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| Statement |
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| But in the main, generally speaking, we have a pretty solid foundational level of performance with kind of low beta risk, given the backlog and the continual high priority demand in public safety |
| And they have some improvements to make and we expect them to continue to improve on the deliveries of -- in particular, nanometer chips of 40 nanometers and above in some cases |
| I'm proud of our team's execution in '23 and I'm anticipating another strong year in 2024 and I appreciate everything you're doing |
| First, Q4 was exceptional quarter |
| We achieved record revenue in both segments in all three technologies, including double digit growth in Video Security and Command Center, highlighting the strength and robust demand for our safety and security solutions that help protect people, property and places |
| Additionally, we expanded operating margins for the sixth consecutive quarter, generated over $1.2 billion of operating cash and strengthened our video security portfolio with the recent acquisition of IPVideo, creator of the HALO Smart Sensor |
| Second, our full year results were outstanding |
| In our Products and SI segment, we grew revenue 9%, driven by strong growth in both LMR and Video Security and we ended the year with record product backlog |
| We also expanded operating margins in this segment by 380 basis points, driven in part by higher ASPs and lower product costs |
| In Software and Services, revenue was up 10%, inclusive of the Airwave revenue reduction, highlighted by strong growth in Video Security, Command Center and our Services business outside of the UK |
| And we also generated record operating cash flow of $2 billion, up 12% versus the prior year |
| And finally, as we enter 2024, our robust backlog position coupled with the continued strong demand for our safety and security solutions positions us well for another year of strong revenue and earnings growth |
| Revenue for the quarter grew 5% and was above our guidance with growth in both segments, both regions and all three technologies |
| I'm really proud of you |
| I love the fact that we've got the broadest and most comprehensive product portfolio |
| Can you take that out, Jamie, and you normalize for organic growth, the organic growth is another solid year of 10% growth |
| Which again, I think speaks to the breadth and the advantage that gives us in the marketplace |
| And we want to be able to provide our customers with the best performance at the best price point |
| So the performance by that team was exceptional and I would expect PCR to be comparable levels this year |
| The growth in EPS was driven by higher sales and higher margins |
| For the full year 2023, revenue was $10 billion, up 10% with strong growth in both segments and across all three technologies |
| And great job on the quarter and for the year |
| Non-GAAP operating earnings were $2.8 billion, up $416 million and non-GAAP operating margins were 27.9% of sales, up from 26% of sales in the prior year, driven by lower direct material costs, higher sales, inclusive of higher ASPs and improved operating leverage |
| I would note one thing, the acquisition we made in telco, we're actually very pleased in 2023 with the growth that Telco had |
| So we feel good about the position |
| So we've had great success in 2023, we expect to have another strong year this year |
| By and large, the situation remains very solid |
| I'm proud of the way we are good stewards of capital, both returning it to the shareholder and share repo and dividend, but being surgical and thoughtful to accretive acquisitions as well |
| And for the full year, we generated record operating cash flow of $2 billion, and record free cash flow of $1.8 billion |
| So we are expecting another strong year of cash flow |
| Statement |
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| Q4 operating earnings in the segment were $303 million and operating margins were 31.6%, down from 34.4% last year, primarily driven by the Airwave revenue reduction related to the price control |
| For the full year, operating earnings were $1.3 billion or 33.9% of sales, down 140 basis points versus the prior year, driven by the Airwave revenue reduction and higher acquisition related expenses |
| In Software and Services, backlog decreased $181 million from last year and $114 million sequentially |
| The $827 million was down $200 million from its 12 month predecessor and we expect to drive $827 million down even further by year's end as we navigate an improving environment |
| Sequentially, backlog was down $15 million, inclusive of the Airwave and ESN reduction and $160 million of favorable FX |
| I know reported backlog in total appears, the headline appears to be down, but I think there's a lot of impact from Airwave in that |
| Now having said all that, so we guide for full year 6%, I remind you that $200 million is a headwind related to the UK Home Office |
| But the full year is a little bit lower on growth |
| Ending backlog for Q4 was $14.3 billion, down $88 million versus last year, inclusive of approximately $1 billion of backlog reduction related to the Airwave price control and revenue recognition for Airwave and ESN |
| We think it's legally flawed |
| We still believe it's unprecedented |
| Revenue from acquisitions was $15 million and currency headwinds were $19 million |
| Revenue from acquisitions was $83 million and currency headwinds were $19 million |
| If that moderates the top line growth from 15% to 10%, that's okay too |
| Revenue from acquisitions was $98 million and the impact of unfavorable foreign currency rates was $38 million |
| I know that a lot of those fees didn't come out of the model until you guys had burned down some backlog |
| But if you take year-over-year, you add in the $200 million full year UK Home Office headwind that can normalize the year-over-year comparison |
| No conversation on PCR and I know there's been some moving pieces throughout the year in terms of getting out of some of the areas like Asia, but perhaps just give an update on where PCR stands and I know there was also some issues with supply chain earlier in the year |
| I guess I wanted to ask about what kind of headwind you guys still had running through the business in 2023, I'm thinking about things like expedite fees and even freight costs |
| Jason Winkler And as we worked through the year, it would be our expectation at the end of the year to have overall inventory reduced |
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