Motorola Solutions (MSI) 2 Aug 182018 Q2 Earnings call transcript

Good afternoon and thank you for holding. Welcome to the Motorola Solutions' Second Quarter 2018 Earnings Conference Call. Today's call is being recorded.

If you have any objections, please disconnect at this time. The presentation material and additional financial tables are currently posted on the Motorola Solutions' Investor Relations website.

of after will call the Internet. replay approximately made over a hours three conclusion addition, this be call available the In of this website The www.motorolasolutions.com/investor. is address listen-only have At all questions following be been mode your and presentation. placed opened this for the participants in time, the will line a Mr. like would now I to introduce Vice President Chris Investor Kutsor, Relations. of Mr. you begin may your Kutsor, conference.

and Sales Brown, at Executive Thank CFO; Bruce and Executive will review With and motorolasolutions.com/investor. GAAP me to call. second quarter you, These earnings Worldwide presentation Bonanotte, Vice Executive and for We've good our Brda, Jack and Gino are join and Bruce will afternoon. earnings commentary, Chairman Q&A. materials reference. Greg for include with Services. President, Welcome Vice & reconciliations Jack Solutions; posted CEO; to President non-GAAP Vice our XXXX & Greg release results and today your Products news Gino President, an along Molloy, and

of to turn to update with statement. We and with call. During otherwise SEC. duty the not conference our could Greg. including the that, and Report in in be found are this call, These current Annual it variety we on the and do uncertainties. undertake release our that presentation And that call statements and comments A Factors Q&A our reports made of in any noted. outlook forward-looking will be during during other during such results, forward-looking today's earnings in those of news number portion over could Information reference the are non-GAAP financial these this a to filings Actual can based Form assumptions differences and results forward-looking I'll now from cause differ XX-K subject and factors the materially section on any expectations made the statements. XXXX statements risks about unless Risk of

the about I'll the us Good results thoughts a takes us through Gino Thanks, the share for few overall thanks afternoon, business joining and and today. before Chris. outlook.

revenue of very and of grew performance X%, with First, XX% QX by another in organic the generation. We growth cash strong quarter another was growth Americas. outstanding led

Additionally, operating of the we million cash quarter. generated $XXX during

the $XX quarter. up and of position at some the Second, call our EPS additional year, unfavorable Avigilon Gino with XX% finally, And for of This momentum now, last currency beyond. a results and a We're for backlog for I'll and few million both, year, end our remainder – our last of And ever including coupled raising returning turn XXXX outlook impact posted QX details strong closing revenue from on guidance of to we our backlog quarter second provides highest backlog the the full billion, $X.X operational since before outlook. which is update. with the provide excellent thoughts. acquisition to ended over

Thank you, Greg.

and and former me Products and and applications such primarily changes our change into This Systems the the reconciliation Software. filing. communications cover segments and Support our from of unified comprised WAVE can center Products is reporting revenue. in includes Services reporting. and A Systems Services in Integration, enterprise change new X-K moving our First, softwares Managed public segment recurring former into Products and segment solutions. new video segment. let Integration and Services Integration the of found newly Services, and Software briefly Systems The the of segment segment moving Software & from software, segment be and Services safety presented our consists The as the Software Kodiak are command

million from by the Integration Americas million $XXX up Systems up ASC drove XX% GAAP revenue million year. and of and of million XX last were including segment unfavorable Systems million year, Integration including acquisitions driven or and XX% earnings Organic down $X.XX XXX. to $XXX up $XX the from million was and was $X.XX, X%, year Americas was increase. from ago and was XX%, revenue $X.X backlog XX% Products million operating Products Products revenue XX $XX year last backlog and Integration operating X%. partially last Systems acquisitions operating ended billion, constant year. excludes OpEx gross XX.X% $XXX the of currency XXX. up standard XX% in up which to year. growth from offset $XX the EMEA. million, revenue, favorable LMR $XX higher of up million, from Ending changes, $X.X of income last of sales, per or billion, $X backlog year. $XXX QX sales, were year, the $X.X XX%. and quarter. million inclusive and year. SI points up up related And XX% Avigilon up related XX% last and currency were accounting EPS from share $X.XX, from backlog up the margins. the acquisitions, was adoption from million ASC $XXX revenue was segment $XXX QX QX points approximately $XXX Systems backlog or million in of higher results. Non-GAAP were and Software last at quarter earnings sales and Sequentially, was million and was or up operating Products on last Organic Services to $X.XX $XX was acquisitions Products FX. Non-GAAP by from Moving from basis basis $XXX $X.X last million XX%, up million, billion, including from margin $XXX earnings up Integration million accounting up GAAP adjustments. or was or billion, $XXX of

