摩托羅拉 (MSI) 2024 Q1 法說會逐字稿

Good afternoon, and thank you for holding. Welcome to the Motorola Solutions First Quarter 2024 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 posted on the Motorola Solutions Investor Relations website. In addition, a webcast replay of this call will be available on our website within 3 hours after the conclusion of this call. The website address is www.motorolasolutions.com/investor. (Operator Instructions).

下午好，感謝您的支持。歡迎參加摩托羅拉解決方案 2024 年第一季財報電話會議。今天的通話正在錄音。如果您有任何異議，請此時斷開連接。簡報資料和其他財務表格發佈在摩托羅拉解決方案投資者關係網站上。此外，本次電話會議結束後 3 小時內將在我們的網站上提供本次電話會議的網路直播重播。網址是 www.motorolaslutions.com/investor。 （操作員說明）。

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

現在我想介紹一下投資人關係副總裁 Tim Yocum 先生。 Yocum 先生，您可以開始會議了。

Good afternoon. Welcome to our 2024 First Quarter Earnings Call. With me today are Greg Brown, Chairman and CEO; Jason Winkler, Executive Vice President and CFO; Jack Molloy, Executive Vice President and COO; and Mahesh Saptharishi, Executive Vice President and CTO.

午安.歡迎參加我們的 2024 年第一季財報電話會議。今天與我在一起的有董事長兼執行長 Greg Brown； Jason Winkler，執行副總裁兼財務長；傑克‧莫洛伊，執行副總裁兼營運長；執行副總裁兼技術長 Mahesh Saptharishi。

Greg and Jason will review our results along with commentary, and Jack and Mahesh 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. During the call, we reference non-GAAP financial results, including those in our outlook, unless otherwise noted.

格雷格和傑森將審查我們的結果和評論，傑克和馬赫什將參加問答。我們已在 motorolaslutions.com/investor 上發布了收益演示和新聞稿。這些材料包括 GAAP 與非 GAAP 調整表，供您參考。除非另有說明，在電話會議期間，我們會參考非公認會計準則財務業績，包括我們的展望中的財務業績。

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 and the comments made during this conference call in the Risk Factors section of our 2023 annual report on Form 10-K or any quarterly report on Form 10-Q and any our other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statements.

本次演示和電話問答部分將做出一些前瞻性陳述。這些陳述是基於目前的預期和假設，受到各種風險和不確定性的影響。實際結果可能與這些前瞻性陳述有重大差異。有關可能導致此類差異的因素的信息，請參閱今天的收益新聞稿以及本次電話會議期間我們 10-K 表 2023 年年度報告或 10-Q 表任何季度報告以及任何我們向SEC 提交的其他報告和文件。我們不承擔更新任何前瞻性陳述的責任。

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

有了這個，我會把它交給格雷格。

Thanks, Tim. Good afternoon, and thanks for joining us today. I'm going to share a few thoughts about the overall business before Jason takes us through our results and outlook. First, Q1 was an outstanding start to the year. We achieved revenue growth of 10%, earnings per share growth of 27%, expanded operating margins by 220 basis points and generated record Q1 operating cash flow of $382 million. We also finished the quarter with $14.4 billion of backlog, up $300 million versus last year.

謝謝，蒂姆。下午好，感謝您今天加入我們。在傑森向我們介紹我們的業績和前景之前，我將分享一些關於整體業務的想法。首先，第一季是今年的出色開局。我們的營收成長了 10%，每股盈餘成長了 27%，營業利潤率提高了 220 個基點，第一季營業現金流達到創紀錄的 3.82 億美元。本季結束時，我們還積壓了 144 億美元的訂單，比去年增加了 3 億美元。

Second, our outstanding Q1 performance was broad-based. In our Products and SI segment, revenue was up 14% and operating margins increased 590 basis points as we continue to see strong demand for our feature-rich LMR products, including APX NEXT and our refreshed PCR portfolio. In Software and Services revenue was up 4%, inclusive of the Airwave of charge control and our exit from the ESN contract.

其次，我們第一季的出色表現是廣泛的。在我們的產品和SI 領域，營收成長了14%，營業利潤率成長了590 個基點，因為我們繼續看到對我們功能豐富的LMR 產品（包括APX NEXT 和我們更新的PCR 產品組合）的強勁需求。軟體和服務收入成長了 4%，其中包括 Airwave 的收費控制和我們退出 ESN 合約。

Excluding U.K. home office revenues, Software and Services revenues increased double digits, driven by continued strong demand for our LMR service offerings and our software applications in Video Security and Command Center. And finally, based on our strong start to the year and continued robust demand, we're raising both our revenue and earnings guidance for the full year.

不包括英國家庭辦公室收入，軟體和服務收入成長了兩位數，這得益於對我們的 LMR 服務產品以及視訊安全和指揮中心軟體應用程式的持續強勁需求。最後，基於今年的強勁開局和持續強勁的需求，我們提高了全年的營收和獲利預期。

I'll now turn the call over to Jason.

我現在將電話轉給傑森。

Thank you, Greg. Revenue for the quarter grew 10% and was above our guidance with strong growth in all three technologies. GAAP operating earnings were $519 million or 21.7% of sales, up from 18.4% in the year ago quarter. Non-GAAP operating earnings were $638 million, up 20% from the year ago quarter and non-GAAP operating margin was 26.7%, up 220 basis points.

謝謝你，格雷格。本季營收成長 10%，高於我們的預期，所有三項技術均實現強勁成長。 GAAP 營業利潤為 5.19 億美元，佔銷售額的 21.7%，高於去年同期的 18.4%。非 GAAP 營運利潤為 6.38 億美元，較去年同期成長 20%，非 GAAP 營運利潤率為 26.7%，成長 220 個基點。

The strong year-over-year increase in both GAAP and non-GAAP operating earnings was driven by higher sales a favorable mix shift as our customers invest in more feature-rich LMR products and improved operating leverage, offset by the U.K. CMA charge control related to Airwave. GAAP earnings per share was a loss of $0.23 and included a $585 million charge, resulting in a $3.42 per share pretax nonoperating loss due to the accounting treatment for the settlement of the Silver Lake convertible notes.

