Motorola Cutting Expenses To Grow Profits Amid Shrinking Gross Margins

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.
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