Motorola Solutions (MSI) 7 May 212021 Q1 Earnings call transcript

Good afternoon and thank you for holding. Welcome to the Motorola Solutions First Quarter 2021 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/investor. mode. been At in participants time, have this a all listen-only placed after [Operator Instructions] You have an today's ask opportunity presentation. to will questions now would introduce like to I Mr. Tim President Relations. Investor Vice Yocum, of Mr. your you Yocum, conference. may begin

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

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

First, billion margins earnings, achieved quarter. by was cash QX an We with records and QX quarter up sales, excellent last points versus ended basis expanded X% We year. of for the $XX.X operating XXX backlog operating flow. and

quarter strong remains demand in first were history. our that other resulting Additionally than in orders any higher

Services drive command and our margins by operating quarter had take for you based sales finally, our turn business for to full per Jason before our results and Second, driven year. basis operating quarter call through I'll across continues center and on now were last both earnings the year with XX% segment thoughts. some full seeing And technologies year. growth to and software outstanding the also our another and for and finished up this the to LMR, and our share XXX points video the margin across segment we're Sales Software versus position, strong guidance revenue up final we're expansion. growth outlook raising increased for security, over demand returning and our backlog

Thank Greg. you,

$XXX $X offset fees Non-GAAP gain to and EPS increase from to of both of GAAP year lower primarily operating share leverage compared $X.XX pension was and and both higher compared last partially ago acquisitions, $XXX by and diluted quarter. to income the million by due margins in ago favorable in segments. million earnings lower $XX QX or tax legal up of X.X leverage, million earnings by of acquisitions operating segments. of effective $X.XX manufacturing share the improved from offset million million by driven Our year. $XX the per year, earnings lower operating and and rate. XX.X% related count, year currency. operating sale to QX of margins Higher compared to in costs operating in to $X.XX due sales from Non-GAAP volume, sales discretionary higher XX.X% in facility up spend. improved including recognized a improved operating XX.X% of last $XX partially of prior non-GAAP quarter. sales higher of the a results primarily partially $XXX The XX% XX% included up was sales, operating GAAP primarily higher in OpEx versus revenue X% offset of due up the $X.XX million from and to billion, year sales million leverage a

to flow. Turning cash

was by million, Our compared QX million CapEx. free capital, QX of operating offset allocation increasing cash to improved higher with dividends $XXX price and was $XX flow $XXX and million million million flow and $XXX at the million with $XXX compared $XXX.XX primarily sales in partially year for of was due flow cash cash in repurchases Capital XXX $XXX cash the average higher The prior working an prior cash in year. included share taxes. of million million

a our share quarter-end five-year revolving During $X.XX into Directors we to the $X the and to Board facility subsequent billion quarter, repurchase the approved $X.X of billion credit replacing entered increase prior billion new program. a facility,

was and radio primarily and XX.X% $XX Integration sales the year earnings Moving to XX.X% in sales segment sales security of growth $X Systems in in from improved leverage. which Operating public video our offset million driven up of by were sales commercial prior impacted and on LMR, higher by billion, the Revenue or acquisitions X% and by supply were were lower results. safety professional partially up $XXX million. QX constraints. Products quarter from

in government $XXX million and this with $XX meet order sales $XXX German recorded with in agreement video requirements notable $XX large achievements the for a QX million US to upgrade million include last with QX. segment, wins in the upgrade Canada, initial $XX of government TETRA Europe Federal $XX MOD million customer. million year, Some a PXX LMR their an agency PXX a frame large of million XX% for and TETRA with in order customer a customers up from