GAAP 和非GAAP 營業利潤的同比強勁增長是由於銷售額增加、有利的組合轉變推動的，因為我們的客戶投資於功能更豐富的LMR 產品以及營運槓桿的提高，但被英國CMA 費用控制相關的影響所抵消到電波。 GAAP 每股收益為虧損 0.23 美元，其中包括 5.85 億美元的費用，由於銀湖可轉換票據結算的會計處理，導致每股稅前非經營性虧損 3.42 美元。

We settled these notes entirely in cash for approximately $1.59 billion inclusive of the conversion premium, which eliminated potential dilution to our share count and reflected a favorable negotiated settlement price compared to the indenture terms. As a result, we recognized a nonoperating loss for the settlement during the quarter. According to the current accounting rules for convertible notes, which were updated in 2022. Non-GAAP EPS was $2.81, up 27% from $2.22 last year. This strong growth in EPS was driven by higher sales and margins, lower interest cost and a lower diluted share count. OpEx in Q1 was $568 million, up $38 million versus last year, primarily due to higher employee incentives and acquisitions.

我們完全以現金結算這些票據，金額約為 15.9 億美元，包括轉換溢價，這消除了我們股份數量的潛在稀釋，並反映出與契約條款相比有利的協商結算價格。因此，我們在本季確認了結算的非營業損失。根據 2022 年更新的現行可轉換票據會計規則。每股盈餘的強勁成長是由更高的銷售額和利潤率、更低的利息成本以及更少的稀釋股份數量所推動的。第一季的營運支出為 5.68 億美元，比去年增加 3,800 萬美元，主要是因為員工激勵和收購增加。

Turning to cash flow. Operating cash flow was a Q1 record of $382 million, up $390 million versus last year, and free cash flow was $336 million, up $398 million. The strong increase in cash flow was driven by improved working capital and higher earnings net of noncash charges. Capital allocation for Q1 included $163 million in cash dividends $46 million of CapEx and $39 million of share repurchases. We also used $593 million of cash to settle the Silver Lake conversion premium and we closed the acquisition of Silent Sentinel, a provider of specialized long-range cameras for $37 million net of cash required.

轉向現金流。第一季營運現金流達到創紀錄的 3.82 億美元，比去年增加 3.90 億美元，自由現金流為 3.36 億美元，比去年增加 3.98 億美元。現金流量的強勁成長是由於營運資本的改善和扣除非現金費用後的淨收益增加而推動的。第一季的資本分配包括 1.63 億美元的現金股利、4,600 萬美元的資本支出和 3,900 萬美元的股票回購。我們還使用了 5.93 億美元現金來支付 Silver Lake 轉換溢價，並以 3700 萬美元（扣除所需現金）完成了對 Silent Sentinel（專業遠端攝影機提供商）的收購。

Moving to segment results. In Products and SI, sales were up 14% versus last year, driven by continued strong demand, combined with improved supply availability and a favorable mix shift in LMR products. Operating earnings were $370 million or 24.8% of sales, up from 18.9% in the prior year, driven by higher sales, favorable mix and improved operating leverage. Some notable Q1 wins and achievements in this segment include a $22 million P25 device order for a large U.S. customer, a $16 million LMR order for an international customer, a $13 million order for the State of Tennessee and a $13 million mobile video order for North Carolina State Highway Patrol.

轉向細分結果。在產品和 SI 方面，由於持續強勁的需求、供應可用性的改善以及 LMR 產品的有利組合轉變，銷售額比去年增長了 14%。受銷售額增加、有利的產品組合和營運槓桿改善的推動，營業利潤為 3.7 億美元，佔銷售額的 24.8%，高於前一年的 18.9%。該領域一些值得注意的第一季勝利和成就包括為美國大客戶訂購2200 萬美元的P25 設備訂單、為國際客戶訂購1600 萬美元的LMR 訂單、為田納西州訂購1300 萬美元以及為North 訂購1300 萬美元的行動視訊訂單卡羅萊納州高速公路巡邏隊。

In Software and Services, revenue was up 4% compared to last year. S&S revenues, excluding the U.K. home office were up 12%, driven by strong growth in all three technologies. Operating earnings in the segment were $268 million or 29.8% of sales down from the 32.9% of sales last year due to the impact of the Airwave charge control. Excluding the impact of the U.K. Airwave charge control, Software and Services margins increased year-over-year, driven primarily by higher sales and improved operating leverage. Some notable Q1 highlights in this segment include a $25 million LMR services order for Douglas County, Colorado, a $25 million LMR services order for U.K. Department of Health, an $18 million Command Center order for the city of San Francisco, a $14 million LMR services order for Lithuania and an $11 million services order for São Paulo State Police in Brazil.

軟體和服務領域的收入比去年增長了 4%。受所有三項技術強勁增長的推動，S&S 收入（不包括英國總部）增長了 12%。由於 Airwave 收費控制的影響，該部門的營業利潤為 2.68 億美元，佔銷售額的 29.8%，低於去年的 32.9%。排除英國 Airwave 收費控制的影響，軟體和服務利潤率同比增長，這主要是由銷售額增加和營運槓桿改善推動的。該領域一些值得注意的第一季亮點包括科羅拉多州道格拉斯縣2500 萬美元的LMR 服務訂單、英國衛生部2500 萬美元的LMR 服務訂單、舊金山市指揮中心1800 萬美元的訂單、1400 萬美元的LMR 服務訂單立陶宛的訂單以及巴西聖保羅州警察 1100 萬美元的服務訂單。

Moving next to our regional results. North America Q1 revenue was $1.7 billion, up 13% on strong double-digit growth in both segments. International Q1 revenue was $696 million, up 3% versus last year with growth in video and LMR, offset by lower U.K. home office revenues related to the U.K. home office Airwave charge control and our exit of ESN. International revenue, excluding the U.K. home office impact increased double digits year-over-year in both segments.

