Motorola Solutions (NYSE: MSI) reported double-digit growth in video across both business segments in the third quarter and completed its $1.3 billion acquisition of D-Fend, adding drone detection and cyber takeover capabilities to its portfolio.

Customer awards included multiyear contracts combining radio services, mobile video and command center software, alongside a major fixed surveillance order from a convenience store chain. Management cited those purchases as evidence of customers buying across Motorola’s communications and security offerings.

“Our multiyear award for the State of Louisiana this quarter was yet another example of the momentum we're seeing and continued competitive wins like this one, demonstrate how customers are recognizing the compelling value of complementing our next-generation LMR devices and infrastructure with our mobile video and command center solutions,” said Gregory Brown, chairman and chief executive officer.

Video contributes to segment growth

Products and Systems Integration sales increased 12% from the year-earlier quarter, driven by double-digit growth in mission-critical networks and video. The segment’s non-GAAP operating margin increased to 31.7% from 29.3%, reflecting higher sales and improved operating leverage, partially offset by higher supply chain costs.

Software and Services revenue increased 13%, with double-digit growth across all three technologies. Its non-GAAP operating margin increased to 33.8% from 32.6%.

Customer awards included a $56 million fixed video order for a large convenience store chain and a $78 million, eight-year mobile video award with a U.S. federal customer. Motorola also secured a $51 million command center order covering computer-aided dispatch and records management for the Los Angeles Police Department.

The $139 million Louisiana award combined P25 services, mobile video and command center solutions over 10 years.

Brown said AI supports the integration of those technologies across public safety operations.

“In those ecosystem wins, our purpose-built Assist AI amplifies the integration across these technologies, streamlining the end-to-end emergency workflow from incoming 911 calls all the way through case closure,” he said.

D-Fend extends drone capabilities

Motorola closed the D-Fend acquisition for $1.3 billion, net of cash acquired. The business will sit within mission-critical networks alongside land mobile radio and Silvus.

“D-Fend expands our radio frequency capabilities into drone detection and cyber takeover based mitigation and will be included in our mission-critical networks technology, along with LMR and Silvus,” said Jason Winkler, executive vice president and chief financial officer.

Brown described integrating D-Fend’s technology into Motorola’s mission-critical networks and command center platforms for federal, state and local public safety customers globally.

“As drone detection and mitigation becomes an urgent priority for public safety and critical infrastructure, integrating this differentiated cyber takeover counter UAS technology into our mission-critical networks and command center platforms provides a critical highly differentiated tool for our federal, state and local public safety customers globally,” Brown said.

The company’s full-year outlook includes approximately $45 million in D-Fend revenue during the remaining portion of the year.

Separately, Motorola’s acquisition of Bell Canada’s LMR network services business remains subject to customer and regulatory approvals. Winkler said the expected closing had shifted from the fourth quarter to the first or second quarter.

Orders support higher outlook

Companywide orders increased more than 20% year over year, with growth across both business segments. Ending backlog reached a record $16.6 billion, increasing 14% from a year earlier and approximately $1 billion sequentially.

Backlog in the broader Products and Systems Integration segment increased $635 million year over year, driven by demand in mission-critical networks and video. Software and Services backlog increased $1.4 billion, reflecting demand across all three technologies.

“The overall demand profile for safety and security remains robust,” Brown said.

Motorola raised its full-year revenue forecast to approximately $13.05 billion from $12.98 billion. It also increased its non-GAAP earnings forecast to $17.94 to $17.99 per share from $17.62 to $17.72.

The company now expects Products and Systems Integration revenue to grow 12% for the full year, up from its previous forecast of 11%. It also raised its expected companywide operating margin expansion to 190 basis points from 170 basis points.

(Editor’s note: This article was produced with the assistance of generative AI using Alarm.com’s publicly available earnings call transcript as source material. The content was reviewed, edited and verified by the SecurityInfoWatch editorial team to ensure accuracy, context and adherence to our editorial standards.)