Motorola Solutions Q4 profits down 2% to US$413 million

Motorola Solutions has reported that its fourth quarter revenues were up by three per cent compared to a year ago, but that its full-year sales were flat compared to the previous year due to weaker performance in 2013.

For the fourth quarter, Government sales were up four per cent and Enterprise sales were up slightly. Backlog ended the year at a record US$6.2 billion, primarily driven by large multi-year projects in Government.

Profits for the quarter were down by two per cent at US$413 million on revenues of US$2.5 billion.

"I’m pleased with the way we finished the year," said Greg Brown, chairman and CEO of Motorola Solutions. "In Q4, we had revenue growth in both our Government and Enterprise businesses. We also had strong cash generation, expanded operating margin, grew backlog in both businesses, and continued to return capital to shareholders."

During Q4, the company generated US$741 million in operating cash flow from continuing operations. The company ended the year with total cash of US$3.2 billion while returning US$442 million to shareholders.

Motorola Solutions’ outlook for the first quarter of 2014 is for revenue decline of four to six per cent compared with the first quarter of 2013.

Mobily awards NSN upgrade contract

Mobily has selected Nokia Solutions and Networks’ (NSN) Single RAN (radio access network) and comprehensive services, including re-farming of the GSM 900MHz band to 3G. NSN will upgrade Mobily’s 2G, 3G (WCDMA) and TD-LTE networks in the central region including Riyadh, the largest city in the country. As agreed in July 2013, the operator is undertaking major network upgrades and expansions to provide an unmatched service experience for its customers.

Under the contract, NSN is providing Mobily with its Single RAN platform, based on its compact, energy-efficient Flexi Multiradio 10 base station. The company is also providing its network management software, NetAct and Performance Manager to enable consolidated monitoring, management, and operation of Mobily’s 2G, 3G and LTE networks. The services scope includes network planning, optimisation, system integration, implementation and care services for a smooth upgrade and expansion of the operator’s networks.

Huawei awarded LTE contract for Batelco’s European operations

Batelco and Huawei have entered an MoU relating to the delivery of 4G infrastructure to Batelco’s subsidiary Sure Telecom in Guernsey, Jersey and the Isle of Man.

Under the agreement, Huawei will deliver and integrate LTE base stations into Sure’s network.

ZTE forecasts a swing back into profitability for 2013

ZTE expects to return to profitability as the company released preliminary financial results for 2013.

Full-year net profit is expected to be between RMB 1.2 billion (US$200 million) and RMB 1.5 billion, as ZTE reported a large-scale improvement in profitability in its major operations.

This reflects a reversal from a net loss of RMB 2.84 billion in 2012.

The turnaround came as the company exercised stringent control of expenses, and adopted closer scrutiny of business that offered lower margins. ZTE also strengthened management of cash flow and accounts receivable, resulting in a large increase in operating cash flow.

Sales, administrative, and R&D expenses were reduced from a year earlier.

ZTE has also implemented changes in strategy, operations and corporate organisation in the past two years.

In 2013, ZTE strengthened the company’s execution in major product groups and markets, and provided improved services and support to key customers. In China, ZTE capitalised on the company’s early-mover advantage in the LTE network to consolidate its position in the market.

The decisive dozen

2013 was a tricky year for mobile operators in the Middle East and Africa as they struggled to maintain margins at previous highs. It was also the first full-year in which capex spending rebounded strongly for the first time since the start of the global economic recession in 2008, with CEOs having to act particularly strategically with respect to where to invest further resources CM*5549223

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