接下來是我們的區域結果。北美第一季營收為 17 億美元，成長 13%，這兩個領域都實現了兩位數的強勁成長。國際第一季營收為 6.96 億美元，比去年成長 3%，影片和 LMR 業務成長，但被英國家庭辦公室 Airwave 收費控制和我們退出 ESN 相關的英國家庭辦公室收入下降所抵消。不包括英國家庭辦公室的影響，這兩個領域的國際收入比去年同期成長了兩位數。

Moving to backlog. Ending backlog was a record $14.4 billion, up $331 million versus last year, driven primarily by strong demand for multiyear Software and Services contracts in both regions. The year-over-year increase is inclusive of the reduction of $777 million booked in the fourth quarter of 2023 related to the Airwave charge control and revenue recognition for Airwave and ESN over the last year. Additionally, in the first quarter of 2024, we recorded a $748 million of backlog related to the receipt of a 3-year extension notice from the U.K. home office for years 2027 through 2029.

轉向積壓。期末積壓訂單達到創紀錄的 144 億美元，比去年增加 3.31 億美元，這主要是由於兩個地區對多年期軟體和服務合約的強勁需求推動的。年比成長包括 2023 年第四季與 Airwave 收費控制以及去年 Airwave 和 ESN 收入確認相關的 7.77 億美元的減少。此外，在 2024 年第一季度，我們記錄了與收到英國內政部 2027 年至 2029 年 3 年延期通知相關的積壓訂單 7.48 億美元。

Our total backlog, excluding the U.K. Home Office was up over $500 million compared to last year. Sequentially, backlog was up $138 million, driven by the extension notice related to Airwave that I just mentioned, partially offset by our typical Q4 to Q1 order seasonality in North America and some favorable -- unfavorable FX. In the Products and SI segment, ending backlog was down $74 million, primarily due to unfavorable FX. Sequentially, backlog was down $354 million due to the Q4 to Q1 North America order seasonality that I mentioned.

與去年相比，我們的積壓總額（不包括英國內政部）增加了 5 億多美元。隨後，由於我剛才提到的與 Airwave 相關的延期通知，積壓訂單增加了 1.38 億美元，部分被我們北美典型的第四季度至第一季訂單季節性和一些有利 - 不利的外匯所抵消。在產品和 SI 領域，期末積壓訂單減少了 7,400 萬美元，主要是由於不利的匯率。由於我提到的第四季至第一季北美訂單季節性，積壓訂單隨後減少了 3.54 億美元。

And then Software and Services backlog was up $404 million compared to last year, driven by strong demand for multiyear services contracts in both regions. Our S&S backlog, excluding the U.K. Home Office was up almost $600 million compared to last year. Sequentially, backlog was up $492 million, driven primarily by the extension notice related to Airwave, partially offset by Q4 to Q1 order seasonality.

由於這兩個地區對多年服務合約的強勁需求，軟體和服務積壓訂單與去年相比增加了 4.04 億美元。與去年相比，我們的 S&S 積壓訂單（不包括英國內政部）增加了近 6 億美元。隨後，積壓訂單增加了 4.92 億美元，主要是由於與 Airwave 相關的延期通知推動的，但部分被第四季度至第一季度的訂單季節性所抵消。

Turning to our outlook. We expect Q2 sales to be up between 7% and 8% with non-GAAP earnings per share between $2.97 and $3.02 per share. This assumes a weighted average diluted share count of approximately 170 million shares and an effective tax rate of approximately 24%. And for the full year, we are increasing both our revenue and EPS guidance.

轉向我們的展望。我們預計第二季銷售額將成長 7% 至 8%，非 GAAP 每股盈餘將在 2.97 美元至 3.02 美元之間。假設加權平均稀釋股數約為 1.7 億股，有效稅率約為 24%。對於全年，我們正在增加收入和每股盈餘指引。

We now expect revenue growth of approximately 7%, up from our prior guidance of approximately 6%. And with that, we expect non-GAAP earnings per share between $12.98 and $13.08 per share, up from our prior guidance of $12.62 to $12.72 per share. In addition, with the U.S. dollar strengthening since our last call, this full year outlook now assumes an FX headwind of $30 million, primarily in the second half. It also includes a weighted average diluted share count between 170 million and 171 million shares and an effective tax rate of 23% to 24%. And finally, as a result of the debt issuance and Silver Lake settlement we completed in Q1 and we now expect full year interest expense to be approximately $240 million, up $25 million year-over-year.

我們現在預計收入成長約 7%，高於我們之前約 6% 的指導。因此，我們預計非 GAAP 每股盈餘將在 12.98 美元至 13.08 美元之間，高於我們先前每股 12.62 美元至 12.72 美元的指引。此外，自我們上次電話會議以來美元走強，全年展望目前假設外匯逆風為 3,000 萬美元，主要是在下半年。它還包括1.7億至1.71億股之間的加權平均稀釋股份數量以及23%至24%的有效稅率。最後，由於我們在第一季完成了債務發行和銀湖結算，我們現在預計全年利息支出約為 2.4 億美元，比去年同期增加 2500 萬美元。

Before turning the call back to Greg, I want to highlight, just a couple of balance sheet-related items. During the quarter, we used $593 million to settle in cash the premium for the Silver Lake notes that I mentioned. We also repurchased 39 million of shares, resulting together in a combined total of $632 million targeted at reducing our diluted share count.

在將電話轉回格雷格之前，我想強調幾個與資產負債表相關的項目。在本季度，我們使用了 5.93 億美元以現金結算我提到的銀湖票據的溢價。我們還回購了 3,900 萬股股票，總共回購了 6.32 億美元，旨在減少稀釋後的股票數量。

Also during the quarter, both S&P and Fitch upgraded our credit ratings to BBB underlying the strength of our business and the balance sheet. Following the upgrades, we issued $1.3 billion of debt, $900 million of 10-year and $400 million of 5-year notes, further extending our average debt maturity, which is now over 8 years, all fixed at an average rate below 4.5%. We used a portion of the proceeds from the new debt issuance to pay off the $1 billion convertible notes and plan to use the remainder to settle the approximately $300 million of debt maturity coming due later this year.

