Zebra Technologies Corp. (NASDAQ: ZBRA) has reported the adjusted earnings per share of $1.87 in the third quarter of FY 17, while reported the adjusted revenue growth of 3.3 percent to $935 million in the third quarter of FY 17. The consolidated organic net sales growth for the third quarter grew at 5.9% reflecting growth across all regions, most notably Latin America, EMEA, and North America. The third-quarter year-over-year organic net sales growth was 5.5% in the Enterprise segment and 6.6% in the Legacy Zebra segment. Overall, Zebra Technologies has reported the Non-GAAP net income for the third quarter of 2017 of $101 million, as compared with $75 million, for the third quarter of 2016.
Moreover, the consolidated adjusted gross margin for the third quarter of 2017 has improved to 46.0%, as compared to 45.9% in the prior year period. This improvement was due to the unfavorable impact of a price concession to distributors of printer products imported into China in the third quarter of 2016 and favorable changes in business mix, partially offset by temporarily higher supply chain related overhead costs and higher support services costs. Additionally, in the third quarter of 2017, Zebra Technologies had begun executing on its debt restructuring plan which included an amended senior secured credit facility. This facility includes a new $687.5 million Term Loan A and a $500 million revolving credit facility (increased from $250 million). The proceeds from the new facility were used to redeem $750 million of its 7.25% senior notes.
For the fourth-quarter 2017, the company expects adjusted net sales to increase over 3% to 6% from adjusted net sales of $944 million in the fourth quarter of 2016. ZBRA expects organic net sales growth of approximately 2% to 5% in the fourth quarter. Non-GAAP earnings per diluted share are expected to be in the range of $2.00 to $2.20. For the full year 2017, the company continues to expect to reduce total debt balances by at least $300 million.
Meanwhile, ZBRA will testify on advancing the Internet of Things (IoT) in rural America to the Senate Commerce, Science and Transportation Committee’s Subcommittee on Communications, Technology, Innovation and the Internet. ZBRA stock has risen 83.88% in the last one year (source: Google Finance).