Motorola Solutions (MSI) 5 Nov 212021 Q3 Earnings call transcript

Good afternoon and thank you for holding. Welcome to the Motorola Solutions Third quarter 2021 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] The presentation material and additional financial tables are currently posted on the Motorola Solutions Investor Relations website.

In addition, a replay of this call will be available approximately three hours after the conclusion of this call over the internet. www.motorolasolutions.com/investor. is address website The At this listen-only placed a have all participants mode. been in time, You opportunity [Operator after have will Instructions] the today's to presentation. questions ask I now like introduce would to Mr. of Tim Investor Vice President Yocum, Relations. Mr. may you begin conference. Yocum, your

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

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

highlight business. continued grew revenue QX strong demand XX% by across points. share we're basis First, earnings expanded seeing per the operating results We the XX%, and XXX margins

the with of quarter ended $XX.X last record from we backlog X% Additionally, billion, QX a year. up

Second, our security on final chain technologies up install And continue Jason navigating software up new we sales remainder revenue XX% saw existing outlook fixed video year, base demand and quarter. the within to both turn for over video to raising based revenue was our our call by both finally, EPS. going during customers. for we're and command through strong we in and while of the strong In expand to QX And the strong take and control results our mobile environment. our our results three XX% In revenue and year win to now guidance returning as access supply for was up offerings. broad-based all challenging very growth LMR, driven was in the center a XX% for you full I'm some and before again expectations thoughts.

Greg. Thanks,

sales, compared of margins $XXX earnings operating quarter. favorable $X.XX higher million operating $X.X leverage of acquisitions earnings and from occurred $XXX sales, compared QX higher driven last in per was GAAP margin $XX and debt our $X.XX a million leverage improved $X.XX Non-GAAP year, EPS million, gross well segments. acquisitions. sales, of the to currency of or gross Our higher up to XX.X% and to OpEx segments. compared higher operating million million, up of $XX related in in to quarter third higher loss increase as the up including primarily GAAP $X.XX $XX revenue $XX to Non-GAAP margins year, results leverage up of rates. included XX%, due year in from primarily and XX.X% operating related billion incentives year XX% primarily last ago earnings million million margins improved the sales ago share And XX.X% again XXXX. to by XX.X% and operating non-GAAP in quarter. year long-term operating was in of from higher of operating ago refinancing margin due the higher as that both of from higher of gross both QX quarter, to was expenses and related improved $XXX due versus the to compensation to the

to to offset cash inclusive $XXX increase and year. flow of million paid last partially was in by the working cash last prior free year. during taxes in flow driven in cash flow million, billion year year-to-date flow with our an operating by in cash up $XXX by offset higher $XXX cash free prior flow compared year million $XXX partially was compared up cash in primarily earnings. higher QX with $XXX capital The million this higher was $X.X earnings, was million Year-to-date was the cash over primarily $XXX million cash increase $XXX Turning operating million flow, The higher compared due was while with inventory, flow decrease year.

Our an in of $XXX QX million cash million and dividends in average in at $XXX million repurchases price capital CapEx. $XX $XXX.XX, allocation included of share

Evolv, Envysion, equity net $XXX closed a concealed are end, in leader to million Openpath, in acquired we the security securities during invested solution, the business quarter cloud-based and leader video of we of quarter, access enterprise a detection and $XXX powers subsequent for cash. for weapons acquisition control technology solutions $XX Additionally, We whose analytics of in million. million

$XX the sales were in segment products from year security. gross Operating growth leverage. acquisitions million sales driven was up QX billion $XXX video next higher results, to quarter strong XX.X% system prior million. and and higher our XX% from the were on LMR up by XX.X% earnings sales, Moving integration margins and in improved of or Revenue operating $X.X in

order in of and large this a from include $XX segment PXX large U.S. from million from million our security PXX control customer, the in $XX TETRA North achievements wins by notable Some customer, access TETRA $XX Brazil. during revenue quarter, a federal also Navy, and America large EMEA a Metro a XX%. German Paulo million product a customer, million $XX from video São the a upgrade million orders upgrade we a grew from $XX And PXX order QX

body-worn QX suite PXX a command City which broadband in multi-year order last off driven Operating XX% million state extension wins renewal a million higher center York, and year U.S. Revenue camera $XX customer $X and were was command large multi-year with million. revenue services earnings notable and North basis $X services, improved driven a prior win. QX to leverage. customer, included million, in America, Yonkers, Within with a OpEx of from or XXX $XX by by up gross sales, up this a million sales, over security and Push-to-Talk software. some LMR million higher acquisitions and with $XX video million in local software growth was security margins software Moving points the contract $XXX $XXX XX% from segment, from large of video center segment, last the expanded with New a U.S. the of year CommandCentral a customer, quarter

we During the XX%. access by and software our quarter, grew security control revenue video