此外，在本季度，標準普爾和惠譽都將我們的信用評級提升至 BBB，這奠定了我們業務實力和資產負債表的基礎。升級後，我們發行了13 億美元的債務、9 億美元的10 年期票據和4 億美元的5 年期票據，進一步延長了我們的平均債務期限（目前已超過8 年），平均利率均固定在4.5% 以下。我們使用新發債券的部分收益來償還 10 億美元的可轉換票據，並計劃使用剩餘部分來償還今年稍後到期的約 3 億美元的債務。

I'll now turn the call back to Greg.

我現在將電話轉回給格雷格。

Thanks, Jason. And let me just close with a few thoughts. First, Q1 was outstanding across the Board. We achieved strong revenue growth in all three technologies. We significantly increased operating margins. We generated record Q1 operating backlog -- operating cash flow and our strong ending backlog positions us well going forward. As a result, we're raising our expectations for both revenue and earnings for the full year.

謝謝，傑森。最後讓我來談談幾點想法。首先，第一季整體表現出色。我們在所有三項技術上都實現了強勁的收入成長。我們顯著提高了營業利潤。我們在第一季創造了創紀錄的營運積壓——營運現金流，而我們強勁的期末積壓使我們的未來發展勢頭良好。因此，我們提高了對全年收入和獲利的預期。

Second, during the quarter, we announced that we mutually agreed with Silver Lake to settle the convertible notes. Silver Lake has been a great partner since their initial investment in 2015, and I'm very pleased that Greg Mondre is remaining on our Board. And finally, as I look forward, I'm exceptionally pleased with how well we're positioned.

其次，在本季度，我們宣布與 Silver Lake 共同解決可轉換票據的結算問題。自 2015 年首次投資以來，Silver Lake 一直是一位出色的合作夥伴，我很高興 Greg Mondre 繼續留在我們的董事會。最後，當我展望未來時，我對我們的定位感到非常滿意。

The investments we've made in our LMR product portfolio are driving meaningful revenue growth and margin expansion. Our recurring revenues are increasing as a result of the continued strong demand for our services. We continue to see accelerated adoption of our cloud offerings, including Rave and Command Center and Avigilon Alta in Video Security and our strong balance sheet positions us well to invest both organically and inorganically for continued growth.

我們對 LMR 產品組合的投資正在推動顯著的收入成長和利潤率擴張。由於對我們服務的持續強勁需求，我們的經常性收入正在增加。我們繼續看到我們的雲端產品的加速採用，包括視訊安全領域的 Rave 和 Command Center 以及 Avigilon Alta，我們強大的資產負債表使我們能夠進行有機和無機投資以實現持續成長。

We ended the quarter with $1.5 billion in cash, still expect to generate $2.2 billion of operating cash flow for the year. We refinanced and extended a portion of our debt portfolio, and we received upgrades from two credit rating agencies during the quarter. All of this provides us with significant continued flexibility in how we deploy capital going forward.

本季結束時，我們擁有 15 億美元的現金，預計全年仍將產生 22 億美元的營運現金流。我們對部分債務組合進行了再融資和擴展，本季我們獲得了兩家信用評級機構的升級。所有這些都為我們在未來如何部署資本方面提供了顯著的持續靈活性。

I'll now turn the call over to Tim and look forward to your questions.

我現在將把電話轉給蒂姆，期待您的提問。

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

謝謝你，格雷格。在我們開始回答問題之前，我想提醒來電者將自己限制在一個問題和一個後續問題上，以容納盡可能多的參與者。接線生，請您提醒我們的來電者如何提問。

(Operator Instructions) The first question is from Tim Long with Barclays.

（操作員說明）第一個問題來自巴克萊銀行的 Tim Long。

Maybe the first question would be on video, and then I have a follow-up on LMR. The video side, decent growth in the quarter. I'm just hoping you could talk about a few things there. First, where are we with impact of movements to cloud and what effect that had on the quarter?

也許第一個問題是關於影片的，然後我有一個關於 LMR 的後續問題。影片方面，本季成長良好。我只是希望你能在那裡談談一些事情。首先，我們對雲端遷移的影響如何？

And the second piece, Jason, it looks like a very high if you're looking at the software services percentage of the Video business, it was over 40%. So just curious if we're starting to see an inflection there? Or was it just an anomaly because maybe the hardware piece was a little bit lower this quarter. Then I'll -- after that, I'll follow back with the LMR follow-up.

第二點，Jason，如果你看看影片業務中軟體服務的比例，它看起來非常高，超過了 40%。所以只是好奇我們是否開始看到那裡的變化？或者這只是一個異常現象，因為本季的硬體部分可能有點低。然後我會——在那之後，我會跟進 LMR 的後續行動。

Yes. Tim, on Video, pleased with the results in Q1. As you know, we remain convicted around the 10% for the full year. We did talk about last quarter that we are seeing an increased adoption to Avigilon Alta and cloud adoption. We talked last quarter and it remains unchanged. That's probably about -- probably a $40 million estimated headwind in terms of the top line growth number that informs the 10% but feel very good about Q1's performance. And by the way, in particular, the orders for video were strong, both in fixed and mobile.

是的。影片中的蒂姆對第一季的結果感到滿意。如您所知，全年我們的定罪率仍然在 10% 左右。我們確實在上個季度談過，我們看到 Avigilon Alta 和雲端的採用率增加。我們上個季度談過，現在沒有變化。就營收成長數字而言，這可能是 4000 萬美元的估計逆風，這告訴了 10% 但對第一季業績感覺非常好的人。順便說一句，視訊訂單尤其強勁，無論是固定還是移動。

And Tim, on the second part of your question, you're right, software within video is growing faster than the product side. That's a trend we've been seeing. And keep in mind, it's not just Alta, it's all of the exciting developments that we have around analytics. Both of our VMSs, our software products are recorded there. Mobile video is also there, all complemented by cloud subscription. So that's a very important and fast-growing part of our business. Now the LMR piece.

