Motorola Solutions, Inc. has raised its fiscal outlook for 2018 for revenue and earnings following better than expected first-quarter results. That's according to a new press release posted to the company's official site. For clarification, this is a separate organization from the Lenovo-owned Motorola Mobility which makes the Moto-branded smartphones. Motorola Solutions is a data communications and telecommunications equipment provider which focuses its efforts on real-time information delivery utilizing radios and devices commonly associated with law enforcement and similar agencies. Prior to Q1 2018 results, the company has expected revenue growth of around 11-percent. Now, Motorola Solutions expects to see full-year growth at around 14-percent, with earnings predicted to be as much as 3-percent higher as well. That follows new contracts in Florida, Maryland, and Indiana, in addition to a new contract with the Latin America-based petroleum company Petrobras.
Breaking down the provider's quarterly report, which is presented in terms of year-over-year figures, Motorola Solutions, Inc. saw an overall sales increase of around 15-percent. Those were predominantly in the services category, with product sales coming in at an increase of 14-percent. The increase equates to around $1.5 billion for the quarter. Organic revenue growth was up both in North America and overall by around 8-percent and 10-percent, respectively. However, it isn't all good news for the company, by any stretch of the imagination. One figure which appears to have dropped in for the first-quarter from last year is its GAAP operating earnings, which fell by 1-percent compared to 2017.
Meanwhile, operating cash flow was tallied at negative $500 million, compared to $142 million in 2017. Free cash flow was also negative compared to last year's $74 million, landing at negative $541 million. Those less than positive figures are said to be attributable to a $500 million debt-funded U.S. pension contribution, along with tax payments, a $52 million legal judgment, and increased incentive payments. So they weren't entirely unexpected. Regardless of the negative figures represented in the report, the company is optimistic moving forward. Nearly all of the numbers are within the expected range and those that were not predicted appear to be in the positive. The communications tech company expects 15-percent growth in Q2 2018, up four percent from Q2 2017.