Niklas Bjorkman wrote: Firstly I agree with your conclusion. NewSQL takes the best of the traditional databases and NoSQL databases to combine the benefits of both worlds. I do not agree that NewSQL vendors focus on giving scale-out features to transactional data. The NewSQL market is focusing on giving true ACID support combined with extreme performance, stepping away from the traditional relational structures in databases. A lot of developers appreciate the ease of accessing data using SQL and I think we will see more and more databases supporting standard SQL.
As you said - NewSQL databases often maintain the...
LINCOLNSHIRE, Ill., Nov. 6, 2012 /PRNewswire/ --Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2012 third quarter continuing operations diluted earnings per share of $0.51, including a non-cash asset impairment charge of $9,114,000, which reduced earnings by $0.18 per share. Earnings from continuing operations for the third quarter of 2011 totaled $0.64 per share. Net sales for the quarter ended September 29, 2012, decreased 0.5% to $252,037,000 from $253,338,000 for the third quarter of 2011. Movements in foreign exchange rates decreased sales by $3,767,000, or 1.5 percentage points, from a weaker euro against the U.S. dollar, compared with a year ago.
Summary Financial Performance (Unaudited)
3Q12
3Q11
Change
Net sales (in 000s)
$ 252,037
$ 253,338
-0.5%
Gross margin (%)
50.4
48.8
1.6 pts.
Income from continuing
operations (in 000s)
$ 26,581
$ 34,187
-22.2%
Income from discontinued
operations, net of tax (in 000s)
$ 516
$ 10,814
-95.2%
Net income (in 000s)
$ 27,097
$ 45,001
-39.8%
Diluted earnings per share:
Income from continuing operations
$ 0.51
$ 0.64
-20.3%
Income from discontinued operations
$ 0.01
$ 0.20
-95.0%
Net income
$ 0.52
$ 0.84
-38.1%
"Zebra delivered strong results in a challenged environment on the basis of the diversity of our business," stated Anders Gustafsson, Zebra's chief executive officer. "Investments in sales resources and channel expansion have resulted in engagements with more customers in targeted markets. In addition, we are serving our customers with a broader array of innovative solutions from a more efficient and productive product development process. During the quarter, we also deployed $75 million on the acquisition of LaserBand and share buybacks. We remain confident in our ability to deliver increasing returns to enhance shareholder value over the long term."
As of September 29, 2012, Zebra had $368,795,000 in cash and investments, and no long-term debt. Net inventories were $122,915,000, and net accounts receivable were $165,160,000.
Discussion and Analysis
Net sales for the third quarter of 2012 included year-over-year growth of 6.9% in North America and 9.3% in Latin America, both records. This growth offset sales declines of 4.9% in Asia Pacific and 10.6% in the Europe, Middle East and Africa region.
Gross profit of 50.4%, versus 48.8% in 2011, reflects reduced overhead, freight and reserve costs, partially offset by unfavorable movements in foreign exchange rates and product mix. Unfavorable foreign currency movements decreased third quarter gross profit by $2,939,000.
Operating expense growth of 18.1% included a non-cash asset impairment charge of $9,114,000, increased amortization costs, higher compensation costs, consulting fees, rent, and depreciation.
The 2012 effective tax rate increase in the third quarter reflects the non-deductibility of the non-cash asset impairment charge, as well as a rate decrease related to the second quarter implementation of a new structure for Zebra's international subsidiaries. The effect of the non-deductibility of the asset impairment charge increased the effective tax rate by 6.0% for the third quarter of 2012.
Stock Purchase Update During the third quarter of 2012, Zebra returned $15.0 million to shareholders through the repurchase of 400,000shares of Zebra Technologies Corporation Class A Common Stock. At September 29, 2012, the company had 2,422,336 shares remaining in its stock buyback authorization, and 51,252,384 shares of common stock were outstanding.
Fourth Quarter Outlook Zebra announced its financial forecast for the fourth quarter of 2012. Net sales are expected within a range of $245,000,000 to $255,000,000. Diluted earnings per share are expected within a range of $0.62 to $0.70.
Conference Call Notification Investors are invited to listen to a live webcast of Zebra's conference call discussing the company's financial results for the third quarter of 2012. The conference call will be held at 11:00 AM Eastern Time today. To listen to the call, visit the company's website at http://www.zebra.com.
Forward-looking Statement 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 fourth quarter of 2012 stated in the paragraph above captioned "Fourth Quarter Outlook." 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. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.
These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra's industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra's hardware and software products and competitors' product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit, capital markets volatility, may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships. Profits and profitability will be affected by Zebra's ability to control manufacturing and operating costs. Because of a large investment portfolio, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results because of the large percentage of our international sales. The outcome of litigation in which Zebra may be involved is another factor. These and other factors could have an adverse effect on Zebra's sales, gross profit margins and results of operations and increase the volatility of our financial results. 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, 2011.
About Zebra Technologies A global leader respected for innovation and reliability, Zebra Technologies Corporation (NASDAQ: ZBRA) offers technologies that give a virtual voice to an organization's assets, people and transactions, enabling organizations to unlock greater business value. The company's extensive portfolio of marking and printing technologies, including RFID and real-time location solutions, illuminates mission-critical information to help customers take smarter business actions. For more information about Zebra's solutions, visit http://www.zebra.com.
