Zebra Technologies Corporation (ZBRA) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $17 million, or $ 0.34 a share in the quarter, against a net loss of $28 million, or $0.53 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $102 million, or $1.93 a share compared with $68 million or $1.30 a share, a year ago.
Revenue during the quarter went down marginally by 0.95 percent to $942 million from $951 million in the previous year period. Gross margin for the quarter expanded 85 basis points over the previous year period to 45.86 percent. Total expenses were 92.46 percent of quarterly revenues, down from 99.26 percent for the same period last year. This has led to an improvement of 680 basis points in operating margin to 7.54 percent.
Operating income for the quarter was $71 million, compared with $7 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $179 million compared with $152 million in the prior year period. At the same time, adjusted EBITDA margin improved 302 basis points in the quarter to 19 percent from 15.98 percent in the last year period.
"We delivered solid fourth-quarter and full-year results, driven largely by strong demand for our innovative solutions. We returned to organic sales growth, expanded gross margin and reduced operating expenses, resulting in a significant improvement in profitability. We also continued to realize working capital efficiencies and divested the non-core wireless LAN business, enabling Zebra to exceed our debt reduction goals," said Anders Gustafsson, chief executive officer of Zebra Technologies. "I'm proud of our teams for a strong finish to the year and success in extending Zebra's leadership in the markets we serve. Zebra is well positioned to continue to deliver visibility solutions for the smarter enterprise and drive shareholder value."
For the full year 2017, Zebra Technologies Corporation expects low-single digit organic net sales growth for the full year 2017, excluding a 3 percentage point adverse impact from wireless LAN business sales, as well as an estimated 1 percentage point adverse impact from foreign currency translation. The company expects organic net sales growth to moderate through 2017 considering year-over-year comparisons.
For the first-quarter 2017, Zebra Technologies Corporation expects revenue to grow in the range of 3 percent to 6 percent. The company projects adjusted revenue to be $852 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.20 to $1.40.
Operating cash flow improves significantly
Zebra Technologies Corporation has generated cash of $372 million from operating activities during the year, up 238.18 percent or $262 million, when compared with the last year. The company has spent $39 million cash to meet investing activities during the year as against cash outgo of $148 million in the last year.
The company has spent $376 million cash to carry out financing activities during the year as against cash outgo of $149 million in the last year period.
Cash and cash equivalents stood at $156 million as on Dec. 31, 2016, down 18.75 percent or $36 million from $192 million on Dec. 31, 2015.
Debt comes down
Zebra Technologies Corporation has recorded a decline in total debt over the last one year. It stood at $2,648 million as on Dec. 31, 2016, down 12.08 percent or $364 million from $3,012 million on Dec. 31, 2015. Zebra Technologies Corporation has recorded a decline in long-term debt over the last one year. It stood at $2,648 million as on Dec. 31, 2016, down 12.08 percent or $364 million from $3,012 million on Dec. 31, 2015. Total debt was 57.17 percent of total assets as on Dec. 31, 2016, compared with 59.95 percent on Dec. 31, 2015. Debt to equity ratio was at 3.34 as on Dec. 31, 2016, up from 3.30 as on Dec. 31, 2015.
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