Reporting by Jaspreet Singh in Bengaluru; Editing by Maju Samuel
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Ben Bollin: That’s helpful. I appreciate that. And then Jack, I was hoping you could take us through how you see K-12 developing. If you could speak to the significance of the deal sizes themselves, the nature of the project that you’re seeing, just any thoughts there would be helpful. And that’s it for me. Thank you.
Jack Molloy: So, well, K-12 is – there’s really two technologies. It’s video security and access control. And depending on the type of school district, we’ve seen an acceleration into our Alta, Avigilon Alta, which is cloud, but we’ve also got larger school districts that continue to buy Unity. But the K-12 education in general, we put the marker in that our video business is growing 15% K-12 and the EDU market is, is surpassing that growth level. It did last year, and it continues to grow through the first half of this year very robustly. And I think some of that’s the beneficiary of ARPA funding, but I think a lot of it is really much more – it’s much more secular around school security and that it’s getting prioritized over everything else.
Mahesh Saptharishi: One more thing maybe to add to that is just from a safety reimagine standpoint, we’re also integrating Rave along with Orchestrate and Rave. We now have integrations going into aware with a panic button. We also have the capacity to integrate weapons detection. We also launched weapons detection for the school’s market. So all in all, we have other headwinds come – tailwinds coming with us there to push the whole story from a school security standpoint.
Greg Brown: Good point, Mahesh.
Mahesh Saptharishi: Thanks, Ben.
Operator: We’ll take our next question from Joseph Cardoso with J.P. Morgan. Your light is open.
Joseph Cardoso: Hey, good afternoon. Thanks for the question. Just one for me. And maybe this is just kind of a broader picture question. The God embeds sort of a normal seasonality in the back half, at least relative to pre-COVID era. However, at the same time you guys are staring at a much larger backlog now, can you just walk us through the puts and takes around that why you’re not seeing better seasonal trends as we kind of go through the back half and I guess particularly just given that you’re seeing better supply headwinds – or sorry, seeing supply handlings ease more broadly, just curious whatever thoughts you have on that. Thank you.
Greg Brown: Yes. Joseph, just – I’m sure Jason will jump in as well, but I remind you that, you’re right. Normally, this business is typically Q3 and Q4 weighted and seasonally dense. I think that’s unchanged. But remember, we’re guiding an increase in top and bottom, even with the $80 million of Airwave deferral in the back half and another $50 million of PCR light business model change. Jason can elaborate on that. So that’s $130 million of revenue growth that needs to be incorporated into the second half guide, but still informs and allows us to raise. And on the bottom EPS line we have an incremental $0.30 tax headwind, $0.50 for the year. We had $0.20 headwind, first half $0.30 of EPS structural tax headwind back half. So as you incorporate those ingredients into the blender, it shouldn’t take away or distract at all that the demand is strong, the raise is strong and the momentum is strong.
Jason Winkler: So business model change in low end PCR we mentioned in February, we’ve gone to a model where we only recognized the margin and the revenue in the product, no longer the COGS. So it’s OE neutral, but did change the revenue line. That was a way to focus our business on higher value efforts. So that’s something…
Greg Brown: And the choice, we…
Jason Winkler: Choice we did in February and it’s working out quite well. The other thing I’d point you to is the lead times from our key semiconductor manufacturers and the commitments they supply us for getting us the products and the semiconductors we need, support the increased guide and continue to represent opportunity for us as we go forward. But we get commitments from them and we plan the business and how much revenue we can unlock out of backlog based on that.
Joseph Cardoso: Yes. Got it. Thanks. Appreciate all the color there.
Greg Brown: Thank you Joseph.
Operator: Next question comes from Keith Housum with Northcoast Research. Your line is open.
Keith Housum: Good afternoon guys and great results and impressive guide. Greg, as we look at your software and services margin sitting almost 37% this quarter. I guess the question is, is like, where can those margins go to and maybe some color on the incremental margins for every buck of business brought in? Can help us kind of clear the picture?
Shares of Motorola Solutions Inc. MSI, +0.69% inched 0.12% higher to $281.64 Wednesday, on what proved to be an all-around grim trading session for the stock market, with the S&P 500 Index SPX, +1.10% falling 0.76% to 4,404.33 and Dow Jones Industrial Average DJIA, +0.54% falling 0.52% to 34,765.74.
The stock's rise snapped a two-day losing streak.
