer financing commitments increased to $97 million at September 30, 2023, compared to $65 million at December 31, 2022[166] Future Outlook - The company expects to maintain adequate internal resources to meet working capital and cash requirements for the next twelve months[164] - The company anticipates no material decrease in net future cash flows from operations, planning to invest in existing products and seek acquisition opportunities[165]