Motorola Solutions, Inc. (NYSE:MSI) Q1 2024 Earnings Call Transcript

Page 3 of 3

Adam Tindle: And maybe just a quick follow-up. I know that was a two-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 two times normal seasonality. What would that concern stripping that out and looking at kind of a worse than a typical seasonal decline in backlog be missing, and how do you think about backlog trends from here?

Jason Winkler: Adam, I, I mentioned it earlier, 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. While we recorded the $748 million in this Q1 related to the extension of years ‘27, ‘28, and ‘29, we also in the quarter before that reduced the backlog related to the pricing control implemented for years ‘24, ‘25 and ‘26. They’re a bit of a cancellation, if you will, and then the core of the business ex Home Office is absolutely growing.

Operator: 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.

Greg Brown: Thank you. First and foremost, I want to thank the Motorola Solution 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 one of them, the solution summit in Dallas. A week ago we had 1300 customers. It’s the largest ever event we had on that front. We demonstrated operationally working public safety and enterprise security ecosystem. It was significant well attended and lots of good feedback. 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 one roof with common vernacular, common language relationships we’re looking to develop.

And Malloy’s had this mantra cross sell upsell. I thought that was an excellent event that it was a catalyst to kind of the 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 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. 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.

Operator: 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.

Follow Motorola Solutions Inc. (NYSE:MSI)

Page 3 of 3