Moving Services million, and the year was driven QX million. in up segment. last million gross by from sales, and leverage. earnings $XXX command services, growth of Operating revenue sales, basis points Software was higher last by security, software. video from LMR in to driven and quarter XX% acquisitions $XX the center XX.X% from were or up margins $XXX year, XXX Revenue improved higher

million Nashville, Push-to-Talk contract body-worn Lucie in over our of large cameras A contract million UK over $X $XX the A include notable and with orders Middle services, customers cameras for million and Florida. customer. Push-to-Talk multi-year body-worn Tennessee. a $XX win large million Eastern a $XX from wins with Some US of PXX with broadband segment, upgrades cloud-based PXX QX $XX and with St. largest A command million center multiple broadband contract to-date. software customer.

product Additionally, VXXXX we PXX announced APX integration new our camera radio between and our platform. body-worn a

driven Pac, software. Looking in regional security results. North and and video revenue America revenue LMR, with center was growth LMR. EMEA, The Asia million our of and in up $XXX X% and at QX command was by Latin America. up growth growth security, billion, QX was video International $X.X X%

in and of million $XXX to compared million internationally. driven billion, million products. of driven down partially Moving a QX with international Airwave the offset growth North was $XXX Sequentially LMR America ESN in recognition was to and Ending by record by last growth $XXX backlog backlog. $XXX backlog revenue of up million growth year contracts $XX.X on

in SI Software multi-year Airwave backlog LMR and and recognition ESN. impact million by of Services last Products was FX compared center Sequentially, by to backlog last regions. $XXX backlog million in backlog was was million LMR by revenue primarily ESN. was by up international to for compared software services up up recognition also Airwave $XXX of million LMR command driven million The was and of backlog driven year, growth compared international down offset growth. $XXX North growth. by contracts and in driven million year $XXX driven both million growth software and America revenue for Sequentially to $XXX and favorable $XX $XXX

Turning outlook. to our

primarily constraints between XX%. includes share million non-GAAP LMR for This million at year prior guidance of effective an rate X%, year shares between And and a to now current the XX%. per $X.XX rates, sales and share. rate over to XX% expect expect share X% $X.XX the we and would and weighted an at the guide to spot our to be count up per and sales per from We with to shares between and share. share $X.XX share full call share rates, XX.X% XX% $X.XX outlook increased turn expect FX of per products per be full supply to of our assumes average XXX of ongoing share effective and FX assumes tax current prior diluted This chain diluted X.XX% average per QX to to per now non-GAAP back X% we EPS between of up I an like $X.XX spot increase up from Greg. weighted $X.XX tax earnings count of share XX% in approximately and XXX

Jason, few a on business. thanks, thoughts and with end to now I'd like the

software margins, growth video record gross results operating for in orders, double-digit business LMR services and First, both center growth. earnings, security, expanded quarter QX and achieved We outstanding. sales, and returned our flow were PCR operating our command the cash and achieved to

inclusive we that a the the exited continued year backlog that and record demand growth have. of quarter will we we Additionally, strong the supply the challenges remainder QX for of drive with expect

today repurchase the announced also that program. to $X a our Board We increase approved share billion

video to XX% really plus up fixed is I security teens the full XX% video, The video demand which the now our revenue. say is second call. would In strong high makes year from we approximately security last business referenced and expect total on growth we our up in be of thing

services, from camera and the been mobile driving AI and that in-car share we're for manufacturing in is faster and predominantly NDAA-compliant than by cloud Our in us our And market. gaining purpose-built access differentiating overall more control vendor. and investments competitors our solutions growth for the has a transparency in video, market call driving growth is one analytics, body-worn served

body-worn quarter, camera wins US During several in internationally. and had we large the both the

cameras Ministry Just Interior. this contract morning, to the provide to body-worn a French of announced about we million XX,XXX $XX.X

continue has we and turn drive years police the areas to to our as LMR the from is installed leading Today, solution affordable body-worn up and five LMR back base new while pleased a higher-growth radios, The that's $XX have call two our announced revenue our security, ahead market central company. believe we the over integrated with that over body-worn inorganically and for installed offerings. to these leverage And with flow significant from PXX offers margin, almost long ago our absolutely in progress, quarter, that, a cash expand camera I'm every with our same market software the in in still and of offering, capital runway the revenue, LMR base which finally, our in service suite. forward VXXXX access allow our video generated both period made integration our questions. I Tim us now to And, leveraging with we've to of center command per to addressable camera half a month your very agency And tripled during Additionally, time. and which as services. these with APX we and US progress areas in fully look software, deploy our command organically video XX% I'll to leading

