Q2 2019 Earnings Call
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The first half of 2019, excluding the voluntary $500 million pension contribution made in 2018.
Operating cash flow was up $77 million and free cash flow was up $30 million driven by higher earnings.
Capital allocation for Q2 included $94 million in cash dividends $63 million of Capex.
And $25 billion of share repurchases at an average price of $146.65.
Additionally, we issued $650 million of new 10 year senior unsecured notes and used the proceeds to repurchase existing notes, resulting in an extended weighted average debt maturity profile.
And subsequent to quarter end, we acquired Watchguard a leader in in car and body worn video for public safety for total consideration of $271 million.
Moving to segment results Q2 products and systems integration sales were $1.2 billion up $49 million or 4% driven by the Americas.
Revenue from acquisitions in the quarter was $16 million offset by currency headwinds of $18 million.
Operating earnings were $242 million or 19.5% of sales up 50 basis points from last year on higher sales and gross margin pop, partially offset by higher opex from acquisitions and investments in our video security solutions portfolio.
Notable Q2 wins in this segment include $60 million of additional P 25 orders for the statewide system in North Dakota.
A $46 million 25 order from Oakland County, Michigan.
A $34 million 25 order from Washington Metropolitan Area Transit Authority.
$5 million of public safety video security contracts in Broward County, Florida, and the Cleveland Metro area and several multimillion dollar video security wins in the education vertical.
Moving to services and software revenue was $622 million up $51 million or 9% from last year driven by growth in the Americas and EMEA.
Revenue from acquisitions in the quarter was $17 million offset by currency headwinds of $19 million.
Operating earnings were $202 million or 32.5% of sales up 590 basis points from last year, driven by higher sales gross margin expansion and Opex reduction.
Some notable Q2 wins in this segment include a $200 million Essent extension through 2024.
A $60 million per 25, multi year services agreement with the state of Tennessee, extending service through 2028.
A $59 million or five year contract extension to provide license plate data and analytical software.
And a $5 million records management contract for Baltimore County.
Looking at regional results Americas' Q2 revenue was $1.3 billion up 11% driven by broad based growth across all platforms.
EMEA Q2 revenue was $356 million down 7% due to two large system deployments in the middle East and Africa in the prior year and currency headwinds, partially offset by growth in Europe .
And in Asia Pac Q2 revenue was 157 million down, 7% or $12 million due to the currency headwinds and China.
Moving to backlog ending backlog was $10.9 billion up $1.5 billion or 16% compared to last year inclusive of a $119 million unfavorable change in currency rates.
Sequentially backlog was up 419 $92 million with growth in both segments.
Services and software backlog was up $1.5 billion or 24% compared to last year, driven by EMEA and the Americas sequentially backlog was up $430 million due to multiyear contracts contracts in the Americas.
And the Essent extension.
Products and as size segment backlog was down $48 million or 2% compared to last year, primarily due to large system deployments during the prior year in the middle East and Africa, partially offset by a $165 million of growth in the Americas.
Sequentially backlog was up 62 million driven by the Americas.
Turning to our outlook, we expect Q3 sales to be up approximately 6.5% with non-GAAP EPS between $1.91 and $1.96.
This assumes $20 million of FX headwinds at current rates.
A weighted average diluted share count of approximately 177 million shares.
And an effective tax rate of approximately 25% versus 18% in the prior year.
For full year 2019, we now expect revenue growth of 7% to 7.5% up from our prior guidance of 6% to 7%.
And we now expect non-GAAP EPS between $7.67 and $7.77.
Up from our prior guidance of $7.60 to $7.72.
This full year outlook assumes a $115 million of FX headwinds at current rates, an increase of $25 million from our prior outlook.
$40 million from the acquisition of Watchguard.
And effective tax rate of 24% to 25% and a weighted average diluted share count of approximately 176 million shares.
Full year operating cash flows is expected to be approximately $1.7 billion I'd now like to turn the call back over to Greg.
Thanks, Gino, let me just close with a few thoughts.
First Q2 was outstanding we had strong organic revenue growth in both segments significantly expanded both gross margins and operating margins and ended the quarter with our highest backlog position ever.
Second the acquisitions, we've made in video security and command Center software are having a meaningful impact.
On our business with our recent purchase with Watchguard. We've now made acquisitions in these two areas that totaled $2.4 billion.
These acquisitions are expected to contribute revenue of about $1 billion. This year.
Growing high teens with an EBITDA profile of about 20% and growing.
