Zebra Technologies Corporation (ZBRA) saw its loss widen to $83 million, or $1.61 a share for the quarter ended Oct. 01, 2016. In the previous year period, the company reported a loss of $29 million, or $0.57 a share. On the other hand, adjusted net income for the quarter stood at $75 million, or $1.43 a share compared with $72 million or $1.39 a share, a year ago.
Revenue during the quarter went down marginally by 1.31 percent to $904 million from $916 million in the previous year period. Gross margin for the quarter expanded 60 basis points over the previous year period to 45.80 percent. Operating margin for the quarter stood at negative 2.65 percent as compared to a positive 2.73 percent for the previous year period.
Operating loss for the quarter was $24 million, compared with an operating income of $25 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $169 million compared with $159 million in the prior year period. At the same time, adjusted EBITDA margin improved 134 basis points in the quarter to 18.69 percent from 17.36 percent in the last year period.
"We reported solid third-quarter results despite a challenging environment. Margin expansion and disciplined operating expense and working capital management enabled us to pay down $90 million of debt," said Anders Gustafsson, chief executive officer of Zebra Technologies. "In addition, we completed the sale of our wireless LAN business, which enables Zebra to enhance our focus on our core business while improving our growth profile. Our teams are focused on extending our leadership position in the markets we serve. We expect to finish the year in a strong position as we advance our strategic priorities and deliver innovative solutions to our customers, which allow them to improve visibility into their operations."
For the fourth-quarter, Zebra Technologies Corporation expects adjusted revenue to decline in the range of 4 percent to 1 percent. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.65 to $1.85.
Operating cash flow improves significantlyZebra Technologies Corporation has generated cash of $245 million from operating activities during the nine month period, up 111.21 percent or $129 million, when compared with the last year period. The company has spent $50 million cash to meet investing activities during the nine month period as against cash outgo of $112 million in the last year period.
The company has spent $231 million cash to carry out financing activities during the nine month period as against cash outgo of $118 million in the last year period.
Cash and cash equivalents stood at $163 million as on Oct. 01, 2016, down 36.83 percent or $95.02 million from $258.02 million on Oct. 03, 2015.
Working capital drops significantly
Zebra Technologies Corporation has witnessed a decline in the working capital over the last year. It stood at $333 million as at Oct. 01, 2016, down 43.59 percent or $257.33 million from $590.33 million on Oct. 03, 2015. Current ratio was at 1.36 as on Oct. 01, 2016, down from 1.66 on Oct. 03, 2015.
Cash conversion cycle (CCC) has decreased to 37 days for the quarter from 85 days for the last year period. Days sales outstanding went down to 64 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 74 days for the previous year period. At the same time, days payable outstanding went up to 60 days for the quarter from 54 for the same period last year.
Debt comes downZebra Technologies Corporation has recorded a decline in total debt over the last one year. It stood at $2,788 million as on Oct. 01, 2016, down 8.39 percent or $255.22 million from $3,043.22 million on Oct. 03, 2015. Zebra Technologies Corp has recorded a decline in long-term debt over the last one year. It stood at $2,788 million as on Oct. 01, 2016, down 8.39 percent or $255.22 million from $3,043.22 million on Oct. 03, 2015. Total debt was 59.34 percent of total assets as on Oct. 01, 2016, compared with 58.76 percent on Oct. 03, 2015. Debt to equity ratio was at 3.73 as on Oct. 01, 2016, up from 3.33 as 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