Additionally, intelligence. we launched in-car the enabled video the system first MXXX, by artificial

video revenue XX% $XXX on was billion, up up our Pac, during QX we XX% related quarter, America strong in revenue EMEA North to continue to security growth center regional results. video $X.X LMR, in lockdowns various Asia center was next also We software. Moving LMR, International growth to command by security QX command experience driven and Latin and while COVID-XX software. in in million, and America countries. the saw headwinds

was backlog backlog record North driven by of $XX.X growth QX up America. million compared to $XXX America. was Sequentially, by Ending backlog. billion, to $XXX million driven primarily in last up primarily in North Moving year also growth a

revenue by SI compared backlog $XXX Sequentially, in for last down million during to ESN quarter, recognition and and million products sequentially, LMR driven the driven by regions. million compared services up software $XXX over last million AirWave services Software in the up software in offset was and The by offset ESN $XXX by year growth services on by driven and partially growth year. and revenue would a to both multi-year contracts, primarily North America. in and recognition in primarily year partially contracts million $XXX was backlog backlog increase last $X AirWave

share billion at tax call XX%. OpEx This to greater finally, I'd Envysion. be XX.X% to up than flow prior We turn be a current $XX increased full Openpath growing share, next like XX.XX% $X.XX Turning outlook. acquisitions It be our back prior to And of to year And earnings up per full spot video cash $X.XXX rates $X.XX operating between expect And full our along we per share from million of conditions, guide $X now supply technology million and to expect year to compared year FX of our now that Greg. full of With expect outlook share. expect over the sales $X.XX approximately includes count billion, now now and inclusive the security chain up XX% with year and we to effective current guide estimate. from our to access to an per rate and diluted latest $X.XX control we view two includes of our of also XXX shares. XX%. to prior our X.X%

end executing Thanks, call EPS, results ending thought I'm the we for thoughts the operating is operating open basis outstanding and But tough achieved few very XXX the sales, before were would quarter questions. through points our finished earnings QX proud we up first, as and chain it a with We Jason. a backlog. and with QX extremely by team for of record I and the margins record conclude quarter how environment. I supply a expanded

and two LMR SI constraints seeing to on chain robust, products our video backlog. record we which software and and improve supply impact demand, want growth some profitability. by security services, strong highlighted QX both and in our Supply I to segments. share driving business, continue Second, continue solutions the expect to QX for we'll to in ending our do color see in revenue our as ability demand growth and outpaced obtain particularly In in to is we're In remained QX. in what LMR continue actually revenue we the demand so strong PCR and in business,

XXX to segment. as year, expect basis fact, points the year-over-year increase by margin now we we In operating for the finish

double low in digits. in command their center to services investment now revenue we to value-added customers our expect increase continue Our and be software software, growth while

and security control video will area than and is software this portfolio. XX% be revenue growth fastest Our greater year our access the software growing likely within

look as I'm how we're encouraged Finally, I positioned. ahead, by

in video another cash with it, while our and and providing turn NDAA backlog within earnings to both provide install funding with relationships flow of year us back the And year, call the XXXX. at a still good We're in manufacturing QX I've be more North and to visibility. now planning I'll solutions, first we differentiator customer The Tim. our revenue strong next seen demand for significant half the expanding base provides strong America and Our us for environment is as as over software our we're fixed in least expect is to challenging segments existing through growth our chain compliant of key supply services.

Greg. Thank you,

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

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

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

access then just you plus one Maybe obviously, And this and think market center share talk XX% sustainability you. video what into look low as we be strong you FCC, command other should software that as really far there? could drivers, Thank And follow-up year, control, lead the side, some we do digits. on bit on the the can about gains a little year? watching guideposts to things NDAA, the of double next real as any

I some it think, be been better have that. could views, there than

more Is So that the levels? new done about, you color too. you. more stimulus? can bit to If it to from talk on that it Thank That'd business a be these needs customers? maybe little what us be reaccelerate give winning great. Is sales? for some could it you bundle Is

the entire it's Molloy and on Yes, Tim, phenomenal management it's video, execution team. just by --

now expected really probably refreshed market so growth. As still over the product portfolio. a largest grow We've way, our little robust you out strong, to the it's over it's portfolio. organically, know, We've addressable rounded XX%, the XX%, by a

go-to-market downturn done I had increasing great think and and market. R&D Jack team in our investing a job in a

I of a control continues to have. more continues a -- and more more customers have to think and to and video than important with nice more be need access be our to