And finally as I look to the second half of this year I'm encouraged by our performance led by North America, which saw strong organic growth in both segments during the quarter.
Alomar demand remains robust and our video security and command Center software solutions continue to gain momentum, which positions us well for expanded free cash flow generation going forward.
I now would like to turn the call back over to Tim.
Thanks, Greg before we begin taking questions I'd like to remind callers to limit themselves to one question and one follow up to accommodate as many participants as possible.
Operator would you please remind our callers on the line how to ask a question.
The floor is now open for questions.
At this time, if you have a question or comment. Please press Star then one on your Touchtone phone.
If at any point. Your question is answered you may remove yourself from the queue by pressing star than Q.
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Thank you.
And our first question will come from George Notter of Jefferies. Please go ahead.
Hi, guys. Thanks, very much I guess I wanted to start off by asking about the backlog, obviously, a nice sequential jump period, a 10.9 billion.
Can you kind of walk us through the different puts and takes on that backlog that you gave us I think some parts of it when you were talking about the segments, but.
I guess I'm trying to drill down into the organic backlog growth and.
Insights into the puts and takes would be great.
Sure George this is Gino so if lets talk year over year first for services and software up one and a half billion is the way to think about that is about two thirds of that is the UK home office extensions that we talked about and a third of it our North America mobile multiyear service contracts.
For products and systems integration year over year down on projects in the Middle East and Africa and up in the Americas.
And sequentially is the $500 million of growth is driven primarily by North America multi year.
Contracts as well as the $200 million EPS and contract extension.
Got it and then what would the organic growth looked like and backlog it sounds like.
A whole lot of this is organic if you could just clarify that they'd be great, yes, primarily organic.
Primarily all organic.
Got it Okay, and then I guess the topic Du jour is.
Just China trade Wars, obviously, there is a.
The new salvo here in terms of tariffs that would get implemented on that.
Next tranche of goods, but I guess I was just wondering with the bigger picture is now with.
Youre competing with high Terra and night vision on a couple of different sides of the business can you give us your sense for.
What's going on there and how you're taking advantage of that competitively.
Well I mean contextually George.
As the chair of.
Trade War continues with China, including the tariffs increase that Trump announced a few hours ago that is contemplated in the guidance, we're giving for the full year for the second half roughly it's about an incremental eight or $9 million.
For the full year actually it's eight or $9 million for the full year and roughly half of that for the second half, but that increase that you talked about.
Being implemented September 1st is already contemplated I remind you that.
We've made decisions going back several years ago, where we don't we no longer do manufacturing in China.
I think mainland China revenue was about 1.5% to 1.7%.
Of our revenue. So we don't have a concentration there we don't to product management, we don't to software development.
So I think we're pretty well insulated from some of the things that are going on there competitively it's an advantage.
In to two different areas, if I take high tariff first.
And the litigation as you know we won.
The patent infringement case in DC.
With the International Trade Commission that implemented an import ban and the cease and desist order we've had two wins in Germany in Manheim and diesel Dusseldorf Theres a trial going on as we speak in Australia for patent infringement and source code copying and we're optimistic about the outcome.
And then the Big one is Chicago in November in 2019, and despite repeated attempts by high Terra to delay and deflect multiple efforts to push that trial into 2020.
We have every reason to believe that it will happen in November in Chicago with the jury trial that will evaluate a trade secret theft in source code copying and I and we are looking forward to that trial and subsequently that outcome on the Hikvision and Dahua a video security space as it relates to the end da.
The procurement ban goes into effect.
In 13 days on August 13th.
By the way.
A vigilant in the video business performed well in Q2, it grew double digits.
It's tracking where we expected to be video security, we think will be about 15% for the full year, which is three ex the market growth, which we articulated before.
And interestingly enough those results.
Actually don't really include anything from the federal market, we haven't gained traction yet the sales cycle in fed is even longer than state and local but to your point George I think we will become a beneficiary of the N.D.A. procurement band for Hikvision and Dahua in the video security space, but I think that will be more likely.
2020, we are encouraged by the ongoing discussions we have with our fed customers and I think that will be beneficial in 2020.
Great. Thank you.
You bet.
Our next question comes from Adam Tindle of Raymond James. Please go ahead.
Okay, Thanks, and Greg I, just wanted to start with Watchguard and maybe touching on the strategic vision was that asset I'd imagine there are some synergies with other acquisitions that you've done like Bath.