提姆，關於你問題的第二部分，你是對的，影片中的軟體比產品方面的成長速度更快。這是我們一直看到的趨勢。請記住，這不僅僅是 Alta，還有我們在分析方面取得的所有令人興奮的進展。我們的兩個VMS、我們的軟體產品都記錄在那裡。行動視訊也存在，所有這些都由雲端訂閱補充。因此，這是我們業務中非常重要且快速成長的部分。現在是 LMR 部分。

And then maybe second -- yes. Just on LMR, Greg, you talked about a lot of the investments there. And obviously, it's bearing fruit and other growth rate above expectations. Can you just talk about kind of where we are in the cycle there? That would be great.

然後也許是第二——是的。格雷格，就在 LMR 上，您談到了那裡的許多投資。顯然，它正在結出碩果，其他成長率也超出了預期。您能談談我們在這個週期中的位置嗎？那太好了。

Yes. I think -- look, I can't be more pleased with the performance of LMR products and services. And Jack talked about the continued strong demand last quarter, it's the same as this quarter. In terms of APX NEXT, as an example, a lot of customers are indexing and in Q1 indexed to more feature-rich devices which helped drive revenue and quite frankly, Tim, margin expansion.

是的。我想——看，我對 LMR 產品和服務的表現非常滿意。 Jack談到上季需求持續強勁，本季也是如此。以 APX NEXT 為例，許多客戶正在索引，並在第一季度索引到功能更豐富的設備，這有助於推動收入，坦率地說，蒂姆，利潤增長。

But I'd actually -- I think the way to think about LMR growth is APX writ large, the entire segment for APX Radio. They're newer. They've been upgraded. We talk about APX NEXT, which is the very high end, but the whole portfolio which we also talk about APX Originals performing exceptionally well. And then when you go over to TETRA and PCR, where we've refreshed devices there as well, that's gone very well. In fact, PCR, we now expect to grow slightly up off of record levels last year. So I'd say we're still in the middle of the game on device refresh with a lot more to run. Really pleased on that front.

但實際上，我認為考慮 LMR 成長的方式是 APX 的整體，也就是 APX Radio 的整個細分市場。他們比較新。他們已經升級了。我們談論 APX NEXT，這是非常高階的產品，但我們也談論 APX Originals 的整個產品組合表現異常出色。然後當你轉到 TETRA 和 PCR 時，我們也更新了那裡的設備，一切進展順利。事實上，我們現在預計 PCR 將比去年的創紀錄水平略有增長。所以我想說，我們仍處於設備更新的過程中，還有很多事情要做。在這方面真的很高興。

The only thing Tim I'd add on top of that is, as just Greg pointed out, it's the breadth of the portfolio is a strength. But what's particularly driving the APX NEXT adoption are the applications. So in the quarter, in Q1, we secured two large state patrols as well as one Department of Transportation, as you think about what drives those, it's location. It's the ability to extend the network vis-a-vis SmartConnect and SmartProgramming with large fleets, their ability to reprogram and the like in a more expeditious fashion, so.

提姆，我唯一要補充的是，正如格雷格指出的那樣，投資組合的廣度是一種優勢。但真正推動 APX NEXT 採用的是應用程式。因此，在第一季度，我們確保了兩個大型州巡邏隊和一個交通部的安全，當你想到驅動它們的因素時，它的位置。相對於 SmartConnect 和 SmartProgramming 而言，它具有透過大型機群擴展網路的能力，以及以更迅速的方式重新編程的能力等。

Jack, you've seen customers embrace a blended fleet too.

傑克，您也看到客戶也接受混合車隊。

Exactly, right. In fact, all three of those customers have APX Original and like 1/3 of those are APX NEXT.

非常正確。事實上，這三位客戶都擁有 APX Original，其中 1/3 是 APX NEXT。

Good point.

好點子。

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

下一個問題來自喬治·諾特和傑弗里斯的對話。

Congrats on the strength here. I guess I'll go back to kind of the Airwave situation. I saw the renewal and the extension of the contract. Anything new there in terms of the CMA situation, obviously, you guys adjusted your financials to reflect the negative outcome. But I know there's a court case, an appeal that's going on? I mean, any expectations or anything you can tell us about what's going on there would be great.

恭喜這裡的實力。我想我會回到 Airwave 的情況。我看到了合約的續約和延期。顯然，就 CMA 情況而言，有任何新情況，你們都調整了財務狀況以反映負面結果。但我知道有一個法庭案件正在上訴？我的意思是，任何期望或任何你能告訴我們的關於那裡正在發生的事情都會很棒。

Yes. Thanks, George. So we recorded the backlog of the extension of years '27, '28 and '29, because in March, we received notice from the U.K. Home Office for the extension of Airwave. Aside from our disputes, let's put that off to the side for a minute. I think it confirms our belief all along in the durability, longevity and quite frankly, criticality of mission-critical LMR, particularly in this case, Airwave. So it reaffirms the long-standing need of how critical that technology is, and that's one of the best performing from a network performance standpoint, emergency networks in the world.

是的。謝謝，喬治。因此，我們記錄了'27、'28和'29年的延期積壓，因為在三月份，我們收到了英國內政部關於延長Airwave的通知。除了我們的爭論之外，我們先把這個問題放在一邊。我認為這證實了我們一直以來對關鍵任務 LMR（尤其是 Airwave）的耐用性、壽命以及關鍵性的信念。因此，它重申了對該技術的重要性的長期需求，從網路性能的角度來看，這是世界上性能最好的應急網路之一。

To your point, we took the backlog and recorded it at kind of worst-case scenario, i.e., it's logged -- the log backlog is at the charge control rates, which we are still contesting. As it relates to the Court of Appeal, we -- the CMA issued their final decision. We appealed to the CAT, the Competition Appeals Tribunal. We lost that. And as a result, appealed to the Court of Appeal, the U.K. Court of Appeal to see if they'll hear that case. We would expect to get clarity on that either in May or June. But having said that, we will continue to defend our position on the circumstances and conditions that extended Airwave, and we will defend ourselves accordingly.