Greg. Thanks,

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

The Instructions] questions. Thank open you. is now for floor [Operator

Tim Barclays. first question line from of comes Your the Long from

open. now is line Your

update traction the kind bit a more there go-to-market of area. a It little bit the you. questions seeing you about Greg could bit video software into verticals And push you I public then on that business. if business body-worn you focus. Can more safety could Greg, meaningful back how you. for and just end more is process body-worn little both how does are talk going us camera bit, of talk is about traction making seem how if also sale? like and with you sales important give the offerings the Thank maybe Two us of you're we a little are on and actual of could Thank the an Jack move kind for little guys seeing the force a how video the remind on a talk or second of there. much that of in where there all and the

mobile. total. fixed with pleased video security Thanks, video Tim. I'm Both and business the in

think both great additional camera, the a video, and mobile the in I refreshing has in on done Molloy entire go-to-market, body-worn fixed video. investing Kedzierski and job team and product portfolio

also the well As I may doing have that I networks have second the progress to this big but Jack But well great the we're I'm share that share French domestically LMR is we've half of in safety we internationally. and which Ministry body-worn pleased to progress in with orchestration secret integration installed with the with. morning the just also last world. and pretty about PCR both XXXX, think the clearly not with announcement taking products QX sauce thousands it's thrilled mentioned, think took since that taking public around and in for Interior. in talk We're We want had I'm us of base of and the video, I camera, and been we we're the of as year, and as share. that clear late the with

Sure. Yes.

on Greg's. of top Just point to one maybe follow

as all, body-worn. of it First relates to

our shipments at that If was grew X,XXX a in look is perspective just grew body-worn we They which their competitor XX% data in Exxon XXX%, and ourselves. absolute released shipment whereby XX,XXX by units you QX units. an the that

we've indicative the So of I think that's share taken.

the in us largely plays a thing, few to there, as The Rescue at and around tailwinds access us stand Greg transparency American the million multi-year and talked business remember both it with for The general ago, in our both mobile. play a start you public was we think puts relates of And business you schools and I'd Tim, fixing things, video close really as into $XXX education, I two last will think well. and just nascent efficiency. really security years in video eclipse government safety we're and second I that I thing intersection fixed that think to important is as Plan if said spend with about incremental on for spend, control government strength

a a just reiterate few on good add I Greg So, as good those said but deeper, feel all-in government. to of little points feel and

what the platform with software evidence body-worn and it it comes seamlessly it. our being of with body-worn video, body-worn is have, manage -- CC and video is seen our past cloud quarter, our we question with And, body-worn how works evidence just last which software, you it Tim, in on the that the central that your plays that into new command important part suite have our but command well. to seamlessly that's because your integrates our we of works work just which whole center video, the platform, also entirety video Azure-based This help on seamlessly may of records platform, managing announced which with in-car all doesn't video as

across and that together well board we're back on the on work referenced also of handles together play investments as all body-worn making they the Jack the at the and software So course and end.

you. thank Okay,

Tim. you, Thank

Your of from next Tindle Raymond Adam comes line from James. question the

open. Your line is now

half be might incremental and Okay, the thanks. to think as Greg, more anything year-over-year at start continue it afternoon. for strong I Good the obviously stimulus good very be business is the it's a from record X% to recover muted just a PCR forward and conditions growth seemed to on backlog basis, seasonality. looking full-year want QX, I guidance, to back around then

standpoint. Just healthier from seems than the might be macro normal like environment the