QX last by higher with was the $XX XXX XX% and offset partially to gross XX.X% related R&D million, investments and or sales organic software platform. our $XXX region. sales, OpEx in of year Services the Services to year, from and million by last acquisitions acquisitions. $XXX and million $XXX operating margin, income Software basis up million Turning in higher points every up driven or and This was Software. revenue from Software growth Services includes from

We down approximately XXX. recognition. million up $XXX million, driven a includes expect million quarter, XXXX backlog was and Services year, from or FX to in at $XXX billion, by last backlog Software revenue is Americas of $XX X% the ended $XXX and Software Software. both QX Airwave and year XX% $XXX or million, and OpEx $XXX margins $X.X from million in the beyond in which Pac. million Services ASC adjustment driven Total ago and and Services acquisitions up improve Sequentially, Asia by and unfavorable

we QX XXX. approximately of driven versus the billion billion income year, expense full continue to to $XX year $XX of the ASC in million by the million, $X.X related ago. OpEx expect and and to adoption And was ago million Other compared For tax OpEx $XX the XX%. quarter. year compared to was expense acquisitions a $X.X year, last Net rate $XX interest million, effective was

last IT for the compared with cash last we result approximately pension, Free million. cash billion spend million cash million from improved earnings. year. expect was flow is to QX $X.X completed year higher last of $XX year. Capital Normalized ERP lower capital implementation flow up by million, year. was related operating $XXX $XXX working expenditures Turning flow of for and a flow, increase in were $XXX a to cash The the lower as result operating

of QX, balance repay an ahead million revolving year. During of expect our the million, $XXX on credit schedule. the of by leaves we of balance repaid to the $XXX outstanding end This facility we outstanding which

in during the Additionally, $XX paid we to the and second dividends acquisition revolver Avigilon and we off quarter, million. of pay $XX the used assumed million close

Turning to outlook.

We sales million on between EPS with diluted shares. QX and to XX% $X.XX approximately expect based fully be up XXX $X.XX

in approximately rate raising shares XX%. expect the from $XX of we XX.X%, EPS now we count year million $X.XX. are year, $X.XX EPS full $X.XX unfavorable our full up We a in million to and impact growth range including guidance. since weighted up the XX%. from approximately approximately of revenue expect This now assumes XXX of diluted and our prior revenue And For average an of currency last guidance, approximately outlook to share effective tax our guidance $X.XX, of

and Backlog revenue compared favorable Airwave and Integration primarily Looking Services FX up FX In $XXX by FX. Software, driven up Systems up LMR as EMEA growth video and $XXX across Americas revenue million for surveillance. strong products well approximately revenue up Asia in was driven up by rates. QX and backlog X%, down by and year-over-year. was at to of revenue demand The Backlog inclusive was acquisitions. up year. Pac, from by was XX% million as XX%, Americas' services, $XXX approximately million driven driven last acquisitions primarily recognition. was regional in was Products segments, results, is both and

segment, Finally, and a we Asia, Africa; $XX highlights. I'd expansion awarded New services system million $XX and in million a In we with $XX South including a to county-wide center million value Wales XX-year that upgrade a Flagler segment, Telco $XX for end contract are U.S.; Northern large awards in PXX our Services services. Integration a the Greg. in our five-year and agreement multi-year the were with additional U.S. Software the in a $XX notable world. awarded million support PXX back platform a around multi-year PXX command provides proof a Florida; devices, system PXX were Australia; to the renewal over critical points million the to for agreement; Products for In Authority of call services like Army LMR $XX like some system managed would upgrade Systems long-term These I IDIQ the Chile. County, replacement and to turn accessories a in $XXX million and our provide now million customers

