Business News
Zebra Technologies Announces 2009 First Quarter Financial Results
Tuesday 05. May 2009 - Zebra Technologies Corporation (NASDAQ:ZBRA) today announced net income of $9,352,000 or $0.16 per diluted share, for the first quarter of 2009, including $2,296,000 in exit, restructuring and integration costs which lowered diluted earnings by $0.02 per share.
Net income for the first quarter of 2008 was $27,644,000, or $0.42 per diluted share. Net sales were $192,609,000 for the quarter that ended April 4, 2009, compared with $246,277,000 for the corresponding period a year ago.
“We moved aggressively to align costs with the lower demand levels to successfully navigate through the current environment,” stated Anders Gustafsson, Zebra’s chief executive officer. “During the quarter, we continued to make the investments that maximize risk-adjusted returns and deliver increasing stockholder value. We bought back stock while maintaining our strong financial position. We also made further progress on our global supply chain and ERP implementation projects which will help improve customer service, lower costs further and drive greater organizational effectiveness. Later this year, we will introduce new products and solutions that will serve more customer needs. All of these initiatives position Zebra to extend its global leadership and accelerate earnings growth as business conditions improve.”
At April 4, 2009, Zebra had $189,311,000 in cash and investments, and no long-term debt. Net inventories were $101,248,000, and net accounts receivable were $137,176,000.
Discussion and Analysis
For the first quarter of 2009, compared with the first quarter of 2008:
— Consolidated net sales were affected by the impact of declining global
economic activity on business conditions. Sales declined on a
comparable percentage basis in all of the company’s geographic
regions, with the largest sales decline occurring in North America.
Product mix also had an effect on sales, with larger sales declines
among high performance and midrange tabletop printers. Unfavorable
foreign exchange currency movements reduced first quarter sales by
$6,739,000.
— Gross profit margin of 44.6% versus 49.9% a year ago was principally
affected by the lower sales volume, unfavorable product mix and
unfavorable foreign exchange rates. These factors were partially
offset by higher profitability in the company’s Zebra Enterprise
Solutions group.
— Operating expenses declined $11,926,000 as a result of cost-reduction
actions taken in the second half of 2008, in addition to lower
commissions and amortization of intangible assets, and a decline in
exit, restructuring and integration costs.
— The effective income tax rate of 32.0%, compared with 34.5% a year
ago, reflects the effect of lower quarterly income and a higher
proportion of permanent tax adjustments.
Stock Purchase Update
During the first quarter of 2009, the company repurchased 1,652,772 shares of Zebra Technologies Corporation Class A Common Stock. At the end of the first quarter, Zebra had 3,719,696 shares remaining in the company’s stock buyback authorization and 59,398,813 outstanding shares of common stock.
Second Quarter Outlook
Zebra announced its financial forecast for the second quarter of 2009. Net sales are expected within a range of $186,000,000 and $200,000,000. Diluted earnings per share are expected within a range of $0.12 and $0.20. This forecast includes expected exit and restructuring costs of $0.04 per diluted share.