It's market. Chinese done. he with would which As FCC in referenced, signs And as helpful undertaken does Biden is eligibility with NDAA know, the procurement, you look you money. around the the you the as entire President grant authorizes when sure Biden's if awaiting they've federal well been to for signature. If that legislation the FCC, evaluate referenced, proceed the there's and enterprise pending federal has it for vendors and as as rulemaking

well. But as be profile. Jack, would know be the add Don't tailwind if I timing to So that to demand don't significant that the you materialize. if a anything for about that that. clearly know overall want would were

the other the all, of the move only for I terms in but think, to the cloud. capability Just new thing, moving introduction, pivoting first also of cameras, product both

acquired at you Envysion. This it standpoint. announced the access the frankly, acquisition game changer a really also look quite of acquisition think who's from an standpoint. we Openpath, I control from Tim, week, We've

scale. a and add So And invested of in acquired focused to as in more the one international to us as greater our go-to-market reasons you in past, talked vertically about heavily can terms the North for We've at was way Greg look America. Pelco that we IndigoVision of solution. get

Middle the next in Europe, think Africa. be I and will East, frontier

And incorporating backlog double little we're growing things the having XXX QX still around good relates it's the but composition the we're some digits. bit orders particularly is Tim, a that software, at center maybe longer and market, was overly annual a and said as share growing duration candidly, command taking it revenue. to was next-gen on in so in recurring retrospect ambitious, X.Xx target that little

benefit is infrastructure And That's in like sophisticated us of that doing on-premises, specific part customers for just always have of some a terms strategy. product IT of our in to would our and invested to we're Many are. customers they meet things a better are core tenet where to customers the and they cloud investments, to are choose give continue delivered through from capabilities also in the their cloud, better. they know that and want certain the move capabilities we timeline. those to just own just but the to cloud to Those flexibility

in hybrid consideration, And so the And of on-prem and both basis. cloud with on-prem and the there. capabilities allow our things consume integrating both in three to to a very to as with they a the subscription a capabilities, relation offering it's a existing into choose to central cloud whether solutions that, inclusive is going our we're we're and to command would whether solutions what offering on whole. flexibility cybersecurity monitoring is we're be our in important service the on-prem solutions, from One, Records as capabilities We're deployment cloud. offerings, customers via specific new doing like integrating deployed regardless or solution cybersecurity third, the of or CAD

combined all accelerates of customers. think of capabilities I the across all cloud that really adoption our

Okay, great. Thank you.

Thank you, Tim.

question comes next Credit ahead. Suisse. Please Sami with Your Badri go from

you. Thank

be was full of And for it. have is Greg, I quarter? what guideposts out for revenues second or single the EPS U.S. to year, Thank year. the was then views. on what federal initial percentage or give kind That's U.S. takes us First the of just for the every you'd even question, is around you. you us federal revenue or should that actually of in I year this margin. any give on time And expectation growth hoping revenue

Yes.

we quarter. obviously So it I'm QX tough print, we're of we're and Sami chain tell not the QX XXXX was here going I a supply but was the proud by of you tough to is will as environment, but tough, that guide well. per se, today proud thinking, of, the as kind tough I'm way, sit

we've So of still is first it that's of least difficult from QX We first supply and kind so at half I challenging of a the that. backdrop having half -- to toughest think expect that the 'XX said experienced. standpoint chain QX, be 'XX,

at about high X% dimensionalization revenue services, software point of and of growth I level. of and think XX% revenue around about further this level maybe growth that's high

obviously in But high would margins. current to higher level thinking in face in well, details be costs from that's of Our input expand to goal quarter kind a follow our expectation of 'XX it some the color. and operating now, as also

to your like part having Fed, strong to X% it's of Well, year revenues. respect of And another we're Sami, last the Fed question with second mention in roughly our year.

revenues its to customers. of in So is one us. X% is, It's contribution largest It's of our totality. one

I MXXX like this enabled actually And right that any even like have by or Mahesh. product you is yours actually It's least and in-car competitors and one at Perfect. now, with system had do maybe this for go-to-market the rollout a follow-up install-based yours? about AI. an guys video even Do

within solution capability, which features improves of and integration tight the our that we've been which is synchronized for the the all really that MXXX our insights and core XX what a the something is excellent from unique that have RE, years in-car a a WatchGuard MXXX time can upon in We the the after is is very the is manner. happening incident in solution, very something the of so Record our do. gotten that you what's perspective have which has that I to those video and the we've video from capability with video improve is capability and in-car with on unique product, This leader WatchGuard we fact synchronized camera of product candidly, the get think past a is we four And current something dedicated customers. the body-worn It feedback the WatchGuard. from No. excellent review feedback a And body-worn in-car of you in playback customers allows is we the display. a got dedicated both display a tag our video to record portfolio. an that in on.

the to and largest That's our out ALPR to capabilities, the analytics has in and also we that table just the MXXX with stamped, great capabilities. to is And camera effectively have forensics watch we an but lists, recordings platform capabilities rear the for detected, which ALPR platform, integrated the within system. that, a with MXXX trigger The passenger addition in time real-time so now added option, actually via is add the treats the upgrade. capability. what firmware passenger capabilities play investigation itself to which learn future of point can where platform, location In we AI-enabled database not when as can brings there. is allows simple configurable new

well. So it's for future-proof actually customers as

So powerful all all in, the and a past XX platform, gained in-car that unique is years. that's this the over a video a very of experience product we've

if perhaps Greg, I about on X% this growth. could And elaborate

Yes, Sure.