I'm for cause getting maybe have more growth year. And ask. muted I but that greedy, to full on I offsets would could the touch So you recognize, the

and is look is demand think the very strong. healthy Adam, I No, environment very the

robustness think the of outlined I we're QX a that's exiting in the indicated that that number by record as the of I QX and the strength categories backlog and well.

is also half we I half obviously very growth, happy and to with million I'm like that, ago. first Now half, distorted bit but said high. environment, first a in effect, it growth XX COVID favorability talk you we're I'm look of to operating pronounced remind to at relates generally this the for how FX half, guiding QX pleased million given and second with half. you, XX It's QX us companies, XX right, in QX. as more we're second year current what a nonetheless, other still in it the when for also million is quarter Adam, the was first It's to the did us but which is having what supply, if we under very you comparable

remains Although, to pulling nice guide is it job I execute with QX. forward did challenging, key very while working would a some informing a suppliers point QX. doing print again, healthy and it driving They're key and which the team out, also components in

So while to I fact the pandemic those look prudent which supply the back but at given is time, the the we thought in will that still challenging, a environment and point continue remains in on was this half, improvements guide. it there,

sense. Makes Understood.

the to talked follow-up. year-over-year, around ask Just is you previously you think I on I a to XX% slides goal I healthy. as grew in on center ask, about did want If had look that touched a video, want correctly, software. did command I very XX%. of which

you'll delta that or on quarter, to how thinking rate in growth catch should Do this to be up we XX% just lumpiness forward. about color that moving and think attenuating of just for now? maybe So think that wondering the is I'm you about

impact as associated won benefit saw comps to half thing with of we year, We're NGCS the The in start Adam, growth QX the with mention of come QX not through yes. the back we the we which will rates half growth softer COVID pleased into and we year We're the in is revenue still some but contributing in is the have on last from tracking of Kelly. back that to the XX%. very answer large QX, it's will XXXX the we XX% what other deals, year. the the got,

the approximately XX% is we to going still that So are something targeting.

Thank Got it. That's you. helpful.

Your line Stanley. from question of Meta from comes Marshall next the Morgan

is open. Your line now

appreciate I it. thanks. Great,

are whether margins. with you good problem kind any on having you're be what any just investment you I throughout cadence Sorry, of mitigating the front-loaded Maybe could are these do plans do think stimulus of overhang just the a it year? issues, if being the out, investment stimulus on we like chain think just mean, -- as second my will more or -- some you rolled mitigated mentioned but will be you supply you're spend seeing -- And just phone. of backloaded funds

Yes, Meta.

So as year at for the of we from look perspective standpoint. from full margin and a margin the a company, kind gross

the I slightly segments and for maybe as margin will gross well comparable think as software well probably that profile they products be services. and includes the up as

anticipating If a you increase margins grow talked basis take operating up in be XX to points. commensurate services we've product software expect what about by to from more margins, quarter as we're XXX basis about ago That's volume. margin with and an operating expansion operating and well we now segment points

it's the of partially environment, terms I demand In demand. think, pent-up

on as From there which and school billion of Biden money already safety the There $XX reopening $XXX Act, American a think as of expansion. continues are as economy a itself customers, around geography through public the available upon $XXX funding. I relieves funding. for state a Plan. There the starts is to both stimulus XXXX money get lot the pandemic new standpoint, is money. local was side in billion trillion on strong back to and Plan, airports for particularly the rhythm in XXXX and our things place is lot the is for is transit. $X.X a is which There of for CARES a into billion depending Rescue and available well the There

to thing important are years. funds X.X The years that next these is about the available X other for

at The So will in enterprise stronger are reaffirming business grant all environments on in our QX the this PCR for money, we year. customers and X% remaining public growth available the and its safety. have strong in grew side gets

like I signals the I we're seeing. So the position we're like in and

to costs. costs freight, ocean add freight, I'd seeing and one measurable high. input what area on of off had we've air One on the We're moving not The thing freight are been is the which navigate where had inputs. things higher very increases to

Greg So that's there. slightly the inventory through to opportunities leading time but we'll being, navigate said higher as for more but those

Great, thanks.

