MSI - Earnings call transcript Q2 2019 | Motorola Solutions, Inc.

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Operator

Good afternoon and thank you for holding. Welcome to the Motorola Solutions Second Quarter 2019 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 Web site.

of the will over conclusion replay X available the a after hours of addition, this be call approximately Internet. In this call site Web address www.motorolasolutions.com/investor. The is

mode. been At in this participants have time, a all listen-only [Operator Instructions] placed

would Vice of Yocum, may Investor Mr. you President Yocum, like introduce Mr. I now begin. Tim to Relations.

Tim Yocum

President, to Vice second Greg Vice quarter Welcome join and CEO; and President Chairman Mark, Brown, CFO; Services Gino call. Kelly With afternoon. Kelly Q&A. for and review Good Executive Greg earnings our XXXX Bonanotte, and and with will are Gino me results our Software. today commentary Executive will and along

made number call, a are We've These in this include posted during non-GAAP reference. presentation of noted. and on reconciliations call. unless that news based release subject will earnings the current assumptions financial statements and the the and your statements uncertainties. portion of otherwise GAAP reference and including results, risks at we motorolasolutions.com/investor. outlook, are forward-looking A of non-GAAP be those to presentation Q&A during These for variety materials expectations during an to And

any reports section update Risk to other in in cause conference the from results XX-K filings and Form factors earnings could not Actual duty statements. be such our in today's Factors call, the release, found Information statements. differences of materially in forward-looking with undertake the news We our comments XXXX that made can on this annual about could these differ any and report SEC. forward-looking during do

turn with Greg. to I'll that, And it over

Greg Brown

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

all unable death the I us the to started, family would Jack today. you that to due a is get in call I join for Molloy like to Before inform

thoughts our with and afternoon. and this family obviously, prayers Jack So, his are

call, us I sharing a the by results will before takes and the thoughts Gino about overall the start-off business, Turning outlook. few to

expanded and earnings revenue was prior XX% share basis points versus XXX quarter. the per We of operating another strong margins grew QX year. X%, by First,

ever the and million of needed we position year-over-year up highest sequentially. billion backlog $XXX XX.X Additionally, X.X quarter billion with our up

in Second, by grew we XXX based basis our grew business, performance X% and that we have public expanded basis broad software across ecosystem, operating execute XX to points. customers points, of continued margins the our value, to while our video both shows margins X% This operating platforms, command continue communications, strong mission product segment security safety, our segments and software solutions. well services critical by and expanded built center the and segment

to for the based QX on and full we earnings per see and finally, results we the portfolio, share demand are And year. estimates both continue across raising our revenue

to some I that, now the provide thoughts. outlook additional before details and closing call Gino QX will on returning with turn for And over

Gino Bonanotte

Greg. you, Thank

includes QX last million currency billion revenue million including $XX acquisitions $X.X headwinds. of year versus up revenue by from $XX of X% of offset

Organic year revenue XX.X% growth margins of Non-GAAP $XXX of ago GAAP operating of and and XX.X% XX% acquisitions. from higher XX.X% up points of higher basis XXX margins driven non-GAAP or $XX to up quarter. operating million $XX earnings million by OpEx from compared sales $XXX gross operating X%. XX.X% and million in up million was of offset partially sales of earnings the operating margin by sales

XX% XX% tax last the per $XX $XXX QX to to Non-GAAP from quarter. to due non-operating was year million Other up quarter income expenses. earnings compared primarily increases in acquisitions. compared $XX $XX effective rate to The million of versus in last by ago driven was and XX% last expense in year foreign year compared EPS year. GAAP of and was ago currency QX OpEx share primarily the in million year. $X.XX $X.XX million $X.XX up $X.XX

in million flow the timing cash operating with by and the $XXX $XXX and free driven prior million year the compared taxes. of QX flow, cash payments in $XXX flow the prior to $XXX compared million year incentive Turning was cash was cash million

XXXX, For million the $XXX cash first was half and of was in contribution operating made driven million up free higher $XX up flow cash the excluding XXXX, flow by voluntary $XX pension million earnings.