plan As and it, we for at linearity QX about consistent XX%. year looking we're for with at the next look XXXX, more is

half, In linearity planning of in the we the terms of entirety fact, year we're the be for that better and looks for chain indicator XXXX the doing to supply a what business. the first or of see

Got it. Thank you.

go from ahead. Jefferies. McNealy Our with question Please next Kyle comes

product U.S. seems coming and Notter. of a backlog here driving. very I'm of a quarter good from for on you've was result for for the deals out had LMR had a to And Thanks quarter. international. and This for you good It number that the be looks question. larger guys. really a the Hi George portion strong like much

is that a pipeline. on comment Or eases of based is wondering continue something Thanks. this term? pandemic worldwide? continued going macro expect the larger I'm of view near deals, in that's I'm can volume on like, wondering on specific the there general the And or recovery So also you your after to could the if trend of what's driving kind if you momentum

Kyle. Yes,

of performance your to We actually on not only continue. that's been look quarters We're million good year-over-year, sitting it's phenomenon. and that to So say, that's year. first $XXX three expect We'd very and point historically. that the North a at backlog record America of

performance. it's strength the the story here, think I America North of

refresh. So device it's large infrastructure It's scale statewide upgrades.

also will in as well. orders the of out in years, two play internationally, Some defense Romanian from ARP the upgrade of German through large been which over we've of discussions were receipt as which further well next as course the funding, a few but

date. So again, we've been really pleased the to performance

that performance expect We continue. to

thing XX products of definitely months. demand supply. within into is backlog, turn to our expected half other the exceeding revenue it's Yes, is in particularly approximately And about

there's they a we're of some duration So stream longer period. benefit deploying, of revenue the and deals mentioned a over longer impact implementing, Jack the where

demand strong last in the just Kyle, as is is, our is good. demand And say prepared said, Yes. thing visibility I'd and I my remarks,

funding this the said, backlog Act. stimulus software strong. Jack benefit Street what and and got is product do the a portfolio referenced just a reflection Defense the More refreshed a and than Jason the in a continued services the nice addition a channels investment oriented. is have lot the environment, a The We've to of of need articulated Authorization and more I of that go-to-market taking linearity side. In just We've is revenue budgets back, we to to on National It's conscious the is to both acquire. that on as have we've step demand. versus pent-up feet made We've

that continue I fuel our to ingredients think of the positive So there's here in growth blender a lot forward. going different

recovery the the very maybe not outlook Okay, for great. do and much. on PCR? rate you have update mentioned the PCR outlook now and but it, of you follow-up, – for the you Thanks run I'm do And if an continued one business an sure

of PCR with and we to for us up it year, the challenges to It backlog Kyle fluid, for supply chunk it's execute supply chain against about match high-single-digit It in QX. the in end think to XXXX. most and delinquent grow where grew as growth a we it reasonable probably acute. full I will, is demand Yes, expect mid will

great. very much. Thanks Okay,

James. next Please Tindle Raymond Our ahead. with Adam from go comes question

Okay. expansion. the going positively, at pricing those PSI Thanks. industry Operating there the as margins grew in nice rate And the power helpful. that you'd where wanted margin so some COVID, operating of was to expansion? gating but basically, that start afternoon. before segment to integration margins Good then revenue I a system not and to color back just I maybe profit question, wouldn't get maybe consider to I in looking and an your margin for to on that segment. the more double finish segment, on margin margin, guidance, of product look historical extension benefit an factors clearly would low to getting to it mid-XXs XXXX this operating expansion based be in at had on short-term that hit some

Sure.

the for thanks So question.

with So in One safety. benefiting thing our to the margin portfolio one public the from operating we're thing of prioritization that pleased that's products. expansion are is we

element mix margins ASP's. a around and that's favorable So

we're on and so lower As constrained Greg is in bit more tier. which Jack the a mentioned PCR,

where facing of coming we favorable line is would QX, remind in that began mix OE plan the on with reset half. you company, year the OE I as year. we the off only see and dollar $XXX to also you year last million plans in this increase paid So year XXX% the we're year-over-year performance the pleased as for definitely we improving were incentives, what at we the

million of product is bulk year in the $XXX that the the for So segment.

despite margins additional operating expanding, P&L that burden. overcoming we're So

even our to we're higher higher that growth manage plans in input operating through its continuing of of continue talked segment. that terms costs In to expand freight, with in we've will outlook, the about, we the face costs, higher margins supply but

there's take it's double a you because as potential a and kind in the going on public maybe long have you Airwave, And follow-up been investors of Greg, sort hedged ESN, the like domain make any wondering considered to both since just alternative something it. or of to of be comments of JV Got I'm Airwave potential risk you're ownership stab I'm you're on could developments, any but not maybe like secondly, And if wondering considering get losing if considering. they hedge? structures, that that, that should a creative. afraid

anything it's be So topic, us Thank that but give helpful. tough a you. can I would know you

the appreciate I question.

