Motorola Solutions (MSI) 6 Aug 202020 Q2 Earnings call transcript

Good afternoon and thank you for holding. Welcome to the Motorola Solutions Second Quarter 2020 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 the will over conclusion replay three available the a after hours of addition, this be call approximately internet. In this call address website is The www.motorolasolutions.com/investors. mode. been At in participants time, have this a all listen-only placed [Operator Instructions] I now like Mr. to introduce would of Tim Relations. Yocum, Investor Vice President Mr. begin Yocum, you conference. your may

Kelly with do to turn in in other not this during We I’ll on this to call, assumptions be on forward-looking today Winkler, during and comments commentary, expectations statements over the our Executive the in Good presentation factors for outlook, afternoon. and with uncertainties. And results, and are number during Executive with release Services. of and & the can and in release, Jack found portion could of Information materially Actual Kelly news at Annual Molloy, statements. that it in factors me Vice Greg. today's statement. President Q&A. President variety any XXXX made the to Brown, risks motorolasolutions.com/investor. of forward-looking Chairman duty reference Sales; current earnings A filings subject any a the call. and reports of including cause second forward-looking will the These President Executive those made our our call Welcome your We've Greg conference about Report reference. quarter And we’ll differences and Vice be Software Products GAAP update are join and non-GAAP reconciliations such to statements posted results Greg and Jack along section materials risk With financial unless call. review our earnings the These that, these Form undertake non-GAAP XX-K, Vice and earnings are could of differ and during an noted. Mark, presentation include and SEC. will otherwise CEO; Jason CFO; of results based XXXX our & Jason Q&A from news will to that

thanks our Tim. Thanks, few Good through business CFO, takes us Winkler, thoughts results us overall outlook. start Jason joining and before off for sharing QX afternoon, our today. a about and by the I’ll

proud I'm above second dealt Command $XXX COVID-XX. with as of generated our per Center operating in execution First, our earnings We businesses. to Services quarter, expectations, Video share the cash challenges focus revenue and grow Security, the and Software million our we in and achieved continued flow of from and

IndigoVision strengthen the of this investments acquisition as which Security. announced leader a Pelco, in acquisition the earlier in closed Video week, we of further Additionally, our position global

our to Software well. Services and perform continues segment Second,

X% basis the XXX During points. expanded segment the quarter, and the operating by grew margins

contract find we've And sell, and ways encouraged several over weeks. to customer seen, am solutions. environment while We fluid, across particularly the Next-Gen continue the $XX their the nine by I Utah. also won I'm new engage COVID-XX software by with XXX the highlighted to the And deploy, activity remains and inspired of past business support customers, million to how by finally, state contracts, several services multiyear with our employees

it turning at over opportunity before for years of XX Bonanotte I'd take to also thank outstanding to Now, this Gino to Motorola. Jason, his like service

take largest the our and our he segment, experience Motorola final developing is was of Gino's And call Video almost a finance that, of recall as years some now across of operational several to planning. our Investor with thoughts. him One our I'll example back. him successor. for you under results I with returning just qualifies uniquely personally when may have great and from bench, organization. almost Jason and and outlook few Relations strong through before most of succession many accomplishments worked for Jason recently XX as Jason in including for Security, turn years years, as finance was Gino's And closely a leadership Jason's a over -- you world-class to well XX

year operating in operating due Greg. $X.X quarter. share in revenue to partially in R&D offset per lower by from due higher in year due of XX% to last partially of and from million, $XXX of $X.XX and primarily and million primarily to lower million of QX to billion, $X.XX QX down GAAP in earnings $XX credits million operating in and $XXX compared currency margins year, Software of was in non-GAAP Services. last products, share $XX gross and change XX% and a XX.X% million, ago costs ago, margins effective XX.X% in year. year higher including Non-GAAP acquisitions offset lower versus compared and results of down year, incentives, year EPS down segment included ago compared XX% SI of margins prior from was you, operating year, to and $X.XX Thank per to QX quarter. tax headwinds. down spend by this Products of Non-GAAP sales rate and GAAP sales to OpEx million, Services. $XX revenue versus higher tax due the sales offset of acquisitions. discretionary primarily the million $XXX the in $XX in the Software earnings earnings gross sales from a ago XX.X%, partially by $XXX XX.X% quarter, margins the driven

with to $XXX working the lower prior flow was and sales cash flow. flow cash due primarily partially compared million prior year-over-year $XXX by flow $XXX the offset Turning income, compared the free net cash operating The decrease QX in in in year. was and million in million million cash $XXX improvements with was year capital.