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

And consideration notes new XX-year quarter-end, video acquired of a body-worn notes we extended $XXX average issued in we maturity an subsequent resulting to Additionally, million. the use million in-car repurchase $XXX WatchGuard, debt leader and for of senior and for total existing safety unsecured profile. weighted proceeds to public

$XXX earnings points or by security up gross higher sales Operating were OpEx results, were sales by last of on driven offset million segment from XX XX.X% and from up year $XX basis portfolio. million quarter QX $XX acquisitions margin by currency was Revenue from sales million Moving and offset partially $XX of systems in products video the $X.X investments the Americas. our X% solutions higher billion million. headwinds acquisitions integration and to or in

Area area QX video a in in PXX the PXX North PXX a wins Washington million wins Metropolitan system security million video $XX Authority, Transit order several education of Cleveland from contracts Broward order dollar segment million additional and County, Dakota, safety $XX the and in vertical. Metro the Florida $X Oakland Notable the security from public multimillion include $XX statewide million for in of Michigan, orders County

headwinds up gross sales, points offset currency year higher and growth and $XXX last X% Operating quarter $XX million. by from by million the driven services expansion Americas and OpEx revenue of or last Revenue sales in was by driven to reduction. basis margin EMEA. from earnings were XX.X% $XXX million from $XX up was acquisitions of million software, XXX in million year the or Moving $XX

a segment service the in state million and software multi-year wins contract license a the five-year XXXX, million data and provide extension QX extension with for PXX through County. records $XX $X million notable Tennessee $XXX XXXX, management million Some included contract services a Baltimore extending through plate of analytical to agreement ESN $XX

large and up Middle America's growth results, base in billion to X% system deployments QX revenue $X.X XX% Looking was East headwinds was was down broad Europe. by million million all headwinds revenue currency driven prior growth the at two And currency China. $XXX million offset across QX or partially the due in EMEA Africa QX to in down by $XX in year $XXX platforms. Asia due X% and revenue Pac, regional in

Moving year to million $XXX was Sequentially, was segments. up billion billion both rates. million XX% $X.X $XXX inclusive up backlog, with currency of to growth last ending backlog change backlog year in $XX.X compared unfavorable in or compared was Services and in and software backlog million to last to driven EMEA and the multi-year contracts Americas $XXX was ESN billion extension. or due sequentially XX% backlog the the by $X.X up up Americas

due SI to in system million down Americas. year backlog segment Sequentially, and deployments year of the $XX last $XXX by the backlog $XX the Products in to million million the Middle compared prior by and was driven growth X% large up was East Africa offset or during partially primarily Americas.

non-GAAP current million effective QX versus diluted up FX This approximately average and rate XX to year. X.X% sales the outlook, the rates, with approximately shares be share XX% to between EPS our $X.XX. $X.XX a headwinds of tax XXX XX% in and Turning prior expect of of an approximately at weighted count we assumes million

tax and and of revenue full $X.XX our of to at million effective EPS to now share acquisition weighted million assumes to of outlook FX rate we count shares. an we from $XX between cash X.X% expect XX% of the $X.XX up is $X.XX. our of to XXXX, prior XXX WatchGuard, million approximately be guidance an $X.XX current XXX non-GAAP increase of from Full from up and X million year a now prior diluted guidance growth expect to of year operating from flows full X% billion. For X% of This rates, $X.X $XX headwinds year outlook, our prior XX% expected approximately average

back like to to now over call turn I'd Greg. the

Greg Brown

Gino. Thanks,

few a me Let just thoughts. with close

revenue First, position segments outstanding. in both strong margins and ended ever. QX and We was highest the organic our with both gross backlog had operating expanded quarter margins significantly growth

software in year about recent WatchGuard, expected this purchase an XX% EBITDA in made These command we've revenue impact areas With growing acquisitions now security billion of of teens on the business. we've our about to and these contribute high Second, having profile billion. and $X.X total a video with acquisitions meaningful our of made $X that center two growing. are acquisitions are

encouraged And during segments finally, year, our as performance saw I I'm by look by both led strong North this America, which to the half second in of growth the organic quarter.