Thank you.

the Blair. comes Your line DiPalma William next of from Louie question from

Your line is open. now

what talk are of your vertical for there seeing demand? the Good strategy afternoon. you education Can you in and terms about

American Sure. Louie, school talked hi, it's September just There $XXX funding is vertical, directed it's billion runs Plan. The Jack. education Greg Rescue XX. because the about that interesting, to through

work put, duality got really opportunity education one with and in of our not regional have growing and fixed we opportunities on out that a but business. sales highest team, of directing vertical with a schools of we've only been those that video, business verticals is education. of in focus in development control business. biggest So with a it's we access have kind things. The funding Simply We group specialists security, our have

but and video campaign that security message actually -- So pulls we fixed together that and well. a we're have safety there, pleased reimagine PCR resonates going also work on we and really very do

an about has have signal been So sends teacher get security impressive. schools resonates to a whereby that access I customers. with on control, of might and our door you enhances one that intrusion a PCR radio every think think And a level the

actually education. this really set excited the is here in we're probably So in had career we've best opportunity my

that Louie, key other analytics, what around the integration. think automation, in think is think addition Jack And, to said,

video, on Infrastructure backpack, Critical delinquent mobile parking on mobile land So radio, fixed detection, a trucking the inappropriate as student, perimeter video, Solutions Motorola lot.

automated. would All of be that

sends an XXX also to central automatically a aware, but alert the in alert said command As Jack can radio, only dispatch well. operator not as

technology integrating of don't on differentiate an that the in capitalizing video and have else think offering the targeting safe automating new can provide. the we're we anyone we schools installed So and base fixed to leveraging all architecture

Great.

it's Avigilon, So just suite broad it's of products. not the

Exactly.

the as well. You're you. bundling analytics think mentioned radios Got with I you the and PCR

us Yes, software with to and work and make work in critical to together. our acquisition has Motorola to work -- technologies the to from integration us from the CTO the Mahesh of orchestration -- Avigilon seamlessly all who these came been

him Evolve your I presentation investment give saw a and technologies. for Yes Great.

And with investor a investment gives us were make Right. with two It's committed a future in Evolve more or probably Evolve. that access around another control. investments. little a bit year earlier We We're to ago consequential.

And so Evolve when integrate forward. you think our like we around stadiums operating or hospitals about critical interesting that about as component going partnership schools think and portfolio and a detection infrastructure suite differentiated or another into locations weapons is develop airports product to or the

Sounds good. Thanks.

Your comes the Paul of line from from Cowen. Silverstein next question

line open. Your is now

appreciate questions. taking Thanks. the you I

Greg a that was? growth hear I apologize misheard, you for what stated the didn't you but and that clarification. year, heard I I think full growth say just but for First what I I you're confirming PCR

year the in it with Paul. We back that are We business. it like full give surprise are number, it is wouldn't if number, I a I X% but generally full year, from the didn't that for the QX. kind grew signals commensurate confirming but that that coming growth mentioned of me specific

All I'm actually hear paying right. I'm that glad to attention.

you're and sailing that cruise there's note, any But eventually give you all see in I hasn't although recovery and yet. video transportation of we the public question reopening, I security your that on ongoing talk always improvement you insight it encouraging. were about oil a the can seeing ships on in hospitality for a terms and give sector. news the happened and can if a trust can So may and in serious paper incremental where read gas you but number, all

it's I a expect adoption run million expect Geoffrey that in that goes you I know that's as Moore to one $XXX accelerate And rate becomes said expect on benefit would the know crossing a utilized that from as don't million a just would cycle, if $XXX on XX% or number chasm had XX% or XXX. the we further previously, now So over acceleration mass? time but of normal should up meaningful. critical you I with

