Motorola Solutions (MSI) 2 Nov 232023 Q3 Earnings call transcript

Good afternoon, and thank you for holding. Welcome to the Motorola Solutions Third Quarter 2023 Earnings Conference Call. Today's call is being recorded.

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

replay within call conclusion X call. webcast on be of a website our hours addition, of will the available this In after the website The www.motorolasolutions.com/investor. is address [Operator Instructions]. introduce I'd Mr. like to now Tim President Yocum, of Relations. Vice Investor Mr. begin may you your Yocum, conference.

and Good and Winkler, With Brown, today will call. commentary, quarter and Jason me President President Vice Saptharishi, to CTO. and afternoon. Vice CEO; Molloy, are Mahesh Q&A. Jason and Mahesh results Executive our Vice Welcome our and third along earnings Jack XXXX and Chairman Greg will Executive Greg President CFO; for Executive join review Jack COO; with and

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

afternoon, and for joining thanks, Thanks, Tim. Good everybody, us today.

by continued share and earnings by quarter, services improving an highlighted strong Integration. was strong supply driven XX% our with demand Revenue revenue Products the chain and exceeding another in guidance, was QX in and in Systems environment. and growth growth quarter per First, X% up X% and software

operating in QX and million expanded flow. segments for consecutive over in earnings of operating also margins quarter, the record both operating resulted $XXX which We cash fifth

in and investments to Second, continued orders be priority quarter in another security Year-to-date adoption orders local and safety customers. our by we services, APX a and device demand were by customers, driven continue up record state and NEXT record for of U.S. federal software U.S. XX%, and QX. strong had our

QX and year. $XX.X And versus ended momentum both we and with raising of our our record Additionally, backlog billion, continued turn QX on this third the I'll for EPS year. based time guidance we business, call results now are sales again the X% Jason. the full the year in to up for finally, prior over

GAAP Greg. the quarter quarter while million. in operating ago $XXX to and for technologies. related during of X segments, impairment had you, exit both XX% the both in were impact the earnings our and the up million our from tailwinds were APX the all asset charge Thank guidance was added acquisitions with Revenue million year quarter, or ESN XX.X% fixed from U.K. $XXX sales, of contract which the in above the million, growth $XX regions grew $XX X%

revenue per was and leverage, per and EPS was deferral GAAP Airwave improved by and higher share quarter, margins, Airwave. the offset earnings last deferral was ago ESN from quarter was operating operating up The $X offset in sales million the asset year. to ago margin non-GAAP impact and the material the $X.XX driven a up had year. the product from higher costs year sales, related Non-GAAP which by from partially operating a basis up XX growth up year higher $X.XX mix XX% in tax partially impairment. higher driven share earnings effective lower of $XXX X% and Non-GAAP shipments EPS by were of XX%, points, the current international the in by $X.XX, rate

primarily OpEx was QX million the versus last $XXX up $XX in million, higher in current to year. employee acquisitions and year, due incentives

in million, cash flow flow we deliver primarily significantly with by capital. free cash was $XXX up flow. solidly up this year-to-date cash our And working outlook to flow last flow on to million. billion was of year-over-year cash last year, Turning million are $XXX track QX million, operating earnings for year, $X.X $XXX year. driven $XXX higher from on up improved operating was our QX and and flow $XXX Increase million, versus operating cash of cash

QX $XXX $XX allocation for million in included and of cash in million Capital CapEx. repurchases $XXX dividends, million share

both the SI from lower sales, and X% by earnings costs million in prior million. $X were for Currency Segments. were XX.X% operating Moving from in leverage, improved In versus LMR acquisitions to mix. and XX.X% direct million were offset and Video. driven $XXX material Operating $X year, by and by the Products was segment, growth the driven sales partially the up in revenue or year, quarter tailwinds segment of higher last up sales,

million and U.S. a for of Public $XX expansion for a customer. video order million PXX federal PXX Southeast customer, wins include federal a Safety, QX million million Federal the PXX device order a for a and U.S. $XX million Texas Department order the $X for State customer, system order device for device Asia U.S. PXX achievements a $XX a order customer, device segment for a notable $XX fixed PXX a Products $XX in Some order Indiana million a Police