flow cash $XX million both acquisitions, million allocation primarily half, QX were first $XX for and cash and dividends, by million up $XX share CapEx. repurchases, of capital. in of the For working improved for included year-over-year, driven free operating an flow Capital $XXX cash million

QX borrowed been million credit $XXX revolving the million we $XXX paid amount this and $XXX million. of subsequent to million quarter-end, in to Additionally, to paid COVID-XX. $XXX current of the under million which QX the outstanding has we've during $XXX facility, bringing in response was was the repaid

currency from XX.X% last Moving decline down The by driven our $XX points acquisitions year, the driven by million was QX were results. from of $XX Systems and XXX professional in headwinds primarily Operating in sales million earnings basis the million. the and were caused commercial million, primarily was or decline $XXX COVID-XX. down in Revenue sales, lower LMR. delayed a Products sales. quarter by and and XX% safety deployments $XXX Integration segment primarily and were to radio segment sales engagement public

million Some a in of South order of PXX order County, $XX wins for Dakota. Georgia $XX the million achievements notable QX and state a a segment $XX the the Alaska, for Newton PXX and PXX included order state million for

VXXX closed as the industry both XX-hour the also of beyond need the expand camera, we We the on that IndigoVision, in continuous security our body remain address worn WatchGuard and to shift. operational enforcement's law operation transaction, solutions. important first video assets Pelco launched this announced a acquisition We the for cameras week

margins by the from Software $XX growth the operating Revenue in up from last year or million, million of XX.X% $XXX Services acquisitions improved year, Software. basis in segment. and America quarter headwinds higher $XX from X% and gross by sales, to was were $XXX Operating Moving points up driven driven Revenue was last and currency million. earnings million leverage. and Services XXX were North

computer $XX statewide Some a the notable QX million dispatch Baltimore aided wins Utah. million state million Louisiana, an of a multiyear in $XX and services multiyear state contract services $XX a contract in the include America, contract with Next-Gen segment this XXX North with PXX with County, million contract multiyear of $X services

growing provides infrastructure, enhanced part for content systems. that business of a our database enabling is XXX multimedia XXX Next-Gen

commercial to $XXX decline Looking was America Video professional FX. at was Software revenue offset North safety International radio million, primarily and down Command in partially a in due and unfavorable LMR, down radio XX% regional and XX% by due professional QX and commercial Services. growth billion, public in to results. Security, Center QX declines $X.X and revenue

was on Ending other Airwave last ESN growth million by was Sequentially inclusive in driven offset of contracts backlog. America. $XXX rates. down deployments, North favorable rates, of international $XX.X currency few compared a billion, and to million $XXX of $XXX backlog the unfavorable backlog currency partially inclusive and further recognition Moving revenue million of up year, million, to by $XX

ESN Software of million inclusive contracts by deployments $XXX rates, $XX was down of and inclusive multiyear unfavorable delaying and compared down and currency was down inclusive offset year, rates, Sequentially primarily to on agreements. $XXX was $XXX large Products X%, backlog or delaying Services by last and of backlog to SI million million million engagements. of X% backlog currency, last engagements. segment or year, and currency partially of of North rates. to million inclusive million $XX X%, $XXX Airwave Sequentially favorable up X% driven favorable or or the million COVID-XX $XX international of due sales recognition COVID-XX sales America of in growth revenue compared was million backlog $XXX currency unfavorable

Turning our outlook. to

and sales X%, share. a QX effective and million between and approximately of approximately This $X.XX expect XX%. weighted diluted an We assumes tax be to with of average XXX rate per count X% non-GAAP shares share EPS down $X.XX between

FX $X.XX. shares, between X%, full XX%. the at headwinds million be effective expect and current count a down average the of XX% rate year, of approximately we an This approximately approximately weighted For EPS sales diluted and XXX million assumes approximately to of with share tax $XX to non-GAAP rates, $X.XX

that for on an our Pelco. million $XXX over to And I realize to of is resulting reductions the The $XX Greg. inclusive our of reduction still balance back the for call turn we be of the cash Pelco million expect net the $XXX it Additionally, would $X.X communicated of million a year-over-year OpEx expected last billion we now flow, like of to year. year, incremental operating in of OpEx call. to the as for acquisition