So home next ESN in I contract just desire office. the to UK that its think, of That's contract. They the runs conversations extend have year construct under remind through Airwave the to with been through had. XXXX. we've expressed all all of the runs Adam, through for active ongoing XXXX. Airwave you, current the underpinned We've conversations

are outlined. We the that adhering with and they've process also are CMA obviously involved to the

keep dialogue I I up. office am you the to CMA, the I bringing utmost over months. well, And continue It more home nothing and out with and, several But on front, to see how keep into both that will really XXXX. it investments appreciate do think on have the we'll user in importance. constructive make will absolute the There's service that next take than hopeful the process we'll to UK into we'll say disruption to but are it it, well and several the continue plays go that as current, reliable, to other no it we it the to the network customer, outcomes, levels the end the months.

Greg. Thanks, helpful. Very Understood.

Adam. Thanks,

Our Please question comes Housum next Keith go with from Research. Northcoast ahead.

this Hi, supply in for is Keith. couple a about this Trevor filling questions of Have chain.

expect Do the you you or the supply supply since to chain challenges are have say before quarter? perspective, peaked? would -- from worsen the how would your challenges chain last them evolved improving So

Trevor. question, great a It's

year-to-date in challenges most were the think undoubtedly we've had QX. I acute

continuing they're in QX. think I

at experience in So on if chain look we've expect experienced pain I QX. most definitely QX. the supply we to XXXX, is And in

that's half year, environment be for that least referred the Jason the the and and at of think first earlier top first challenging remainder half, around QX. informs will the it rugged bottom, I guide we're although obviously the linearity raising XXXX. informing the through and of And to the

also manage I'd in we're what through needs, and our safety. with prioritizing to add environment. terms public starts doing And difficult of that a one, customer we're Number

very is the quickly organization. when world-class is has Jack's constrained. where through part parts alternative engineers engineering find are think Motorola that team Additionally, available one helping designs across

of good on So our our supplier here a we're environment. job have we manage higher relationships one are level inventory call can carrying finally, teams as so the well that there. Each going get allocations. to on have the dialogues we doing C us that And

Thank great. very Okay, much. you

Trevor. Thanks

DiPalma question Please with next comes William from Our go Louie Blair. ahead.

a Jack, a is can you think increase your MOTOTRBO. good for XX% last issues, announced your after an radio, the Jason, penetration APX were sense Excellent. Tim, us referenced your revenue evening. by supply recently Greg, quarter, LMR And MXPXXX product XX% and you quarter increased this give despite Mahesh, on healthy Tetra. you NEXT chain what

APX I next the of think you the fall in XXXX. launched

So just of respective like, over we had are the of cycles couple refreshes years? that the upgrade a investors these for you product inning past are have in different what wondering, lot for

It's early So let's piece. the Louie, attack APX first pleased. We're NEXT really very days. really,

obviously in day ramp -- We've our we stalled the an about This in it during since announced start a up of we I three market inning. we we've customers me seen five-year is then. say a was say, potentially. But about, terms where quarter. the So the to year second significant last make a getting U.S. we're typically and heard all cycle of top inning material, in some COVID the you've had 'XX, refresh orders I'd would talked within long year, mentioned before. second the somewhat first in base

NEXT. terms here We have in APX room of to run

early out question part market it's designed interesting We've is some Europe MXPXXX MXP for thing was NEXT, the the high well But to tier market. and the success. as the days. for of were had related second point very again, The APX as very both the to those in

reality the APX as well that's MXP on but and feathering to is as we're in mid-tier So the NEXT be entry both line, going the line. tier attractive,

So because starts by we're of to really encouraged the that that market, the speak. to get so to need

So answers question. your that I think

a growth revenue And of in chain for supply in the think Great. revenue issues spoke forecast recent through like the these you persisting three XXXX. you next Do deceleration the sustained rate or for about half quarters? we first results headwind should the

good limiting for reflect our planning around good particularly first to about the to to planning Greg in the my linearity ability that improve views half growth. next mentioned in second total or yes, No, demand think half X% things supply revenue we're there the and fulfill of Louie, the year, of for a the for very chain, comments and I that's have year for of our our QX comments that in

Thanks. Great.

