-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Or4SS72CzFXobZGXQH7kY/BnXsnJCvqkNl+uuCDrmNBHmk9qJYMbHSdgrMPER5ag uvcM9vBojFADJjsX0CS3Rg== 0001047469-99-021092.txt : 19990518 0001047469-99-021092.hdr.sgml : 19990518 ACCESSION NUMBER: 0001047469-99-021092 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990403 FILED AS OF DATE: 19990517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZEBRA TECHNOLOGIES CORP/DE CENTRAL INDEX KEY: 0000877212 STANDARD INDUSTRIAL CLASSIFICATION: GENERAL INDUSTRIAL MACHINERY & EQUIPMENT [3560] IRS NUMBER: 366966580 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19406 FILM NUMBER: 99627044 BUSINESS ADDRESS: STREET 1: 333 CORPORATE WOODS PKWY CITY: VERNON HILLS STATE: IL ZIP: 60061 BUSINESS PHONE: 7086346700 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q [ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended April 3, 1999 Commission File Number: 000-19406 Zebra Technologies Corporation ---------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 36-2675536 ------------------------------ ---------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 333 Corporate Woods Parkway, Vernon Hills, IL 60061 --------------------------------------------------- (Address of principal executive offices) (Zip Code) (847) 634-6700 -------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and has been subject to such filing requirements for the past 90 days. [ X ] Yes [ ] No As of May 13, 1999, there were the following shares outstanding:
Class A Common Stock, $.01 par value 23,716,825 Class B Common Stock, $.01 par value 7,322,474
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES QUARTER ENDED APRIL 3, 1999 INDEX
PAGE ---- PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Independent Auditors' Review Report 3 Consolidated Balance Sheets as of April 3, 1999 (unaudited) and December 31, 1998 4 Consolidated Statements of Earnings (unaudited) for the three months ended April 3, 1999 and April 4, 1998 5 Consolidated Statements of Comprehensive Income (unaudited) for the three months ended April 3, 1999 and April 4, 1998 6 Consolidated Statements of Cash Flows (unaudited) for the three months ended April 3, 1999 and April 4, 1998 7 Notes to Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 3. Quantitative and Qualitative Disclosures About Market Risk 12 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 13 SIGNATURES 14
PART I - FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITORS' REVIEW REPORT The Board of Directors and Shareholders Zebra Technologies Corporation: We have reviewed the consolidated balance sheet of Zebra Technologies Corporation and subsidiaries as of April 3, 1999, and the related consolidated statements of earnings, comprehensive income, and cash flows for the three-month periods ended April 3, 1999 and April 4, 1998. These consolidated financial statements are the responsibility of the Company's management. We conducted our reviews in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our reviews, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of Zebra Technologies Corporation and subsidiaries as of December 31, 1998, and the related consolidated statements of earnings, comprehensive income, shareholders' equity, and cash flows for the year then ended (not presented herein); and in our report dated February 24, 1999, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 1998 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived. /s/KPMG LLP Chicago, Illinois May 10, 1999 3 ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share and per share data)
APRIL 3, DECEMBER 31, 1999 1998 -------------- ----------------- ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 21,286 $ 11,391 Investments and marketable securities 158,470 151,277 Accounts receivable, net 58,859 57,654 Inventories 34,826 39,684 Deferred income taxes 5,200 5,137 Prepaid expenses 1,389 1,328 -------------- ----------------- Total current assets 280,030 266,471 -------------- ----------------- Property and equipment at cost, less accumulated depreciation and amortization 38,757 38,850 Other assets 4,052 4,681 -------------- ----------------- TOTAL ASSETS $ 322,839 $ 310,002 -------------- ----------------- -------------- ----------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 17,723 $ 20,565 Accrued liabilities 11,421 11,498 Short-term note payable 185 183 Current portion of obligation under capital lease with related party 34 51 Income taxes payable 8,662 4,486 -------------- ----------------- Total current liabilities 38,025 36,783 -------------- ----------------- Long-term liability 16 36 Deferred income taxes 2,001 1,932 Other 172 367 -------------- ----------------- TOTAL LIABILITIES 40,214 39,118 -------------- ----------------- Shareholders' equity: Preferred stock, $.01 par value; 10,000,000 shares authorized, none outstanding - - Class A Common Stock, $.01 par value; 50,000,000 shares authorized, 23,600,612 and 22,323,094 shares issued and outstanding in 1999 and 1998, respectively 236 223 Class B Common Stock, $.01 par value; 28,358,189 shares authorized, 7,375,896 and 8,619,919 shares issued and outstanding in 1999 and 1998, respectively 74 86 Additional paid-in capital 50,272 49,854 Retained earnings 232,422 219,772 Accumulated other comprehensive income (379) 949 -------------- ----------------- TOTAL SHAREHOLDERS' EQUITY 282,625 270,884 -------------- ----------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 322,839 $ 310,002 -------------- ----------------- -------------- -----------------
See accompanying notes to consolidated financial statements. 4 ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (Amounts in thousands, except per share data) (Unaudited)
THREE MONTHS ENDED --------------------------- APRIL 3, APRIL 4, 1999 1998 ------------- ------------- Net sales $ 89,822 $ 80,798 Cost of sales 47,342 41,937 ------------- ------------- Gross profit 42,480 38,861 Operating expenses: Selling and marketing 9,959 8,449 Research and development 5,627 5,768 General and administrative 7,071 6,535 Merger costs 1,869 -- ------------- ------------- Total operating expenses 24,526 20,752 ------------- ------------- Operating income 17,954 18,109 ------------- ------------- Other income (expense): Investment income 2,284 1,730 Interest expense (3) (2) Other, net 15 901 ------------- ------------- Total other income 2,296 2,629 ------------- ------------- Income before income taxes 20,250 20,738 Income taxes 7,600 7,575 ------------- ------------- Net income $ 12,650 $ 13,163 ------------- ------------- ------------- ------------- Basic earnings per share $ 0.41 $ 0.43 Diluted earnings per share $ 0.41 $ 0.42 Basic weighted average shares outstanding 30,972 30,994 Diluted weighted average and equivalent shares outstanding 31,135 31,321
See accompanying notes to consolidated financial statements. 5 ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) (Unaudited)
THREE MONTHS ENDED ------------------------------ APRIL 3, APRIL 4, 1999 1998 ------------ ------------ Net income $ 12,650 $ 13,163 Other comprehensive income (loss): Foreign currency translation adjustment (1,328) 462 ------------ ------------ Comprehensive income $ 11,322 $ 13,625 ------------ ------------ ------------ ------------
See accompanying notes to consolidated financial statements. 6 ZEBRA TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited)
THREE MONTHS ENDED --------------------------------- APRIL 3, APRIL 4, 1999 1998 --------------- ---------------- Cash flows from operating activities: Net income $ 12,650 $ 13,163 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,374 1,823 Appreciation in market value of investments and marketable securities (823) (394) Deferred income taxes 6 2,086 Gain on sale of subsidiary's assets - (404) Changes in assets and liabilities: Accounts receivable, net (1,205) (3,460) Inventories 4,858 1,560 Other assets 552 (609) Accounts payable (2,842) 2,941 Accrued liabilities (77) (3,476) Income taxes payable 4,176 2,601 Other operating activities (256) (279) Net sales (purchases) of investments and marketable securities (6,370) 453 --------------- ---------------- Net cash provided by operating activities 13,043 16,005 --------------- ---------------- --------------- ---------------- Cash flows from investing activities: Purchases of property and equipment (2,204) (12,292) Proceeds from sale of subsidiary - 2,660 Purchase of investments and marketable securities - (791) Sales of investments and marketable securities - 720 --------------- ---------------- Net cash used in investing activities (2,204) (9,703) --------------- ---------------- Cash flows from financing activities: Proceeds from exercise of stock options 419 259 Common stock retired in Eltron merger - (8,092) Repayment of notes payable (18) (230) Payments for obligation under capital lease (17) (16) --------------- ---------------- Net cash provided by (used in) financing activities 384 (8,079) --------------- ---------------- Effect of exchange rate changes on cash (1,328) 462 --------------- ---------------- Net increase (decrease) in cash and cash equivalents 9,895 (1,315) Cash and cash equivalents at beginning of period 11,391 10,925 --------------- ---------------- Cash and cash equivalents at end of period $ 21,286 $ 9,610 --------------- ---------------- --------------- ---------------- Supplemental disclosures of cash flow information: Interest paid $ 3 $ 2 Income taxes paid 4,833 1,373 Supplemental disclosures of noncash transactions: Book value of net assets sold and obligations recorded in connection with sale of RJS verification business - 2,256
