Motorola Solutions, Inc.

Welcome to the Motorola Solutions fourth 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 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.

Good afternoon. Welcome to our 2020 fourth quarter earnings call. With me today are Greg Brown, Chairman and CEO, Jason Winkler, Executive Vice President and CFO, Jack Malloy, Executive Vice President of Products and Sales, and Kelly Mark, Executive Vice President of 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 Investor. These materials include GAAP to non-GAAP reconciliations for your reference. And during the call, we reference non-GAAP financial results, including those in our outlook, unless otherwise noted. A number of forward-looking statements will be made during the 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.

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 results. as well as our outlook. First, I'm very pleased with our performance during the quarter. We achieved revenue and earnings per share above our guidance, had our largest quarter ever for LMR orders in North America, and we ended the year with record backlog of $11.4 billion, up $175 million versus last year, and up $750 million sequentially. Additionally, we generated $703 million of operating cash flow during the quarter and $1.6 billion for the full year. Second, our software and services segment had another strong quarter as demand for our LMR services, video security, and command center software continues to drive growth. For the full year, the segment grew 9%, expanded operating margins by 290 basis points, and accounted for 37% of total revenues and 52% of total operating earnings for the entire company. Additionally, the recurring nature of this segment and record-ending backlog provides us with good visibility going forward, and we expect another year of strong growth in this segment in 2021. Finally, we saw a number of events during the year that continue to reinforce the importance of having secure, reliable, mission-critical communications for first responders. Whether it was the hurricanes in the southeast, fires in California, or more recently, the explosion in Nashville, our LMR networks continued to provide private, secure voice communication to the men and women on the front lines when other networks were down. And while we continue to invest in broadband solutions that augment LMR with valuable data and location capabilities, The redundancy, resiliency, and reliability that LMR provides during the most critical moments continues to be foundational and a must-have for our customers. I'll now turn the call back over to Jason to take through your results and outlook before returning for some final thoughts.