Thanks, Louie.

comes question Next Cowen from Silverstein ahead. Paul and Please Company. go with

appreciate questions. the taking you I guys. Thanks

the you supply off, revenue First miss it, QX quantifying what and impact? in in in impact apologize. QX if I what the it, was chain the and it to But do I be both margin terms of expect impact

have guidance estimate. current we that and could constraints supply, in limited. been for the in $XXX the there That and QX our about revenue with So have pretty we to look in that's supply is for and embedded therefore our QX in we million we the requisite that we the as of demand limited except to able its were was had results QX the the ability our which match terms QX, growth PCR in year of well had

to that In terms of to supply, had said, QX? than that have could as still to XX and But is in done a estimate have greater more $XXX to growing better last we thought XX.XX. we're what we we time million now, guided our impact current an QX

math, an am -- right? doing EPS, Jason, about impact. $X.XX about translate an it's to I That's it's if the I that about

mix, on obviously. the Depends

mix the of on large that's depends part PCR. a It and

pressure premiums in lot And higher second freight, that get be do the through together half. mentioned at So to what increasing expedited like other through a having and for embedding further the was looked color could nearly But the I million we we number add is through costs, in P&L seeing that center. materials, chain around, the it's in the little million then we contribution these around QX the that on you the at? distribution and but not supply. had the to year QX. probably plans planned means left freight are buy costs only supply you've a the in adding $XX to costs. done us as of QX math of before for I general, I'd can brokers is many $XX about facing There for also this and companies year are freight we're put of requisite higher like order what get and are does as

too. the those necessary we things doing We're the what's are to can get mix that in supply So get.

apologize. I Jason,

QX million You're elevated component costs? from from in expecting pressure or costs $XX freight

and two freight faster in that's about right the is components' million The is $XX $XX a which all The the it's annual annual bearing having number. higher half the as freight exorbitant $XX air million are QX. number along ocean its prices on first methods, And higher basis, an both we're Freight we've is in the million mix now. in $XX to Paul more well. that and costs. causing delivery and million, half, cost been second

All freight, it's looks million, million in, a X.X%, million X% impact, it about if it's it's to a million sounds about all point $XX $XX the if impact QX $XX right? math, to right. from adverse I But assume like $XX it X.X like percentage did in I

what shared Those within are are were we we've the our estimates facing. numbers that

I got So think you've yes. captured, correctly

Yes.

in think zip you're the I code.

I year-over-year, pretty appreciate public hit other I in if margins, questions sounds also right. correctly, you rate, surprisingly? a I it. It update run not video meaningful that think sector up growth, you said could $XXX always clarifications, I update QX said million revenue $XXX cameras between similarly XX% of had My from All mobile is body-worn over annual plus that was remember XX% was rate acceleration an said run I'm previously. you'd you previously. hoping hoping was XQ in could million I And think us. right? cameras, you that

Yeah.

in. can and I think, Jack jump

was holding contribution. you an think we're think public the for I number. sector to referenced million estimate that XXXX $XXX And I for

an that So body-worn, update I if we don't Jack and you think to. have want front on on

record unit customers, so customers well. really as our really that body-worn with Paul, filled shipments that with active We alternative. want we think talked in that. We've QX, pleased about

our actually French they've the say We NOI presence. The talked internationally, about MXXX. is, just I'd QX. and Mahesh given other global scale we're uniquely positioned referenced thing put subsequent into orders

So position now we good in a car. right think in body-worn we're

All right.

last quick Just one for one me. --

if can set won't it what In be supply surprise, and insight be better, terms it seeing in constraints, environment got any of competitively? it you you're worse I'd and a pricing got but surprised,

We've made at a We've in in that. few carefully primarily been look also North and looking Yes. LMR in fixed portfolio America surgical our adjustments video. the at throughout year. We'll to continue

and release the opportunity us that for the constant higher portfolio. we typically new mix part releases some mentioned, that offset a We presents opportunity And APX of costs earlier. of discussed with Another is example. oftentimes Jack product to at we NEXT, for as have the

that So we'll carefully, continue of to very LMR video. what in fixed competitive in both it monitoring, market look course, and at we're is and a

Great. I Thank you. appreciate the responses.

you, Paul. Thank

Ben from go Bollin Research. with Please comes question ahead. Next Cleveland

everyone. this through Thank bit I date, hoping Thanks Good was with or a little afternoon, funding plan you rescue about Greg my you. Jack, take question, taking is, manifested business. piece you America might've what of you're for how could to us how far. second your seeing thus have in it money then looking the within part think I'd at each thoughts about you customers And interested the question of any be are

me. center, radio it's for their influencing think Thank within behavior. So it That's you. surveillance command how even you and

Okay.

