Motorola Solutions' gross margins have declined slowly over the last three years due to weak sales, an adverse sales mix and growing competitive pressures. From 51% in 2012, overall gross margins have come down to 48% in 2014. However, the company’s overall operating margins have expanded from 14.8% to 16.4% (excluding other charges), as selling, general & administrative (SG&A) and research & developed (R&D) expenses have declined relative to revenues. Motorola Solutions’ cost optimizing and restructuring efforts have enabled it to cut expenses significantly. It expects to maintain a firm control over these expenses going forward, while product gross margins are likely to shrink further.
Source Forbes - Markets http://ift.tt/1WgvFJN
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