$XXX revenue was in from XX% Video. were quarter, were segment XX%, year. was FX million. Command up and of up earnings XX.X% in $X XX%, tailwinds the In growth year Software Services, operating down X% the million, Center with from last deferral million versus and in Airwave last margins and in and acquisitions $XX Operating Revenue the were XX% inclusive growth

the Excluding and up, operating driven margins the for improved sales segment deferral, by Airwave operating were leverage. higher

for service the $XX a for agreement order $XX include million [ $XX $XX California, command Bay Tarrant LMR million Angeles a highlights in a a a QX District million Department, body-worn Los East Police agreement agreement ] center the customer, for systems and service for XXX for $X notable in million LMR an Texas regional service million communication European Police. camera in order segment this large Metro Nashville Some County

X driven Looking LMR by at and million, Video. $XXX in QX billion, last $X.X QX International regional revenue in XX% America versus growth North year was up our growth on was all technologies. revenue results. X% up

currency by was $XXX in $XXX Ending driven demand unfavorable of driven Moving million America. backlog record last of million million up strong America. to partially year, billion, backlog. QX North offset in $XX.X Sequentially, of strong inclusive FX, a was recognition of favorable X% $XXX Airwave, versus of backlog of the down million, North by rates or demand revenue $X inclusive by

million, demand backlog In year, $XX And $XX by million demand was and up driven America. in backlog last SI, primarily up Products versus X% sequentially, North or driven was ending strong America. strong in also by North

of strong of backlog increased $XXX and last contracts software North $XXX Services, demand Software services in growth Sequentially, by by unfavorable million Services Airwave. and revenue for was the America. North million, for FX inclusive driven Software million, million contracts year, multiyear down in $XX multiyear to driven backlog America, $XX of favorable FX In compared offset by offset partially partially by in and recognition

next to Turning our outlook.

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

per the billion year, full our to now the revenue guide $XX.XX XXX prior $X.XXX and effective are from $X.XX year up of we between weighted and share non-GAAP prior $XX.XX billion A For count expect up $X.X our FX We million $XX.XX from approximately $XX range average expect billion, of outlook share. assumes billion, up increasing earnings again range diluted rate to we tax $X.XXX in our of XX%. prior revenue and $XX guidance. to million approximately of per both guidance. from shares an This and headwinds, full $XX.XX, of share earnings million of our

back to X the highlight points. I to like call Greg, I'd Before turn

the LMR well quarter. to complemented expectations. Command which by robust a business, from Center the portfolio acquisition, QX, our continues Video of addition during performed our and contribution strong an growth, In Rave, strength achieved our In exceed to we

cost our million. supply execution to a and to Secondly, expect from our $XX prior chain the now estimate up year, this some $XX broker tailwind lead We reducing for savings. purchases purchases times semiconductors impact of for lower broker year-over-year of drive be million navigating continues extended

prior approximately turn back XXX guidance year operating I'll result, a points, expect As points. full up Greg. our margin XXX the of basis we from basis now expansion to call now of

Jason. Thanks,

I'm and the the pleased our of and about results, business already. which durability strength criticality related our inclusive X%, talked our with to deferral was the of really Airwave that's portfolio. up First, Revenue revenue we've that to QX you highlight of and

which we both over record achieved positions X% as a $XXX year, well operating head of in operating QX higher million record We us last flow earnings also QX . next record segments, year. than into and backlog cash is that

cash comes The of resilient product cash conversion. $XXX from the to as allows strength capital to October, demand business flexible value refresh, flow to cash strong and margin MSI. Through of nature stock, we've we deploy Second, million our our improving long-term value. repurchased our the expansion shareholder of under continue flow be strong and highlighting from conviction in just us drive consistent of

of We and both balance also investments debt-to-EBITDA to us ratio with additional well. firepower with quarter and provides invest healthy to continue consider as inorganic ended X.X, which organically the net a sheet

year, remains customers. exceptionally add to as our value we're to We're Demand for close for finally, robust. another record our And growth. look think solutions continued out we well continuing positioned I to

welcome and continue now the a end resilient, to over your high level. at our remain Our turn and to accordingly. I'll markets call Tim execute questions teams

Thank you, Greg.