earlier but and to need is Greg first unique all, position because nice it not have. it's to to really of I a do always think in out, important point it's have, all we're what So we said

different to So I'd kind of decompose the things. American few rescue plan a conversation

kind that's public customers center call may been those things. and We fund We're projects things need. And pretty local in midterm in shovel would everything ready who from regularly that on public statewide safety in maybe we we're and our had what software. or mid-tier how safety dialogue to have PXX conversations a consistent of command have with networks they

state particular well. at up Now, are revenues the other benefit is state as and level the local receipts actually

environment, a it's doing about funding ever business So the best in Greg as say, XX would the funding seen I've earlier I safety comment environment, public years, in well. made

software. would position command a upgrades well the there both infrastructure I we're in on say, PXX as So center and really devices, as good landscape,

funded. Our at We teams, think at the we does, one team they're deals experts better think thing and they're they're technology. getting our really sales good

that's us to we there. benefit So going think

say access The second security thing, as video the that's technology and would significantly sleeve, control. I going benefit to other

education was team dashboard. you safe things alone, COVID kids come when market, our manner? talking talked school talking write COVID about in If is we and they're over the bring the a really to $XXX to school, thing how back they're One did them about, of funding, this billion first do pointed think have about back to we that about the

is are dashboard our you COVID they connect pertinent cloud all think So both services, there's transit pointed really airports at we superintendent, our if say are get school distancing interested information. you is, gives social directors in and many as through money who what our thing, reopen, to I technology security went This really door. Avigilon a radio of here. $XX last being The networks. upgrading the would billion them And

we're the team continuums, better to think technology execute. our a the spot. How command information? as video PCR do ultimately is do the So the So We perimeter opportunities services space. money, well of across for as our security, in the well our consoles as then protect I as center we've security? with environment got would all airlines, And they major three in our say also sales business, all they good how get poised

buckets when and Jack $XXX through Ben that up And it's that's you rescue end to in end users, state of described, over available total by the plan within billion local, multi-year those $X.X and way, our a trillion the the just 'XX. is goes that

we hence the seeing and pipeline why So we're what see in good. that environment both pretty the and believe multi-year is

guys. Thanks

Ben. you, Thank

question with Please comes Najam Fahad go ahead. MKM next from Partners. Our

question. for taking you my Thank

in clarification, First, remind what was can acquisitions quarter? revenue a you the from me

real to it quick. it was million In in It $X you total, and it segment in only by and products, give million. services was -- was I'll Yes. a software, $XX

you. Thank it. Appreciate

So yet? just it meaningful services if accelerated equipment and should quarterly from and like at I hasn't services we LMR increased and in $XXX fiscal sales increase we LMR expect the because increased software see product software my acceleration new the in coming kind your and in to the quite tax services look sales, attached selling and to future revenue PSI remains Is software the software rate, if overall, in run well, question, the you're from quarters? in the of services some for 'XX? it million $XXX should an Now million, PSI we business rate

software video services and come but likes are upgrade not the year double example, you're There after for center high, task, and and low on attached and rather products, of software expecting software that software, grow digits. the services our growth to existing it that however, is the products we're things product right. mid high-single-digit this is is leading sale, to command to indicator bases. for closer growth install Fahad, bulk, as software attacks, services around like some some There's So probably programs

software less So attached. the offerings we those are and in product S&S. have It's services propositions within It's key drivers services double around the the and software. digit unique that are growth in driving more the low value

understand a What's lot there, us in dynamics Got then kind faster? video of there. the question same the PSI surveillance there is sales? video it. of versus attach to help on understand I'm the trying software And please. I the clearly try growing software just driving to video the portion rates dynamics surveillance the services market services or just

partners, So disaggregation with within through is software, the distribution within respect largely software video and services number in and a integrators likes. It's because and to go minimally business services software. the the video services we

video. think software, system, BMS are and predominantly that within in-car offers things others within ACC video being management number our of video software S&S as So like

business, Our standalone -- more real what's product -- terms sell how in detached, a pure case, we also but it's it. terrific and that somewhat of software in

We've It's think software, be make meaningful I dynamic get connections they as to that'll it's It's AI earlier got Avigilon things the another into upgrades. cloud all on the more that we've on edge. now that, customers do. And well. made maintenance and our mention the at current software for the I services. analytics, we way keeping invested

doing to moving really many the business to connections cloud in thousands of leading to sites. business And and direction clouds of that particularly are the the enabled. And work that team of is his hundreds that Yes. cameras, thousands new Jack's with opportunities

There Greg Fahad, thing lot on talk That's a that hear about you approximately control. model is, recurring which you access think is the again access say Openpath hit Envysion. And million an last revenue I'd in recurring control $XX I'll about revenue. on acquisitions.

were as so well. re-envisioning that And business there

are that's recurring So things we're -- model revenue I pushing business. really other driven, software and really just more business, those that are where the

answers. Thank the you. Appreciate

Your Meta from Stanley. with go next comes Morgan question Marshall Please ahead.

taking Hi great team. Meta. our Thanks congrats This for on on question another Erik and for is quarter.