Jason. with close Thanks, few me And a thoughts. let just

Services. by strong the the won state First, multiyear awards from In numerous in our XXX highlighted Next-Generation during Software, Utah. and momentum is our order Center we Command of Software quarter,

the our increase engagements the in Additionally, customers number the in for support quarter our provided further mission and the public solutions our products cloud networks. business, We we're we've the to safety services In LMR records customers critical of during seeing launched more these to agencies recognize during cloud pandemic private it and our criticality validated CAD based a as can that the have second solutions has provide. secure sold already. an of benefits

the We see continue long-term. networks for customers in to these investing

our QX, activity in increase several our we've in where during disruptions, we segment past the Product as experienced particularly by impact seen weeks from customers. COVID-XX customers many the the encouraged of I've with our clearly Second, felt been over

with of half provide open continue communities analytics And investing from the up our expanded to in reengage. second recent year, finally, Video as low our the and We expect portfolio the footprint We're acquisitions we point In we improve to to are that of to for of and safe. year. remains And IndigoVision the AI the and business in half I QX. expecting XXXX, gradually business, Pelco. the safety as second expect look customers, keep with we've improvement solutions the people global Security growth powered and conditions demand public economies in strong

solutions Our with flow with generation of have the are corresponding our increased with free provide, together to ever. LMR, the our remain we turn center sequentially. strong, back critical portfolio And and flexibility as command the the software, over us call services to I'll in as providing deployment be Tim. pipeline cash and across capital. balance opportunistic and of customers Engagements video, the sheet

Thank you, Greg.

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

you. Thank Instructions] [Operator

is question ahead. Long Barclays. go Tim from first Please of Our

love you. Thank encouraging a for I I one there, I and talked more done, some -- when conversations you then would particularly get to follow-up you Maybe have recently, about got color what the for how the and you're see would rest of we're Greg, Greg, you kind in that? be Thank local great. more color do that of And and state the seeing any and budgets of context year, you. impact Jason. government

Yeah.

tough think May April July, gradually improving. performed that has incremental, of have is in the within was in but June kind things of our well. low context Tim, the It's are I and better point, as from expectations.

that and reengage among our customers people body There's more a interest think that major heightened home as systems video, are and of and having I few cloud obviously to in things, particularly interest video. there's having worn engagement, from other cloud and customers around work safety given more deployments. public

given people them be numbers their congregation customers these of not and the large And reached to to of an have encrypt have systems some Some safety in the are of to them Those effort in out cities, us accelerate with encrypted. more three may secure. be work fully themes. public

would job. other is say we've done pretty I think thing I the good a

Lloyd's remotely think I beginning the team great add how and I want move along. some done you that team anything the to to see on procurements Jack. engage customers pipeline to and think well. that, is improvement, which I also Kelly's a if as is job to has learning gradual And positive don't know some

Yeah.

we're with just Greg. local, but a reengaged full on meat stats the face-to-face put bones. I maybe said few to think, you America, State North customers in on

were close up quotes QX worn a for requests XXX%. XX% in inquiries quotes to for were body worn up and car body center call up marketing were over Our in and XX%,

So, about. of some the things spoke Greg kind to of that quantify just

there's That's one room for drive a great in since that. scales, I'll there you. And things and Okay. to upside bundle bit that the about you and great. and performance of Is like little line? and that your sales Could first more would you. as sustainability kind still what welcome and to one, Thank business Services. talk that? Jason on throw software Software Obviously, margins

Thanks, Tim. Sure. Yeah.

and for First, gross pleased did the operating in we it of the quarter, leverage. X% higher complemented were and by with lower growth segment expenses margins drive the

So, with there. performance pleased the I'm

expect execute continue expect we'll to well. led XX%. team around to margins well business that by And to the as growth continue from Kelly this continues operating think year as I

Thank Okay. you.

Our Raymond Adam next question Tindle James. ahead. from today will come of Please go

have just to out actually I appreciate Okay. up Thanks. looks it XXXX. XXXX line, a the that. year And maybe around wanted I XXXX, on on guidance. upswing. And just you Greg, bit that bringing challenge -- I two little shape QX embedded And or guidance afternoon. wanted similar like start just a might Good better in EBITDA than it to is full questions

on to going quarters orders or improvement basis. gave dollars. Is on big from then down out? profit year-over-year that? pretty it the have sequentially go It there some or it's dollar neck on line the line, out be What on plays operating to like profit make you. revenue dollars like A you that year-over-year for gave looks QX. operating profit that line, out, QX the incremental inflect to that stick cuts aged the on are you like dollar swing a Why going that you your revenue operating secondly, far in that First, that imply less than Thank a something something line. in would visibility confidence to couple And occur? operating profit would cost that backlog