which demand and robust going expanded our video to solutions flow us center LMR momentum positions gain for well free software generation and forward. security cash continue command remains

the to to I turn back call now Tim. would over like

Tim Yocum

Thanks Greg.

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

Operator

question Jefferies. first Notter Instructions] come [Operator Please our Thank will from And George go you. ahead. of

George Notter

insights I very billion. you that guess and the about at jump start much. takes here nice kind backlog $XX.X off sequential a parts Hi walk different I it puts organic on when growth wanted you're backlog of by through that into guys. trying Can Thanks be into great. you to the us obviously asking of but about takes segments, the the I down and us? would I'm puts I gave think backlog drill some to talking the and guess

Gino Bonanotte

This Gino. George. Sure, is

the that America to $X.X let's Office Home U.K. North and contracts. first about extensions third we software about. if talk is up year-over-year service is two-thirds talked So, way for And multi-year are that about it services of billion. a of The that think

up million integration driven well of For the down North America and in and by the million Americas. Africa $XXX growth the products the is extension. and as systems contracts sequentially multiyear Middle And on is contract $XXX ESN as projects year-over-year primarily East in

George Notter

look what like. of whole organic backlog was And this sounds the it. a is Got lot organic. like growth it then, And

just clarify be would that, you If could great? that

Gino Bonanotte

primarily organic. It's Yes. primarily organic, all

George Notter

tranche with of competing of obviously wondering sense [indiscernible] Okay. here going wars implemented on on just tariffs of now that And guess for next and on guess a get competitively? in I terms But, salvo you're a and that the your topic China is I trade the couple what's the Give would I business. how taking of sides with you're of goods. what Hytera -- was there us Hikvision advantage picture bigger is the then, new there different

Greg Brown

few in the Trump the for I full hours a Well, trade contextually war increase continues guidance tariffs ago including is as that announced giving that the we're George with year. contemplated mean tariff China the

X X or that for X the for that full an half roughly second about of that and For it's million full half about implemented the September But the year. X for it's year second contemplated. half. incremental Actually million already talked he increase roughly being million X or million is the

decisions we've -- years longer where back going that manufacturing made China. you no several ago don't we remind do I in we

X.X% about of X.X% was revenue to I our China think Mainland revenue.

have don't a do We we So, don't management. don't do software development. We product concentration there.

and DC think well it's import speak I an So And a know will and Hytera delay there, We've the take And the deflect pretty Trade patent ban things source have had to despite an and forward wins one we is going implemented code we in with XXXX, the outcome. looking copying and desist will efforts If about as to optimistic areas. a in with we're secret Chicago push repeated in and patent to that going believe some we're and Germany Düsseldorf. case in trade different happen Chicago XXXX. that big we November I of trial advantage that competitively that that for the in multiple I order. every subsequently and is attempts insulated Mannheim theft Commission jury you code infringement a the Hytera and and and by There November X are two it litigation a as the in won in that and Australia infringement outcome. trial we trial copying into International first trial cease on on source are that in in to reason from then, evaluate

be August in in a business security video grew Avigilon as to the include it we the goes XX digits. before. interestingly relates and By will is It's the federal where on procurement the think video full effect On really well year, those which the XX% which we be. we growth enough for results from tracking way, double the XX. in the days the Dahua, expected to NDAA, And ban security actually don't articulated market. performed space QX, anything into Video Xx market it Hikvision about

longer We the haven't cycle traction in gained local. is and yet, sales Fed than even state

the procurement will NDAA likely of But, become be Dahua I your video we think Hikvision to that in George, and the point security space. will ban I a XXXX. more think for beneficiary But,

ongoing in Fed by that with encouraged be have beneficial are our discussions will and customers we think We I the XXXX.

