Motorola Solutions Teams Up with 3M

Zacks

Motorola Solutions Inc. (MSI) has teamed up with 3M Company (MMM) to distribute headsets from the 3M Peltor Heavy-Duty Headset portfolio.

Initially, the company will offer 15 headsets from the Peltor HT, MT and Tactical Pro Series which function as complementary accessories to Motorola’s digital two-way radios.

The headset devices come with a one-year warranty post which repair services are available. The accessories provide scope for extended wear like neckband, over-the-head and hard-hat attached preferences.

Usage of these headset accessories will help workers enhance hearing requirements in noisy work surroundings by bringing down noise decibels (dB) by 22 to 26 dB. Thus, it will protect workers employed in manufacturing plants from hearing impairment or permanent hearing loss.

As per a report provided by the U.S. Bureau of Labor Statistics (:BLS), nearly 125,000 laborers have suffered severe or permanent hearing injury in the last 10 years.

Recently, Motorola Solutions announced its plans to divest its Enterprise Business segment to Zebra Technologies for $3.5 billion in cash.

During the last couple of years, the Enterprises Business segment of Motorola has been reeling under global macroeconomic fluctuations. Uncertainties surrounding future business prospects have prompted large enterprise customers to postpone capital spending or place small orders. Several business verticals of this division were severely impacted by substantial spending cuts.

Motorola Solutions happens to be the largest manufacturer of barcode readers and small rugged mobile computers. Despite this, management provided a weak financial forecast for the second quarter of 2014, primarily owing to the vulnerability of the Enterprise Business segment.

We believe that the sell-off will generate significant cash flow which can be diverted toward the company’s core public safety businesses. Meanwhile, in the second quarter of 2014, the company reported disappointing financial results wherein both its top and bottom line missed the corresponding Zacks Consensus Estimate.

Motorola Solutions currently has a Zacks Rank #5 (Strong Sell).

Stocks That Warrant a Look

Other better-ranked stocks worth considering in this sector include Polycom, Inc. (PLCM) and InterDigital, Inc. (IDCC). While Polycom sports a Zacks Rank #1 (Strong Buy), InterDigital has a Zacks Rank #2 (Buy).

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