Business News
Zebra Technologies Announces Financial Results for the 2013 Second Quarter
Thursday 08. August 2013 - Sales up 2.5% from a year ago and 6.8% from the first quarter of 2013
Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2013 second quarter diluted earnings per share from continuing operations of $0.60, including exit, restructuring and acquisition costs that reduced earnings by $0.03 per share. Income from continuing operations for the second quarter of 2012 totaled $0.58 per share. Net sales for the quarter ended June 29, 2013, increased 2.5% to $253,160,000 from $247,077,000 for the second quarter of 2012.
“In a quarter still challenged by uneven global business conditions, we won more business with strategic customers in targeted industries and delivered a broader range of products and solutions to a more diversified customer base,” stated Anders Gustafsson, Zebra’s chief executive officer. “During the quarter, the cadence of our product development activities remained high, with the recent introductions of our ZXP Series 1 and updated ZXP Series 3 card printers, and our EM220 II wireless mobile receipt printer. We also accelerated investments to introduce innovative Internet of Things products and solutions to serve customers in sports and entertainment. Our recently launched Zebra Commerce(TM) brand will help us to more effectively deliver the broad suite of Zebra products and services to customers in the retail and field service industries. We look to the second half of 2013 with optimism about making further progress on our strategic initiatives and building greater value for our shareholders.”
As of June 29, 2013, Zebra had $454,038,000 in cash and investments, and no long-term debt. Net inventories were $109,149,000, and net accounts receivable were $170,856,000.
For the first six months of 2013, net sales were $490,097,000, compared with $490,952,000 for the first half of 2012. Net income for the six months that ended June 29, 2013, was $54,108,000, or $1.05 per diluted share, compared with $60,817,000, or $1.17 per diluted share, for the same period in 2012.
Discussion and Analysis – Second Quarter
— Net sales growth of 2.5% included increased sales for the company in
North America, Asia Pacific and the Europe, Middle East and Africa
region. Organic growth of Zebra’s label and wristband business was
supplemented with sales from the July 2012 acquisition of LaserBand.
— Gross profit margin of 47.8%, versus 48.7% in 2012, reflects changes in
product mix and selected pricing on certain large business opportunities
with strategic customers in targeted markets.
— Operating expense growth of 4.6% includes $1,101,000 for exit and
restructuring costs and $618,000 for acquisition costs. Other increases
in operating expenses principally relate to accelerated product
development and sales and marketing activities supporting Zebra’s entry
to serve customers in the sports industry. Amortization increased over
2012 levels primarily due to intangible assets acquired as part of the
July 2012 LaserBand acquisition.
— Other income includes a net $1,557,000 favorable litigation settlement,
which is related to an investment loss that was recorded in prior years.
Stock Purchase Update
During the second quarter of 2013, Zebra returned $24,674,000 to shareholders through the repurchase of 539,788 shares of Zebra Technologies Corporation Class A Common Stock at a weighted average price of $45.71 per share. At June 29, 2013, the company had 1,395,294 shares remaining in its stock buyback authorization, and 50,782,000 shares of common stock were outstanding.
Third Quarter Outlook
Zebra announced its financial forecast for the third quarter of 2013. Net sales are expected within a range of $253,000,000 to $263,000,000. Diluted earnings per share are expected within a range of $0.61 to $0.71.