plus as the is kind security and outlook taking a the critical today nice on with for technologies of enterprise share growth. We control body-worn of a into and a necessarily. as for but and the video too to momentum that we fixed benefit portfolio relates the can video up individual density of XXXX access high is Well, I front. Paul believe us getting a I our are PCR good. did access from bit are verticals integration the nucleus security It's is we're both We're The in all greater markers certainly growth product little provide that, it's for component. also little opportunity component. that mass, being is for a on it teens. get are good. that recovering from wouldn't taking the perspective Jack necessarily fiscal maybe share XXXX XX% We're share. a raise control taking and camera The extrapolate refreshed in into flywheel video the investments And made also that early

Yes.

to rebound. have slow been markets those internationally still So

is and QX I we year, in better, really would Hospitality started those and year think but this a still see I oil very things QX improve slow. in general to will slight last Southeast say and earlier would it's improvements we gas Southwest, through in seen, have the slow, still measured QX. been the some into it's We in little recovery. say, even in

of of Last 'XX. XXX business we're year Jack's million total us that, $XXX of business the in points the year's comments earlier thread were just video the plus this about on that's that in talking growth. million, was for at And two penetrating legacy our four about XX% in growing specifically business and accounts that's into anticipated this was doing and just that. that's and thesis very was Avigilon of or the that part portfolio nascent our years year from three the to we're ago part government, a be

Understood. I appreciate the responses.

Paul. Thanks,

Your next line McNeely from Jefferies. of the from Kyle question comes

is Your open. now line

Could you the question This bit for is growth a high talked you George it that up Thanks about Notter. of similar for take video some about the Kyle teens that somewhat This a to can just the driving verticals Hi. answered, verticals, but from lot you is to domestic? the how talk little recovering but you government, for clarity that's question. are on to you other hotels XX%. kind I but There's a too enterprises, lot the just retail, of then there mentioned believe internationally or here is schools. you're us and and versus I some of playing doing assume, the casinos, is give the US. international there's how on play would you Thanks.

Yes.

the standpoint, of really video, analytics that's but a nice paid benefit again, strength but in as the a from you in about Avigilon, about a as North tell we think go-to-market fundamentally talked to it technology in growth this well. as growing that's North acquisition, and refresh, and camera also by helped government's internationally We've really growth I first coverage, year only leave be part the it's hit fixed to which to us the job a refreshes theater America, vertical international done continue not really Pelco big education dividends. key drivers I'd been a have for driven is We well have accounts, also government been every federal driver, also the start would So America. through grew.

nice a get was you a to too run off to previous timeframe Is I'm it might year give to rate, back whether sight also business. then about can have could Okay, us or trajectory that the recovery of you $X if PCR predict line in great. that it kind you it's comment and recover far might And on when past little to the when some run this billion rate? hear to of you the wondering pre-COVID.

just would predict quarter-to-date through I very probably good. say on that front, actually the from and an QX it standpoint, Well, early but to too and this, is trend orders bookings is

inventory of stronger, be heard good though levels And say managing they're their but of a thought Now strong, a to in and PCR channel again I'm are view. and of PCR in we environment, but in declare return they full-year We're you where we're not strong, constrained as but operating had we as certainly I'd they May, but that growth had would handling of I even our the we my would going we'll orders ago to have when signals probably start, sit endpoint to when partners XXXX. the good say, done here I expectations ahead it's in we a quarter to very a to very and certainly return balancing also customers, are satisfy job, that the I update for would supply you we good thought off this hold the an that are simply good. me it's expectations say August, ahead level,

other that part good rates. take encouraging a sign important and the The is we was of launch portfolio from good seeing that very a Ion and that product good reception released saw in recently

in I'd be during that replicated also Jason, thing, last our for a school of other distance districts that big learning. been drumbeat investments interest We've about We've lot we've year. there upgrades investing to a piggyback talked talked only continue of and available the And summer is We that months. broadband the have and those on distance learning. happen schools and about talked in about monies QX are four