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

Instructions]. [Operator

Our comes from Tim from Long Barclays. first question

X, if I the Yes, could.

different that a Center First, maybe you how a adding with little obviously, it to part talk maybe to that? of Rave on Is what's of driving of a Greg what's -- driving Rave about positive. that be on ties bit more pretty the cross-sell or that. Could the Software bit color little Command ability seems some platforms to side, strong, into just Rave, addition and and

still And one, record, then pretty backlog on Most companies the coming are down. it's the seeing being backlog second impressive.

year? this and Do can you type you sustain growth? as as makes growth So color rates how you're maybe feel that seeing the think a far there of little year next you about kind of

Just then and on in. you, the acquisition. I Tim, would can jump maybe tell love Rave Mahesh I

I did joining well think business expectations. the exceeded Rave Todd I love come as it to by well Motorola entire founded, was over performance that's and since the the strategic his And the diligence done financial. the Pyott and team technical exceeded that team here has case organization. internal of as our both

year, all doing well would that's our growth expect still platforms, that XX%. Records we Full NG-XXX, as our be well. Look, are core say CAD, I to [indiscernible]

Western out CAD. read ecosystem solution us refreshed you Charles, in their here. story just handling solution, refreshed an St. also Jason There's our their Australia [indiscernible] the adopted routing. and As Missouri, And call script, see Police

faster. mass here Rave integrated the doing Alert. certainly When to PSAPs fact and call Glendale. benefit brings a instances et that is sign can major real-time like incidents, we're CAD things as is radio, with system the allows refreshing system. Arizona think XXX, to into you It's in in happened you now et our incidents a Glendale expectations. And about city in heels -- crime center, the notification now to brings call as our that performing a we're now also much that, Arizona. above Rave the all the handling And ecosystem cetera, with XXth cetera, like respond well. appropriate now all on Rave, handling from integrated the about orchestration across Rave on think statewide of state-of-the-art you as when well now a shooter state [indiscernible] active

position backlog and Tim, revenue strong more up in print X%. or of billion being an $XX QX on backlog, a X% we remain in backlog with

it I'd And strong. out it over they our who on customers, very us what comes when and XX% of it. deliver is point need, government backlog buy need from they count also Our backlog that to

also we orders orders QX, -- So and remain inbound QX in inbound strong. were

to further So comments. our I'll X of and for backlog position strength Greg, turn is it you

about million revenue, specifics napkin XXXX, on you, from again, here that's February at would today to to the wait to relates By we I back as it of kind cocktail this inclusive as here of give we we tell guidance. any a obviously, the $XXX We've office. way, billion bit $XXX would that out level, of million before. The headwinds, Tim, be until about million, exit of $XXX And point today. Yes. kind to we'll $XX the as sit that of sit estimate high $XXX of $XX.X being a detailed talked of of of of you Office the little million ESN of anticipated formal incremental a U.K. that about home revenue representing balance the headwinds related Airwave and of deferral Home the to about FX for U.K. million. total over

when dimensionalize detail next today we here together take and a sit that's in of look in would February. how get filling kind -- and I more I year as level, high So

comes line Notter of question George Jefferies. the The with next from

Greg, what greatest through tribunal the guys out you U.K. the was is guess and [indiscernible] you latest mentioned of the I wondering were I the U.K. know process. I going

I you the release think back. heard today references still haven't that

back think of I had weeks. hear after expected you number a to

And And out? good in do back process it that But there? is delay what's processes think is going you if being does you the the . news. like of potentially so going terms what wondering appeal if tribunal to work there. look I'm wondering on in did not [indiscernible] with happen what

Yes.