Motorola Solutions Inc. closed $17.79 below its 52-week high ($299.43), which the company achieved on May 19th.
Trading volume (796,274) remained 34,482 below its 50-day average volume of 830,756.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use.
Aug 3 (Reuters) - Motorola Solutions (MSI.N) on Thursday raised its full-year revenue and profit forecasts on robust demand for the telecommunications equipment provider's integrated security solutions.
The company's shares rose more than 3% in trading after the bell.
As governments and private players are trying to reduce response times in emergency situations and plug security loopholes, they are relying on public safety solutions offered by the companies like Motorola.
The Chicago-based company now expects full-year revenue in the range of $9.88 billion to $9.90 billion, compared with its previous expectations of $9.73 billion to $9.78 billion. Analysts on average were expecting $9.79 billion, according to Refinitiv data.
The company also projected full-year adjusted profit of between $11.40 and $11.48 per share, up from its previous forecast of $11.21 to $11.29. Analysts were expecting a profit of $11.29.
"Our momentum entering the second half is strong," CEO Greg Brown said in a statement.
Motorola projected third-quarter adjusted profit in the range of $2.99 to $3.04 per share, compared with estimates of $3 per share.
Second-quarter adjusted net income attributable to Motorola solutions stood at $458 million, compared with $354 million a year ago.
The company provides critical-communications gear like walkie-talkie, video-surveillance cameras, and software solutions helping communities that the governments and businesses serve during emergency.
The U.S. government and home office of the United Kingdom are the largest customers of Motorola Solutions.
Motorola's second-quarter revenue rose 12% to $2.4 billion, slightly above market estimates of $2.36 billion, while its adjusted earnings were $2.65 per share, above market estimates of $2.51.
Reporting by Jaspreet Singh in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles.
CommandCentral Router expands Motorola Solutions’ 9-1-1 call routing portfolio with a reliable, always-on cloud offering
CHICAGO, August 08, 2023--(BUSINESS WIRE)--Motorola Solutions* today announced the expansion of its Next Generation Core Services (NGCS) portfolio with the unveiling of CommandCentral Router, one of the industry’s first cloud-based 9-1-1 call routing platforms. The National Emergency Number Association (NENA) i3-compliant solution works with all of Motorola Solutions’ emergency call management products and offers public safety answering points (PSAPs) mission-critical, reliable 9-1-1 call routing performance via a cloud-based solution.
Motorola Solutions’ next-generation 9-1-1 call routing solutions are currently relied upon by North American agencies serving approximately 45 million people. Multiple state and local government agencies have signed on to deploy CommandCentral Router in 2024, including Berkeley County, West Virginia.
"At Berkeley County, we pride ourselves on adopting new technology as a means for better serving our community," said Gary A. Wine, Berkeley County Administrator. "Our team fields hundreds of emergency and non-emergency calls daily and Motorola Solutions’ cloud-based CommandCentral Router will supply us the confidence that those calls will be routed without disruption or delay."
"Our customers want choice in their 9-1-1 call routing to best meet their unique needs," said Dan Twohig, vice president of NGCS at Motorola Solutions. "CommandCentral Router offers agencies the benefits of our traditional data center-based call routing solution via a multi-cloud software-as-a-service offering, delivering the scalability and mission-critical performance our customers expect."
Motorola Solutions is showcasing its full suite of command center offerings at booth 701 at APCO 2023, APCO International’s Annual Conference & Expo, from August 7-9 in Nashville, Tennessee.
*The 9-1-1 Next Generation Core Services announced in this press release are provisioned by Motorola Solutions, Inc.’s wholly-owned subsidiary, Motorola Solutions Connectivity, Inc.
About Motorola Solutions (NYSE: MSI)
Motorola Solutions is a global leader in public safety and enterprise security. Our solutions in land mobile radio communications, video security and the command center, bolstered by managed & support services, create an integrated technology ecosystem to help make communities safer and businesses stay productive and secure. At Motorola Solutions, we’re ushering in a new era in public safety and security. Learn more at www.motorolasolutions.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808903359/en/
Contacts
Tricia Quinn
tricia.quinn@motorolasolutions.com
(312) 805-0133
Shares of Motorola Solutions Inc. MSI, +0.69% shed 1.32% to $281.29 Tuesday, on what proved to be an all-around dismal trading session for the stock market, with the S&P 500 Index SPX, +1.10% falling 1.16% to 4,437.86 and Dow Jones Industrial Average DJIA, +0.54% falling 1.02% to 34,946.39.