George Notter

you. Thank

Greg Brown

bet. You

Operator

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

Adam Tindle

in-car I to you've touching systems related just they But is have mix in video and that approach worth that I filed done to I'd you in Good a is Greg, with acquisitions to that years with majority start and imagine wanting Thanks. that wanted light, asset. some strategic how is also the understand couple market? is on that afternoon. SX camera business the they there the like investing a think piece based other for that maybe WatchGuard body-worn vision business understand And VaaS. something and synergies of on you with ago. that

Greg Brown

market which it, is WatchGuard, within video the in to about solutions fills the portfolio. had camera leader, we that in-car excited Adam. Thanks dimensionalize We're gap a it

is seeing in-car and some body-worn a forward. that obviously we gives customers and Secondarily, us that buying are more together, for Molloy think we positive are asset which seeing going is optimism and outcome

On about is, it the million sales it's revenue similar all contribute in $XX motion. about we will believe I XXXX. what WatchGuard But love a side,

America surveillance So, we substantially. analytics sales that we the asset gets it North that into grow people can put and in it's XXX another video think plus force, key strong

good but have inside half mean company, of salespeople. WatchGuard which very XX I salespeople they are

mobile, definition bring command incumbency reach, excited with radio very about give of conversations more by land it. center points think touch I'm we the will into and significant we So, software. it's have them that market we in where We customers have strategic, them all

And mentioned more the and are over customers body-worn our they together in match have look platform point, more sell your we'll tandem rationalize as and on time we to the side to, a to body-worn buying. that them do I way to

Adam Tindle

basis. were software and in on Okay. a margins and quick this significant Thanks. a is certainly a maybe quarter, And follow-up, highlight the services year-over-year sequentially both improvement

drivers. could of the and improvements services of You mix just on operational it command greater maybe the much core you. was center, was How double-click Thank in sustainability that.

Greg Brown

start at segment talked I about operating fantastic year the will very, that side that and side. growth XX% given toward like people about will of But, operating combination a I year was believe Sinclair pleased. will Kelly If working operating segment maybe his think software it and efficiencies. margin strong moving margin on the that first We I Yes. full performance by top-line for look quarter of team performance for XX.X%, XX% services in. expense a XX%. and and services very all more first the we for on mean and jump is Andrew Kelly that software was the had we half, this look margin the the now half to the operating operating margin an

good just work it's his So by team. and Kelly

Adam Tindle

you. helpful. Thank That's

Greg Brown

bet. You

Operator

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

Keith Housum

competitive vantage market, especially real-quick, back and guys have guys. the from versus on then, competitors you correct? a you extrapolate going do standpoint, your how tariff guys in be some to advantage morning Chinese-based that? PCR there Greg that Good And just should

Greg Brown

the an States. you're consider Well, critical it countries more look they that Keith, putting technology developed electronics wireless are that in Chinese right generally I very gear advantage. sensitive Obviously, here or even either more into There's think or Chinese don't to infrastructure. -- is and

we an them. go a the from was the So, an us advantage head-to-head By by market in self-inflicted way It's litigation. for advantage. standpoint that's Hytera that as against

in I investment to So compete. going want so appropriately. steals property systematic think multi-year we that will and innovation. around there patent company what like they've and think to a much penalty a done but when puts and We a fight field, us a protection be that them as is for actions. level We and payment intellectual result R&D their a for We're egregious playing of

of to on and white a label too. the cameras in Dahua. and a the right of have that being provides that's well you're OEM of video silicon video remember we that as the Hikvision side, high of course, a intelligence providers largest as guide that And And some division Huawei benefit And two semiconductor as well. that course,

we're net-net, than reasons. in host tailwind the whole I is Chinese generally, for of bit total think headwind a a unique more that for our So in company situation