really there's hearing on X We to U.K., and had X. the news On August the George. report, no

you've case, level heard conviction. use situation. with strong the think how I I'm high I of the feel before. adjectives And we specific a me would describe very with reiterated we

I unprecedented. think it's

competition I think waiting ruling. referenced but we tribunal, we're It's the appeals made fairly that process. it's disproportionate, overreaching. And regulatory that you a a It's that as entirely result, case. CAD, on opaque

speculate We'll way to other interpret or on it. that. couldn't I to X the get how wait So

go the getting will and end anticipate communication we exhaust reliable year. does and U.K. we have, and defend all in the position the to continue to outstanding certainly provisioning I've as of our it it, already turn, would as I throughout not if between services said now very And well, options legal emergency way, the delivering

processes. And now? then understand make I a a assume terms we the follow-up. and other the in are that I contract I wait made -- you financials as expectations. Got for the [indiscernible] assume But adjustment the it as just of quick it. and have your guys Is -- is taking then going while still potentially is you vision to appeals that correct? price that

doing services. That's to We've deferral right. We're expected still point. start on We're to X. services. We did communication the the in on August all us this We're investing still Airwave superior still emergency network. your that of delivering referenced revenue reliable the things are of the deliver

And headwinds of all is the a $XXX So million we're of so with balance year. that Airwave million or incremental million deferring balance in $XX being through of about $XXX ESN. revenue informs million of revenue this next year. $XXX or that that about for

price accordingly. with of and we accounting final outcome, order, are there's to we consistent then that So different control If . that. the we're recognize remedies doing change would a that obligated

from next the of Housum Northcoast Research. line The Keith question with is

that might the significant of terms chips carry that stand issues supply chips, I in a terms next have backlog we you is still chain into we had guys largely do of where up? Or that have mean, do of the year? with In that? semiconductor over caught

is nanometers normality. needs I'll it's not for chips, XX thanks to everyone and Keith, for levels remind although supply of chain which The for environment question. the is our improving, above generally for

are a environment, XX, normal be XX. XX should double been or For for that, they chips XX times in where approaching weeks they but had example, now lead certain

what's yes, with for our prices. use that we've using the the incorporated to at expectations in P&L, now and substitutes, what's improvements, improve we . $XX opportunity of we'll So drive some supply continue further, and a to still us using that's available million can working favorability find helping into that's for now, QX that that for the looking quarters of tools number but supplier our and the lower partners been

continued And PPV would in we [indiscernible] 'XX well. as benefit

Yes.

planning relief the Next over call, year, of 'XX we we're on $XX about 'XX. told for PPP as you million last incremental

opportunity continue have again, P&L. that things improve aligns And expect into 'XX. still to that in to there we the to our expectations So capture and that will

Great. Appreciate. If I can just M&A years. been strategy follow motor-oil has of over part up, the a key

is As well? some of you're there perhaps looking Or small forward, anticipation there I for more tuck-in mean, transformational with acquisition appetite an as that a acquisitions? going to you're larger keep is these

firepower shape things lack sheet for sitting the yet have in been some M&A is Yes. frankly, been November, do done we've at and said and Michael a [indiscernible] reluctant quite here great I Jack, prices we Well, That Keith, that the of thought actively would not and date. tuck-in okay. are we working in I activity, that continued inorganically. ironic, from some fulsome some certainly Having a to active but do funnel, that, anticipate valued. was acquisition Mahesh, reasonably an to we a pretty certainly not standpoint and balance That's do It's because more are diligent Jason, Raj, be funnel. and sellers team, an have

that as in well we financially probably consider, us security both there's think look see And video and something control eyed, we comes. as higher general, would inorganically. services strategically, we probably still to evaluate access for areas and clear than do and I balance and to but would emphasize larger what if of others that we'll priority

of question the Raymond line Adam next Tindle from with James. is The

I again, backlog, record to with start levels. wanted Greg,

you you with do record Or see this expect long would based what level to the exit business think some maybe again? guess Do I now? of of you looks normalization do backlog we're backlog going attenuation to like continue? or how year when slowing in think Just your on the heart this question be can right

don't on Having speculate that, a record wouldn't certainly QX I quarter's record quarter. crystal because backlog. ball. said ended I we Yes, was also have backlog QX, a

our I look backlog duration, we're I aged think I as the way, well So the strong well. the or and I love the love terms remains in of of By conversion. funnel. I record orders, quality at love that positioned. the when

of navigate not the But As Jason our to like front. chain have elevated. I still end at we semiconductor It's on times day, the the said, markets. end normalized. Lead supply remain