Gino. Thanks,

thoughts. close with few me a Let final

XX,XXX were X% demand which QX results now were our by backlog QX continued for ending growth our worldwide. organic total First, The systems the and approximately driven LMR outstanding. record platforms,

now and our acquisition growing QX growth Avigilon is a approximately the the supported Second, addressable in China. is that's by billion, high-teens expectations market excluding exceeding $XX with

center I'm partners, to continue direct operating products. for Software effectively it in competitive at Products recurring than and to to Software I sales And expect a an been margin And And beyond. our video our Services Systems expect turn into bringing and significant sold installed Software by safety and grow base revenue Services our meaningful I we're basically this segment command over I'll area with focus. the that, market to has many – which of of back a our in platform channel in proxy industry. segment finally, in Chris. to with Services expansion forward. and is and drive going now rate faster Integration. segment and XXXX existing The the expanded it's team services finally, end-to-end Avigilon and Additionally, only historically encouraged routes We've new government public progress MSI building our

you, Thank Greg.

I'd one we questions, themselves question Before one would to as you many follow-up, and as Operator, remind to a so line to limit callers remind begin to taking callers like our please on how possible. the participants get to ask question? we

The is for now floor open questions.

is question from coming first Piecyk Our of Walter BTIG.

questions. Two Thanks.

can market, well, that band Excuse opportunities out that out incremental then driving in any sell provides in revenue? incremental in they terms can't me, – and service then are businesses new size to in Thank also revenue? there about of think hold Just recurring Hytera on. you. terms there buy talk terms you of also could you that are you of, if the the what And

a progress of on patent it the in a federal are in the Yeah, pleased Mannheim ITC July we ruling doing? ruling Hytera. how court won first very and infringement. to relates Germany and recently Hytera, Walter, all, you won with for As We we're court in

few XX additional less know, copyright lawsuit, probably ago, than than a which weeks codes. an days ago, you filed copying As source basically we is infringement effectively just

So, we accountable. them will hold

need IP making. to we good will we're about very whatever We our we the to and do feel progress protect do

the We noting potential upside. in question, modeled worth haven't ultimately sized, what's there's decided. nothing been to XXXX It's your upside that's and as potential specific

our PCR head head, also a a Australia. is them them will pending to lawsuit We where I have General now. in is lawsuit have there growing business, Hacker, against with compete say which And our we is we Counsel, What Mark in where robustly. is Düsseldorf,

don't continue I think I my know domestically that. on view and Molloy's Hytera. ground byproduct to team that's and but maybe take that's internationally a of

the acquisitions, side keep of the on and terms out continue side. In services' we'll an eye video to

and but Airwaves". probably You've "many one me year, for under we looking two There and given looking what this always say, refer if or materialize can we've Kelly to earnings be might margin. heard done Mark scale economies more expanded that we're operating to always add to see for hard we're our

continue evaluate to we'll So, accordingly.

Bank. Deutsche of Bhagavath Vijay from comes question next Our

good asset, growth thanks. that comment Yeah, be how And year? follow it if afternoon. you would terms questions Thanks. here this organic on that strategic a the update then Hey, quick any be in hi, constant rate, Gino, Two market? quickly. Yeah, for could is One on would of Greg, the Gino. Avigilon, in on ramping on U.S. currency

organic Actually, On our that We've constant through for strong first given unchanged the growth in are currency. Vijay. year. currency, view contemplated guidance Yeah, X% the our annual constant half it being basis organic higher growth talked full it's half, second remains full about the slightly we and for about for where than the an probably on year.

growing the is we pretty that a in So, feel backlog, one. I that's combination face good And of so that that. think good with

Perfect. quick Avigilon And a update?

our going our expectations. of is ahead I'll plan, I ahead Yeah. Avigilon – mean internally of business let Jack

job. team a I XXX state world-class and expanded all commercial well. substantial, I combination public local think great And think near them to getting I market. probably routes a quite the It's which exposure good They going markets. gives have Jack plus product, the term. them about our it's least and largest federal patent portfolio. very And new at to a done patents, in be think opportunity safety, The could business, have

