Jason J. Winkler
Executive Vice President and Chief Financial Officer at Motorola Solutions
Thanks, Greg. Our Q1 results included revenue of $1.9 billion, up 7% and above our guidance, driven primarily by better-than-anticipated supply for LMR. Revenue from acquisitions was $17 million, and currency headwinds were $18 million. GAAP operating earnings of $239 million and operating margins of 12.6% compared to 16.8% of sales in the year ago quarter. Non-GAAP operating earnings of $374 million, down $37 million or 9% from the year ago quarter and non-GAAP operating margins of 19.8% of sales, down from 23.2%. This decline in operating earnings was primarily due to the $50 million of higher semiconductor costs that we outlined on our last call, related to the acquiring critical supply in the secondary market for semiconductors.
Additionally, we saw higher freight costs driven by elevated air freight rates and higher operating expenses related to acquisitions, partially offset by higher sales. GAAP earnings per share of $1.54 compared to $1.41 in the year ago quarter. The increase was primarily due to a deferred tax benefit in the current quarter related to the reorganization of intellectual property.
Non-GAAP EPS of $1.70 per share compared to $1.87 last year, a decrease primarily due to the operating earnings impact I described, related to higher semiconductor and freight costs and increased operating expenses from acquisitions, partially offset by higher sales and a lower tax rate. Opex in Q1 was $492 million, up $37 million versus last year primarily due to higher expenses related to M&A, investments in video and higher selling costs commensurate with our higher sales.
Turning next to cash flow. Q1 operating cash flow was $152 million compared with $370 million in the prior year, and free cash flow was $98 million compared to $318 million in the prior year. The decrease in cash flow was primarily due to our planned increase in inventory as we invest to meet the strong product demand we're seeing from our customers in video and LMR. Capital allocation for Q1 included $493 million in share repurchases, $134 million paid in cash dividends and $54 million of capex.
Additionally, during the quarter, we closed the acquisitions of Ava Security for $387 million and TETRA Ireland for $120 million. And subsequent to quarter end, we acquired Calipsa, a leader in cloud-based advanced video analytics for $40 million. And just earlier today, we announced the acquisition of Videotec, a global supplier of pan-tilt-zoom and explosion proof cameras for $22 million. Videotec enhances our portfolio of NDAA-compliant fixed video cameras.
Moving next to our segment results. Q1 Products and Systems Integration sales were $1.1 billion, up 9%, driven by anticipated strong growth in video and better supply availability in LMR. Revenue from acquisitions in the quarter was $7 million, and currency headwinds were $8 million. Operating earnings were $96 million or 8.7% of sales, down from 12.9% in the prior year, driven by the $50 million of higher semiconductor costs and higher freight costs previously mentioned, partially offset by higher sales. Some notable Q1 wins and achievements in this segment include an over $60 million nationwide P25 order for Taiwan National Police, $20 million of P25 upgrade orders for Los Angeles Unified School District, a $14 million TETRA upgrade for the Israeli Railways, $11 million P25 expansion for a large U.S. customer and a $5 million video order for a large U.S. public school system.
Moving next to our Software and Services segment. Q1 revenue was $789 million, up 4% from last year. Revenue from acquisitions was $10 million, and currency headwinds were also $10 million. Growth in this segment was driven by video security and command center software, while LMR services was approximately flat as expected, due to the impact of a tough comp related to customers P25 system upgrades that were concentrated in the first quarter of 2021, due to the COVID delays throughout 2020, and the impact of unfavorable FX.
Operating earnings were $278 million or 35% of sales, down 170 basis points from last year driven by a change in year-over-year mix and higher M&A operating expenses, partially offset by higher sales. For the full year, we still expect software and services revenue growth of 10%, and we expect operating margins that are comparable to last year, with the dilutive impact of recent M&A, offset by pricing and improved operating leverage.
Some notable Q1 highlights in this segment include $27 million command center software order for a customer in Latin America, a $20 million U.S. federal multiyear service contract orders, $8 million command center software record management order for the city of Phoenix, and an $8 million services agreement with the City of Chicago. During the quarter, we grew our Video Security & Access Control software revenue by 28%. And subsequent to the quarter end, we launched the Public Safety Threat Alliance, a cybersecurity information sharing and intelligence hub for the public safety community.
Looking next at our regional results. North America Q1 revenue was $1.3 billion, up 10% on growth across all three technologies. International Q1 revenue was $587 million, flat versus last year with growth in video security and command center software, offset by a decline in LMR due to FX. We saw growth in Latin America and Asia Pac, while Europe was slightly down, primarily due to FX.
Moving to backlog. Ending backlog was a Q1 record of $13.4 billion, up 19% or $2.1 billion compared to last year, driven by the Airwave extension recorded in the fourth quarter of '21 and increased demand across all three technologies. Sequentially, backlog was down $115 million, driven primarily by the Airwave and ESN revenue burn during the quarter, partially offset by growth in LMR and video products. Software and Services backlog was up $1.3 billion compared to last year, driven by the Airwave extension and a $320 million increase in multiyear services and software backlog in North America. Sequentially, backlog was down $221 million or 2%, driven primarily by revenue recognition for Airwave and ESN, during the quarter and typical order seasonality in North America.
Products and SI backlog was $852 million compared to last year and up $106 million sequentially, driven primarily by strong LMR and video demand in both regions. We entered the year with a record backlog position, and approximately $2.2 billion of our beginning backlog in the products segment was scheduled to be delivered in 2022, with over two-thirds of this amount expected to be delivered in the first half. We saw continued strong demand for new orders during the quarter with a record Q1 orders total, that included comprehensive pricing actions we implemented across our portfolio in January. We expect these new orders at higher prices, together with higher volumes in the second half to lead to a significant profitability ramp throughout the year.
Turning to our outlook. We expect Q2 sales to be up between 4% and 5% with non-GAAP EPS between $1.83 and $1.88 per share. This assumes approximately $50 million of FX headwinds, a diluted share count of approximately 173 million shares and an effective tax rate of 22% to 23%. It also includes $50 million of year-over-year increased costs that we described on our last earnings call related to elevated material costs for semiconductor supply from secondary markets.
For the full year, we are maintaining our prior revenue guidance of 7% growth and non-GAAP EPS guidance between $9.80 and $9.95 per share, despite the significant strengthening of the U.S. dollar since our last call. We now expect FX to be a headwind of $170 million for the year, up $110 million from our prior guidance. This outlook now assumes a diluted share count of approximately 173 million shares, based on the timing of our share repurchases in the year and an effective tax rate of 21% to 21.5%.
Additionally, our full year operating cash flow guidance for approximately $1.9 billion and full year opex expectations of approximately $100 million increase over last year are also unchanged, inclusive of the new acquisitions we announced, offset by targeted reductions we're making. Before I turn the call back to Greg, I wanted to reiterate some of the proactive measures we've been taking to navigate this dynamic environment.
First, amidst strong demand, we've taken further pricing actions across various parts of our portfolio, which we expect to benefit our second half of the year. We remain cost disciplined with targeted opex costs planned while funding our recent acquisitions. We are strategically investing in inventory, to maximize the parts availability to fulfill the strong demand that we're seeing. And finally, we continue to be good stewards of capital maintaining the strong balance sheet to be opportunistic in deploying capital on acquisitions and shareholder returns.
I would now like to turn the call back to Greg.
