United States. Motorola Solutions released its earnings results for the second quarter of 2021, in which it reported sales of $2 billion, up 22% from the previous year's quarter, driven by growth in both North America and abroad.
"Our second quarter results were outstanding, highlighted by strong double-digit growth in both segments," said Greg Brown, president and chief executive officer of Motorola Solutions. "Continued strong demand for our mission-critical technologies is driving our highest expectations for the full year."
Revenue: In addition to sales, acquisition income was $47 million and foreign exchange tailwinds were $66 million in the quarter. The Product and Systems Integration segment grew by 24% driven by the growth of land mobile radio (MRL) and video security. The Software and Services segment grew by 19%, driven by growth in LMR services, video security and command center software.
Operating margin: GAAP operating margin was 18.8% of sales, up from 13.5% in the prior-year quarter. Non-GAAP operating margin was 24.4% of sales, up from 22.2% in the prior-year quarter.
The increase in GAAP and non-GAAP operating margins was primarily due to higher sales and improved operating leverage in both segments, including higher costs related to incentive compensation. GAAP operating margin was also positively impacted by lower reorganization charges in the current quarter compared to the prior-year quarter.
Forecasts for the year 2021: Motorola Solutions now expects revenue growth of 9.5% to 10%, above previous growth guidance of 8% to 9%, and non-GAAP EPS in the $8.88 to $8.98 range, versus previous guidance of $8.70 to $8.80. This assumes the current exchange rates, approximately 173 million fully diluted shares and an effective tax rate of approximately 22%.
Covid-19
In response to the Covid-19 pandemic, the company continues to monitor the daily evolution of the pandemic, including the spread of the delta variant, and adheres to its plans to keep its employees and customers healthy and safe, including encouraging office workers to work remotely, reducing employee travel, withdrawing from certain industry events, increasing the frequency of cleaning services, encouraging face covering and using thermal scanning.
