Motorola Solutions (NYSE:MSI) saw improving profitability during Q1 2011. The company's gross profit margin for the quarter improved to 50.3%, up from 49.3% in the same quarter last year, while its operating profit jumped to 11.3% from 8.7% last year.  These are encouraging signs for Motorola Solutions, which competes with big name players like Cisco (NASDAQ:CSCO).
We currently maintain a $40.24 price estimate for Motorola Solutions stock, which is about 10% below market price.
(Chart created by using Trefis' app)
Motorola Solutions not only increased its gross margins, but was also able to raise operating margins through effective management of operating expenses. We estimate that R&D and SG&A expenses will continue to decline with respect to revenues, as illustrated in the interactive chart above.
Regarding operating expense management, the company noted:
Our profitability also improved with operating earnings representing 11.7% of sales this quarter compared to 8.7% in Q1 of last year. This increase in operating earnings was driven by higher gross margins due to favorable product mix and a continued focus on operating expense management to drive further operating leverage. 
Details About Motorola Solutions' Business
Motorola Solutions' main business is the sale of security devices to the U.S. government and enterprises (for commercial purposes).
These devices are used by the government for:
1) Police department patrol car communication and facilitation of efficient response to crime incidents.
2) Electric power distribution, fire station alerts, irrigation control and video for traffic control purposes.
Enterprises use Motorola Solutions' products for a variety of purposes including baggage tracking at airports and transit authorities, Wireless LAN for retailers to drive workforce productivity, technology solutions for healthcare centers, and wireless connectivity at universities.
Disclosure: No position