Keith Housum

Got FirstNet, benefit I my about of you. are ask it, benefit to to have, terms -- from in push be didn't I talk. obviously, you of follow-up, transitioning if your seeing And of has over would the, the been additions top charts new and in remiss are people what AT&T the but terms they

Greg Brown

We in they're of adding Keith, and to plans very, see "Connections separate organic out Obviously, contribution in look play the seen incremental or don't all single is the network, really customers any land Verizon or FirstNet we're us. full than didn't onto didn't States. QX. AT&T We strength data back cellular LMR. of low not. win mobile, revenue benefit data little. that projecting any have LMR, we a we've any for subscribers". digit the to very or they have terms continue It's Sprint here will at as radio really T-Mobile for in from to given build the in Obviously, will millions, really And QX; They're year, the it's

using know talk And incremental users there, the look in at we we cellular it. when we FirstNet over asset. which that were see And as push an if traction don't Kodiak solution really would growth is we the to the for because own

But, that's all working us for at meaningful year. no it FirstNet, I AT&T think is revenue So, has this contribution think obviously for I and great.

Keith Housum

expectation year? the next you the have, there or Is following year

Greg Brown

are next view for project year. pretty to expectations from I muted. But think too early my

Keith Housum

Thank it. you. Got

Greg Brown

bet. You

Operator

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

Paul Coster

just device ocean that, deploying I taking question. devices the story. say bit some to side subscribers on a on are hundred opportunity. pursue Greg, guess little further, is, your companies for about of getting so device money to I'd several which like the that terms thousand plan AT&T which a is my does drop question. of the of Thanks what And very the is two-part One is FirstNet, FirstNet know. making to far out But, is the of question, excited it's the I seeing a in how Motorola Yes. in

And interesting the inside [indiscernible] that And is, competition the any in here reason, doing you're initiatives do the many of context. community. second the see you that budgets responder first part for is

Greg Brown

Well, first. the critical communication budgets here than public well the as platforms to a need answer software a video local. as combined criticality the I in command safety mission will security on pretty second center we That have must healthy makes more of see have. and what what one sell We U.S. into being we with state sell of and

On the on procurement FirstNet approved we Paul, a device have list. device side, already the

approved. that's product LEX the have we So,

fair land the you you'll But, device think I market time. that way. a us over responders if any -- it begin will have which additional to have smartphone, today that it's additional have smartphone. mobile, there's products U.S. and And say PXX don't see radio any an with here to device in first if replace new the some that share we will

like us earlier a zero it upside nothing FirstNet the APX to is So, replacement because won't may pretty radio. a I mission affect a critical enhancement traction get from smartphone would device data be of on There's there that side, some smartphone while and PXX device date. kind really but for is typically or if said much

Paul Coster

likewise nor they don't then, well you risk? into revenue XG roll a either network opportunity of to the plans as as this see that a And sort look FirstNet

Greg Brown

outside upside. what video It risk. It's I speed, sell the and The I a those really positive a fatter to don't in I the software we pipe faster LMR. do it as of command it as are is see for the additional and LMR. think revenue see security. conditions center

could migrates as on gets platforms two XG So, is built what XG. network pipe we're an we that over the It LMR, other see cellular several upside to building. as impact the years as we gets see has out that no on fatter

Paul Coster

it. Got Thank you.

