Motorola Posts Disappointing Q1 On Government Slowdown, Narrowbanding Impact

pmr radioWithout giving too much about this Two way Radio piece, but I found it fascinating and appropriate to what I’m currently doing.

Motorola Solutions (NYSE:MSI) recently announced a weak set of Q1 2014 results, as government revenues fell 11% and operating profits by 21% over the same period last year due to a higher-than-expected overhanging impact of narrowbanding in North America. A sustained decline in the federal business also had an impact on government revenues, and the company expects only a modest improvement this year from the government shutdown-related lows of last year. The company’s enterprise revenues, excluding iDEN, declined just 1% over the same period last year – recovering gradually from recent macroeconomic uncertainties and offsetting some of the impact of the under-performing government division. Motorola expects the demand environment, especially in the government business, to remain challenging in the near term, with government sales expected to decline by 8-11% in the second quarter.
In order to focus singularly on its government business, which accounts for almost 70% of its total revenues, Motorola has decided to sell off its enterprise division to Zebra Technologies for $3.45 billion in cash. The company expects the deal to close by the end of the year, following which the excess capital will be returned to shareholders “in a timely manner”. The enterprise sale provides Motorola with an opportunity to restructure and reduce costs in keeping with the current business environment. Motorola expects to cut around $200 million in operating costs over the next 18-24 months. We have a slightly revised $65 price estimate for Motorola, which is about in line with the current market price.
Narrowbanding And Federal Impact
One of the biggest reasons that Motorola mentioned for its top-line under-performance last quarter was its lower-aged government backlog in North America. The company acknowledged that it underestimated the impact of narrowbanding in previous years, which had led to record years in 2012 and 2011. Motorola’s government revenues in those years were boosted by the narrowbanding mandate issued by the Federal Communications Commission (FCC), which necessitated a switch to a more efficient spectrum band for public safety operations. With most of the narrowbanding-related equipment upgrades now complete and government agencies going slow on their capital spending, Motorola’s government business faces near-term growth concerns.
The tough year-over-year comparison was accentuated by a challenging federal environment in the aftermath of the recent government shutdown in September. In the fourth quarter, Motorola had suffered a revenue hit of about $150 million in its federal business. Since most of this shortfall wasn’t deferred, Motorola was unable to recoup the losses in Q1. The federal slump should continue in the near term, with government sales expected to decline by about 9.5% at the mid-point of guidance. However, for the full-year, the company expects a solid back-half recovery to help stem the slide to the low-to-mid single digits. The downside is limited by the fact that public safety is usually down the priority list of areas in which governments will look to cut their spending. As a result, we see any further impact to government revenues from sequestration, or the spending cuts that the federal government started implementing, being fairly muted.
LTE Transition And Margins Key To Long-term Fundamentals
Going forward, we see the adoption of LTE for public-safety use, along with the broader trend of analog-to-digital shift in the U.S. and internationally, as the key drivers of Motorola’s value. U.S. public safety spending in the coming years will be bolstered by the job creation bill passed in 2012 that reallocated the D Block spectrum for public safety use and provided a funding of $7 billion to build out a nationwide network over eight years. We expect Motorola to benefit from the stickiness of its government customers as well as its strong market position and large installed base of security devices to grab a big chunk of that market going forward. The company’s recent launch of APX 7000L, its first web site that works both on legacy LMR (Land Mobile Radio) and next-generation 4G LTE networks, bolsters our view that Motorola has positioned itself strongly to benefit from the LTE transition in the years to come (see Motorola Solutions Sharpens LTE Focus With First 4G-Capable Radio For Public Safety).
It is also a good sign for the future that the company has been successful in driving efficiency through its operations over the last couple of years, and expects to accelerate those efforts in the coming quarters. Despite the top-line concerns and significant operating leverage in the business, Motorola expects operating margins to improve by almost a percentage point to 18.5% in 2014, benefiting mostly from the the cost controls in place as well as the $200 million in cost cuts expected over the next two years. Going forward, we expect the operational efficiencies to more than offset the gross-margin decline that could result from rising competition in the coming years as rivals increasingly address the ongoing transition of public safety networks from analog to digital.

