Motorola Solutions, Inc.

Good afternoon and thank you for holding. Welcome to the Motorola Solutions Third Quarter 2020 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 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 forward slash investor. At this time, all participants have been placed in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. You will have an opportunity to ask questions after today's presentation. I would now like to introduce Mr. Tim Yochum, Vice President of Investor Relations. Mr. Yochum, you may begin your conference.

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 Malloy, Executive Vice President, Products and Sales, and Kelly Mark, Executive Vice President, Software and 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 slash investors. 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 factor 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 statement. And with that, I'll turn it over to Greg.

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'm 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 Calio, a cloud-based SaaS mobile apps provider for law enforcement. Second, our software and services segment continues to perform well. During the quarter, the 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, a $120 million-plus next-generation 911 multi-year contract. And finally, while the environment with COVID certainly remains fluid, I'm encouraged by the improvements we saw in many areas of our business during the quarter. Orders for body-worn cameras were up significantly year over year. Sales of fixed video to our government customers were strong. And we saw improved demand from both our public safety LMR and PCR customers versus Q2. I'll now turn the call over to Jason. to take you through our results and outlook before returning for some final thoughts.