就您的觀點而言，我們記錄了積壓的情況，並在最壞的情況下記錄了它，即記錄了日誌積壓是按照費用控制率計算的，我們仍在爭論這一點。由於涉及上訴法院，我們—CMA 發布了他們的最終決定。我們向 CAT（競爭上訴法庭）提出上訴。我們失去了這一點。因此，向英國上訴法院提出上訴，看看他們是否會審理該案。我們預計在五月或六月得到澄清。但話雖如此，我們將繼續就延長 Airwave 的情況和條件捍衛我們的立場，我們也會相應地捍衛自己的立場。

Got it. And then just as a quick follow-up. Any evidence that there's any spread of other managed services customers looking at trying to reprice contracts with you guys anywhere else in the world?

知道了。然後作為快速跟進。有任何證據表明，世界上其他任何地方都有其他託管服務客戶試圖重新定價與你們的合約嗎？

No. No. I think the U.K. is very, very unique in many ways, but the answer is no. .

不，不。 。

(Operator Instructions) The next question is from the line of Meta Marshall with Morgan Stanley.

（操作員說明）下一個問題來自摩根士丹利的 Meta Marshall。

You've got Jamie Reynolds on for Meta. I appreciate you taking the questions. I think last quarter, you guys had highlighted a $100 million headwind from less business in Ukraine. I guess, has your thinking changed there as it relates to the recent aid package that got passed?

傑米雷諾茲 (Jamie Reynolds) 將為您帶來 Meta 節目。感謝您提出問題。我認為上個季度，你們強調了烏克蘭業務減少帶來的 1 億美元的逆風。我想，由於最近通過的援助計劃，您的想法是否改變了？

Our view on the full year and what's informing our raise does not change from what we updated you on the Ukraine situation last year. We did talk about $100 million, Jack referenced that about $100 million headwind. By the way, that headwind still exists. It's primarily in the second half of this year, which informs kind of the seasonality that's implied in both Q2 and our full year guide. By the way, we remain in game, I'm thrilled. We're thrilled that the Foreign Aid Bill got passed for $95 billion and Molloy's team remains actively engaged on multiple fronts. But our view in terms of the full year guide is unchanged from what we said last time.

我們對全年的看法以及我們加薪的內容與我們去年向您提供的有關烏克蘭局勢的最新情況沒有變化。我們確實談到了 1 億美元，傑克提到了 1 億美元的逆風。順便說一句，這種逆風仍然存在。主要是在今年下半年，這反映了第二季和我們的全年指南中隱含的季節性。順便說一句，我們仍然在比賽中，我很興奮。我們很高興 950 億美元的對外援助法案獲得通過，莫洛伊的團隊仍在許多方面積極參與。但我們對全年指引的看法與上次所說的沒有改變。

Got it. And then just as a quick follow-up. Is the thinking changed around what you expect from the Command Center piece of the business to contribute to growth this year?

知道了。然後作為快速跟進。您對指揮中心業務對今年成長的貢獻的期望是否改變了？

Still very enthusiastic about Command Center overall as a category. We still expect 10% growth for the full year. By the way, I might add that remember, ESN in the way we record revenue was in the Command Center technology bucket. So Q1 would have grown handsome double digits normalized for U.K. Home Office. And quite frankly, when you look at the 10% guide implied for Command Center for the full year, it's a number higher than that when you normalize for ESN as well. And you may want to mention just some of the other things going on.

總體而言，指揮中心作為一個類別仍然非常熱衷。我們仍預計全年成長10%。順便說一句，我可能會補充一點，請記住，我們記錄收入的方式中的 ESN 屬於指揮中心技術桶。因此，對於英國內政部來說，第一季的業績將成長兩位數。坦白說，當您查看指揮中心全年的 10% 指導時，您會發現這個數字比您對 ESN 進行標準化時的數字要高。您可能只想提及一些其他正在發生的事情。

We just actually finished our summit. This has been our largest summit, I think, ever, over 1,300 customers attending. We launched our VESTA NEXT refreshed products, both for cloud and for on-prem, along with quite a few other new launches or responder, our mobile app. So it's been -- traction has been amazing, and we see greater than 60% of our Command Center customers now adopting a cloud connected product and Rave and our other Command Center cloud products are doing exceptionally well beyond expectations. .

我們實際上剛剛完成了峰會。我認為這是我們有史以來規模最大的峰會，有超過 1,300 名客戶參加。我們推出了 VESTA NEXT 更新產品，包括雲端和本地部署產品，以及其他一些新產品或回應程序，即我們的行動應用程式。因此，吸引力是驚人的，我們看到超過 60% 的 Command Center 客戶現在採用雲端連接產品，而 Rave 和我們的其他 Command Center 雲端產品的表現非常好，超出了預期。 。

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

下一個問題來自 Adam Tindle 和 Raymond James。

I just want to start maybe first for Jason. Great performance on margins in the Product segment. Just wondering how much of the pricing benefit and supply chain cost is reflected in this versus how much is left in future quarters? I know Q1 is typically the low point for margins in that segment. I'm wondering if that's still going to hold for 2024 and improve from there.

我只想先為傑森開始。產品領域的利潤率表現優異。只是想知道這反映了多少定價效益和供應鏈成本，以及未來幾季還剩下多少？我知道第一季通常是該細分市場利潤率的最低點。我想知道這種情況是否會持續到 2024 年並從那時起有所改善。

And Greg, just conceptually on the topic of margins, I know expanding margins is important to you. The drivers are very clear to us in fiscal '24 price cost, et cetera. But it's a little bit less obvious as we think about fiscal '25 and beyond. Just if you could help us maybe with conceptual levers to continue to drive margin expansion beyond this year? Or do you think we're sort of at optimal margin and the focus might be more on growth, how to balance that equation.

