Executive Vice President & Chief Financial Officer at Motorola Solutions
Thank you, Greg. Revenue for the quarter was up 9% and above our guidance with record second quarter revenue in both segments. We saw strong growth across all 3 technologies, led by over 20% growth in both Video and Command Center Software. In LMR which grew 5%, we were able to secure more critical parts, particularly later in the quarter which enabled us to ship more product.
Acquisitions during the quarter added $34 million and FX headwinds were $44 million. GAAP operating earnings were $358 million and operating margins were 16.7%. Non-GAAP operating earnings were $497 million, up $15 million or 3% from the year ago quarter and non-GAAP operating margins were 23.2%, down from 24.4%. The decline in operating margins was due to the higher semiconductor costs we outlined on our prior calls related to acquiring critical supply in the secondary market, together with higher freight costs and higher operating expenses related to acquisitions, partially offset by higher sales. GAAP earnings per share was $1.33 compared to $1.69 per share in the year ago quarter. The decrease was primarily due to a discrete tax benefit recognized in the prior year and higher direct material costs in the current year. Non-GAAP EPS was $2.07, flat versus last year. The higher sales and operating earnings generated in the current quarter were offset by the higher direct material costs I mentioned previously, along with higher operating expenses related to acquisitions.
Opex in Q2 was $502 million, up $25 million, primarily due to acquisitions. Turning to cash flow. Q2 operating cash flow was $10 million compared with $388 million in the prior year and free cash flow was a usage of $49 million compared to $326 million generated in the prior year. In Q2 and the first half of the year, our cash flow has been primarily impacted by 2 items: first, our planned investments in inventory to navigate the dynamic supply chain environment and position us to fulfill the record demand we're seeing in Video and LMR; second, higher employee incentive payments that were tied to 2021's performance and paid out this year.
We expect our cash flow conversion to accelerate in the second half, driven by higher profitability and a reduction in our current inventory levels in addition to the normal seasonality of our cash conversion. Capital allocation for Q2 included $162 million in share repurchases, $132 million in cash dividends and $59 million of capex. Additionally, during the quarter, we closed the video acquisitions of Calipsa for $40 million and Videotec for $22 million. We also issued $600 million of long-term debt, used a portion of the proceeds to retire $275 million, resulting in approximately $320 million of incremental debt net of fees on our balance sheet.
In the Products and SI segment, we continue to see strong demand across both LMR and video. Sales during the quarter were up 7% versus last year and orders were up 17%, including record Q2 orders for both LMR and video. Revenue from acquisitions for this segment in the quarter was $14 million and currency headwinds were $19 million. Operating earnings for Products and SI were $188 million or 14.6%, down from 16.2% of sales in the prior year, driven primarily by the higher material costs and higher freight costs previously mentioned, partially offset by higher sales.
We continue to expect full year operating margins for this segment to be slightly higher than 2021 as the impact from pricing actions accelerates in the second half. Some notable Q2 wins and achievements in the segment include several large P25 orders in the U.S., including $32 million for a state of California agency, $27 million for Dutchess County, New York and $22 million order for the Georgia Department of Corrections. We also had a $26 million order for a P25 solution with LTE integration for an international customer, a $15 million TETRA order for a customer in Argentina. And finally, we received 2 large fixed video orders, a $9 million order for a customer in the health care vertical and an $8 million order for a large retail customer.
In the Software and Services segment, revenue was up 11%, with revenue from acquisitions of $20 million and currency headwinds of $25 million during the quarter. Total software revenue was up 25%, driven by strong demand in video and a large deployment in Command Center Software, while in LMR services, revenue was up 5%. Operating earnings in the segment were $309 million or 36.1% of sales, down 110 basis points from last year, driven by a change in year-over-year mix and higher M&A expenses, partially offset by higher sales.
We continue to expect segment operating margins for Software and Services for the full year to be comparable to last year, inclusive of the additional opex spend from our recent acquisitions. Some notable Q2 highlights in this segment include 2 large multiyear LMR service renewals, $43 million with the state of South Australia and $35 million with the state of Mississippi. We also had 3 large Command Center Softwares in the U.S. -- orders in the U.S., $35 million from a large metropolitan city, $14 million from the Los Angeles Police Department and $11 million from Frederick County, Maryland. We were also awarded an $8 million body-worn camera order from the Detroit Police Department.
Moving next to our regional results. North America Q2 revenue was $1.5 billion, up 13% on growth in all 3 technologies. International Q2 revenue was $656 million, flat versus last year, with growth in all 3 technologies, offset by unfavorable FX.
Moving to our backlog. Ending backlog was a record -- Q2 record of $13.4 billion, up 19% or $2.2 billion compared to last year, inclusive of approximately $500 million of unfavorable FX. The growth was driven by the Airwave extension recorded in the fourth quarter of '21 and increased demand across all 3 technologies. Sequentially, backlog was down $21 million, driven primarily by a $397 million movement in unfavorable FX and the quarterly revenue burn related to the Airwave and ESN contracts, partially offset by record Q2 orders in LMR products, video and Command Center Software.
In the Products and SI segment, continued robust order demand in both LMR and Video is driving record backlog which was up $986 million or 30% compared to last year. Sequentially, backlog was up $206 million which was our eighth consecutive quarter of sequential backlog growth in the products segment. Additionally, our product backlog increasingly reflects new pricing which we expect to contribute to the profitability ramp for the second half.
In Software and Services, backlog was $1.2 billion compared to last year, driven also by the Airwave extension and a $380 million increase in multiyear services and software backlog in North America. Sequentially, backlog was down $227 million or 2%, driven primarily by unfavorable FX and revenue recognition for the Airwave and ESN contracts, partially offset by record second quarter orders in Command Center Software.
Turning next to our outlook. We expect Q3 sales to be up approximately 10%, with non-GAAP earnings per share between $2.85 and $2.90 per share. This assumes approximately $60 million of FX headwinds, a weighted average share count of approximately 172 million shares and an effective tax rate of approximately 20%. And for the full year, we are increasing both our revenue and EPS guidance. We now expect revenue growth of approximately 8%, up from our prior guidance of 7% and we expect non-GAAP earnings per share to be between $10.03 and $10.13 per share up from our prior guide of $9.80 to $9.95 per share. This updated guidance includes FX headwinds of approximately $170 million, a diluted share count of approximately 172 million shares and an effective tax rate of approximately 21% to 21.5%.
Before I turn the call back to Greg, I would like to highlight some of the priorities we are driving for the remainder of the year. First, we remain focused on supply chain execution, both tactically and strategically, including rapid redesigns by our engineering teams to substitute to available semiconductors, alternatives, strategic inventory investments that we are making, securing high-demand discrete semiconductors from brokers when necessary and entering into long-term supply agreements where possible. Second, our pricing actions across the portfolio have been effective to date and we'll continue to look at pricing opportunities and maintain cost discipline as we manage through a higher cost environment. And finally, we are balancing the benefits of higher inventory with cash conversion and we'll continue to optimize our working capital and balance sheet to drive increased cash flow in the second half.
I'll now turn the call back over to Greg.