Greg. Yeah,

terms I them think news thing product impressed been to to bring bring with business, we've with Greg UK, international incremental partners, last only the follow, came as as to here And to international is follow full that local fundamental America said them And the our XX there. detection Greg in been Vijay, more in in is the I'd our North the of coverage XX focus days. really anomaly good not so the market. to said, bring state, like scale, look role distribution in the teams think routes them I speed most the sales deliverables. their There's as federal, in and scale with we they to on our mean days. but here I last that's out of thing, only places

Long Our next BMO question Markets. from Capital Tim comes of

I Thank you. if questions Two could.

revenue the bit. a on just backlog up Greg, it's visibility. good First, and obviously,

we've year-over-year a are lower what next at We growth bit looking little rate quarter seen. than

little you And talk half the just about about And so, good in expecting and follow-up Products Thank then there Systems just the on or backlog about note, talk could on the or, Gino, and of Integration margin the of opportunities Services the front, visibility sounds expecting anything into it of maybe kind Could is what timing of there that on kind like you're just into a a if and year? little second bit margin you. you Software side? and bit that you're next move business. a any in the

QX falls QX, year, majority this on Federal QX Yeah. the number in unfavorable important of all, Tim, of guidance, first one. note in U.S. two, FX close is importantly, QX. most that very it's the to Number the not

the first us. in specifically improvement think is is half way informative and federal not I QX the have mentioned, that's On Software, half second operating for and and better XXXX as at meaningful the So, a QX already to Gino close more look there's the I firm in Services that margin and to think going I beyond. fall a and given

on don't or margins there's like on operating we're work too. there something to on operating we'll Products' think – reason And for front think close looking that side, more I And XX% margins that segment. the for XX% stop XXXX. to I continually any

continue. prior comparable that Tim, we the gross and to in year, XXXX And expect expect margins certainly we versus

Okay. you. Thank

from Our question and Company. comes of Cowen Paul Silverstein next

Hey, Greg and Gino.

tonight. juggling Gino, made I'm gross off, you calls statement just apologize. But first I this, addressed margin. the already you've about If

driving that turned referenced and driving you've previously there. your revenue your all and down turning to You focus you've multiple with you've your that what and or focus had OpEx uplifts margin levers gross done

is you made, I just was if hoping but So you drivers? qualitative I is standpoint the the an it, the said ESN? on statement already to from if And and my UK again Airwave and you've both – to update your a you apologize, you're opportunity timing what give then – question could magnitude relative

Yeah.

focusing driving towards getting marker first kind closer On mentioned margin the expansion, on operating operating XX% for XXXX of, I one, a and significant Software as margins. Services to

will I the side. a gross think of to and your combination margin, opportunity, point, Paul, on out that of come belief that is more in above segment, AGM, gross is that But our the margin OpEx. probably

make, quarter. to we think, to relates Airwave, anticipate the by good of it progress. As end agreement We the continue I still

tandem. now and and my in that term I is while unchanged. agreements view we're think fluid, noting it's view conditions still negotiating And and both worth ESN Airwave are our

are think stay in solution. is like looking – standards-based beyond good day, many, the UK FirstNet the for ESN more I Home I Office think be XXXX. between those more developments Kodiak the end like us. in And place at both here States. Airwave more look years solution a And be those And will to and many will now I two think of the

think the we our in best we'll financial, ingredients agreement blender ensure company. consideration, the there's that all if you few practical, sure I customer of to we'll that the of the take make for evaluate political, will those there's day with end a and there's there's at the under

it. Great. Thank Appreciate you.