Greg Brown

Paul. Thanks

Operator

Suva Jim Our next of question comes Please ahead. go Citi. from

Josh Kehoe

Josh you Authorization question. revenues for potential benefit of of more for behalf today? Hi. Suva. opportunity Avigilon Jim This our to in the any from expect you taking Kehoe National the sizing you're is Act? up Defense most Thanks give the think see Geographically, us potential how color we'd and the ramp Could how on

Greg Brown

this Avigilon. would local Well, it about the County solid year, growth relates of just Avigilon, material think we Cleveland in area first and Love the are Xx to the market. state double-digit all, government XX% expect QX. Both of say, Number in dimensionalize growth Broward still wins I and two, QX. as to and is which new revenue

having in intervention, the the white Safe and those a on and protecting schools, front human appropriate traction motion enterprise is counselor And around down kinds use we reasons enforcement to And That the children, necessary or things case lock are surveillance, critical. having mobile Getting education detection, know alerts the then, Schools, to feed school land widespread. doing radio automatically. is and perimeter perimeter, the a guidance all of person center anomaly principal law security, hot XXX officials security that also for securing video significant. alerts without safer or and signal detection into

by done have way, investments made on I team the Molloy has what and his he product So side. love the

new see perform of the the some half is you'll confidence way to this year. We've go-to-market and the described critical roll second our part reason area. in think our the ability cameras of significantly increased which in I we out informs that

conversations point any the all your The really and without longer. having are from we're great, sales And active Fed NDAA is cycle the dialogue. yet Josh are this contribution to

XXXX takes effect and have providers this identify struggling and XX customers understand that we expect customers But you've them Chinese prohibition more As in are seen get resources to that we probably our helping replace we our than procurement to of the they Fed where year. in and are the days traction video can. given

Josh Kehoe

Thank you. Okay.

Greg Brown

Thanks josh.

Operator

Bhagavath Vijay ahead. go question of Bank. Deutsche Please next comes Our from

Brian Yoon

Hey.

from Deutsche. Yoon Brian actually it's think I

also the I business. So question Avigilon on a had

of refresh just the is, National Defense So to whether what new and limiting since we've from out existing hearing if you or on is of kind on customer the kind Act seeing it's purchases, confusion, there. have out the to close Thanks. they existing on is? super in view? rip Do as you cases get expand out view to it'd kind Avigilon are interesting Can a kind comes conversation equipment be product requirement the what sort been rip you're what equipment confusion winner, seeing sales of both of clear guys systems, the opportunity but your Chinese to your of

Greg Brown

is Defense procurement two the the dimensions in there is One terms It's Brian, to XX. ban. National federal Authorization of Act August ban. a

second is leg grant funds can be procurement that companies to a which their of mainly the video equipment which no Hikvision prohibition of federal from of as named. year used two August And So, this a from month or the XXth can Chinese is of year is no next it, this of say Dahua. new month, in for agency security procure security federal video those

might through that the don't necessarily a be created the They at and they video as August that next community cameras of used to of local money that flow grant have state today. have So, level year. to could cannot be out rip Fed or

year. grant procurement money August a use of of grant There's of a August they rather XXXX. ban there's ban this can't So in

Brian Yoon

you. Thank great. Okay,

Operator

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

Ben Bollin

evening I wanted items to for Thank Good taking touch if you on could. the everyone. question. I two

segments, little opportunities with, at major customers come more I across that surveillance you look a three deriving LMR, budget about for money and center from? bit when but think talk dollars those and we're are funds where the win, is, sector pretty the does future where command can familiar public you First

these you how assets, in does getting feel you of compete that a like-for-like more to public of kind deals, ability no influence safety more Thank tail what pricing yourself follow-on on like There's you. power. as seeing that your front? then, are competition second leverage And into longer you're you

Greg Brown

think we points. They but first are several Obviously fiscal the in I you have just vary I different standpoint and a revenues that say and budget healthier different generally. as On states some than overall state source know, from healthier that years. been local U.S. tax conditions they -- one, would from see budgets revenues

are long-term obviously budgets like other XXX other multi-year Gino example. centers and these taxes Some in affordable about talked that State contracts things as in that. is envelope that of of But, have is procurement the of goes the through which XXXX. an that kinds the his software we're to these thing of makes used commentary us command selling the fund Tennessee,

they to So, the way could of the could depending for OpEx, given time the -- upon to buy, wants depending length and be be it upon it CapEx customer that want pay it.