And in that light I understand the majority of mix for that business is related to in car video systems based on the S. One they filed a couple of years ago, but they also have a body worn camera business and wanting to understand that that piece is something you think is worth investing in and how you'll approach that market.
Thanks, Adam we're excited about Watchguard to Dimensionalize. It it is the in car camera market leader.
Which fills in a gap that we had within the video solutions portfolio secondarily, we are seeing and malloy is seeing more customers that are buying in car and body worn together.
Which we think is obviously a positive outcome.
And it gives us some optimism for that asset going forward on the revenue side, we believe watch card will contribute about $40 million.
In 2019, but what I love about it is.
It's all a similar sales motion so it's another key asset.
In video surveillance and analytics.
That gets put into the Salesforce North America strong 500 plus people.
That we think we can grow it substantially I mean, watchguard very good company, but they have 35 salespeople half of which are inside salespeople. So we will by definition give them significant more market reach touch points with all of the customers that we have.
Bring them into conversations where we have incumbency in land mobile radio and command Center software. We think it's very strategic I'm excited about it and on the body worn side to your point.
We have a body worn platform they do too we'll look to rationalize that.
Together and as I mentioned overtime sell them in tandem to match more and more the way our customers are buying.
Okay, Thanks, and maybe just as a quick follow up.
Services and software margins were certainly a highlight in the quarter a significant improvement both sequentially and on a year over year basis, you could just maybe double click on the drivers how much was greater mix of command center was it operational improvements in core services and the sustainability of that thank you.
Yes, I'll start and maybe Kelly will jump in but.
I think the strong performance was a combination.
Of topline growth and operating expense efficiencies I mean, it was a fantastic quarter by Kelly and his team.
And Andrew Sinclair on the software side, all the people working services very very pleased.
We had talked about.
On operating margin for that segment for this year.
Moving toward 30%.
If we look at that segment of certain services and software for the first half the operating margin is about 13.5%.
We now believe given that first half performance that the full year operating margin will look more like 30% to 31% on the operating margin side. So it's just good work by Kelly and his team.
That's helpful. Thank you.
You bet.
Our next question comes from Keith Charles Smith of Northcoast Research. Please go ahead.
Good morning, guys.
Greg just going back to that tariff real quick from a competitive advantage standpoint, there should be some advantage that you guys have versus your Chinese based competitors.
Especially in the PCR market correct and then how do you guys extrapolate on that.
Well I think look I think the generally you're right. Keith It is an advantage there is more and more developed countries that are very sensitive.
To putting Chinese gear, or Chinese electronics, or wireless technology into either critical infrastructure, obviously, they don't even consider that here in the states.
So from a market standpoint, that's an advantage it's an advantage.
For us as we go head to head against tighter era in the litigation by the way that was self inflicted by them.
So when a company steels intellectual property.
For us that put so much R&D and patent protection and investment around innovation, we're going to fight.
Appropriately we want to compete we like a level playing field, but what they've done is agregious systematic multi year and I think and we think that there will be a penalty and the payment for them.
As a result of their actions and on the video side of course, you're right as well.
The two of the largest video providers being hikvision and Dahua and of course, we have to remember that while way has a high silicon division that provides a semiconductor that guide some of the intelligence in OEM and white label cameras, as well and that's a benefit too so.
I generally net net I think we're a bit unique in that the Chinese situation in total is more tailwinds than headwind for our company for a whole host of reasons.
Gotcha.
Good morning, My follow up I would be remiss, if I didn't ask about Firstnet, obviously 18 days months after the chest in terms of.
The new additions they have but what are you seeing in terms of.
Benefit your benefit from it and our people transitioning over to push to talk.
They're not we don't see really any benefit at all.
In terms of revenue contribution for us.
We didnt have really any in Q1, we didnt have any in Q2.
And for the full year, Keith we're we're really projecting.
Low single digit millions very very little.
Obviously, a TNT will continue to build out the network.
They are adding quote unquote connections are subscribers, it's a cellular data play.
And they will look to win back.
Customers from Verizon or T mobile or sprint on to Firstnet data plans that is separate than alomar, it's incremental to LM our.
Obviously as we've seen given the organic strength of land mobile radio here in the states and we would know if the users were incremental push to talk over cellular because firstnet is using kodiak for that solution, which we own as an asset and when we look at the traction in the growth there, we really don't see it so first net.
I think is obviously working freight TNT and I think thats, great, but for US It has no meaningful revenue contribution at all this year.
Is there expectation you'll have it next year the following year.
