Business News
Zebra Technologies Announces 2009 Second Quarter Financial Results
Tuesday 04. August 2009 - Zebra Technologies Corporation (NASDAQ:ZBRA) today announced net income of $9,011,000, or $0.15 per diluted share, for the second quarter of 2009, including $3,643,000 in exit, restructuring and integration costs which lowered diluted earnings by $0.04 per share.
Net income for the second quarter of 2008 was $25,526,000, or $0.39 per diluted share. Net sales were $187,676,000 for the quarter that ended July 4, 2009, compared with $253,782,000 for the corresponding period a year ago.
“The return of some large deal transactions along with ongoing expense control and working capital management helped Zebra deliver solid results in a stabilizing yet still-challenging business environment,” stated Anders Gustafsson, Zebra’s chief executive officer. “During the quarter, we effectively addressed the elements within our control to generate significantly improved cash flows. We continued to buy back stock and make progress on our outsourcing and other business initiatives to deliver better customer service and improve efficiency. Zebra’s future remains bright to extend industry leadership and position the company for improved performance when business conditions improve. We have great confidence in our ability to build stockholder value as the global leader in specialty printing, RFID and other solutions that improve business performance and supply chain execution.”
At July 4, 2009, Zebra had $206,988,000 in cash and investments, and no long-term debt. Net inventories were $92,897,000, and net accounts receivable were $138,755,000.
Discussion and Analysis
For the second quarter of 2009, compared with the second quarter of 2008:
— The decline in global economic activity continued to affect
consolidated net sales, with consistent percentage sales declines
occurring in all geographic regions. Product mix also had an effect on
sales, with larger sales declines among high performance and midrange
tabletop printers. Movements in foreign exchange reduced sales by
$3,415,000, compared with 2009 second quarter sales.
— Gross profit margin of 43.6% versus 50.3% a year ago was principally
affected by the impact of the lower sales volume and unfavorable
product mix. These factors were partially offset by higher
profitability in the company’s Zebra Enterprise Solutions group.
— Operating expenses declined $21,395,000, or 23.6%, from cost-reduction
actions taken in the past twelve months, which reduced
employee-related compensation, travel and entertainment expenses and
sales support activity, in addition to lower expenses for amortization
of intangible assets and exit, restructuring and integration costs.
Stock Purchase Update
During the second quarter of 2009, the company repurchased 600,008 shares of Zebra Technologies Corporation Class A Common Stock. At the end of the second quarter, Zebra had 3,119,688 shares remaining in the company’s stock buyback authorization and 59,088,274 shares of common stock outstanding.
Third Quarter Outlook
Zebra announced its financial forecast for the third quarter of 2009. Net sales are expected within a range of $186,000,000 and $198,000,000. Diluted earnings per share are expected within a range of $0.14 and $0.21. This forecast includes expected exit and restructuring costs of $0.03 per diluted share.