Jefferies. next Our question from of comes George Notter

segment guys. This Avigilon, on that A previously a categories. in on Thanks product mentioned Hi, was mostly Kyle previous Avigilon lot. for you is one George. quick your

much pulling percentage how expect Avigilon a as some guess guess coming Avigilon of between that split Avigilon way segments? two and new might of well, you from out how integration ask software sales? the I another to I have that Now that do had software you're of is, to is as

terms, Gino. of rough It's is Avigilon In XX% about software. Kyle. Yeah,

Yeah.

sorry. – then... And Great. then Okay. And

ahead. No, go

wondering do in incremental I'm there's be to that it add on Any initially previously, going color to getting motions subscription replace launched anything they're could March. recently the with something in of terms service additional any they're that traction or guess a They that had you if would that sales you hardware-only that I they doing? see being already it great. is or cloud

Kyle. Yeah,

is – Jack. So this

So, days, solution. to is success you starting we've Avigilon cloud-based had referenced which Early they've Blue, sign-up a customers. obviously announced

the with will is new up Avigilon the medium-sized I believe Blue interesting open it and think we opportunities into thing small- actually business.

as – can not we what cannibalistic of business in of think terms – expansion deliver. opportunity not it to actually and its existing their customer So but

business? And your Awesome. one Software margin Great. there, for you curious what's Anything Okay. improvement driving last anything that? terms services can a and else one managed would things? it just of of the that add great. the software, a and Is all me, of scale can getting be greater those in on pricing Services that segment mix if activity, Is in you're add combination you

Yeah.

integrated Sinclair we of And I comprehensive some has this he think end-to-end opportunity build building couple as have to, Analyst solution. of we've and duplicative have the the acquisitions And R&D. an about suite. Meeting while that end had result we it's made, to talked Andrew different the Financial Mainly, there, day, of the we've that an a a we're mentioned things. ones at platform the at platform only

months, over the As associated there's XX he to think that with that. I improvement does next margin XX

The what you second is mentioned.

can not do managed additional well. in a contracts, I scale and we only better as field think more will services' and on I the on optimize as there's job side, efficiently delivery deployment services think back-office add opportunities we continued but

Andrew those have So, themselves, beginning and to and those that biggest are work Jack Bruce identified the and present those Kelly opportunities now. and and are

of James. comes question next Our Raymond Adam Tindle from

line. for to were recurring building Okay. you XX% a and I that a that on Greg, XXXX? new think you revenue do And need target mix good get recurring to margin mentioned talking operating just segment And mix? wanted you revenue about much know, have evening. that that to that you how stream from of you Thanks do kind

quite let's assumption doesn't a in segments in grow. improvement just have target. But segments anticipate we'd both margin don't any frankly, My difference around We – and dramatic we like the of operating important take continually. see to necessarily both Obviously, are contribution XXXX – in XX%. it assume growth

better I think on existing P&L. through stream the and now we its can get get flow after

it. Got

for Okay. I check year. the That's wanted helpful. flow to And, on cash guidance in Gino, just

cash in and with in I you'd think cash assumptions? income those billion of stand be operating still net stated reaffirm, about hit help you flow conversion. the to that more then and guidance buckets the the Thank order Can maybe than that guidance about flow need $X you. half previously talk it'd just in XXX% second does

net still over $X.X to It the feel been Adam. better XXX% and stands. certainly We billion, Yeah, conversion, income. historically about of that's incrementally our

next Research Our Bollin comes from Cleveland of Ben question Company.

Hi, you to to times do that to when money forward, availability you those a look approximately you the the wanted as us for move work surveillance now? at walk I good about not little my a through projects getting see those you And and customer if X-X-X they NextGen evening. you to they it's and follow-up. for could that to make taking bit start translate the opportunities, today, Thanks the talk right can realized? for of question. to budget there, how funding then revenue initiatives deriving When talk process and and decide through decision

is this Jack. Ben,

good all, of question. There's First two things.

customers. made funding didn't organic investments as One X-X-X a necessarily made at we've and We space the being is the in looked we've command play that stream acquisitions the of center to we the the before. our and in R&D because reasons additive funding distinct

negotiate and they'll to it you board. start They'll console, have process for three vendors, – consultant. they'll write a then to hire through in whereby take demonstration, – typically it which it into anytime put county an demonstration. any go at X-X-X, award they dispatch a there's a project, oftentimes computer-aided time make After – two are Typically, these homegrown two, they out typically select a down cycle. around a center we'll – would maybe contract They'll year to as between So, three- – six-month down selling decision, sometimes command that anywhere radio sometimes to RFP. particular the drill a

important you're new So cycle, two-year the money that ability money, X-X-X thing past. in, was capital budgets. government sales had for us no it the we for was all typically which but incremental was looking to in to a compete at It's

