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Motorola Solutions Management Discusses Q2 2012 Results - Earnings Call Transcript

We have posted an earnings presentation and press release at www.motorolasolutions.com/investor. These materials also include GAAP to non-GAAP reconciliations for your reference. As always, it's important for you to review these materials.

A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any future results or events discussed in these statements will be achieved.

Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this presentation.

And with that, I would like to turn the call over to Greg.

Gregory Q. Brown

Thanks, Shep. Good morning, and thank you for joining us today. Q2 highlighted another strong quarter for Motorola Solutions as we delivered strong sales growth and operating leverage, resulting in excellent earnings growth. In addition, we continue to place a high priority on the return of capital to shareholders through our quarterly dividend and share repurchase program.

This morning, we reported record second quarter sales of $2.1 billion, which represents an increase of 8% from Q2 of last year. On a GAAP basis, net earnings were $0.60 per share from continuing operations compared to $0.14 in the year-ago quarter. Non-GAAP net earnings from continuing operations were $0.70 per share compared to $0.54 per share in Q2 of last year, which represents a 30% increase. For the remainder of this call, we'll reference non-GAAP financial results unless otherwise noted.

Our Government business revenues increased 14%, a record second quarter. This reflects broad-based growth across all of our regions driven by a combination of factors, including core market growth, new product introductions and narrow banding in the United States. Operating margins in the Government business improved 330 basis points year-over-year to 16.4% due to the sizable growth in sales across our portfolio coupled with our continued focus on cost management.

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