See accompanying notes to consolidated financial statements. 7 ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - BASIS OF PRESENTATION The consolidated financial statements included herein have been prepared by Zebra Technologies Corporation and subsidiaries (the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's latest Annual Report on Form 10-K filed with the Securities and Exchange Commission. The consolidated balance sheet as of December 31, 1998, presented herein, has been derived from the audited consolidated balance sheet contained in the Annual Report on Form 10-K. In the opinion of the Company, the interim consolidated financial statements reflect all adjustments necessary to present fairly the consolidated financial position of the Company as of April 3, 1999, and the consolidated results of operations and cash flows for the three months ended April 3, 1999, and April 4, 1998. The results of operations for such interim periods are not necessarily indicative of the results for the full year. On October 28, 1998, the Company merged with Eltron International, Inc. (Eltron). Eltron manufactures and markets high-quality, low-cost direct thermal and thermal transfer bar code printers, plastic card printers, secure card printing systems, ribbons, self-adhesive labels, and related accessories throughout the world. Financial results for the Company have been restated to reflect the merger as a pooling-of-interests. 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS: FIRST QUARTER OF 1999 VERSUS FIRST QUARTER OF 1998 Net sales for the first quarter increased 11.2% to $89,822,000 from $80,798,000. Hardware sales (printers and replacement parts) increased 12.3%, as unit volume increases were partially offset by lower average unit prices on lower-priced printers. For the first quarter, hardware sales accounted for 79.0% of net sales. Supplies sales increased 9.7% to comprise 18.4% of net sales. The remaining 2.6% of net sales consisted of service and software revenue. International sales of $36,471,000 accounted for 40.6% of 1999 first quarter sales, compared with 40.2% of net sales for the first quarter of 1998. The increase in the percentage of international sales is due to higher sales growth in international markets compared with sales growth in domestic markets. Gross profit for the first quarter of 1999 was $42,480,000, up 9.3% from the gross profit of $38,861,000 for the first quarter of 1998. As a percentage of net sales, gross profit decreased to 47.3% from 48.1%. The decrease in gross profit margin was due to a decrease in average selling price, notably in lower priced printers, partially offset by favorable changes in sales volume, product mix, and unit costs. Selling and marketing expenses increased 17.9% to $9,959,000 for the first quarter of 1999 from $8,449,000 for the first quarter of 1998. Increases in expenses for bad debt, advertising, and payroll and benefits were partially offset by decreases in outside services and depreciation. As a percentage of net sales, first quarter selling and marketing expenses increased to 11.1% from 10.5%. Research and development expenses for the first quarter decreased 2.4% to $5,627,000 from $5,768,000. Higher personnel-related expenses partially offset a decline in product development expenses, which varies with the level of product development activity from quarter to quarter. As a percentage of net sales, quarterly research and development expenses decreased to 6.3% from 7.1%. General and administrative expenses for the first quarter increased by 8.2% to $7,071,000 from $6,535,000. The increase in general and administrative expenses was principally due to higher payroll and personnel training expenses resulting from higher staffing levels, increased recruiting expenses, and higher depreciation, which were partially offset by declines in expenditures for outside services. As a percentage of net sales, quarterly general and administrative expenses decreased to 7.9% from 8.0%. During the first quarter of 1999, Zebra recorded $1,869,000 in merger costs, which are related to the integration of Eltron operations. These costs, which could not be provided for at the time of the merger, include expenditures on consulting fees, as well as personnel-related expenses for relocation, severance, and recruitment. The Company expects to incur additional merger costs in future quarters of 1999, the amounts of which are not currently estimable. Operating income for the first quarter decreased 0.9% to $17,954,000, or 20.0% of net sales, from $18,109,000, or 22.4% of net sales. Excluding