Greg Brown: Well, we had previously said, Keith, thanks for the question that on the full year, we thought we could achieve comparable margins. We had great S&S performance in Q2 and we thought we could have for the full year, as we told you a quarter ago, comparable maybe slightly down, but I thought we were shooting for comparable operating margins in light of the required accounting treatment on Airwave and the decrement of $80 million starting August 1. That falls obviously to SNS and the requisite profitability that Jason articulated. So I’ve now and we now expect S&S operating margins accounting for that deferral to be down on an operating margin year-over-year basis. In terms of next year, it’s too early to, to guide for that.
And we have to see ultimately what’s decided with the Competition Appeal Tribunal appeal and what the disposition of Airwave is from a financial perspective. That said, we continue to make improvements on synergies and platforming S&S, maybe Mahesh could talk a little bit about that. We’re doing some successful orchestration and integration to get the software sleeves more integrated and working a little bit more seamlessly and a little bit more efficiently. So there’s opportunity, Keith, but it would be premature to quantify at this time.
Keith Housum: All right, I appreciate that.
Mahesh Saptharishi: Across our platform…
Keith Housum: I’m sorry, go ahead Mahesh.
Mahesh Saptharishi: So across our platforms whether that’s cloud or on-prem we are exercising greater synergies in terms of core technology stack. We are optimizing some of our cloud delivery capabilities and really focusing a lot on ease of install as well, so all of that translates to hopefully a good game for us.
Keith Housum: Got you. Thank you. And then coming back to the CMA ruling and the appeals process, I guess, Greg, what’s the next steps, assuming that you guys lose on appeal? Can you provide perhaps a rough timeline about how this plays out here over the next year or two?
Greg Brown: Well, in terms of the appeal, it would be our expectation that the CAT rules on the appeal by the end of Q3. I don’t really want to get into hypotheticals on if this, then, that, but we have been consistent, Keith, that said, we will exercise all legal avenues available to us. So the next step after the CAT, if the CAT rules against us would be us taking to this to the UK Court of Appeals. And that would be after the CAT ruling. I don’t know the timeline of what they would do. What happens there is they have to decide up or down whether they would actually hear the case. I don’t know the timeline that they have available to them in terms of the window to decide. So this will go on a few more months and hopefully we can give you more clarity on the next earnings call.
Keith Housum: Great. Thank you.
Greg Brown: Thanks, Keith.
Operator: [Operator Instructions] We’ll move next to Meta Marshall from Morgan Stanley. Your line is open.
Meta Marshall: Great. Thanks. Just a couple questions for me. First, obviously the backlog continues to grow. I guess, I just want to make sure is there anything that we should be mindful of a peak quarter for product just in terms of as the supply chain clears and less forward orders? Or is this just really a result of kind of strength of multi-year orders, maybe as the first question. And then as a second question, just traction on kind of bringing APX NEXT into the mid-market or just kind of adoption trends that you’re seeing there? Thanks.
Greg Brown: Our expectation for backlog and specifically product backlog is for it to remain strong through the duration of the year. That’s a function of our expectations for continued strong inbound orders, as well as the amount of backlog that we can unlock with the available componentry that we need.
Jason Winkler: And related to APX NEXT, Meta, we are now – we had a very strong quarter of new orders. In terms of Q2, we received another $80 million now bringing it close to a half of $500 million in APX NEXT. And when I look at the complexion of those orders, it’s not just big cities, but it’s starting to hit into the Tier 2 cities as well. So we’re really pleased with the performance of that product line.
Meta Marshall: Great. Thanks.
Jason Winkler: Thanks, Meta.
Operator: Our next question comes from the line of Louie DiPalma with William Blair. Your line is open.
Louie DiPalma: Greg, Jason, Jack, Mahesh, and Tim, good afternoon.
Greg Brown: Louie, how are you?
Louie DiPalma: Doing excellent. Thank you. As it relates to the LMR device refresh last quarter you discussed how 80% of LMR radio orders were for your older APX radio, despite how APX NEXT has had the strongest demand of any new radio that you have ever introduced and how it was introduced way back in October 19. Why are so many customers still adopting the older APX platform and does this instill confidence that the upgrade cycle for APX NEXT will still potentially be in full effect even a decade from now?
