Inkjet & Digital Printing

Zebra Technologies Announces Financial Results for the 2013 First Quarter

Monday 06. May 2013 - Temporary slowdown in North America prompts reduction in channel inventories; Sales rebound expected for second quarter

Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2013 first quarter diluted earnings of $0.46 per share, which includes exit, restructuring and acquisition costs that reduced earnings by $0.04 per share. Earnings for the first quarter of 2012 totaled $0.58 per share. Net sales for the quarter ended March 30, 2013, decreased 2.8% to $236,937,000 from $243,875,000 for the first quarter of 2012.
“Entering the first quarter, we expected growth in North America for the full quarter to offset the anticipated decline in Europe. However, a slowdown in our North American business during the first half of the period caused some of our distribution channel partners to meaningfully reduce inventories,” stated Anders Gustafsson, Zebra’s chief executive officer. “During the quarter, our international operations performed largely as expected. Business activity in all regions has now increased, and the pipeline of opportunities has improved. We also made progress on developing new, incremental revenue streams with solutions such as mobile point-of-sale, location solutions and RFID that are emerging with important technology trends. We remain confident in Zebra’s continued ability to invest in those areas that deliver the highest risk-adjusted returns and increasing shareholder value.”
Mr. Gustafsson added, “Looking ahead, our focus remains on driving growth, but we are cognizant of the ongoing business climate worldwide. As a result, we will remain responsive to these challenges by optimizing our cost structure and allocation of resources, while maintaining investments in important, high-return business development opportunities.”
As of March 30, 2013, Zebra had $417,564,000 in cash and investments, and no long-term debt. Net inventories were $116,417,000, and net accounts receivable were $169,255,000.
Discussion and Analysis – First quarter
— Net sales for the first quarter were affected by the ongoing challenged
conditions in Europe and Asia, along with a slowdown in business during
the first few weeks of the quarter in North America. Sales increases of
3.8% in Latin America and 0.9% in North America were offset by sales
declines of 0.7% in Asia Pacific and 9.8% in the Europe, Middle East and
Africa (EMEA) region. On a constant-currency basis, sales in EMEA
declined 2.8%. Sales of supplies – thermal ribbons, labels, wristbands
and receipts – increased by 14.3%.
— Gross profit margin of 47.7%, versus 49.2% in 2012, reflects lower sales
across Europe, Middle East and Africa (EMEA), and Asia Pacific regions
in addition to unfavorable movements in product mix.
— Operating expense growth of 9.0%, including $1,895,000 in exit and
restructuring costs and $482,000 in acquisition costs. Higher selling
and marketing, research and development, and general and administrative
expenses generally relate to increased employee-related expenses.
Amortization also increased over 2012 levels.
Stock Purchase Update
During the first quarter of 2013, Zebra returned $3.9 million to shareholders through the repurchase of 87,254 shares of Zebra Technologies Corporation Class A Common Stock at an average price of $44.56 per share. At March 30, 2013, the company had 1,935,082 shares remaining in its stock buyback authorization, and 51,017,867 shares of common stock were outstanding.
Second Quarter Outlook
Zebra announced its financial forecast for the second quarter of 2013. Net sales are expected within a range of $246,000,000 to $258,000,000. Diluted earnings per share are expected within a range of $0.58 to $0.67.

http://www.zebra.com
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