another to seven behavior you maybe then, are the customers spot going removed curious the six the item, to on to we're I'm any or who of of years on initiative. And like Okay. those handhelds come And feel some from effects you've on starting sweet table with layering those narrow-banding customers back if seen where refreshed you're coming or of see table? if anything some else to starting Thanks. back the

typically really we it four was – on that a of period mean, mean, it it, XXXX, depending was if look think XXXX, kind three Ben, where XXXX. I at we different early customers are I made planning to I year investments. their

those Your we the we've data-driven sales thing initiatives portfolio and which we've Bruce as The look actually been into teams And have our that Customer through made as also excited investments and we've team we're sales XXXX. his front got Know are of we there expansion opportunities. some underway, – we excited and So, obviously there's run, about for is think customers. in think

comes Citi. Jim Our Suva from next question of

very what about be Potentially, and and maybe out lot up devices, is some for says one this the And get can should subsidy that provider articles for subsidized they of and your changes Financial you in making comfortable you How heavily buy those that And changes running to in are and then, I'll have really sell appears the true? you, on financial but is, at investors one be certain financial that's really, maybe more Thank each year all? we you question, ask that that? that of for. and things there's there Is that a behind and of model. which home the had next of is same you past? the we the it it your Analyst more for any very there and a good need about second now does you. are What's FirstNet side Who's I earlier there you're with Gino have to there those devices? focus liquidity my lot drive devices? And might on your Gino. Day feeling really probably the some first. the time at for structure? side you model Greg want. a media a the And in want deemphasize take the once Greg, Or Are impact at order devices, you enabled historically more the on reporting them things test model are the few question subsidies in really, and they'll to think few Thank years? them then

in we thinking as referenced year way, the By us are QX either FirstNet on the or Yeah, for was QX. Jim. beyond. doesn't or business modeling about again this subsidies contribution no. the in way you the FirstNet and zero And affect virtually answer to your was What first revenue question, FirstNet it

board lot over there. for that of fine. cellular coming the that push A users I think that materialized form the of by of using talk looking Kodiak, on us. to incrementally we FirstNet the supplied are are subscriber were which That's kind in hasn't is commercial

users good as AT&T switching the FirstNet FirstNet a of were existing already that's over are a that I think of users thing. and – plan. to So also early some But referenced, even AT&T

minimal. the year expectations in see FirstNet our are growth we XXXX and for to-date So, material in don't full

a and new it of many integration managed margin and systems was centered profiles Gino. to Jim, it. combination and managed support And Really we reporting, two discussion very the respect different to reasons and With services, really, is the with behind with things this historically, segment different services. the support invariably services on talk idea, and when they're

overwhelmingly clearer about clearer one new profile with recurring, and is about each the different business operating versus our Software to of is Services business margin be the and the So, them. associated effort Products revenue recurring Integration and the one-time Systems

so details you for Thank the and Great. much clarification.

Just appreciate it.

of Fitzsimmons William want switch to Morningstar. telephone question to Fitzsimmons, comes Mr. next your or your check handset. return from mute you may Our

is line open. Your

my thanks questions. And taking afternoon. Good for

your maybe First or If public new a center provide the of Day, demand at quarters Greg. drive And can the give continue core insights safety line provides LMR safety strong. any command almost that? briskly. well to concurrently recurring top into assert there additional breakout economy any for Thank and possibly quarter? and clarity any to my obviously public your relative to your of couple Motorola doing I'll Avigilon revenue. and additional Are Gino, is conversations the clarity then as grow is basically Avigilon continues percentage possible, segment helping do give contributed center into are could us that very revenue then having Analyst you additional been if what's Obviously, in past But question kind to there customers you. lately market? some Obviously, both when of and the assets that very competitors. it's command you your good to But breakdown assets go you well with the you've to

Yeah.

global anchor in William the things. very to It's combination a the perform thanks, often I each the on here not tenant, growth Obviously, think America U.S. I think economy and synchronized in North see of as – we our – well. there's overall continues theater. demand,

its of high high, and people demand pretty for a I Radio understand Mobile think Land good; environment's the systems is combination consistently. it's and it's criticality things. Environmentally,

this on internally think that I'm and better coverage, indirect things the work management By Mark year. products on EMEA well by well. LMR. done execution next just tap channels, also And Not compensation better. Francis was year whether adjustments, there's the some talking there's think there, very I for Schmidl but things out it's stronger is as Viv side, I way, sales

So, growth the think are And organic we you growth largely if don't excellent share execution on add pretty sound. the and I know, inorganic excellent. and that? holding Jack, want either anything is is the is to I taking or

No.