I think too early to project for next year, but from my view expectations are pretty muted.
Got it thank you.
You bet.
Our next question comes from Paul Coster of JP Morgan. Please go ahead.
Yeah. Thanks for taking my question actually Greg Good luck food, so pursue that just a little bit further which is to say that.
In food thing several hundred thousand subscribers, so far on shows which is dropping the ocean Momo.
But some of the device companies you're doing very excited about the opportunity to I guess the question. So two part question. One is what is what is your plan in terms of deploying.
Devices on so first how does Motorola make money out of the device side of the story and the second is do you see any competition have performed.
Budgets and so for us the first responder community.
Is that probably the reason for the many interesting initiatives you're doing in that context.
Well to answer the second one first we see budgets being pretty healthy here in U.S state local.
That combined with.
The criticality of what we sell into public safety on mission critical communication platforms as well as command Center software and video security makes what we sell more of a must have than than a need to have on the device side. Paul we already have a device approved on the firstnet.
Procurement list. So we have the Lex product Thats approved.
I think it's fair to say that you will see us have some additional new products over time, but today first responders have that land mobile radio P 25 here in the us and a smartphone.
And if there is an additional device if you will that device will largely it will replace the smartphone, which we don't have any market share to begin with anyway.
So device, while I said earlier is pretty much zero for us to date, Theres really nothing but upside because if there is some kind of device that may get traction on firstnet from a data side it would be a smartphone enhancement or a smartphone like replacement and won't affect the mission critical critical typically apex be 25 radio.
Got it and then they look to move from that.
Network to sort of roll into the Fiveg plans as well that likewise, you don't see.
And the faster the speed I think those are positive conditions for what we sell in command Center software.
And video Securities. So as the pipe gets better as that cellular network gets built out as fourg LTE over several years migrates to fiveg.
It has no impact that we can CNL amar and upside to what we see on the other two platforms we're building.
Got it thank you.
Thanks, Paul.
Our next question comes from Jim Suva of Citi. Please go ahead.
Hi, This is Josh hey on behalf of consumer thanks.
My question.
Can you give us any more color on that how you're sizing up the potential opportunity for visual on from the National Defense Authorization Act.
Geographically, where do you expect to see the most about it and then how you're thinking of the central ramp in revenues there.
Well I would say.
First of all just just to Dimensionalize vigilant.
Solid double digit growth in Q2 number to still expect.
About 15%.
Revenue growth this year, which we think is three ex the market.
Loved the state and local government wins in Q2.
Both the Cleveland area in Broward County.
Our new and material as it relates to a vigilant.
And safe schools on the enterprise and education front is white hot.
For the reasons that we all know.
Safer schools, securing the perimeter protecting school children, having a necessary locked down and doing the kinds of things around perimeter security video surveillance anomaly detection motion detection and having those alerts without human intervention feed into appropriate law enforcement officials in a 911 center automatically and then also signal alerts to the land mobile radio to the principal or security person or guidance counsellor are critical that use use case is widespread getting traction and significant so I love, what malloy has done and by the way he and his team have made investments on the product side. I think you will see some new cameras rollout in the second half of the year. We have significantly increased go to market, which is part of the reason that informs our confidence on our ability to perform the way. We described in this critical area and all this is.
Really without any contribution to your point, Josh from the FDA, yet the sales cycle in fed or longer.
We don't with the conversations are great. We're having active dialog as you've probably seen and understand the procurement prohibition of Chinese video providers takes effect in 13 days.
And our customers are struggling to identify and replace our fed customers given the resources that they have we are helping them where we can.
But we expect that to get traction.
More in 2020 than this year.
Great. Thank you.
Thanks, Josh.
Our next question comes from DJ Bag Saga of Deutsche Bank. Please go ahead.
Hey, I think Brian you.
So I also had a question on the original on business.
So on the product refresh opportunity from from a National Defense Act, what we've been seeing and kind of hearing is sales confusion kind of customer confusion on whether it's just limiting new Chinese equipment purchases or if the requirement is to sort of rip out existing system. Since you guys are super close to the conversation there can you kind of expand.
On what you're seeing what your view is do they have to replace the existing equipment and in both cases, the vigil on kind of comes out as a clear winner but.
Be interesting to get your view, thanks, Brian Brian Theres Theres two dimensions to the National Defense Authorization Act in terms of the federal ban one is August 13th.
Is a procurement van.
So as of the 13th of this month.
No Federal agency can procure new video security equipment.