So solution about LTE, well. excited as private our Nitro we're actually very

very Thanks much. great. Okay,

you. Thank

from line Northcoast comes question Research. next Your of Housum from Keith the

open. Your line is now

Good for afternoon. Trevor This is filling Hi. in Keith.

will is to seen years. few next Plan, sales Rescue earlier that the too impact access it pipeline any mentioned early? money American the the have With on Have for you yet that you customers or

team we've seen It's go in Yes, but salespeople we've a you of also and -- had find but good little the it funding and a a had right good salespeople local airports kind and as We've and money transits for of they discussions when away engaged pass give -- public the a been really we have. well. they've and schools, safety already way, downtime, bit joking some question. with state doing the engagements they're planning

know they've funding Now that got available. they

much? you a Okay, the yet not so quick to great. And Has normal that maybe How returned follow-up. would characterize or sales cycle?

both enterprise. and cycle the XXXX, it, here largely in of is to of in focused sit say business, very Asia have American North North America, which would back in A as returned terms government and of Europe still to our return the been Borders in Parts would has and things in slow normal things of slow. virtual. caveat we I sales down. normal, PCR through terms I it's normal. engagements lot running it's Latin very much very COVID return close but is America there, in are to and slow

Okay, great. Thanks and congrats quarter. on the

Thanks, Trevor.

next comes Partners. the from question Your line Najam of Fahad MKM from

is open. Your now line

Thank question. you for my taking

of quarter impacted your you supply time. shortages. current and provide of You have up. Was impact component Can some from And outlook chain how couple to is I much by shortages a any your mentioned follow component quantification? there

an QX's results LMR. was a there chain supply Yes, a small a It's number and standpoint. of from It's suppliers impact primarily Fahad. currently. very constraint Yes, on

It as for most the stronger team supply in improvements mentioned we in some here what we get And has could for demand while also that is these to units we good with improved I QX, environment incrementally unchanged. and QX than QX As have the well. had was the chain working some made supply for part suppliers additional earlier. although is

outlook? the about of shortages? in the baking headwinds How some Is your component -- from much is guide how outlook

Definitely.

half Our absolutely in higher, it. I in a full the have be stronger it nine Without through second constraints. QX. working year environment, to We would think guide them, improvements but made we'd an again eight current incorporates unconstrained we're but supply

in QX do We are part guide you we'll in to work making to strength QX for and QX, in XX% is and update in us improvements which again the of August. informs there XX% and

into to My of video the opportunity the States. dive question other Okay. fixed I United wanted outside

coming in implicated wins provide appreciate Dahua extent large and much Dahua growing to And some in is against Your of been largest it To that video footprint. have from Chinese what quantification. China. two but camps can Hikvision competitors now I running how much are you in overall, these is pretty these share concentration gain and see you suppliers? two beginning meaningful Hikvision

and video named also name deployments about right, are money. certainly both by an Act, those everybody. and Well, Fahad federal to National I for in asked the remind you Authorization companies government any international Defense grant you're but question, important agencies It's eligible being know are fixed also not and having not any

about the characterize or We the about China, XX is market out in XX opportunity zeroing billion addressable billion and we are which here that's clear-eyed zero.

China. expect those democracies. to know I well of be We Hikvision concern But vendors and and and zero favorable will video in a in other that providers I continue parts Dahua Europe the country. fixed think two implementations indigenous critical around has impact in clearly security Western sales that with in as the NDAA-compliance the

a So tailwind. it's think I

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I the Thank answers. appreciate you.

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our Relations Tim I the no this President time. any closing of will questions for Vice question-and-answer Mr. at over turn are There session. Investor concludes floor further Yocum, This remarks. back or additional to

and we today to soon. to look Thanks everyone for us forward joining you talking

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