little You they integrate like Are the similar of Yonkers, And a take central bit body-camera understand everything timing looking what central if maybe funding? there they this already else, as the work that their command in that was deals video they some integrating a City command a can of at drove we upgrade their maybe advantage could is but with I'm command that relative on the you you small dive looking deployment? with customers that. wondering fixed to saw video of their of they other in what dealer the center the refresh portion deal, And into then Were of pipeline you are deployment? noted fix to with you're also had. to to

shared command leveraging originally around at stab started say a sometime video. center. the digital but? you'd the anything probably staff. obviously level, think discussion the progressive Mahesh first very of through evidence year at they're technologically I how nine. chief how probably the they've command they're has The don't mobile this, if but police, I management thinking that's so Yonkers else I space. customer is a to rest about command seamlessly center information know take this mid add that is added I'll And what in is everything to started sharing to want that savvy And This and onto started last from a

can you think across life think cycle. I Yes, incident -- about the this

of products the you the solution, solution, board. of solution. mass but being you integrated into incident the Then suite cameras that that Avigilon well. gives that and to notification fixed evidence We products the video have management touch aspect That view Leveraging really our into across the you investigations. enable camera aware that also well, Then view, as coming as pre-incident platform equation of today CommandCentral both during ALPR also adding into cameras but story lifecycle, have there. but platform that vigilant incident also part a every also gives as was then have from ALPR fixed or on feeding same command well, was part that mix body-worn to you central fast

that was effective really gives response. those an enabling So all value that it the think between of to And incident really you Yonkers. I integration view products together, a

savvy and it of you. of do that you just make It mean, see would I those when Thank as in not from you motion types police deals, understand maybe of bring a What perspective to also that is expect their more seems way? you can market sales chief? tech everyone consolidation And kind like that the a but sense, deals more tech. Is do that?

used a It's time. this and Mahesh comment, something they things and are. two I meet made customers, that where So, this about the Mahesh talk -- is all

some So have journey. customers a they're different different on investment --

they more do relationships and command all right buy got That's them, this important. more and from do. to started goal. sell have a incenting Yonkers. vendors, and team technology. they're And our And pretty make and continue some we're where want software to they'll actually to think We in find what this XXXX to go is may networks, integrated the incenting full sales of they've significant center Some that really chance execute what on need to is suite using our to is pieces different incentives the

I'll just add to that.

XX% were platforms that existing one Motorola orders really Just than of to adding our them in between Solutions, integration new either QX after leveraging our of more all. that so tight customers' ordering or

Thank great start. a It's you.

comes Please question Suva with ahead. go next Citigroup. from Jim Our

pretty Thank will you. be easy. Mine

is ears, catch said you one my first in something The it. Greg, didn't quite

I if can preliminary, other you services just then clarify down I early then little next clarification. wasn't maybe preliminary, for think you're year. that, could really if you have I really I looks I heard clarify, but X% said XX%, one product So sure you heard a or company-wide, breaking a

and then color I view what see growth in being of Yes, XXXX and X% details this And around the more we kind XX% revenue a and software quarter Jim. growth talking at That's Sure. full that was give we'd revenue company time. point services about within in no. now. envelope. from then

was So then be part and My easy. I'll second that easy is, done.

Your for wouldn't all EPS had be Or and QX? EPS beat raised is in just outlook, raised revenues the QX, then the the much much we as as full something not as for beat, it, but year your as why you shipping in that else you. additional is earnings you but to Thank attributed the QX that as there to costs?

line, acquisitions Jason. QX we funding of is earlier OpEx supply higher what Openpath two that costs, the discussed brought it's some Jim, chain around it but Paul I fold just with of also great in companies. the into factoring It's for additionally, the exactly the we're doing. very into That's are XXXX and Envysion, fund which happy year. OpEx is -- you're to that to our driving envelope Those a the those within for math

thanks for the you. so much Thank on the details And calls.

Thank you, Jim.

Executive question-and-answer I over Officer Greg Chief floor to Mr. remarks. for or any additional This closing concludes the session. Chairman Brown, our back and will turn

but backlogs management really that's going people and want I many the in want executing team, the MSI. well tough organization, it's I I Listen, to just thank mean, the there's to sales supply. QX to Thank on, thank contributing the say environment. on you. frontline, to a to so you but things all good employees also the record whole

with company. hear every it You

the said, You as adaptability than and on more back we and the there's appreciate Bell, teams in prior and it's support functions particularly we've with support QX remains in And Karen because hear And touch and in touch Everybody periods. think suppliers. environment, we tough environment. it uncertainty in office Dunning HR QX. a mixing QX challenging have, here in I and all key in I staying Terry all and chain I the supply and think that. time, close the matching in QX, just but fluidity had the team supply and and chain in challenging

vaccine XXXX, Mark the phenomenal. have regulations state and proud by we're I'm We're top able mandate compliance Hacker facility quarters' consecutive that board. with following for and and requirements. bottom and across I'm Karen and to be we QX have, the results everybody. and rules We Terry, appreciate focused. three despite positioned together, thrilled raise steadfast and continue always line. by And And we'll upward. but and like flexible thank do. going well be I think We'll And contribution we're we always and you I into challenges onward the will really stick everybody's to

this call available is internet and will this of teleconference. three gentlemen, The does Ladies conclude over approximately the be address in today's A www.motorolasolutions.com/investor. website replay hours.