I we safety and for the access demand informed think great and security doing public enterprise I video well what side, do, like work as in they're and is all Command Center. Mahesh the product i.e., control resilient. criticality the pretty by security as on

But if So we we'll changes do there's February. And that, at. in as update sit you we'll to we're in like XXXX? November, into how obviously, see Absolutely. where here we're entering I any

it. Got

[indiscernible], And starting looking I'm to as you on supply Okay. scenarios if backlog we potential in revenue? revenue, could on hear chain high at get of backlog then is scenario, to what but ultimately the kind for are mean various still to to you a think that blue-sky converting of obviously, or were different that. scenarios. guiding that not to I better, the up I'm growth XXXX kind but are better? What Obviously, free challenged, about converting and wondering supply single-digit growth in the based

Yes.

and any Adam, again, color tell high-level about technologies to or good anticipated I days. into you on very marker I a we'll feel segments conversation. think reserve XX [indiscernible] and would But in just the you as going about and I either question. appreciate But I February for additional general I XXXX, update the the would is all stick

Maybe to Jason. conservative, for we Understood. think point I X on Yes. all Okay. stay appreciate. which final just I you this like know

the margins that? backlog can't the on think As finer of any a would remember helpful. LIFO, speak can benefit I from this But higher maybe through may coming put mechanics that through, point . margin you be to if moving be would forward. you're can there you would some backlog and of FIFO priced potentially or that comes help profile but

Sure.

the when our team work QX year pricing. So as back year did the that We've and this to last entirety in continue last seen the around of P&L of see the as in Jack is well began benefits beginning half his that year. of of strategic

for new price come So which price products, us. continue some optimization our customers and also to on focus and at like really of a increase

is customers terms all, prioritize last So representative most we implemented of priority prices backlog the of safety. we've [indiscernible] to year. July we for of goes in But the part, that have do first around, public backlog, products the that of -- in

that show continue driven in would P&L, our with by and you've and the seen price. it we So to growth expect both being up volume

operating I next And year. think margin do we [indiscernible]

Yes, Absolutely. exactly.

of from comes The Zilberman next America. Bank the line Tomer with of question

Just the first X for me.

outperformance about bit weakness Command SI. revenue really But X% Center. your expectations product a this on there? Can fell growth quarter? like looks quarter and it through the little So Video you a you street short the versus shown talk and this drove LMR What

Tomer. Sure. Thanks,

all, against to the because So comp of first is XX%. last with highlight I want really pleased X% QX of a fact we're backdrop of the that the QX actually

our has we unchanged. take story. markets you about for video then portfolio more camera. full grew think which look announced ACCX, which remain think serve, shipping investments, health from and synergies unified think And at we're the the the there's funding, quarter. care in importantly, XX% is making standpoint shown has actually verticals think it's year now say, us really and which that a in HXA serve. government, it industrial, on that we the pleased, this just good resilience management if we the We're education an investments we it's the linearity we expectations And leaving alignment solution. a from and a really We're I is It's I that, So

I said Jack video, as X% per think you Tom, And said.

XX% Actually X%. . over

comp. XX% [indiscernible]

software the of same I performance is includes S&S, have we Airwave decrement the with center which QX. revenue, to that in of But at print for remind deferral and the of continue terms X, time, great command the strong you In important that. and segment, compresses

And something multiyear team services even managed project reflected services Denmark. managed in that's Molloy's Denmark. on multiyear job fabulous not on and strong is and close a to have QX a did performance We contract

that think you also interpret S&S should I performance. inform the So how

Got it. just if I follow can And up.

