Motorola Solutions, Inc. (MSI) has reported a 352.94 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $77 million, or $0.45 a share in the quarter, compared with $17 million, or $0.10 a share for the same period last year.
Revenue during the quarter grew 7.38 percent to $1,281 million from $1,193 million in the previous year period. Gross margin for the quarter expanded 242 basis points over the previous year period to 44.50 percent. Total expenses were 86.26 percent of quarterly revenues, down from 91.62 percent for the same period last year. This has led to an improvement of 536 basis points in operating margin to 13.74 percent.
Operating income for the quarter was $176 million, compared with $100 million in the previous year period.
"Q1 was a strong quarter and an excellent start to the year," said Greg Brown, chairman and chief executive officer of Motorola Solutions. "I'm very pleased with our momentum going forward."
For financial year 2017, Motorola Solutions, Inc. forecasts revenue to grow at 2 percent. It projects diluted earnings per share to be in the range of $5.08 to $5.23 on adjusted basis for the same period.
For the second-quarter, Motorola Solutions, Inc. expects revenue to grow in the range of 2 percent to 3 percent. It projects diluted earnings per share to be in the range of $0.98 to $1.03 on an adjusted basis for the same period.
Operating cash flow improves significantly
Motorola Solutions, Inc. has generated cash of $142 million from operating activities during the quarter, up 992.31 percent or $129 million, when compared with the last year period.
The company has spent $121 million cash to meet investing activities during the quarter as against cash outgo of $623 million in the last year period.
The company has spent $234 million cash to carry out financing activities during the quarter as against cash inflow of $577 million in the last year period.
Working capital drops significantly
Motorola Solutions, Inc. has witnessed a decline in the working capital over the last year. It stood at $688 million as at Apr. 01, 2017, down 65.06 percent or $1,281 million from $1,969 million on Apr. 02, 2016. Current ratio was at 1.29 as on Apr. 01, 2017, down from 1.97 on Apr. 02, 2016.
Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 74 days for the last year period. Days sales outstanding went down to 86 days for the quarter compared with 98 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding went down to 61 days for the quarter from 63 for the same period last year.
Debt comes down
Motorola Solutions, Inc. has recorded a decline in total debt over the last one year. It stood at $4,458 million as on Apr. 01, 2017, down 11.32 percent or $569 million from $5,027 million on Apr. 02, 2016. Total debt was 54.77 percent of total assets as on Apr. 01, 2017, compared with 55.55 percent on Apr. 02, 2016.
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