Motorola Solutions, Inc. (MSI) has reported a 12.90 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $243 million, or $1.43 a share in the quarter, compared with $279 million, or $1.57 a share for the same period last year. On an adjusted basis, earnings per share from continuing operations were at $2.03 for the quarter compared with $1.58 in the same period last year.
Revenue during the quarter grew 11.95 percent to $1,883 million from $1,682 million in the previous year period. Gross margin for the quarter contracted 54 basis points over the previous year period to 49.28 percent. Total expenses were 78.60 percent of quarterly revenues, up from 76.87 percent for the same period last year. That has resulted in a contraction of 173 basis points in operating margin to 21.40 percent.
Operating income for the quarter was $403 million, compared with $389 million in the previous year period.
However, the adjusted operating income for the quarter stood at $541 million compared to $458 million in the prior year period. At the same time, adjusted operating margin improved 150 basis points in the quarter to 28.73 percent from 27.23 percent in the last year period.
"We ended the year with an outstanding fourth quarter, and I am very encouraged with our strong competitive position and record backlog entering 2017," said Greg Brown, chairman and chief executive officer of Motorola Solutions.
For financial year 2017, Motorola Solutions, Inc. expects revenue to grow in the range of 1 percent to 2 percent. The company projects diluted earnings per share to be in the range of $5.05 to $5.20 on adjusted basis.
For the first-quarter 2017, Motorola Solutions, Inc. expects revenue to grow in the range of 3 percent to 5 percent. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.52 to $0.57.
Operating cash flow improves
Motorola Solutions, Inc. has generated cash of $1,165 million from operating activities during the year, up 14.10 percent or $144 million, when compared with the last year. The company has spent $1,002 million cash to meet investing activities during the year as against cash outgo of $528 million in the last year. It has incurred net capital expenditure of $198 million on net basis during the year, up 15.12 percent or $26 million from year ago.
The company has spent $1,042 million cash to carry out financing activities during the year as against cash outgo of $2,398 million in the last year period.
Cash and cash equivalents stood at $1,030 million as on Dec. 31, 2016, down 47.98 percent or $950 million from $1,980 million on Dec. 31, 2015.
Debt moves up marginally
Motorola Solutions, Inc. has witnessed an increase in total debt over the last one year. It stood at $4,396 million as on Dec. 31, 2016, up 1.08 percent or $47 million from $4,349 million on Dec. 31, 2015. Total debt was 52.18 percent of total assets as on Dec. 31, 2016, compared with 51.85 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