Yeah.

kind thing year nine, XXXX. guide, to down first contextualize fiscal approximately me X% QX negative So, of of eight negative the and let all-in, obviously down revenue then for revenue

I'm April and better. improvement, half much about pretty anchored low second point was which referenced was talking up the seized things much in QX, -- May I wasn't when Now, improvement from

QX, So, while guidance sequentially the negative the improvement we even is off contemplated growth -- don't it's though. not in QX get are anticipate improving, of decline. We're to we to -- the X% all-in in still

not growth. are to or to standalone return we positively So, QX contemplating anticipating

from Although, improve QX. we it think sequentially will

in prices, center That's cellphone were bad challenged. the North public many XXXX. number XXXX, than XXXX. is we're different business about system business license not that versus structurally software. would contributed think five news worn video, You because differences been things this those would were were a million all difficult in -- at of global. is it's sitting second the a wireless tape video, since of in here in which I with or were We we The hundred businesses has and We're we quarter. phenomenon, the six. the are health were cellular had between still kind XXX In we most we we say number in, facing or to the referenced the this fiscal Today, market worse, COVID-XX in I year critical we periods. think American digit half phenomenon good central regards, about single share, what video, second news. kind losing company crisis totally the we're is a infrastructure two several those in U.S. body plate countries. It's fixed And it's of video, situation safety public And call, And rewind in nervous If what are command mission networks. dash-cam recognition. economic XXX I then,

the of about nice difficult more pretty demand. and this decline software. to firm still obviously And we've COVID-XX, but needs still by center than critical long-term year, command grow The the disruption expect been much overall the to has have, portfolio been in a even is to disruption impacted in remain So drivers more have, a we that sound. in

in to grow expect video security. We

for now for time in minutes the The Software Services margin margin single digits. guidance services. grow was XX% grow mobile the could the grow segment last of Software segment referenced at And XXXX single the like May, think We We that Services. in expect expect Services and few and and radio you now XX%. Services all-in look more to full segment just ago, year when last referenced in mid to I high Jason I operating thought expect said call more land and way, Software in we on Software by we and digits. we a -- the operating

So, I put neck to don't collectively out. our want certainly

thing the June which of you it's is is for and in And heading ingredients would from we're what the more position this actually of And reflection for into months both informs for slightly, referenced July. think, half. QX QX our progress in and backlog, last the year. second up the throw are those I full seeing I the aged beginning perspective

Okay. Thanks, Greg.

you. Thank Yeah.

George will Jefferies. Our from of ahead. come Notter question next Please go

I I much. out And a Hi. guess, There's to stimulus Thanks of I U.S. wanted LMR. kind potentially and package get include coming for local around very back of may of may parsing local. safety, state the I House and public about Senate. backfill kind to just questions on to guess, obviously the and how state it are that. not budgets or trying some governments I'm think mean,

the on ? If picture? you over talk back of there as So, when the stimulus over governments second fair mean, it any of part that the you're would counting of you Or half you year, be great. your about are say outlook I think any about the stimulus help to is not expecting half any Thanks. the picture year, have

Yeah.

the today talked today. inability right than contemplates to about some impacted play is think more guidance disruption of as bit deployments. a demand. I is engagement it I in also with It as characterize face-to-face. public decline our customers state giving we're of safety that pushed a you get the of to again We being first, the in But a kind would

North all-in, about about for safety public all-in. public think a products North products X% all-in and services land approximately and think mobile radio, America we we safety, of Now, when decline contemplate I services, America

we of that's So, way it. think kind the about

well piggyback off up basis. Yeah. we in George, And as implied to look at deals know, a on guidance, ground maybe really a that, our you

phase say I really money the CARES feel and We -- to has of some that funded. to prudently. two were governments. we've so there will the state/local CARES the started guided flow So, like any money,

Southeast last Southeast, were in just million PXX in order the order the of weeks. upgrade the in receipt a $XX fact, few an we from state In of

second beneficial. it's the additional implied any see see for we year. some of In what we'll half in monies is So, all funded. the in of the be year half second But see what may that, the already we general, but of

Great.

Thank much. Okay. you very

you. Thank

Our ahead. next Please Sami Badri is go question Credit from of Suisse.

