Motorola Solutions, Inc. (NYSE:MSI) Q3 2020 Earnings Conference Call - Final Transcript

Oct 29, 2020 • 05:00 pm ET

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Motorola Solutions, Inc. (NYSE:MSI) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon and thank you for holding. Welcome to the Motorola Solutions Third Quarter 2020 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] The presentation material and additional financial tables are currently posted on the Motorola Solutions Investor Relations website. In addition, a replay of this call will be available approximately three hours after the conclusion of this call over the internet. The website 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 your conference.

Executive
Tim Yocum

Thank you, good afternoon. Welcome to our 2020 third quarter earnings call. With me today are Greg Brown, Chairman and CEO; Jason Winkler, Executive Vice President and CFO; Jack Molloy, Executive Vice President, Products & Sales; and Kelly Mark, Executive Vice President, Software & Services. Greg and Jason will review our results, along with commentary, and Jack 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 will reference non-GAAP financial results, including those in our 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 2019 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 for joining us today. I'll start off by sharing a few thoughts about the overall business before Jason takes us through our Q3 results and outlook. First, I'm proud of the team, and I am pleased with our results and execution in these challenging times. During the quarter, we achieved both revenue and earnings per share above the guidance we provided in August, driven by growth in video security, command center software and services. Additionally, we generated $392 million of operating cash flow and strengthened our portfolio by closing the acquisitions of Pelco, a leader in fixed video security solutions; and Callyo, a cloud-based SaaS mobile apps provider for law enforcement.

Second, our Software & Services segment continues to perform well. During the quarter, this segment grew revenue 9%, expanded operating margins by 220 basis points, and generated over half of the operating earnings for the company. We were also awarded the largest command center software order in our history, $120 million plus Next Generation, 911 multi-year contracts. And finally, while the environment with COVID certainly remains fluid, I'm encouraged by the improvements we saw in many areas