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MOTOTRBO REMASTER YOUR WORKFORCE WITH THE RIGHT SOLUTION

Some of the professional writers on the internet are at such a top level that i wonder if any of them have ever printed a paperback? well every now and then i like to highlight these excellent content pieces and here is one i found remarkable the other day.

HELP TEAMS WORK BETTER AND FASTER, TOGETHER

Your people are on the factory floor, at the front desk, moving across campus or around the country. Hauling freight or handling emergency repairs, MOTOTRBO connects them instantly and efficiently, everywhere they go.

Whether they need ultra-thin portables or extra-tough mobiles, integrated Bluetooth® or industry-leading data applications, we have the right solution to fit your workforce now, and evolve as your enterprise grows.

More than a progressive portfolio, MOTOTRBO is a complete and expertly integrated solution of portable homepages, mobile radios, repeaters, data applications, accessories, software and services. MOTOTRBO puts the right solution into the hands of the right user – to make decisions easier, efficiency better, safety greater and productivity higher. And that can transform your enterprise.

MANY USERS. DIFFERENT DEVICES. MULTIPLE LOCATIONS. ALL MOTOTRBO.

TRANSPORTATION COMPANY

08:14:04 CUSTOMER REQUEST

A major customer needs to reroute freight to a warehouse on the other side of the city.

08:20:10 Drivers enroute

The supervisor instantly locates his delivery crews via GPS tracking software on their MOTOTRBO system and quickly notifies them of the route change.

08:22:16 COMMUNICATE HANDS-FREE

The drivers confirm the route change using their DM4801 mobile radios with integrated Bluetooth® and their Operations-Critical Wireless earpieces for safe, hands-free communication.

08:24:12 DIRECTIONS SENT

Dispatch text messages the address and directions to drivers and confirms the required route change.

08:28:05 WAREHOUSE ALERTED

The supervisor uses his DP4800 radio to confirm all drivers are enroute to the warehouse.

09:27:22 DELIVERY CONFIRMED

The drivers arrive at the warehouse and use their wireless Bluetooth scanners to scan packages as they are removed from the vehicle. Delivery is confirmed to dispatch through their radios as packages are scanned.

MANUFACTURING PLANT

19:47:01 EQUIPMENT FAILURE

A machine in operation suddenly stops. The quality manager is instantly alerted of the malfunction via automated work ticket software. He easily reads the message on the five-line colour display of his SL Series portable radio.

19:48:04 TEAM ALERTED

The quality manager uses the one-touch button on the side of his radio to pull up his contacts list and quickly communicates to the maintenance technician on the factory floor.

19:49:15 RESPONSE INITIATED

Equipped with a rugged DP4800 portable radio and heavy-duty headset, the maintenance technician receives the communication. Even with the loud noise on the factory floor, Intelligent Audio in his radio automatically adjusts the volume to ensure he can hear the important message clearly.

20:14:28 DOWNTIME MINIMISED

Equipment is back online. With 12 hour battery life and IMPRES™ technology in all DP Series radios, communication is continuous, even with extended shifts.

UTILITY COMPANY/PUBLIC SERVICE

15:30:04 FAST-MOVING STORM

Heavy rain and strong winds topple trees along a local highway, knocking down power lines and scattering debris all over the road.

15:35:10 DISPERSED MOBILE WORKERS

As calls come in, dispatch locates the crews out in the field with GPS location tracking.

15:37:12 CREWS NOTIFIED

An emergency notification is sent out via text and a voice call is dispatched to their large field force over their MOTOTRBO Linked Capacity Plus system.

16:15:26 CREWS ON SITE

Using their DP4800 portables and remote speaker microphones with Intelligent Audio, crews are able to communicate clearly over the noise of chainsaws, trucks and weather as they tackle debris and repair power lines.