格雷格，只是從概念上講，關於利潤率的話題，我知道擴大利潤率對你來說很重要。我們對 24 財年的價格成本等因素非常清楚。但當我們考慮 25 財年及以後的情況時，這一點就不那麼明顯了。您是否可以透過概念槓桿幫助我們在今年之後繼續推動利潤率擴張？或者你認為我們處於最佳利潤率，重點可能更多地放在成長上，以及如何平衡這個方程式。

Sure. So I'll take the first one. We remain seeing the $60 million of lower broker costs, we call the PPV that we guided to 90 days ago. That's a full year number. Q1 included some of that benefit. There's more to go in getting to the total $60 million. We're on path for that. We are seeing certainly the need to use far less and the supply improvements from our direct vendors are helping us get the parts we need at the price we need. That's in part what informed our Q1 as well as our expectations for the year, complemented by the continued strong demand. So on plan in terms of the margin improvements related to lower supply chain costs, I would also point to what we talked about on the call is the continued benefit of customers adopting more feature-rich parts of the portfolio. That comes with a margin improvement for us as well.

當然。所以我會選第一個。我們仍然看到經紀商成本降低了 6000 萬美元，我們稱之為 90 天前指導的 PPV。這是一個完整的年份數字。第一季包括了其中的一些好處。要達到 6000 萬美元的總額，還有更多工作要做。我們正在為此努力。我們確實看到需要大大減少使用量，而我們直接供應商的供應改進正在幫助我們以我們需要的價格獲得我們需要的零件。這在一定程度上影響了我們第一季以及我們對今年的預期，並輔以持續強勁的需求。因此，在與降低供應鏈成本相關的利潤率提高方面的計劃中，我還想指出，我們在電話會議上討論的是客戶採用產品組合中功能更豐富的部分所帶來的持續利益。這也為我們帶來了利潤率的提升。

And in terms of margins, we -- by the way, this year, we do expect gross margins to be up slightly, and we also now expect operating margins to be up about 75 basis points. As we think about it holistically and kind of on a pro forma basis, we think the levers of volume mix, which we're enjoying now, some surgical price increases, primarily around services, where we have contracts that have appropriate cost of living mechanisms built into multiyear services contracts. And as they come due we will be disciplined in making sure we're recovering appropriate cost increases that come and hit the firm.

就利潤率而言，順便說一句，今年我們確實預計毛利率將略有上升，而且我們現在還預計營業利潤率將上升約 75 個基點。當我們從整體和形式上考慮時，我們認為我們現在正在享受的數量組合的槓桿，一些手術價格上漲，主要圍繞服務，我們有具有適當生活成本機制的合約納入多年服務合約。當它們到期時，我們將遵守紀律，確保我們收回對公司造成的適當成本增加。

We look at the way we price new product as well and we continue to refresh the device portfolio and also fixed and mobile video. And then OpEx. By the way, OpEx probably will be up about $100 million this year, year-on-year. Last quarter, we told you it was about $80 million. That $20 million increase, actually, I think it's a good thing. We're investing more in the business, indexing particularly around video. We're likely to have some higher incentives around sales commissions, reflective of the higher revenue guide we're giving you for the full year. And there's some ancillary legal costs, which I actually consider investments in the business as we defend our position, both with the U.K. Home Office and continue to fight the good fight on Hytera and we'll report hopefully more news between now and the end of the year on that front.

我們也會關注新產品的定價方式，並持續更新設備組合以及固定和行動視訊。然後是營運支出。順便說一句，今年的營運支出可能會比去年同期增加約 1 億美元。上個季度，我們告訴您約為 8000 萬美元。事實上，增加 2000 萬美元，我認為這是一件好事。我們正在加大對業務的投資，特別是圍繞影片建立索引。我們可能會在銷售佣金方面提供一些更高的激勵措施，這反映了我們為您提供的全年更高的收入指南。還有一些輔助法律費用，我實際上考慮在業務上進行投資，因為我們捍衛我們的立場，既與英國內政部合作，又繼續為海能達打好仗，我們希望從現在到年底報告更多新聞。

And the other thing I'd tell you on the OpEx side, as you know, we acquired Silent Sentinel. Given the balance sheet, the aperture is pretty wide but disciplined on acquisitions we may pursue and close. And if we do that, we do that because it's financially accretive, it's strategically important. It's culturally compatible, and we can operate it or operationalize it and integrate it operationally, but also because we expect synergies on that front, too. We are built, I think, as a team, an executive team and as a company, that growing is not good enough. You've got to grow top line, you got to grow margins, you got to grow operating cash flow and you got to take share. That's when you know the firm is cooking on all cylinders. And we always look at operating margins. We're proud of them, but we know the there's more work to be done.

我要告訴你的另一件事是在營運支出方面，如你所知，我們收購了 Silent Sentinel。考慮到資產負債表，光圈相當大，但我們可能追求和完成的收購受到嚴格限制。如果我們這樣做，我們這樣做是因為它可以增加財務，具有戰略意義。它在文化上是相容的，我們可以操作它或操作它並在操作上整合它，但也是因為我們也期望在這方面產生協同效應。我認為，作為一個團隊、一個執行團隊、一個公司，我們的成長還不夠好。你必須增加收入，你必須增加利潤，你必須增加經營現金流，你必須佔據份額。那時你就知道公司正全力以赴。我們始終關注營業利潤率。我們為他們感到自豪，但我們知道還有更多工作要做。

And by the way, I didn't even mention AI. I know a lot of companies tout it, but we'll be disciplined in our use of that internally, the (inaudible) Jack have built it into a lot of our products in the analytics that Jason mentioned. I love what we're doing, descriptive and Generative AI as it relates to the ecosystem, around public safety and physical security. But obviously, we'll also use it in customer service internally in legal and contract management with copilot and engineering efficiencies. So that really isn't factored in at this point, and I'm not making any declaration of promises, but we'll always be able to, I think, aspirationally drive toward operating margin improvement. And I think we have the assets where we can continue to do that.

