Zebra Technologies Annuncia i Risultati Finanziari 2005
International sales growth of 5.0% resulted from the effect of placing more Zebra sales representatives and other associates in high-growth regions to generate more business in those territories.
Zebra Technologies Announces Financial Results for the 2005 Fourth Quarter and Full Year
Zebra Technologies Corporation (NASDAQ: ZBRA) today announced that sales and earnings for the fourth quarter of 2005 were at the top end of its forecasted range, with net sales for the three months ended December 31, 2005, at a record $179,294,000, compared with $174,874,000 for the same period in 2004. Quarterly net income for 2005 was $28,293,000, or $0.40 per diluted share, versus $31,962,000, or $0..44 per diluted share, for 2004. For the full year, net sales were a record $702,271,000, up 5.9% over $663,054,000 for 2004. Full-year net income was $111,603,000, or $1.55 per diluted share, for 2005, compared with $120,643,000, or $1.66 per diluted share, for 2004.
“We are pleased with our results, which reflect ongoing spending on strategic business activities,” stated Edward Kaplan, Zebra’s chairman and chief executive officer. “Our extended global reach generated sales growth in emerging and under-served regions, including China, Eastern Europe and Latin America. Zebra’s reputation for innovation and quality was evident in RFID, where our broad range of printer/encoders and complementary media helped us increase market leadership. Effective channel programs strengthened distribution, and we built important business alliances with integrators for vertical market applications. During the fourth quarter, we introduced new products that are being deployed to serve a wider range of specialty printing solutions. These and other accomplishments will have a greater effect on our business as we progress through 2006. We will also build on this foundation by continuing to invest where we see opportunities to create even greater value for stockholders over the long term. The outlook for Zebra is positive and we remain optimistic about our future.”
Discussion and Analysis
For the fourth quarter of 2005:
- International sales growth of 5.0% resulted from the effect of placing more Zebra sales representatives and other associates in high-growth regions to generate more business in those territories. Sales growth in the company’s Europe, Middle East, Africa region were affected by unfavorable foreign exchange rates. In North America, lower mobile printer sales to large retailers offset sales growth in non-retail sectors.
- Gross profit margin of 50.1% versus 52.0% was affected by a mix-driven decline in average unit prices, higher warranty expense, and unfavorable movement in foreign exchange.
- Quarterly operating expenses increased by 15.2%, primarily because of higher personnel costs supporting more business initiatives, product development expenses, and legal fees associated with intellectual property activities.
- The income tax rate was 32.7%, compared with 34.3% for the fourth quarter of 2004. During the 2005 fourth quarter, income taxes were reduced by $875,000 from the recognition of job creation tax credits and the reversal of tax reserves resulting from the favorable resolution of certain tax audits.
At December 31, 2005, Zebra had $544,239,000 in cash, investments and marketable securities, and no long-term debt. Inventories totaled $63,638,000. Accounts receivable were $111,551,000 and were affected by the timing of orders and shipments during the quarter.
2006 First Quarter Outlook
Zebra also announced its financial forecast for the first quarter of 2006. Net sales are expected within a range of $175,000,000 and $185,000,000. Earnings are expected within a range of $0.35 and $0.40 per diluted share, including an estimated $0.02 per diluted share for the expensing of stock options as required under SFAS No. 123 (R), Share-Based Payment. These estimates do not take into consideration acquisitions, dispositions or other significant corporate events or reorganizations that may occur in the first quarter..
This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s financial forecast for the first quarter of 2006 stated in the paragraph directly above. Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. We may elect to update forward-looking statements but expressly disclaim any obligation to do so, even if our estimates change.
These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in general industry and market conditions, of general domestic and international economic conditions, and other factors. Specifically, these risks include the timing of product introductions and the market’s acceptance of those and current products, the success of competitors’ product offerings, as well as the speed of adoption of the company’s printing technologies and competing technologies. In addition, the pace and success of the company’s geographic expansion activities, as well as the effectiveness of its current and future sales and marketing initiatives to capture emerging business and established business opportunities could also have an effect on the accuracy of Zebra’s estimates and forward-looking statements. When used in this release and documents referenced, the words “anticipate,” “believe,” “estimate,” and “expect” and similar expressions, as they relate to the company or its management are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of the risks, uncertainties and other factors that could affect the company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission. In particular, readers are referred to Zebra’s Form 10-K for the year ended December 31, 2004, and Form 10-Q reports.
Zebra Technologies Corporation delivers innovative and reliable on-demand printing solutions for business improvement and security applications in 100 countries around the world. More than 90 percent of Fortune 500 companies use Zebra-brand printers. A broad range of applications benefit from Zebra-brand thermal bar code, “smart” label, receipt, and card printers, resulting in enhanced security, increased productivity, improved quality, lower costs, and better customer service. The company has sold nearly five million printers, including RFID printer/encoders and wireless mobile solutions, and also offers software, connectivity solutions and printing supplies. Information about Zebra bar code, card and RFID products can be found at http://www.zebra.com.
Visit the company’s Web site at www.zebra.com
For Information, Contact:
Charles R. Whitchurch
Chief Financial Officer