From Hikvision and Dahua.
In a year from this month in August of next year is the second leg of it which is a grant prohibition, which is to say that no federal funds can be used for their procurement.
Of Chinese video security, mainly those two companies named.
So grant money that might be created at the fed level that could flow through to a state and local or community.
Cannot be used.
As of August of next year.
They don't necessarily have to rip out.
The video cameras that they have today, so theres a pro theres a procurement ban.
Of August of this year Theres, a grant band.
Band rather to they can't use grant money in August of.
Of of 2020.
Okay, great. Thank you very helpful.
Our next question comes from Ben Bollin of Cleveland Research. Please go ahead.
Good evening, everyone. Thank you for taking the question.
I wanted to touch on two items, if I could first is.
Could you talk a little bit more about.
Where public sector customers.
Our deriving the fund and budget dollars.
Across the three major segments Lamar I think we're pretty familiar with but when you look at surveillance and command center opportunities for those future wins.
Where does that money come from and then a second kind of follow on.
As you leverage yourself into more of these longer tail public safety asset.
How would that influence your ability to compete in deals do you feel like you are getting.
More pricing power is there no like for like competition, what are you seeing on that front. Thank you.
On the first one I would just say that us state and local budgets are healthier.
Generally obviously some states very as you know, but I think the tax revenues.
And overall fiscal conditions from a budget standpoint.
Are are we see healthier than they have been in several years they source different revenues from different point different points.
Some have obviously 911 taxes that are used to fund the procurement of command center software and other kinds of things like that.
But.
The other thing that makes us affordable in the envelope of these budget says is that we are selling these long term multiyear contracts as an example, geno in his in his commentary talked about the state of Tennessee, which goes through 2028 so.
Given depending upon the way the customer wants to buy it could be opex, it could be capex and depending upon the length of time that they want to pay for it we have the flexibility to meet them in a way that's conducive for them to buy that fits the affordability envelope of their individual fiscal situation, but.
And the fed I would say has been beneficial.
Given the fact that there is budget clarity and certainty.
So specifically for us as it relates to that budget.
We saw more revenue and deal flow in the first half.
Then the second half because of the budget certainty and the clarity that the Trump administration and obviously Congress has provided so I think from a federal budget standpoint today that situation is more favorable than it has been in the past as well.
And on the competitive landscape as you get into more of these areas surveillance and the broader command center on the low.
How does that influence your competitive position in deals.
I think its advantage that generally speaking in land mobile radio.
I think it's remained the same but in command center software as Weve acquired more assets and can compete on 911 call handling can compete on tier one tier two or tier three CAD can compete on records management or evidentiary management and then more importantly in which is in part what's led to the operating margin expansion in Q2 to put these assets together and platform them. So if a customer wants to buy a point product for one of those areas. We can sell it if they want the economies of scale of a quote unquote speed suite, which has two or more of those obviously, that's an advantage that we have given the scale that we provide the integration we're building the cloud enabling.
Set of architectures that we're putting around command center software, where a customer can be on prem or hybrid cloud or in the public cloud and we'll meet them, where they want to be met on a common architecture. It's an it's a competitive advantage on the video security side. We've got fixed video. We now have in car video we have body worn video and we'll do everything we can from an end to end standpoint, the package and differentiate and sell it as a compelling value proposition because I think.
Bigger and more integrated is a competitive advantage for us over time.
Thanks, Greg appreciate it please give jack or Beth will do thank you.
Our next question comes from Sami Badri <unk> of Credit Suisse. Please go ahead.
Hi, Thank you.
The first question I had for you was on Watchguard and how you think about the market that watch card is and then various competitors in the market growth rate and then what you think.
You will be able to grow a business like watchguard now that it is.
Within Motorola and I have a follow up.
I think that.
One of the things we like about Watchguard is it's the in car camera market leader.
I think its we don't give individual product or segment guidance per se.
But.
I think it's reasonable to say that watchguard could grow at a double digit profile given the interest in video given the way I think customers will buy in the future in combination by buying in car and body worn together still do some of those purchases more together.
And the overall Tam for video is several billion dollars it all in in video.
And as we've said a vigilant is 12 to 13 billion without China.
And then and then you add incrementally body worn video and in car camera to that Tam total and look at that profile and we believe in general we can grow that double digits.
Got it thank you and then.
Regarding my follow up question actually has to do with the operating margin answers and.
Service software now you have clearly shown and demonstrated there has been expansion would you say up to this point that youre, achieving services and software operating margin expansion faster than expected and.