In sure of just of X% with I'm XQ low guidance, language your your and end anything something the guidance this revamped implies your XQ. would of your end fiscal your guidance, around more for higher guidance while terms is than X.X% imply fiscal fiscal XQ the growth of

can just that what would -- that could draw X.X what happen incremental you draw would So talk about point weakness?

Yes.

QX, I think what But I million of QX. differences I growth change on $XX of headwinds. looking $XX math is of I And growth, headwind the a how is Airwave months disaggregated that light in the couple additional there's FX we ago. revenue million, and which $XXX for would that's quarters on million say, the focus the model, that's that way, understand X% of of face million, Tomer, you -- of the a X%. which we're deferral is informed you in kind for business business approximately By $XX the of couple ago, it. anticipate

So the the why of, as we're quarter, well. year and a healthy proud that that's is X% . pretty pretty we're full accordingly actually raising

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

just your couple on I to into comments dive the wanted a of call.

on? Is that noted upsizing it, along more You well. you're doing Is customers to that cross-sell kind with very guys of coming that other it. able Rave was products

as -- just talked of million helpful. I upside Rave And $XX quarter sources agencies, would a broadening you on maybe coming that of kind of just refreshes, this from. that is side the about of strength noted Just federal PXX then on where deal, of well, X commentary the be faster some but the just kind

integration quarter our piece, handling with a believe, integration I well. this to new start we and forward. going Rave an point, on ago, announced offers solution Rave as call bundling our There's are Just where at between with the out we all Vesta

the Button the education a our market with We penetration of Panic real-time for We and solutions, our being it. have Rave part big panic elements integration integrated with button deeper prime Video with Orchestrate center. with into [indiscernible]

that So across all and really helps a the adoption accelerating very that synergy, of positive think acts board. as I the rate with

the Department having it's Defense. it it's federal, broad-based. year. It's government to Civil, We're know, closed XX. September of we're relates multiyear. you it, it's as federal As a just seeing It's And occurred law record enforcement,

the items So $XXX in when the pleased critical then the to what for supplemental in start requests, security, of about you One with federal national there of is we're billion really think some is going happened And What would in and Ukraine, during is million at little Israel. of which $XXX shipped a to course greater fund into Ukraine the million this year, time. actually $XXX than highlight point we've this I federal.

So as federal, have you Balchen, pleased everything think about it, job their team John and Joe really Zidar with. a we're related to done really

It's year, an the an smaller it's but of everybody, us. than And to for market of local. remind that. and slightly business just than X% And and area size federal scale it total focus, higher This important revenues. it's was remains trending our last year state of our

state essentially a for $XXX Communications and been final fund replace, camera And and the And going it's that which and Secure talked rip unfunded X is from mandate. to now beneficial cybersecurity local be there's the grant, around Act, NDA has business thing, about million we've standpoint. that . an should

question next from comes The line the Bollin Ben with Research. of Cleveland

Wilcox I kind the how cycle, if playing was update This we where NEXT into you and 'XX? that that you on 'XX refresh in for and APX is out see of wondering Brian us could on Ben. are

Sure.

million of momentum of say, since words, $XXX introduction our now in $XXX orders QX We actually received acceleration. I'd We're So X did 'XX. million late XXXX. in of in orders

we're smaller starting customers now to place success pleased cities, good having most the orders see us. we're think is within with against and I we're thing but local major state

customers, game us been a the I quality. to But really world-class has ergonomics, a that basics, would the things. glove in the ability attribute with use few the audio been demand through to and adoption lot location I software and game the for of have of the hand application would the changer a extend call have works It's of ease way changer. network programming by our SmartConnect smart center then command Rave solution, really

we they're really at look and radios, APX portfolio, we think look and at there's safety when in it the say like family domain. it nothing public -- our I NEXT

you business. as think We've plays LMR I and asked business our [indiscernible], a into the it's kind around mid-single-digit follow-on of question typically [indiscernible]. that device a said

X on And business. I Okay. if follow-up, the Surveillance could,

I we shifted out and getting incremental the verticals to that's you sector but love and your and kind and perspective mix called there, think of where public hear surveillance between how on involved going? commercial it's would

Sure.

our nascent video now largest X Avigilon, that markets acquired security. that I'd business. public essentially remind terms in was And of vertical everybody we X a is So safety when of

that's the a the portfolio of in to sales function team's So been new ability our take government.