This was the stock's second consecutive day of losses.
Motorola Solutions Inc. closed $18.14 short of its 52-week high ($299.43), which the company achieved on May 19th.
Trading volume (468,894) remained 379,650 below its 50-day average volume of 848,544.
Editor's Note: This story was auto-generated by Automated Insights, an automation technology provider, using data from Dow Jones and FactSet. See our market data terms of use.
Greg Brown: So just a couple points. The first of which is think about the government’s procurement cycle, which is one to say it’s long cycle, it’s long years. We did not announce the mid-tier APX NEXT until Q3, late Q3 of 2022. So Louie, what that’s really a function of a byproduct of when it was announced, what was actually able to be quoted at that point in time. But without question, we’re seeing acceleration to the numbers, $80 million in a quarter on the new orders, the type and the striation of customers that are buying those devices. So the other piece of it, just historically speaking, having worked here long enough to see probably three pretty large scale device refreshes, it typically takes three years – three to five years post-launch to start to alleviate and move those legacy versions down and through the cycle.
Louie DiPalma: Great. And it seems that The House committee has approved a $15 billion next-generation 911 funding bill. And on this topic, what is the status of the integration of Rave Wireless with your VESTA solution? And has the adoption of Rave accelerated as a result of the combination with Motorola? Have you juiced up Rave’s ability to generate orders from the education vertical and enterprise vertical?
Mahesh Saptharishi: Absolutely. So we – as of last quarter, we are now bundling the Rave 911 suite along with our VESTA, new VESTA sales. So it comes part of that as a whole. In addition to that we have been actively working on just – Rave, remember, is an important bridge for us from enterprise security to public safety. And we’re adding more and more lanes to that bridge with every integration that we do here. The VESTA integration is definitely one of those. I mentioned the panic button integration with aware being another one. We’re integrating Rave into Orchestrate, which now ties that in with the video and access control pieces as well. So together Rave now plugs into public safety more effectively. And then Rave and aware together actually allows us to connect different instances of CAD as well.
So dispatchers instances can communicate with each other as well. So as you look at the install base that we have in VESTA, as you look at the install base that we have in schools, K-12 schools with video and access control, we’re leveraging all of that by bringing that together as this bridge between public safety and enterprise security gets wider.
Louie DiPalma: Great. Thanks, Mahesh. And lastly for me, do you have any thoughts on the reported TETRA cybersecurity vulnerabilities?
Mahesh Saptharishi: Sure. So I think the first thing is Etsy is the primary spokesman in custodian for the TETRA standard in conjunction with the critical communications authority in Europe. What was reported, I think the first thing I’d like to point out is what was reported is there was no weaknesses found in the public safety algorithms. There’s three algorithms. Tier 1, TEA1 is actually for general use. It’s a little bit more open due to export control issues. But there’s been no exploitation of operational networks that we know of. And essentially subsequent to those findings, which we knew about even into late last year there’s been software patches and then upgrades to the algorithms that have been done subsequent to that.
So this was actually paid, this was a research tank done out of the Netherlands who actually did the testing. So yes, something we knew about we had a – the primary weakness was in general use, and I think it’s been remediated since then.
Louie DiPalma: Great. So it’s been resolved already. Thanks.
Mahesh Saptharishi: Yes. In our view, yes. Thanks, Louie.
Louie DiPalma: Thanks.
Operator: This concludes our question-and-answer session. I will now turn the floor over to Mr. Greg Brown, Chairman and Chief Executive Officer for any additional comments or closing remarks.
Greg Brown: Thanks, everybody. Thanks for joining us, but just in closing, I want to make sure I thank all the employees and the people in Motorola Solutions worldwide and all of our channel partners worldwide. I’m proud of you and we’re proud of you, most especially what you do, how you do it, and the execution. I said in the call, you heard from Jason and Mahesh and Jack, this business is performing as well as I’ve ever seen it. Demand is strong. It’s strong for what we do, public safety, enterprise security. And I like what we’re doing to meet that demand and exceed that demand with the execution of what we do and what we’re doing on the portfolio reinvention and device refresh. We talk a lot about APX NEXT and all the great work done there, but there’s also great work being done on video security and access control that Mahesh is doing around 911 command center.