Motorola Solutions (MSI) has reported 66.96 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $192 million, or $1.13 a share in the quarter, compared with $115 million, or $0.57 a share for the same period last year.
Revenue during the quarter grew 7.74 percent to $1,532 million from $1,422 million in the previous year period. Gross margin for the quarter expanded 157 basis points over the previous year period to 49.74 percent. Total expenses were 77.74 percent of quarterly revenues, down from 83.76 percent for the same period last year. This has led to an improvement of 601 basis points in operating margin to 22.26 percent.
Operating income for the quarter was $341 million, compared with $231 million in the previous year period.
"Q3 was an excellent quarter," said Greg Brown, chairman and chief executive officer of Motorola Solutions. "I'm pleased with our revenue growth and continued strong performance in earnings and cash flow generation."
Operating cash flow improvesMotorola Solutions has generated cash of $652 million from operating activities during the nine month period, up 7.41 percent or $45 million, when compared with the last year period. The company has spent $721 million cash to meet investing activities during the nine month period as against cash outgo of $129 million in the last year period. It has incurred net capital expenditure of $143 million on net basis during the nine month period, up 10.85 percent or $14 million from year ago period.
The company has spent $191 million cash to carry out financing activities during the nine month period as against cash outgo of $2,171 million in the last year period.
Cash and cash equivalents stood at $1,687 million as on Oct. 01, 2016, down 23.32 percent or $513 million from $2,200 million on Oct. 03, 2015.
Working capital drops significantly
Motorola Solutions has witnessed a decline in the working capital over the last year. It stood at $1,643 million as at Oct. 01, 2016, down 40.43 percent or $1,115 million from $2,758 million on Oct. 03, 2015. Current ratio was at 1.76 as on Oct. 01, 2016, down from 2.36 on Oct. 03, 2015.
Cash conversion cycle (CCC) has decreased to 37 days for the quarter from 66 days for the last year period. Days sales outstanding went down to 68 days for the quarter compared with 76 days for the same period last year.
Days inventory outstanding has decreased to 17 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went down to 49 days for the quarter from 53 for the same period last year.
Debt moves upMotorola Solutions has witnessed an increase in total debt over the last one year. It stood at $5,049 million as on Oct. 01, 2016, up 15.01 percent or $659 million from $4,390 million on Oct. 03, 2015. Total debt was 58.58 percent of total assets as on Oct. 01, 2016, compared with 54.29 percent on Oct. 03, 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
