Motorola Solutions, Inc. (NYSE:MSI) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 05:00 pm ET

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Motorola Solutions, Inc. (NYSE:MSI) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
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. In addition, a replay of this call will be available approximately 3 hours after the conclusion of this call over the Internet. The Web site address is www.motorolasolutions.com/investor. [Operator Instructions]

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

Executive
Tim Yocum

Good afternoon. Welcome to our 2019 second quarter earnings call. With me today are Greg Brown, Chairman and CEO; Gino Bonanotte, Executive Vice President and CFO; and Kelly Mark, Executive Vice President, Services and Software. Greg and Gino will review our results along with commentary and Kelly will join for Q&A.

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

Actual results could differ materially from these forward-looking statements. Information about factors that could cause such differences can be found in today's earnings news release, in the comments made during this conference call, in the Risk Factors section of our 2018 annual report on Form 10-K and in our other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statements.

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

Executive
Greg Brown

Thanks, Tim. Good afternoon and thanks everybody for joining us today. Before I get started, I would like to inform you all that due to a death in the family Jack Molloy is unable to join us for the call today. So, obviously, our thoughts and prayers are with Jack and his family this afternoon.

Turning to the call, I will start-off by sharing a few thoughts about the overall business, before Gino takes us the results and outlook. First, Q2 was another strong quarter. We grew revenue 6%, earnings per share of 16% and expanded operating margins by 240 basis points versus the prior year. Additionally, we needed the quarter with our highest backlog position ever of $10.9 billion up $1.5 billion year-over-year and up $500 million sequentially.

Second, we continued to execute well in both segments of the business, our product segment grew 4% and expanded operating margins by 50 basis points, while our services and software segment grew 9% and expanded operating margins by 590 basis points. This strong broad based performance shows that our customers continue to value, the public safety, ecosystem, we have built across our platforms, mission critical communications, command center software and video