the $1,869,000 in merger costs, operating income increased 9.5% to $19,823,000, or 22.1% of net sales. Investment income increased 32.0% to $2,284,000 from $1,730,000 for the same period in 1998. The increase was due to higher average balances invested in marketable securities, as well as a higher rate of return on investments. The annualized rate of investment return increased to 5.9% for the first quarter of 1999 from 5.4% for the first quarter of 1998. Income before income taxes for the first quarter of 1999 was $20,250,000, compared with $20,738,000 for the same period in 1998, a decrease of 2.4%. The effective income tax rate for the first quarter of 1999 was 37.5%, compared with 36.5% for the same period in 1998. Net income was $12,650,000, or $0.41 per share (basic and diluted), compared with $13,163,000, or $0.42 per diluted share. Excluding the $1,869,000 in merger costs, net income for the first quarter of 1999 was $13,818,000, or $0.44 per diluted share. 9 LIQUIDITY AND CAPITAL RESOURCES The Company's principal source of liquidity continues to be cash generated from operations. Cash and cash equivalents and investments and marketable securities totaled $179,756,000 at April 3, 1999, compared with $162,668,000 at December 31, 1998. Management believes that existing capital resources and funds generated from operations are sufficient to finance anticipated capital requirements. YEAR 2000 CONSIDERATIONS INTERNAL SYSTEMS. Management believes that substantially all of the Company's critical internal computer systems and technical infrastructure is presently Year 2000 (Y2K) compliant and that those systems not presently compliant will be brought into compliance in sufficient time to avoid adverse business consequences as the result of the Year 2000. During the first quarter of 1999, the Company's new Y2K-compliant internal payroll system used at its Vernon Hills headquarters became operational. Among the systems not compliant as of April 3, 1999, is the Company's manufacturing control software used in its label conversion and warehouse facility in Preston, UK. This system is scheduled for upgrade to bring it into compliance by the end of the third quarter of 1999. A variety of sub-systems were also non-compliant as of April 3, 1999. These typically require the installation of a software upgrade or patch and do not, in management's opinion, present a serious obstacle to achieving Y2K compliance by year-end. PRODUCTS. The Company has reviewed its entire product line for Y2K compliance issues and has identified those products that will be affected. In general, Y2K issues do not affect the Company's printer products because they contain no internal clock or timing mechanism. The Company's current software products are all Y2K compliant, although in some cases previous versions were not. In addition, the Company's PC-470 printer controller contains a real-time clock that must be reset to function properly after January 1, 2000. In all cases where products are not Y2K compliant, customers have been notified via letter or postings on the Company's web site about any corrective action that is needed, including, where appropriate, a requirement to upgrade certain software products. SUPPLIERS. The Company surveyed each of its significant suppliers to determine their ability to provide necessary products and services that are critical to business continuation through Y2K. To date, 123 suppliers deemed critical to the business have been surveyed and 117 have affirmed positively that they would be Y2K compliant, and that there would be no impact on their ability to supply the Company due to Y2K problems. The Company is pursuing responses from the remaining six suppliers. Despite these assurances of compliance, the Company does not warrant the performance of its suppliers. The failure by one or more significant suppliers to achieve compliance could have a material adverse effect on the Company. The Company has not undertaken to quantify the effect of such possible non-compliance or to determine the likely worst-case scenario or to develop contingency plans to deal with such a scenario. Management estimates that it will have incurred approximately $400,000 of costs to ensure Y2K compliance by December 31, 1999. This includes $200,000 of direct expenditures to upgrade its systems and products and $200,000 of management and internal technical support to upgrade systems and ensure the status of compliance within the Company's supplier base. This estimate does not include the cost of new systems or system upgrades that were made for reasons other than Y2K compliance but included Y2K compliance as part of the upgrade package. Specifically excluded from the cost of Y2K compliance is the cost of the Company's recent conversion to the Baan ERP system and the cost of its new payroll/human resources system, both of which were made for reasons other than Y2K compliance. SIGNIFICANT CUSTOMER Sales to United Parcel Service (UPS), one of the Company's designated key accounts, accounted for 10.0% of the Company's net sales for the first quarter of 1999. For the first quarter of 1998, sales to UPS accounted for 12.5% of total sales. 