Tyco International Ltd. TYC reported second-quarter fiscal 2016 adjusted income from continuing operations of $192 million or 45 cents per share compared with $215 million or 50 cents per share in the prior-year quarter. Currency headwinds adversely impacted the bottom line during the quarter. Adjusted earnings were in line with the Zacks Consensus Estimate. GAAP income from continuing operations was 33 cents per share, down 23% year over year.Revenues decreased 4% to $2,331 million in the reported quarter from $2,430 million in the year-ago quarter. Revenues marginally missed the Zacks Consensus Estimate of $2,335 million.A stronger U.S. dollar had a negative impact of 4% on the top line. Organic revenues also declined 1%. Strategic acquisitions contributed 4% to top-line growth, partly offset by the impact of divestitures.Segment PerformanceNorth America Integrated Solutions & Services (previously known as North America Systems Installation & Services): Revenues came in at $947 million, slightly higher than the prior-year figure of $944 million, as the weak Canadian dollar offset the positive impact of acquisition growth. The segment witnessed modest organic growth on the back of a 1% increase in integrated solutions revenues.Backlog at the segment was $2.6 billion, up 4% year over year on a constant currency basis. Operating income came in at $131 million compared with $125 million in the prior-year quarter. Operating margin improved to 13.8% from 13.2% a year ago due to improved execution and productivity benefits.Rest of World Integrated Solutions & Services (previously known as Rest of World Systems Installation & Services): Revenues decreased 9% year over year to $768 million primarily due to a 9% adverse impact from currency translation. Organic revenues declined 1% due to weakness in integrated solutions.However, a backlog of $1.91 billion reflected an increase of 13% year over year. Operating income came in at $57 million compared with $67 million in the prior-year quarter. Operating margin was 7.4% compared with 7.9% in the prior-year period, as the positive impact of productivity initiatives was offset by the revenue decline.Global Products: Revenues were $616 million compared with $639 in the prior-year quarter. Acquisitions contributed 3% to revenue growth, fully offset by adverse foreign currency translation. Organic revenues were down 3% on a year-over-year basis due to weakness in Life Safety Products. Operating income came in at $101 million compared with $114 million last year. Operating margin declined to 16.4% from 17.8% in the prior-year quarter due to unfavorable product mix and impacts of non-cash purchase accounting.Balance Sheet and Cash FlowExiting fiscal second quarter, the company had cash and cash equivalents of $345 million, down from $1,401 million at the end of Sep 25, 2015. Also, long-term debt of the company at the end of second-quarter fiscal 2016 was $2,159 million, unchanged from the end of fiscal fourth quarter 2015.Cash from operating activities totaled $124 million compared with $167 million in the year-ago quarter. Adjusted free cash flow generated during the quarter was $242 million compared with $151 million in the year-ago quarter.AcquisitionDuring the reported quarter, Tyco completed the acquisition of a leading global provider of retail traffic insights and location-based analytics, ShopperTrak, for approximately $175 million.However, the company divested its fire detection and protection business in Australia which generated approximately $260 million in revenue in fiscal 2015.Merger UpdateIn the fiscal first quarter, Tyco signed a merger deal with global diversified technology company, Johnson Controls. Per the deal, Tyco will own 44% equity in the combined company. Post merger, the companies plan to strengthen their building products and technology, integrated solutions and energy storage portfolios. Tyco believes that this acquisition will help it in expanding its global footprint in the building-technology market, enhance shareholder value and launch innovative solutions.Tyco looks forward to close the Johnson Controls acquisition by Oct 2016.OutlookTyco updated its fiscal 2016 guidance, narrowing the EPS projection before special items to the range of $2.05–$2.10 from the previous expectation of $2.05–$2.20. For fiscal third quarter 2016, the company expects EPS before special items to be in the range of $0.52–$0.54.Our TakeGoing forward, the merger with Johnson Controls seems to be a lucrative opportunity for Tyco. The combined entity will offer state-of-the-art product, technology and service capabilities to clients ranging from commercial buildings to small business and residential customers.Tyco currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include Alarm.Com Holdings, Inc. ALRM, ASSA ABLOY AB ASAZY and SuperCom Ltd. SPCB. All carry a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TYCO INTL PLC (TYC): Free Stock Analysis Report ASSA ABLOY AB (ASAZY): Free Stock Analysis Report SUPERCOM LTD (SPCB): Free Stock Analysis Report ALARM.COM HLDGS (ALRM): Free Stock Analysis Report To read this article on Zacks.com click here.