Hi. Thank you for the question.

series [ph] video introduced three calls, past broader with actually expecting place introduction to you've worn to taken do a even times that a the worn IndigoVision you on market the body the of three you and we've have America, of current market? are given and talked also the opportunity still that the bit rate, events camera, you body more expect grow times and North in at your Now integrated as WatchGuard, video still camera, about go

growing really we market times three context There's validates We've Jack. yes. fixed that yes. open incremental It's business. is data about further growing proof the of scale, market added external We've -- and business. incremental two will we've We share the We hi. America added acquisitions technology The And -- really there. Pelco, Sami, recent answer our believe, three we North explosion the of we're and Yeah. [indiscernible] IndigoVision our that our fact of our questions. distribution video also both geographic talked broadened think coverage. that the -- to that we've with with portfolio and market times that bolster in channels the

think in think even grow. three is just continue I to I a we to we're good ago And were So, marker. months three a better spot as times

a -- to more body right of cost WatchGuard. we've camera, had acquisition in environmentally, As think for we body solution the I pivot But police that the with came transparency the worn in now, worn cameras months a for as in well. U.S. and way, the few here last also body Europe, in we've north got two abroad, worn million of the U.S. dollars the in deals by

pipeline Our expanding. is

worn body And new had worn we've body VXXX that is last out a weeks, service as offering improved for. the a requests my because come two ask body in the You and been seeing around think really May, the well and well camera in deals. works we've body announced quality. quotes, camera. worn asking it customers accelerated market in We for with commentary out for very for just for car combination We're our heard we both and deployments,

So stand brand alternatives worn, what's with adding market as the opportunities -- body in and then, about we camera coverage. love wants space really video good incremental body where feel we worn in the we listen, our fix well. and And we think with

mind have disclosed And going it's or on going do details. creative? what one a that you you it's maybe the for should in rate rate revenue revenue run fact acquisition guys then, that that And Thank Pelco. dilutive. EPS those rate? revenue the to I EPS a of Got and growth you But that when neutral we be or guys know expect run for timeframe quick to be it.

Yeah.

up about pick dilutive it and we've you $XX and of talked maybe year, as being million, top this EPS, contribution on million So, approximately slightly of $XX line $X.XX.

So, next growth, expect into And get will as into then the small a XX improvements it again we we year, to -- XX dilutive the as execute beyond. amount. be around to the which and business to

Got you. it. Thank

question will Our Ben from ahead. of Research. Cleveland next Bollin come Please go

you. COVID? talk everyone. feel the could those and you sales little just be future And and budgets start hoping tail public so in seen wanted income years follow-up. specifically how about whether I from about sources the you on Thank question. taxes taking -- I revenue there Good long thoughts periods, taxes, could evening, impacts think was quarter into bit you safety or to then any last a to taxes. any public because Thanks what future or I And a property for sector have you've of

of Sure. your the -- question. your take first Ben, Maybe at stab Jack. a I'll it’s part

So, physical with disruption has what able COVID customers. really more with we see meet around being been to of

small the those ability But an call relates think customers. it about to policing trying -- integrations in leverage is budgets state -- play the as be ability Technology we it good of important Kelly's gives talked connections very as with I more to a done service U.S., of make this team's overall customers, virtual to with had safety the portion public -- we in we've and ability efficient. to a in sure job of to actually technology's think thing before continue kind that. I

think the as pipeline we've But our things, of proposal actually all with those things And no XXX, So, of to flow seen actually we reality matter is if to be something's I kinds and those engagements pick going a some no pretty there. think about going our how able role have customers, to you're up. to communicate. someone's we funded, prominent play -- matter call

The has that you play to different is space. quite public funding I within been which most It's is technology other attention property impacted may lot actually think really of think improve. acutely which there's about of a tax paid frankly funding funding, thing but through funding, sources COVID, multitude in a the sales taxes,

the home grant of looking pricing at things. some Act, at probably look two kinds just and of dollars, the those we'll for transfer just Federal and you first If even CARES phases, the is around increase of public it's of safety. it's the funding. important, funding our a to to last thing the parcel lot and been really and coffers because part And acquisitions really XXX

police And PXX the will Michigan, fire, and And media to two-thirds They a damage one-third night, a was the continue deal fund to with of the millage Times in the just a I officers, the New all in read a in public. to Kalamazoo, all went approved sure they vote, despite technology. at Michigan, EMS engagement ballot to make the call journal, And and referendum. that alike, quite it of our this business. in of the to all going upgrade Kalamazoo. And by any kind we the to state this give we the media, York think was of the on, so went narrative approved that the went in and Monday XXX seen breed we narrative had in -- it they and frankly, to pipeline best haven't public