I nailed think it, you Greg.

that software segment. can won't talked well, And starting the relationship we And, segment as approximately within and the Services segment the for Software William, have if about year. you subsegment and services dimensionalize software on in the about full point reporting, the between being $XXX million think we new the what

Perfect. both. Thank you

Coster next Our of JPMorgan. comes Paul from question

questions. for thanks Yes, taking my

I Airwave, like many be extended it's and as here. nuances It magnitude Regarding same mix some missing moving well. the the of for may years, sounds forward

how plays we'll see out. don't the know. we agreement Well, Ultimately,

fact extension Airwave, And the I call be with discussions view the be think for solution given could will that to I Airwave completely or the and remain different understanding contemplated. very, new refresh weigh vis-à-vis time is Kodiak. reset, terms longer, that there'll I much sure obviously, go engaged them. There on of ongoing. as are Jack's customer XXXX. network will a already be we standards-based forth the year team a device which By that way, and of has that with the with conversations opportunities our in made financial will we that think this different be But next for the with what will will in progress contributions the the customer device think Airwave we unchanged continue long that that great re-plan beyond extended. because for also and with that ESN be very customers referenced, the I'm be into in And back year

to we a today? mix. So, much that to hoping you wash a relative are what overall of economics, assume the different Obviously see

we the able if clarity, we to it just and I'd cycle. the feel in be would provide with planning – it. matter would really the of to Well, both – contribution I to because I the about were answer this are customer. in And But good of very the discussion a too term the not financial where be say think the that, we speculative in with I months future expect still at feel day, we're the associated distant end around

it. Got

over I Okay. it your particularly feel going market. And time it's of space. It huge XX% couple being I does you then years? just of of in head context overall the like soon, in quickly next proportion revenue, is see end-to-end X%, on this revenues but fragmented software modest a solution doesn't mean, any to got am material be the first mistaken, in can which the responder And a like else in sound for everyone software, you've the the start very yet fairly

Bruce take So, I'll Brda. Paul, this the question. is

or gives either America. With we're built, bought the from across That centers have public footprint we XX% platform command over assets to cross-sell in that us the safety the as North we've in we the ability of applications.

positioned. So, we well extremely we're think

fragmented the assets you of is out, As really market pointed an We've suite of there. good solutions a and nobody end-to-end has like built set us.

software at those one will said, and SI, a Greg contributors. faster expect Products to rate we As be of and grow than segment this

Thank Okay. you.

comes Northcoast of Research Keith Our Holdings. next question from Housum

as for afternoon, for Good now portfolio growth Avigilon. you here have in has guys you your guys question And on high-teens gentlemen. months. been several Avigilon A you mentioned.

and know, synergies to or is growth of still see company want that are just too the that your expected starting is this organic some you true, early you the it acquired? from Just to

are. we Keith,

U.S., out the I front Federal we to felt when the cycle as just sales was is cycle. like caution the we are those Government in about, I of biggest state, local kind synergy you the And sales and think acquisition, be I'd U.S. minimally and on as going month first we revenue it's governments. in seeing one even a synergies. I'd mind XX just talked some things, made the noted, thing laid we the our

built. matter we that By so way, work investment it's And subject pipeline done, incremental public needed was in safety, the think underway. being sales expertise

thing. the first that's So

have video strong a competitive America many The very which second of We carry channel. channel, thing to, obviously, solutions. North was proud got and our

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Thank you your all comments. time. No further for

ask participation The thank We lines Ladies you at and replay over three www.motorolasolutions.com/investor. gentlemen, you teleconference. for the available address your this and in this call does time. A your will that this of approximately conclude please hours. today's disconnect website is be Internet