18:20:48 POWER RESTORED

Power is restored and crews log the incident and resolution via their tablet PC. The tablet connects wirelessly to the DP4800 portable via Bluetooth and sends the information to dispatch.

DO MORE, MORE SAFELY WITH MOTOTRBO PORTABLES

Imagine life without a Mobile Phone

Some of these pro writers on the internet are at such a high level that i wonder if any of them have ever printed a book? so every now and then i like to spotlight these superb content pieces and here is one i thought was interesting the other day.

SAFE USAGE OF MOBILE PHONES
WHILE DRIVING Do not use the mobile phone in heavy traffic. Do not dial while driving, if it is so important, ask someone to call for you. If you are alone, pull over on the side and dial. Use your mobile phone for short calls. Be prepared to end your phone call abruptly.
Use memory-dialing options. Learn to use your phone without having to look at it. Never take notes while driving. Make sure your phone is easily reachable when driving.

WHAT CAN GO WRONG WITH A MOBILE PHONE
Your mobile phone is tailor-made to deal with tough conditions, which come from the fact that it is a mobile service. But nonetheless, the instruments can take only so much abuse, and are susceptible to breaking.

If your phone gets wet, or if you dial the numbers with wet hands, and water gets into the buttons and internal corrosion may occur. Make sure your phone is dry, especially when it is switched on. Using a belt-clip or a holster keeps the mobile phone firmly in its place, and prevents it from falling off accidentally. Try not to stuff your phone in with all your other worldly possessions, it may cause the glass display screens to crack.
Extreme heat can cause damage to the mobile phone electronics and the phone battery. Extreme cold can also cause a temporary loss of the display screen.

VARIOUS OPTIONS
Mobile Phone Carrier:
The normal subscription system, where you get a monthly bill for all calls made.
Prepaid mobile Phone:
You pay for the service in advance, where the amount in your account is debited with per call made. When the account has been used, you have to get a new card. A pre-paid phone service does not require the initial investment as the monthly service. However, the per call cost is more in a pre-paid. Also, benefits like free night-talk, and others are not available.
Mobile Phone Accessories:
Extra batteries, battery chargers / conditioners, battery eliminators, hands free kits, and leather cases, are all the accessories available.
Hands Free:
An important safety feature that’s included with most of today’s mobile phones. It permits drivers to use their phone without lifting or holding the handset to their ear. You can speak into your handset by placing it near you during a conversation.
Voice Activated Dialing:
A feature available only on selected phones and hands-free car kits that permits you to dial numbers by calling them out to your mobile phone, instead of dialing them manually.

MOBILE PHONES AND HEALTH HAZARDS
Although no conclusive evidence has been found linking mobile phone exposure to brain cancer, several new studies suggest that the potential threat to health is greater than previously thought. Another cause for concern is the effect on health due to The radio Frequency (RF) exposure. RF can penetrate exposed tissue, is absorbed by the body and produces heat although the body’s normal thermo regulating process carries this heat away.
According to new WHO (World Health Organisation) guide rules:

Mobile phone users should limit their exposure to harmful two Way Radio frequencies by cutting the length of calls. Hands-free devices cut exposure by keeping the instrument away from the head and body. Driving & mobile phone talking should be banned.
Mobile phones should not be used in Intensive Care Units of hospitals as they can pose a danger to patients by interfering with the working of pacemakers and defibrillators. People with hearing aids should not use mobile phones. Base stations, which have low powered antennae on their terrace to communicate with mobile phones, should not be located near children’s schools and playgrounds.

A TIP
Let your personal phone be personal:
Be discreet about giving out your mobile number Only give your number to people you actually know, it’s your money you’ll be spending when they ring you up.

TALK SMART
A mobile phone should be used as a device for communicating. Your chats can be left for a landline. Use your phone smartly to save on your bills. Buy smart, talk smart, and save money on your mobile-phones. mobile phone technology has gone on to make the world smaller, and at your fingertips. Also people can keep in touch and trace each other with much more ease. So go ahead, and keep your date, even if you missed her at the taxi stand. Just talk!!