Thanks. helpful. really That's

I'm bit. thoughts to command just on kind on distressed somewhat you how still your in yourself just player that's there curious developing. if -- market this plays I out feel progress Thanks. market there's -- that share. share like, other how market there wanted roll out center, records, there's a And a lot grade the dispatch center I little you of touch the know the The into to grab, initiative, call PE off. of a see within you

Sure. making I'll in take very the the that. pleased Ben. This center. progress with We're command is Kelly, we're

had there. deployments We've a now features Records And for a software we this XXX to just what some I'll And you remind around a of just number of quarter of fact, deal is call is transcriptions, it new and already got NGCS. of growing we with NGCS you've products data cloud. that call sales are our -- also We've on new XXX the CAD the our provides call -- probably and working we're In features infrastructure lot heard was our related part enhanced system. that. Utah it's the new our our on available also state that business with announced -- taking, that announced had a in associated awarded

that they that software. goes lane lane highway single multi-lane doing and can video simply centers. sit be text, if single our the and taking we and sales calls, calls. a a It's great in expansion the with applications continuing to continue been into well call and that, with I handle regards voice, centers, to And We're install they multimedia, call to things take new the I have provides going sent it's is into we're of good XXX centers about of lot customers them way basically customers. to growing piece Utah's pleased. that. And XXX call that us are folks handle our We're I it. now these example for building road and And using opportunity but a VESTA buying video. said, see opportunity, that I'd these typically a landed that we're base that call call handle very call and road as a -- a software in our that's into expand centers a think suite. developing. might you multimedia, other as going think voice that it of we're to What right what And offerings business, in now to voice, So described the would That's handled text, be new

and suite a And the think job Sinclair has be integrating approximately too points referenced acquisitions Andrew that targets and whole time his expansion we'll that internal I continue give Yeah. would into that them they operating of to Kelly to The again and -- financial solutions quarter segment great standpoint, expectation getting make have commensurate weighted out in also meet to team investments basis team efficiencies now Services and inside thing grow we an made, be way do operating expect beat from to his and margins point company. this done great the the operating is we Software the add expect the point we XX%, I and -- or XXX we while margin. over too. along

bit the pleased of a around technical talent of Salt more lot software I progress being that We But and the Seattle way all love outside integration. it'll And love measured. will measured. that think So, can two largely I I'm margin XXX the got based front. done a take I with investment. Lake XXX quarter basis basis this straight I segment, you ago don't bit operating in a it, improvement necessarily this quarters some and in be think the out line done more City. the the total, be skills points and points

Thanks everyone. I it. appreciate

Thank Yeah. you.

come Paul will Coster question go ahead. of next JPMorgan. Please Our from

taking Is Yeah. the shift wondering of between to any time? there sales question. and of infrastructure LTE there's a shift this products. devices, Thanks at mix in based significance any I'm devices. the And for significant in favor sort those of if within the my

about radio, and which commercial verticals enterprise. and largely hospitality. kind in oil anchored professional travel radio acutely of in I had. because May but it's in way, as expectations, some way, affected, more yeah, our think been been that where had to a Paul, I gas, been the airline have mentioned like sold pronounced shifts QX PCR I safety down device by consistent to -- it think in mixed it's That's the that non-public there's we business, devices think

the that's We most the PCR to approximately XX% still pronounced been business full expect the So decline. down year XXXX. for be

acute but the So that has more in we envelope decline public the as safety, given pretty disruptions, And as about. been device some device well decline all been there's within of talked much expectations. COVID-XX

networks new. a really safety complimentary network critical the deployed. nothing As relates public mission LTE to broadband LTE, in that that and U.S. the is PXX are it compliments

change -- front. material So, nothing no that on

funds of communications. just spillover from area is infrastructure any are to of out those are effect deployed? wondering, up the you need that One coming And rural beef seeing consensus being Washington of I'm kind

it's Jack. Paul,

and XX provincial state in we've safety, networks. got So, public

public had in rural I got thing. think out probably XX good areas, those of America. the we've of so that's think the that coverage been are safety many biggest And rural built, I

the also acquisition funding the to statewide see to CARES There's we deem continued rural upgrades. states have of way. by We that a couple of are accelerate at that looking

of generally states. those funding that more directed to some I think they probably rural So, get CARES it's

Okay. you very Got much. Thank it.