situation. We the to have them fiscal their buy flexibility way of for that's the them envelope conducive to individual a in fits meet that affordability

and that But, beneficial say certainty. I clarity and Fed, the would been has given the fact there is budget

deals of than the and as half the budget provided. saw revenue half the has flow because administration and in certainty the and we clarity us that budget Trump first more it the for to Congress specifically obviously So, relates that second

is past from more budget the in been think standpoint has So, well. federal a I that than it situation as today favorable

Ben Bollin

into get that the of within does and How deal? On surveillance more the you broader command -- your the as envelope. center position competitive landscape, area competitive influence

Greg Brown

call I think think acquired speaking. generally can we've it's handling, remained I radio, XXX land same, Tier center Tier advantage as on on compete and command compete In more software X, assets mobile it's can but the in expansion QX can to led put X and more evidentiary margin importantly, which operating what's part then platform CAD, these in in on records them. And the or X management to is together management. Tier assets or compete

advantage. which cloud scale center architecture. for on-prem, an areas, we the them of that of be of enabling, cloud, can So, public the command where economies software sell one a a of cloud point if to where want we're that's those more competitive customer of they customer those. a the buy or Obviously, that they advantage met a the it, architectures building or provide we'll we two around can want given set be on It's have to is putting product meet we're integration and wants common we the "Speak if scale that a hybrid or in Suite"

got we we as value video from and is think a the in-car fixed do proposition I bigger competitive we'll we've a can and have side, video, over us it On security a time. everything sell differentiate an advantage have we body-worn the now standpoint more compelling because integrated and package and for video video, end-to-end

Ben Bollin

Thanks, Please Greg. a appreciate pat. give I it. Jack

Greg Brown

We you. do. will Thank

Operator

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

Sami Badri

you. Thank Hi.

on that in the is was The first able now within for what rate? you'll Motorola. have that market I is like you growth a And business WatchGuard and question about grow WatchGuard follow-up. how various competitors, a And I market you WatchGuard had think it be and then, the to do you think

Greg Brown

the one that camera like think leader. in-car market things we WatchGuard the it's about I is, of

-- to grow then, at in-car interest XX as XX I digits. by individual billion for more and billion believe said, we've say is double video in we to and WatchGuard in combination a can TAM in think way or add video dollars, could Avigilon video, grow without is video segment They'll se. we And purchases together. the and camera you billion incrementally that And look give total the buy that think several general some China. body-worn future But, a in-car and per in to overall profile TAM [indiscernible] we buying and that body-worn it's that reasonable of those double-digit at the think guidance profile the together. will customers product don't I given do it's I given

Sami Badri

and case demonstrated over do think question actually in this you. that that as to tuning than could that operating faster you to way your clearly profile point Thank then, regarding and next services and been achieving you higher business you're And has given expansion, the you of do well margin you've it. expected. years be has operating expansion say that achieve services my software And up with the Got software, faster the couple there a is margin now follow-up the up. would would shown

Greg Brown

it be achieved would it than the half we think year. than more was I first for the thought full in

XX%. to XX%. up operating the that it target We've for inched was remember So, XX% margin to segment

you one with segment from XX% on in increased XX% I that to going no can't performance color reflected the but necessarily from linearity of XX%. I'm think a pleased the to quarter mistake; make of focus perspective

are to Too it making continue to would we and us would think I would anything over year, next but I that forecast and and enable his be changes obviously Yes, that time. will team great. to meaningful for to will would grow Kelly grow. early foundational expect it I we

Sami Badri

Great. Thank you.

Greg Brown

Thank you.