順便說一句，我甚至沒有提到人工智慧。我知道很多公司都在吹捧它，但我們在內部使用它時會受到紀律約束，（聽不清楚）傑克已將其內置到我們傑森提到的分析中的許多產品中。我喜歡我們正在做的事情，描述性人工智慧和生成式人工智慧，因為它與生態系統、公共安全和人身安全有關。但顯然，我們還將在內部客戶服務、法律和合約管理中使用它，以提高副駕駛和工程效率。因此，目前還沒有考慮到這一點，我也沒有做出任何承諾聲明，但我認為，我們將始終能夠滿懷抱負地推動營業利潤率的提高。我認為我們擁有可以繼續這樣做的資產。

Okay. And maybe just a quick follow-up. I know that was a 2-parter, but I'll do a quick follow-up since I'm going to get asked on this tonight. Backlog trends. Obviously, we've got a record here. But correct me if I'm wrong, I think that $14.4 billion includes $748 million of incremental backlog on Airwave. It may be unfair to strip that out, but if we do, it's down about $500 million sequentially. And I know there's some seasonality to that, but that's kind of 2x its normal seasonality. What would that concern of stripping that out and looking at kind of a worse than typical seasonal decline in backlog be missing? And how do you think about backlog trends from here?

好的。也許只是快速跟進。我知道這是一個兩人合作的項目，但我會快速跟進，因為今晚我會被問到這個問題。積壓趨勢。顯然，我們在這裡有記錄。但如果我錯了，請糾正我，我認為 144 億美元包括 Airwave 的 7.48 億美元增量積壓訂單。剔除這一點可能不公平，但如果我們這樣做，它會比上一季減少約 5 億美元。我知道這有一定的季節性，但這是正常季節性的兩倍。剔除這一點並觀察積壓訂單比典型的季節性下降更糟糕的情況會忽略什麼？您如何看待這裡的積壓趨勢？

So Adam, I mentioned it earlier, if I -- if we exclude the Home Office impact on a multi-quarter basis, total backlog is up over $500 million and S&S backlog is up over $600 million. So while we recorded the $748 million in this Q1 related to the extension of years '27, '28, '29. We also in the quarter before that, reduced the backlog related to the pricing control implemented for years, '24, '25 and '26. So they're a bit of a cancellation, if you will, and then the core of the business at Home Office is absolutely growing.

Adam，我之前提到過，如果我們排除內政部對多個季度的影響，總積壓訂單將增加超過 5 億美元，S&S 積壓訂單將增加超過 6 億美元。因此，雖然我們在第一季記錄了與 27、28、29 年延期相關的 7.48 億美元。我們也在先前的季度減少了與 24 年、25 年和 26 年實施的定價控制相關的積壓訂單。所以，如果你願意的話，它們有點取消，然後內政部的核心業務絕對會成長。

I will pause for a few seconds to see if we have any additional questions. 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.

我會暫停幾秒鐘，看看我們是否還有其他問題。我們的問答環節到此結束。我現在請董事長兼執行長格雷格·布朗先生發表任何補充意見或結束語。

Yes. Thank you. First and foremost, I want to thank the Motorola Solutions employees around the world and our channel partners. It's a great team, very proud of the performance in the quarter and very proud of what I think we can do between now and the end of the year. I do want to highlight, we had some great significant events in Q1, Mahesh mentioned 1 of them, the Solutions Summit in Dallas. A week ago, we had 1,300 customers. It's the largest ever event we had on that front. We demonstrated operational working public safety an enterprise security ecosystem. It was significant, well attended and lots of good feedback.

是的。謝謝。首先，我要感謝世界各地的摩托羅拉系統員工以及我們的通路夥伴。這是一支偉大的團隊，對本季的表現感到非常自豪，並對我認為我們從現在到年底可以做的事情感到非常自豪。我確實想強調，我們在第一季舉辦了一些重大活動，馬赫什提到了其中之一，達拉斯的解決方案高峰會。一週前，我們有 1,300 名客戶。這是我們在這方面舉辦過的最大規模的活動。我們展示了公共安全的營運工作和企業安全生態系統。這是一場意義重大、參與人數眾多、回饋良好的活動。

We had our first-ever joint channel partner -- executive partner forum, in February, in Orlando. The significance of that is it brought together LMR, Land Mobile Radio channel partners and Video Security and Access Control under 1 roof with common vernacular, common language, relationships we're looking to develop. And Molloy's had this mantra cross-sell, upsell. I thought that was an excellent event that was a catalyst to kind of culture and focus items we need around upselling the writ large broader portfolio between now and the end of the year. And we had a great presence at ISC West, which highlighted, of course, Video Security and Access Control, rolled out our enterprise body-worn camera, which we're getting great traction on body worn on the enterprise. So a lot of good stuff in Q1.

我們於二月在奧蘭多舉辦了首個聯合通路合作夥伴－執行合作夥伴論壇。其意義在於，它將 LMR、陸地移動無線電頻道合作夥伴以及視訊安全和存取控制聚集在同一個屋簷下，並具有我們希望發展的共同語言和關係。 Molloy's 的口號是交叉銷售、追加銷售。我認為這是一次很棒的活動，它是一種文化的催化劑，也是我們在從現在到年底期間向上銷售更廣泛的投資組合所需的重點項目。我們在 ISC West 上表現出色，當然重點介紹了視訊安全和存取控制，推出了我們的企業佩戴式攝影機，我們在企業佩戴式攝影機上獲得了巨大的吸引力。第一季有很多好東西。

Look, at the end of the day, the print is great in Q1, but I'm actually more excited about our momentum, raising the year, strong backlog, but also strong funnel of opportunity and a strong balance sheet couldn't be more proud. I want to thank everybody. Thanks for listening, and we'll talk to you in a quarter.

看看，歸根結底，第一季的印刷效果很棒，但實際上我對我們的勢頭更興奮，提高了年份，強勁的積壓，但也有強大的機會漏斗和強大的資產負債表。我要感謝大家。感謝您的聆聽，我們將在一個季度內與您交談。

This does conclude today's teleconference. A replay of this call will be available over the Internet within 3 hours. The website address is www.motorolasolutions.com/investor. We thank you for your participation and ask that you please disconnect your lines at this time.

今天的電話會議到此結束。此電話會議的重播將在 3 小時內透過網路提供。網址是 www.motorolaslutions.com/investor。我們感謝您的參與，並請您此時斷開線路。