Do you think that that can be the case over the next couple of years as well that you would achieve a higher profile faster given the way our business is tuning up.
I think it's a it was achieved in the first half.
More than we thought that it would be for the full year. So remember the operating margin target for that segment was 30% Weve inched up to 30 to 31.
I think you can't necessarily focus on one quarter.
From a linear already perspective, but.
Make no mistake.
I'm pleased with the performance of that segment.
Reflected in the increased color of going from 30% to 30% to 31.
I think Kelly and his team are making meaningful changes.
That will be foundational that will enable us to continue to grow it over time too early to forecast obviously anything for next year, but would we and would I expect it to grow yes, we would and I would.
Great. Thank you.
Thank you.
Once again, if you do have a question you May Press Star then one on your Touchtone phone at this time.
And our next question will come from Paul Silverstein of Cowen. Please go ahead.
Guys I appreciate you taking the question, Greg and Gino I apologize you into others. If you all have already been asked and answered. This question I've been hopping around from calls Tonight. So I do apologize, but on your video piece or whats visible on a number of other acquisitions former part.
If I'm not mistaken it looks like her vision and dowell between the two to do about $1.5 billion of revenue or did 1.5 billion revenue in their respective fiscal 18 collectively outside of China I don't know how much of that was in the us.
What if we return back to that opportunity in terms of those two competitors in particular, the number one and three in the market been gated.
Is there a way to quantify I assume the opportunity for new was entirely in the us in terms of the incremental that theres not an impact outside of us with respect to negated how much revenue is any sense for how much revenue. There is that you could pick up.
From their particular situation well I think I think Paul it's reflected in the performance and the guidance, we've given I.E. the market so take China out.
The market without China is growing about five or 5.5% and our expectations are 15%. So by definition, we have set in place a plan and a strategy around investment.
Product.
Refresh refresh cameras going down market uncertain cameras.
And then as well as channel synergy and go to market investment and that is we believe could have a yield of three X now we talked about this a little bit before Paul but thats, Okay just to quickly dimensionalize it.
The performance, we have and we expect to have with a vigilant is really without any anticipated significant contribution from fed.
And the National Defense Authorization Act bolt on procurement and grant restrictions, we don't see that having any effect at this point in time for this year. So if we can grow about three ex the market without China.
Investing in refreshing the camera portfolio and sharing it more broadly.
Bringing on more effective channels significantly, adding go to market and by the way, it's more than us and North America. We think it's also EMEA as well.
This market's at $12 billion to $13 billion market without China.
That's growing nicely. So we are optimistic.
About what we can do here and it's one of the areas again, we're about building platforms. It's not just video it's the edge device. It's the storage. It's the management, it's the analytics and machine learning in the AI that take all of that end to end experience and provide use cases around specific verticals to differentiate this is a hot market I think malloy has done a good job we have a lot more work to do but thats the perspective.
Great if I could ask your quick follow up to your point about platforms to your point about platforms correct me, if I'm wrong, but I think it was just a quarter ago, maybe two quarters ago. When you had completed or at least have integrated the goods lawn and perhaps some of the other video capabilities into your command and control software based platform.
Did you address or could you address what the early indications are in terms of take up by those 6000 command and control centers throughout the us.
Hey, Paul its Kelly, so I'll touch on that when I spoke to that before it was really in regards to as we bring these platforms together, we make sure the inter linkages between the various components Alomar video security and command Center software all exist. So in the case of a vigil on or in the recent acquisition of vast those video streams or that data plug straight into the command center. So for a customer for example that has are aware product. They can have the visibility to the video and or the vast data right on that screen. So it helps just facilitate the inter linkages of those platforms not something I would direct you towards to measure and regarding that penetration to those command centers because it also be gated a bit by who uses are aware platform as well.
How broadly as were used.
Whereas one of our earlier products and growing pretty rapidly.
We don't get into how many piece apps directly use it yet, but that's something that we'll be updating you on the future. So, but it's one of our newer products and its growing relatively quickly because of its ability to integrate and provide as we say on a single pane of glass a situation from CAD to mapping to assets to vast and video and other components. It's a very integrated view to help our customers manage their resources during an emergency.
I appreciate the response thank you.
Thank you.
This concludes our question and answer session I will turn the floor back over to Mr., Tim Yocum, Vice President of Investor Relations for any additional or closing remarks.
That concludes the call I appreciate you joining today. Thank you.
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