Operator

Please our question Paul come ahead. And Instructions] go Silverstein of [Operator from next Cowen. will

Paul Silverstein

looks in part, do situation. in I'm respect U.S. two, billion of and we I mistaken mitigated, that for a was collectively, in entirely in did that the the impact from form it much of there's not all question, any one Gino, acquisitions of market been is particular, $X.X I back that assume and you But, about of much they is, if other the the calls opportunity to could revenue their an have fiscal competitors of in 'XX or gated, to opportunity apologize. from terms the this terms I've video and if hopping But Guys a Avigilon two taking quantify, revenue I number is asked it three revenue outside so being up how the already not if incremental and that of in you China, sense there of much in others there for I number of U.S. those to a U.S. know and pick and you way return answered is the tonight, with like been the how particular piece, appreciate Greg and you question, you billion revenue between the Dahua apologize how on Hikvision outside do around their $X.X don't respective

Greg Brown

the I the it's Paul guidance given market. performance reflected think we've and Well, in the i.e.,

take So, expectations market without growing China China XX%. out, in our about or the X% X.X% are is

investment around that definition in a a plan products, and refresh by is investment, we going believe a on we've So, Xx. cameras. go-to-market as cameras, yield market of and and well then, place as channel set strategy certain down synergy have could And

before is to and dimensionalize point The and have with okay, this restrictions. National Authorization Fed Paul, We just any anticipated Avigilon on see little talked in and don't procurement contribution both we the effect performance for but Defense any Act at this this quickly significant really we that expect a grant having from we without Now about time bit it. that's to have year.

think and and as broadly, way EMEA can it and Xx the it's investing China, So, well. channels, U.S. portfolio camera than grow if market, we more cheering North without significantly also more more effective about And it's the refreshing America. the bringing on by We adding go-to-market.

billion growing billion China $XX is that's $XX This market market without nicely. to

verticals all a can the not that platforms, differentiate. analytics, and I hot are experience of we management, and areas. the provide is one Again, that building we're here the it's storage, market, cases machine think it's the Molloy the take it's specific good use device, about we end-to-end about it's optimistic to done a learning video, This do it's A.I. just around So, what edge the of it's has job. and

a that's have work We the lot but perspective. more do, to

Paul Silverstein

you I'm point ask platforms, and based think correct into perhaps other I some video when a maybe completed at ago, had the ago wrong, you integrated quick or of quarters it quarter me, was capabilities could your least your and if Avigilon command control but I if about two software platform. the Greg, just follow-up had to a

what XXXX of terms Did U.S.? early or indications in throughout you those address address you control by up and centers could take the the are command

Kelly Mark

Kelly. It's Paul. Hey,

was make exist. regards really we various LMR, I center bring So, in components, the platforms I'll these to together command the between spoke we touch before, software it sure When on as that all security video to and that. inter-linkages

those customer in that the the or streams case product recent the on a video for they visibility a the data Avigilon data example have VaaS aware that so our VaaS, acquisition has for in plugs or video command to screen. right that straight can of into of center, the So, and/or

just to to platform a gated you because inter-linkages platforms by something the command be those bit in not of centers it I measure would towards as also helps facilitate aware well. penetration that those it regards direct to So, who uses our

Paul Silverstein

How is, used? were broadly

Kelly Mark

products growing be but you Wear into is pretty we'll how many updating earlier don't that something get that's our it, directly use future. of on the apps piece and We rapidly. yet one

products situation a during relatively integrate components. It's provide quickly a single growing from because So, pane newer and resources mapping, as a of VaaS its ability glass, manage it's our emergency. to but customers an to their it's assets, and CAD to we help of our view on very to and to one say of other integrated video and

Paul Silverstein

I you. response. appreciate the Thank

Kelly Mark

you. Thank

I Yocum¸ to or question-and-answer floor additional session. the Vice turn over for our President will Tim Relations concludes of Investor Mr. closing remarks. back This any

Tim Yocum

the concludes Appreciate you. call. That Thank you today. joining

Operator

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

Motorola Solutions (MSI) 1 Aug 192019 Q2 Earnings call transcript