So thing. that's first the

transportation, enterprise, the and as security most. in we've education. the is for business It's well. control business access really enterprise than then there, have and all It's And safety and in business that primary is that and little verticals health care. are space. centered in different core production around enterprise, the utilities we In particularly which security. around as a said, really The energy verticals video touch our grown Those

of comes Joe the Cardoso question The with from line JPMorgan. next

you're up compares. follow up to growing digits. seeing combo coming the tough the quarters just just on there mid-single NEXT with and comment some actually momentum LMR want in We're the I with against APX

So I curious it's maybe of a clarification. just just or wanted to more --

couple compares sustainable a the the then of of that think over is top on even follow-up. quarters? growth And have I mid-single-digit next If you difficult

portfolio, XXXX. of is Jack around we parts million others. $XXX APX invest other NEXT, as and mentioned, orders itself Tetra have since So refreshing to in too, in continued introduction like the of And our portfolio

mentioned supports good stages as, investments the portfolio innovate number strategy year. in next spend we're and that continued I that would to to And expect while pricing refresh. be and the continued earlier, that lead still continue So the sizable of business and R&D a we as to a had to able quarters growth demand, advance the grow amount of we make, to early . having we at device of should as well

follow-up on free flow. then Got it. And my great. That's actually cash

quarters, of of choppy if environment a past of the a accelerated capital, level the returning just levels being in seen starting be going can cycle given that consistency coming that relative we've forward, of the and inventories seen tailwinds are shareholder bit. whether level seen the guess type flow to example cetera? past kind another just over down macro step couple You of of that's had quarters, to take past we've improving thoughts behind appears maintained quarter here. the we we on Any It I of a we've elevated some cash dynamic working past free materializing, or back more that solid over generation the the couple momentum et return conversions. given business, and the to

Sure.

to that to on an plan the So year. we taxes was aggressive deliver mentioned we're XXXX. with We $X.X cash in we February billion. track the with the that, cash being this that of That on billion included are I'll positioned I on X higher at solidly point mentioned deliver million well through cash that start of $XXX up, in year. $X.X at And that quarters set over flow flow. beginning this

down million. levels at down They're sequentially, that right continue inventory to last they're this from million our You're year. down. million also and $XXX still They're $XXX point come in $XX

look year backlog with working envision we into balance continued future. in as So optimization the to and into investments opportunities, opportunity we the next and record inventory capital

I'll question-and-answer additional the Chief concludes Executive turn Mr. [Operator over to and Instructions]. now closing This Brown, Officer remarks. for Chairman or floor Greg any comments session. our

and results bidirectional linking listening, in all, everybody private first and of with I the would we great property provision I but love a and assembled, solving a to ever. security we've in for public -- we safer I balancing for also safer that closing we great long are thanks solving threats, dialing organizations within We're are the say lot about private places. you pristine moving the hospitals, to parts, safety we made the investing have, also do protect love ensure when in that them, term. of and and thank what A customized but focus deliver think quarter, and in world challenging you integrating we've team and and that for at and both So of the for important people, And execution. workflow Solutions, think collaboration the safer communities, as [indiscernible]. solutions safety and as Motorola investments we We schools, everybody increasing safer and by that stadiums. do, in I institutions effect,

Again, I'm proud of everybody.

I talking think do, to in the you to lots strong. February. of forward outlook orders, for is Record to Look lots opportunity as also business our Thanks. record a funnel, backlog, but well. robust

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

your disconnect your We that participation time. this thank at ask lines and for you you please