10 SAFE HARBOR Forward-looking statements contained in this filing are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and are highly dependent upon a variety of important factors which could cause actual results to differ materially from those reflected in such forward looking statements. These factors include market acceptance of the Company's printer and software products and competitors' product offerings. They also include the success and speed of the Company's integration with Eltron, as well as the effect of market conditions in the Asia-Pacific region on the Company's financial results. Profits will be affected by the Company's ability to control manufacturing and operating costs. Due to the Company's large investment portfolio, interest rate and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results due to the large percentage of the Company's international sales. When used in this document 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. Readers of this document are referred to prior filings with the Securities and Exchange Commission, including Zebra's Form 10-K dated December 31, 1998, and the joint proxy statement/prospectus dated September 21, 1998, particularly the "Risk Factors" section, for further discussions of issues that could affect Zebra's future results. 11 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK There have been no material changes in the Company's market risk during the first quarter ended April 3, 1999. For additional information on market risk, refer to the "Quantitative and Qualitative Disclosures About Market Risk" section of the Company's Annual Report on Form 10-K dated December 31, 1998. 12 PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. 15.1 Acknowledgment of Independent Certified Public Accountants Regarding Independent Auditors' Review Report 27.1 Financial Data Schedule 27.2 Restated Financial Data Schedule (b) Reports. No reports on Form 8-K have been filed by the Registrant for the quarterly period covered by this report. 13 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ZEBRA TECHNOLOGIES CORPORATION Date: May 12, 1999 By: /s/ Edward L. Kaplan --------------------------- Edward L. Kaplan Chief Executive Officer Date: May 12, 1999 By: /s/ Charles R. Whitchurch ------------------------ Charles R. Whitchurch Chief Financial Officer 14 EX-15.1 2 EX 15.1 Exhibit 15.1 ACKNOWLEDGMENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS REGARDING INDEPENDENT AUDITORS' REVIEW REPORT Zebra Technologies Corporation 333 Corporate Woods Parkway Vernon Hills, Illinois 60061-3109 Ladies and Gentlemen: With respect to the registration statements (No. 33-44706, No. 33-72774, No. 333-59733, and No. 333-63009) on Form S-8 of Zebra Technologies Corporation, we acknowledge our awareness of the incorporation by reference therein of our report dated May 10, 1999, related to our review of interim financial information as of April 3, 1999. Pursuant to Rule 436(c) under the Securities Act of 1933, such report is not considered part of a registration statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of the Act. Very truly yours, /s/KPMG LLP Chicago, Illinois May 14, 1999 15 EX-27.1 3 EX-27.1
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AS OF APRIL 3, 1999, AND CONSOLIDATED STATEMENT OF EARNINGS FOR THE THREE MONTHS ENDED APRIL 3, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA. 1,000 3-MOS DEC-24-1998 DEC-25-1998 APR-03-1999 21,286 158,470 62,613 (3,754) 34,826 280,030 66,712 (27,955) 322,839 38,025 0 0 0 310 282,315 322,839 88,459 89,822 46,881 47,342 23,623 903 3 20,250 7,600 12,650 0 0 0 12,650 0.41 0.41
EX-27.2 4 EX-27.2
5 THIS IS FINANCIAL INFORMATION EXTRACTED FROM ZEBRA TECHNOLOGIES CORP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AS OF 4/4/98, AND CONSOLIDATED STATEMENT OF EARNINGS FOR THE 3 MOS. ENDED 4/4/98, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE. THE RESTATED FIGURES HEREIN REFLECT THE COMPANY'S MERGER WITH ELTRON INT'L, INC., WHICH WAS ACCOUNTED FOR ON A POOLING OF INTERESTS BASIS. 1,000 3-MOS DEC-26-1998 DEC-27-1998 APR-04-1998 9,610 128,407 56,418 (1,893) 41,641 239,709 54,576 (21,207) 278,171 35,510 0 0 0 318 241,413 278,171 79,728 80,798 41,564 41,937 20,939 (187) 2 20,738 7,575 13,163 0 0 0 13,163 0.43 0.42
-----END PRIVACY-ENHANCED MESSAGE-----