Motorola 2015 Annual Report Download - page 30

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• We were awarded a portion of the largest public safety LTE contract in 2015 with the United Kingdom government covering
more than 300,000 emergency and public service users at more than 300 agencies across Great Britain.
Looking Forward
We remain committed to driving shareholder value with revenue growth, operating leverage, cash flow generation, and
efficient capital deployment. We plan to demonstrate this through disciplined financial policies that will drive an additional
reduction of $150 million of organic SG&A and R&D expenses in 2016, bringing the cumulative reduction in operating
expenses to more than $600 million over the past three years. Likewise, we strive to optimize our capital structure to enable
prioritized investments in the business and targeted acquisitions as a source of generating solid future operating cash flows.
These potential investments are balanced against returning excess capital to shareholders through dividends and share
repurchases. We expect to continue the quarterly dividends that were initiated in 2011 as well as the opportunity to return capital
to shareholders through share repurchases. Our share repurchase program has approximately $1.0 billion of authority available
as of December 31, 2015.
Entering 2016, we believe we are well-positioned to compete in both our core markets and adjacent growth areas. We
have a broad, compelling products and services portfolio specifically tailored for our mission-critical communications customer
base that spans many layers of governments, public safety, and first responders, as well as commercial and industrial customers
in a number of key verticals. As we add new products, features, and software upgrades, we ensure our solutions are
interoperable and backward-compatible, enabling customers to confidently invest for their future needs while allowing them to
utilize their prior investment in our technology.
Supplementing our traditional core business is our Managed & Support services business, which has been a focus area of
investment and growth in recent years. As communication networks have become increasingly complex, software-centric, and
data-driven, we have shifted our offerings to align with this technology trend in serving our customers. We expect to continue to
see growing demands for our Managed & Support services going forward. These services offerings help customers manage,
support, and upgrade their networks as well as utilize features, applications, and data in new ways including predictive policing,
proactive support, or smarter response strategies. We expect our overall revenue mix to continue to shift towards services over
time. On February 19, 2016, the Company acquired Airwave, the largest private operator of a public safety network in the world,
delivering mission-critical voice and data communications to more than 300 public service agencies in Great Britain. This
acquisition will expand our Managed & Support services business.
Another key technology trend complementing our existing business is the expanded use of broadband LTE by our
customers. We have been proactively investing in next-generation public safety broadband solutions for years, as we believe
public safety LTE solutions are the next-generation tool for our public safety first-responder customers. We believe our expertise
in both public and private networks makes us uniquely qualified to provide these public safety broadband solutions to this
customer base. We have now won the four largest public safety LTE network installations awarded to date and expect LTE sales
to represent a larger portion of our revenue in the coming years.