Business News
Zebra Technologies Announces 2008 First Quarter Financial Results
Monday 28. April 2008 - Strong sales growth in core Specialty Printing business and gross margin improvement lead to solid first quarter performance
Zebra Technologies Corporation (NASDAQ:ZBRA) today announced 18.1% growth in net sales to a record $246,277,000 for the first quarter of 2008 from $208,576,000 for the first quarter of 2007. Net income for the period was $27,644,000, or $0.42 per diluted share, compared with $26,716,000, or $0.39 per diluted share, a year ago.
“Strong international sales, favorable performance in our new Enterprise Solutions business unit and progress on our strategic priorities gave Zebra a solid start in 2008,” stated Anders Gustafsson, Zebra’s chief executive officer. “Our programs to deliver more identification and tracking solutions to targeted vertical markets are delivering real results. Customers around the world, supported by an expanding geographic Zebra presence, are responding positively to the broader range of automatic identification technologies we’re now able to provide to improve their business processes. Zebra is well positioned to benefit from the demands for better management over an increasingly complex global supply chain. The diversity of our solutions portfolio, customers and geographic presence make us optimistic about further growth.”
Discussion and Analysis
For the first quarter of 2008 compared with the first quarter of 2007:
— Sales growth of 11.3% in the company’s Specialty Printing business unit
and the sales contributions of its 2007 acquisitions fueled
consolidated sales growth of 18.1%. International sales increased
31.8%, with record sales in the Asia Pacific and Europe, Middle East
and Africa regions.
— Gross profit margin increased to 49.9% from 47.8%. Profitability was
favorably affected by an improved product mix in specialty printers,
better overhead utilization and a positive contribution from the
company’s Enterprise Solutions business unit.
— Expenses for sales and marketing, research and development, and general
and administrative activities increased principally from the addition
of personnel and other expenses related to the acquisitions of
WhereNet, proveo and Navis in 2007.
— Operating expenses were also affected by a $2,191,000 increase in the
amortization of intangible assets, as well as $3,234,000 in exit costs
related to the company’s previously announced initiative to transfer
final assembly of thermal printers to a third party.
At March 29, 2008, Zebra had $306,284,000 in cash and investments, and no long-term debt. Net inventories were $89,443,000, and accounts receivable, net, were $171,862,000.
During the first quarter of 2008, the company repurchased 1,029,000 shares of Zebra Technologies Class A Common Stock under an authorization to purchase up to 3,000,000 shares.
Second Quarter Outlook
Zebra announced its financial forecast for the second quarter of 2008. Net sales are expected within a range of $248,000,000 to $260,000,000. Earnings are expected between $0.38 and $0.44 per diluted share. This outlook includes approximately $4,800,000 in exit costs.