Zebra Technologies Corporation (NASDAQ:ZBRA) Q1 2018 Earnings Conference Call - Final Transcript

May 08, 2018 • 08:30 am ET


Zebra Technologies Corporation (NASDAQ:ZBRA) Q1 2018 Earnings Conference Call - Final Transcript


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Good morning, everyone and welcome to the Q1 2018 Zebra Technologies Earnings Release Conference Call. All participants will be in a listen-only mode. (Operator Instructions) Please also note today's event is being recorded.

At this time, I'd like to turn the conference call over to Mr. Mike Steele, Vice President, Investor Relations. Please go ahead.

Michael Steele

Good morning, and thank you for joining us.

Before we begin, I need to inform you that certain statements made on this call include forward-looking statements, which are subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company's current expectations concerning future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially. A detailed discussion of these factors and uncertainties is contained in the Company's filings with the Securities and Exchange Commission.

During this call, we will make reference to non-GAAP financial measures as we describe business performance. You can find reconciliations of our GAAP to non-GAAP results in today's earnings press release, and at the end of this slide presentation.

This presentation will include prepared remarks from Anders Gustafsson, our Chief Executive Officer; and Olivier Leonetti, our Chief Financial Officer. Anders will begin by discussing our first quarter 2018 highlights. Olivier will then provide more detail on the financials and discuss our second quarter and full year 2018 outlook. Anders will conclude with progress made on Zebra's strategic priorities. Following the prepared remarks, Joe Heel, our Senior Vice President of Global Sales will join us as we take your questions.

Also, throughout this presentation unless otherwise indicated our references to sales growth are year-over-year and on a constant currency basis. This presentation is being simulcast on our website at investors.zebra.com and will be archived there for at least one year.

Now, I'll turn the call over to Anders.

Anders Gustafsson

Thank you, Mike. Good morning, everyone, and thank you for joining us. Our first quarter results were driven by strong performance across the business. As you can see on slide four, for the quarter we've reported net sales growth of 13% or 10% on a constant currency basis, an adjusted EBITDA margin of 20.9%, a 370 basis point year-over-year improvement. Non-GAAP diluted EPS of $2.56 and 87% increase from the prior year, and $116 million of cash flow from operations.

Q1 was a great start to the year. Our team executed well in the solid global macro-economic environment. Our industry leadership is driving robust broad-based market demand for our solutions. We achieved growth across all regions with particularly strong performance in EMEA and North America. We also saw exceptional growth in mobile computing led by our Android powered devices, and solid performance across our printing portfolio, which we have continued to enhance with smarter software and security features.

Our operational discipline and focus on a lean cost structure enabled us to significantly expand profit margins and achieve a record earnings per share. Our strong Q1 results and solid