Paul. Thanks,

go Our Cowen. next of Please from question Paul come will Silverstein ahead.

by be into $XX quarter, I hit year I over arises, an guess the I going from mark And Pelco video give the but I non-public revenue XXXX, said calendar I'm all-in us -- did over recognize you longer that all on term video would remember Thanks. first market. million million definition there's your if Greg, million question And a you $XXX the public commercial to one like after sounds think, be, launched rate. correctly, can $XXX almost was number. sector roughly the quarterly you update which volatility, added thought hoping annualize public last in run sector you video hundred the sector. just

understanding did XX% year, that impaired and was and Indigo at somewhat time. is think last growing at I was -- the million my $XX

progression? this the $XXX revenue sector, tens, into with the the So, million. your expect year, the or for high aggressively public Feds should And we video look in in on $XX you base. you the sector without end million you've that police and given public added of million not to what adoption, just When XXXX, it be could of do early funding of very video video it's I a so that $XXX assume see out by moment. top that calendar

about think it too aggressively. I

given dimensionalize approaching video think I organic acquisitions, Avigilon, of development the annualized $X assets, a VaaS now So and about then continued we we're billion if referenced if Paul, the a and Pelco, IndigoVision few the security and and all-in business but and WatchGuard, you revenue.

I think of it for maybe us and between this million year, inside if annualized I revenue were to $XXX video range, range for it the security million $XXX company. I'd

market Historically consequential. about grow we side addressable single high talked share video, may about to fixed and may security goal ability growing low expectation and in not is as the vibrant more our to the take serve. worn it's backdrop that. video overall It's the think And at about X second about our think on body largest Molloy as significant. still about on fixed that market, So, excited we of the video three -- video market continue market of prospect video. clear It choice. against to the grow but control our an now. fixed I digits the competitor as market was It's and quite X%, be is a access alternative

of So, a now. there on good things going lot

video referenced the and also but of IndigoVision in periods, again, it's You COVID-XX. for Pelco the backdrop previous of

take you XXXX. So, video can't number necessarily a into and historical extrapolate

the and be $XXX revenue don't know would portfolio for both as second they use interesting think lot own. global fair And that, market necessarily the think say I the goal less owner that and Pelco between that Pelco million use be and present $XXX -- in their $XXX us could the possibilities by brand annualized, gain our I affords it's use brand, that be federal million a were standalone $XXX international use that then to Pelco the they -- million unique footprint, to could an stub the owned XXXX. revenues will company we in that XXXX, on of into this. before stabilize period There's channel, and a us to million

on government Jack to continue to talk make that. on can progress the We Maybe video side. the side,

Yeah.

So, two just things. Paul,

I hit think Greg well. it pretty

well And one exceptionally public piece about and how when COVID-XX note to dashboard. that to proud from want we're government of quick is home think to safety. develop we thing first The as I move they the is, I the team's they as thing working think all agility the of it, as market that's education were

workplace, or kids K workplace Through to software that access occupancy difficulty] believe through in of So, not XX and and counting school that in our social continue metrics, environment, within [technical we've we the use back as do developed distancing -- going correlation can reports we the universities schools, control do space think software mass the only well. help to classrooms the manager, the detections. enterprise about to can to or will the in in government, us

you $XX for to an first update us Hey, million Greg you did give relative on and Jack, to in my question the the Can about sector. quarter public that?

Yeah.

and so We saw -- business X% I'll -- severely. this May pickup. June. we grew guess saw And -- QX, as were grew think But it pick impacted in way. June April obviously I in in government We I the pretty as we much answer up. we we --

landed wasn't business strong. agency. In in again picked with of up business other fact, federal is directionally we million Probably north dollar very deal the but, in Education quite a XX, still June.

PCR $X All for I right. billion your If clarification Greg, just annual you. PCR recall, business comment. was a a on

So it ballpark. million about $XXX about when being XX%, saw I'm -- you sorry down

yes. That's right. Approximately,

I appreciate on. it Thank pass I'll right. All it. you.

Thank you.

