Inkjet & Digital Printing

Zebra Technologies Reports Record Results for First Quarter of 2011

Wednesday 04. May 2011 - Record income from continuing operations driven by continued strong sales growth and further improvements in profitability

Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2011 first quarter net income of $61,634,000, or $1.10 per diluted share. Quarterly income from continuing operations totaled $30,128,000, or $0.54 per diluted share, for 2011 compared with $25,547,000, or $0.43 per diluted share, for the first quarter of 2010. Income from discontinued operations for the first quarter of 2011 of $31,506,000, or $0.56 per diluted share, includes a recognized gain on the sale of the company’s Navis operation. First quarter net sales were $237,301,000 for 2011, up 11.9% from $211,975,000 for 2010. Results for 2010 have been adjusted to account for the sale of Navis Holdings LLC, which was sold on March 18, 2011, and other immaterial operations which have been accounted for as discontinued operations.
“Excellent execution on a clear and focused business strategy helped Zebra deliver these record results,” stated Anders Gustafsson, Zebra’s chief executive officer. “Innovative new products introduced over the past year are helping us meet more of our customers’ asset tagging needs in a more complex supply chain environment. At the same time, we are reaching more customers worldwide by building a larger, more formidable sales and marketing organization. The result of disciplined investments in products, channels and infrastructure makes us optimistic about extending Zebra’s industry leadership in a fundamentally attractive industry, and for continued success in building shareholder value.”
As of April 2, 2011, Zebra had $375,378,000 in cash and investments, and no long-term debt. Net inventories were $120,508,000, and net accounts receivable were $141,218,000.
Discussion and Analysis
— Net sales for the first quarter of 2011 compared with the same quarter
for 2010 benefited from improved business conditions in all geographic
regions, with all major printer product categories and aftermarket parts
contributing to the growth. The addition of Zebra sales representatives
placed in high-growth countries and regions over the past twelve months,
and other initiatives as part of the company’s growth strategy, also
contributed to the sales results. Quarterly sales increased 12.1% on a
constant-currency basis from a year ago.
— Gross margin of 50.6%, versus 46.1% a year ago, reflects lower costs for
raw materials, higher volumes and lower freight charges.
— Operating expense growth of 16.7% reflect higher employee-related
compensation, payroll and benefit costs, in part related to geographic
expansion and other growth initiatives.
— Income from discontinued operations includes a gain on the sale of the
company’s Navis operation, partially offset by losses in the
discontinued businesses in 2011.
Stock Purchase Update
During the first quarter of 2011, Zebra repurchased 1,100,000 shares of Zebra Technologies Corporation Class A Common Stock. At April 2, 2011, 750,000 shares remained in the company’s stock buyback authorization, and 54,730,861 shares of common stock were outstanding.
Second Quarter Outlook
Zebra announced its financial forecast for the second quarter of 2011. Net sales are expected within a range of $240,000,000 to $250,000,000. Diluted earnings per share from continuing operations are expected within a range of $0.54 to $0.61, including $0.01 per share in exit, restructuring and integration costs.