Zebra Technologies announced results for the first quarter ended April 1, 2017.
 
GAAP net sales were $865 million in the first quarter of 2017 compared to $849 million in the first quarter of 2016. First quarter 2017 gross profit was $401 million compared to $390 million in the comparable prior year period. Net income for the first quarter of 2017 was $8 million, or $0.16 per diluted share, compared to a net loss of $26 million, or $0.50 per diluted share, for the first quarter of 2016.
 
“During the quarter, our team extended Zebra’s leadership through superior execution of our strategy. As a result, we drove better than expected first quarter sales performance in our Enterprise segment and achieved earnings per share near the top end of our guidance range. We also retired another $80 million of debt, keeping us on track for at least $300 million of pay down for the full-year,” said Anders Gustafsson, CEO of Zebra Technologies. “Given our strong start to 2017, we are raising our full-year sales growth outlook.”
 
 Consolidated adjusted net sales were $866 million in the first quarter of 2017 compared to $852 million in the first quarter of 2016, an increase of 1.6%. Consolidated organic net sales growth for the first quarter was 7.0%. Adjusted net sales in the Enterprise segment were $544 million in the first quarter of 2017, compared with $538 million in the first quarter of 2016. Legacy Zebra segment adjusted net sales were $322 million in the first quarter of 2017 compared to $314 million in the first quarter of 2016. Enterprise segment sales were negatively impacted by approximately 7 percentage points from the divestiture of the wireless LAN business.
 
Adjusted gross margin for the quarter was 46.4%, compared to 46.2% in the prior year period. The increase was primarily due to product cost reduction initiatives. Adjusted operating expenses for the first quarter were $272 million, in-line with the prior year period, as the decrease in operating expenses due to the divestiture of the wireless LAN business were offset by higher incentive compensation expense associated with improved operating performance.
 
Adjusted EBITDA for the first quarter of 2017 was $149 million, or 17.2% of adjusted net sales compared to $140 million, or 16.4% of adjusted net sales for the first quarter of 2016, primarily due to higher sales and higher gross margins.
 
Non-GAAP net income for the first quarter of 2017 was $72 million, or $1.37 per diluted share, compared with $56 million, or $1.06 per diluted share, for the first quarter of 2016. As of April 1, 2017, the company had cash and cash equivalents of $180 million and total long-term debt of $2.6 billion.
 
Free cash flow was $104 million in the first quarter of 2017. The company generated $117 million of cash flow from operations and incurred capital expenditures of $13 million. The company made $80 million in term loan principal payments and $16 million in scheduled cash interest payments in the first quarter.
 
The company now expects low to mid-single digit organic net sales growth for the full year 2017, which is improved from our prior outlook, and excludes a 3 percentage point adverse impact from wireless LAN business sales, as well as an estimated 1 percentage point adverse impact from foreign currency translation.
 
Adjusted EBITDA margin is expected to be in the range of 18% to 19% for the full year 2017, an improvement compared to the full year 2016. For the full year 2017, the company expects to make debt principal payments totaling at least $300 million.