Our next ahead. Keith go question is Northcoast Please of Research. from Housum

canceled would realized? Keith. delayed deals Trevor how to delayed quarter? about is you for And filling become compared the Could to the this second deals deals talk in when Hi, in you expect

I'm I this because to think and deals no, What have him we probably didn't I'd be on detailed. any Sure. said, of kidding. someone aware were that'd have I you've candid, by engagements And that be meeting. heard we've and did delayed But very I Trevor, I'm canceled. be seen think so is, forced we

So, deal slowed. when we April May, pipeline new that really creation two we started weeks analyzing in first of some saw the and

And QX. and our that as have in access an -- for And have upsold our done seen had saw We support has only would deployed actually excellent command The delays, North renewals other Kelly centers it on-time his piece as sites. I in that the eight service team center job is signage, integration tell America we networks think, command well. contracts of it -- but actually an We not been signed on management virtually software. countywide we've physical the I deploying some to from piece is you ability of we those were standpoint. other the equally, but access

team services an excellent the on did that think I that. job So,

canceled. nothing So

size, to in right, renewals seen but signage we've Some on-time agreements well. service management terms only as our support of but delays not and accelerate pushed in the for

lens we expect incremental the we we And engagements North at in of If international improving and through if positively is I Kelly's is, Yeah. million the renewals that be talked by would in which stepped that business beginning, deals about July. increased on the $XX of I'd did. again, an full year, other take delayed it customer June business, some that regional cancellations, but world, beginning but now But America only the $XX the Pelco, the Latin acquisition since and get value. traction, May down, cases, color add the the look thing down to that's rest and only say million to has that's no the for about May, to we some incrementally renewals, offset decline on-time, in America I largely from service

Okay. Great. Thanks.

Jim from Citi. ahead. of Instructions] next Please will [Operator Suva come Our question go

Earlier the evening. pretty about alleviated call, funding good conference in you Thank concerns you much and the of projects. the

bid about about are -- all answer yeah, Is and both. to talked more being of is more You to or like we worn question body And more I I things be to the you camera asked when just of know excited them, about center on? proposal fine. three. dimensionalizing are which responders, My don't want give command on, as the it believable the the or get being is talked prioritization kind but security? you first

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followed perspective, revenue cloud a from -- now, worn Body and closely then by as well. followed right

because we going are service cloud also opportunities forward. that And capture would a the as largely

a over the of based customer annualized. very It's an longer service is obviously, less annuity cloud as valuable So, a But significance the other revenue, financial terms than a in with their two. term, customer.

Are body And get once up naturally with pitching and of? then razor know metrics assume the lot a are I cross picking bit follow something percent selling. you've kind is, or of on success that of you Can of selling that? you a blade not But seeing anything just any of talk be you you worn cameras like conscious it's or in a I about model. seen be else say, or little we my X cross can

Yeah.

the body we're And public very seen customers conscious as do of our one command the is seeing of portfolio with we decision really relationships They've of things software we and our well, So, have So, PXX do in influence of upon. safety the we acquisitions safety relationships had public we our what's things the lasting were capability front enterprise into and cameras makers with those in to really bring long a or frankly, and the space we're Do and lot we worn the network. that continue when make founded and you've to center success with have those those customers. who's get -- trust? customers?

in public decision success makers in commonality safety. of think So, we've and And build to add those good -- relationships. good continuing there's trusted of and had a I terms lot and on going

we it, the kind account. to who's the our bring stop at a we we view of all And kinds part things. you have We DNA. and just of in every our we is And chart to of, progress, dimensional are we to those technology type just cross-sell where bear. So, just Jim, a three sign give have of ask competition account say to essentially -- managers. look every alliterate

you gives make how that's but perspective, on buy approach and that then a customers. to go how decisions we what we So,

add the Jim, just on I might cross-sell component.

our integration in cross-sell aspects products Records that in when still certainly, things And for Those the sense they level an call entirety critical and handling with our and a in customers to of worn high incident, products. a XXX jail underneath that from worn happens suite. -- all -- manage its video into But are customers from look our it and to suite we them a into there's we're traction the the helping give to definitely that the to that regards customers to from the the are there's everything lot into them call, And to in customer just to provide we but of that whole workflow all our body command feeds into our records way expanding integrated and center. across all think XXX handling CAD to comes of the on the of in an video, handling records I platform into what way worn, through the customer not seeing our regards command a view. complexity, body body court. the full video, a that way

side, So, they center Jack all I'd referenced. in in command cross-sell. work important And particular, as just there it's together say incredibly the on that

Next question.

conclude At Mr. Ladies this and for any Vice back Investor of gentlemen, the Yokum, remarks. additional this to over session. will floor Relations, will time, President our closing question-and-answer turn or I Tim

listening Thanks. today you in to we many soon. forward you of Appreciate to Yeah. look talking and

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