Motorola 2011 Annual Report Download - page 39

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As a result of our continued strong commitment to R&D, the year brought many new enhancements to our
product portfolio. We expanded our APX™ lineup of radio’s to include an APX4000 portable radio for
public works, utilities, and rural public safety. APX now represents the first complete portfolio of P25 Phase
2 TDMA two-way portable radios in the industry. We continued our investment in our next-generation
public safety LTE solutions and achieved another milestone with the first commercial shipment of our public
safety LTE devices. Growth in our “professional and commercial” product portfolio continued this year
driven by customers replacing analog systems with digital using our MOTOTRBO platform.
•In our Enterprise segment: Our 2011 sales growth was primarily due to improved demand within the retail
and transportation and logistics markets, as a result of our customers continuing to invest in technology to
drive sales growth and improved productivity.
Our R&D investments resulted in many new enhancements to our product portfolio. We continued our
investment in next generation technologies like the ET1 tablet, the first in an emerging category of enterprise-
class tablet computers designed for verticals like retail, manufacturing, and logistics. Additionally, we
expanded our mobile computing portfolio with the MC2100 industrial series, addressing the need for a
smaller, rugged enterprise mobile computer that expands the range of solutions available for large enterprises
and small- and medium-sized businesses. This is the first value-tier rugged handheld in the industry to
support HTML5 via the RhoElements application framework we introduced in 2011.
Looking Forward
Although the government budget environment remains challenging in the U.S. and in parts of Western Europe
in particular, there continue to be signs of improvement. Our customers continue to prioritize funding of their
public safety communication needs, and we remain focused on helping them find ways to fund system upgrades,
improve interoperability and meet spectrum narrow-banding requirements. In addition, governments continue to
examine their operations for the productivity and efficiency improvements that our products and services enable.
Private public safety broadband networks based on the LTE standard are an important next generation tool for
our first-responder customers. The 700 Mhz D-block spectrum would efficiently and effectively double the spectrum
available for public safety grade broadband data networks. We have been investing in R&D for next generation
public safety, and our expertise in both public and private networks makes us uniquely qualified to provide LTE
solutions. The development of this market is an important part of our overall global growth strategy for the
Government segment.
Our Enterprise segment continued strong sales growth in 2011 from improvements in retail spending resulting
in an increased demand trend as many of our customers reinvested in technology to improve supply chain
efficiencies, increase productivity of associates and improve end-customer buying experiences. We believe the trend
of increased mobile workers, and demand for real-time information will accelerate next-generation enterprise
mobile computing and advanced data capture solutions. Our solutions have a high return on investment, and with
increasing demands for real-time information, and rapid increases in knowledge workers, we expect continued sales
growth.
For the iDEN infrastructure business, which we report in the Enterprise segment, we expect to see a continued
decline in iDEN infrastructure and related services.
In 2011, we announced the creation of a global services organization. We have expanded our current services
offerings by bringing deep customer insight and expertise with an intense focus on our core markets through every
step of the solution lifecycle. From our industry expertise to our channel partner community, we believe we are
uniquely positioned to provide our Government and Enterprise customers the products and services they require to
meet their mobile workforce needs, and build successful long-term relationships.
We are committed to employing disciplined financial policies, achieving our financial plan, and executing on
our capital allocation framework. In 2012, we intend to continue the quarterly dividends that were initiated in 2011
and will continue to invest organically in capital expenditures. We will also continue to evaluate our acquisition
opportunities along with the opportunities to return capital to shareholders via share repurchases. On July 28,
2011, we announced that our Board of Directors approved a share repurchase program that allows us to purchase
up to $2.0 billion of our outstanding common stock through December 31, 2012. Additionally, on January 30,
2011, we announced that our Board of Directors approved up to $1.0 billion in additional funds for use under the
existing share repurchase program through the end of 2012.