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 29,
2012
December 31,
2011
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$ 52,253
$ 36,418
Investments and marketable securities
160,690
182,398
Accounts receivable, net
165,160
155,230
Receivable from buyer
0
27,580
Inventories, net
122,915
133,288
Deferred income taxes
15,506
13,931
Income tax receivable
0
13,111
Prepaid expenses and other current assets
14,454
22,917
Total current assets
530,978
584,873
Property and equipment at cost, less accumulated depreciation and amortization
102,537
97,822
Long-term deferred income taxes
7,536
11,866
Goodwill
95,345
79,703
Other intangibles, net
39,017
12,667
Long-term investments and marketable securities
155,852
107,879
Other assets
9,425
4,196
Total assets
$ 940,690
$ 899,006
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 28,180
$ 33,273
Accrued liabilities
50,568
64,612
Deferred revenue
12,288
11,089
Income taxes payable
2,031
0
Total current liabilities
93,067
108,974
Deferred rent
1,406
1,592
Other long-term liabilities
13,188
11,515
Total liabilities
107,661
122,081
Stockholders' equity:
Preferred Stock
—
—
Class A Common Stock
722
722
Additional paid-in capital
136,750
131,422
Treasury stock
(628,683)
(596,622)
Retained earnings
1,333,530
1,245,616
Accumulated other comprehensive loss
(9,290)
(4,213)
Total stockholders' equity
833,029
776,925
Total liabilities and stockholders' equity
$ 940,690
$ 899,006
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
Nine Months Ended
September 29,
2012
October 1,
2011
September 29,
2012
October 1,
2011
Net sales:
Net sales of tangible products
$ 239,786
$ 241,686
$ 706,970
$ 700,568
Revenue from services and software
12,251
11,652
36,019
35,612
Total net sales
252,037
253,338
742,989
736,180
Cost of sales
Cost of sales of tangible products
118,751
122,529
357,764
351,042
Cost of services and software
6,362
7,256
18,041
19,889
Total cost of sales
125,113
129,785
375,805
370,931
Gross profit
126,924
123,553
367,184
365,249
Operating expenses:
Selling and marketing
32,321
31,942
96,593
91,420
Research and development
22,007
22,584
64,759
66,752
General and administrative
22,481
18,978
71,203
62,372
Amortization of intangible assets
1,670
843
3,210
2,514
Acquisition costs
566
188
2,072
188
Exit and restructuring costs
0
138
0
2,090
Asset impairment charge
9,114
0
9,114
0
Total operating expenses
88,159
74,673
246,951
225,336
Operating income
38,765
48,880
120,233
139,913
Other income (expense):
Investment income
541
134
1,959
1,350
Foreign exchange loss
(514)
(173)
(936)
(1,300)
Other, net
(294)
(859)
(1,144)
(1,356)
Total other income (expense)
(267)
(898)
(121)
(1,306)
Income from continuing operations before income taxes
38,498
47,982
120,112
138,607
Income taxes
11,917
13,795
33,014
41,123
Income from continuing operations
26,581
34,187
87,098
97,484
Income from discontinued operations, net of tax
516
10,814
816
42,115
Net income
$ 27,097
$ 45,001
$ 87,914
$ 139,599
Basic earnings per share:
Income from continuing operations
$ 0.52
$ 0.64
$ 1.68
$ 1.79
Income from discontinued operations
0.01
0.20
0.02
0.77
Net income
$ 0.53
$ 0.84
$ 1.70
$ 2.56
Diluted earnings per share:
Income from continuing operations
$ 0.51
$ 0.64
$ 1.67
$ 1.78
Income from discontinued operations
0.01
0.20
0.02
0.77
Net income
$ 0.52
$ 0.84
$ 1.69
$ 2.55
Basic weighted average shares outstanding
51,566
53,339
51,775
54,405
Diluted weighted average and equivalent shares outstanding
51,809
53,628
52,041
54,770
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 29, 2012
October 1, 2011
September 29, 2012
October 1, 2011
Net income
$ 27,097
$ 45,001
$ 87,914
$ 139,599
Other comprehensive income (loss):
Unrealized gains (losses) on hedging transactions, net of income taxes
(3,946)
5,615
(6,192)
2,838
Unrealized holding gains (losses) on investments, net of income taxes
392
(636)
917
(303)
Foreign currency translation adjustment
12
173
198
(630)
Comprehensive income
$ 23,555
$ 50,153
$ 82,837
$ 141,504
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Nine Months Ended
September 29, 2012
October 1, 2011
Cash flows from operating activities:
Net income
$ 87,914
$ 139,599
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization
18,906
17,985
Equity-based compensation
11,485
11,060
Asset impairment charge
9,114
0
Impairment of investments
0
326
Excess tax benefit from equity-based compensation
(1,492)
(1,265)
Loss on sale of property and equipment
178
53
Gain on sale of business
(613)
(66,753)
Deferred income taxes
2,755
5,703
Changes in assets and liabilities:
Accounts receivable, net
(6,108)
(10,112)
Inventories, net
11,981
(6,635)
Other assets
12,070
(10,150)
Accounts payable
(10,843)
(8,493)
Accrued liabilities
(11,341)
(14,917)
Deferred revenue
2,644
(16,707)
Income taxes
14,711
(7,087)
Other operating activities
(6,378)
2,116
Net cash provided by operating activities
134,983
34,723
Cash flows from investing activities:
Purchases of property and equipment
(17,140)
(17,829)
Proceeds from the sale of business
27,580
161,206
Acquisition of business, net of cash acquired
(59,874)
0
Acquisition of intangible assets
(3,000)
(200)
Purchase of long-term equity investment
(5,000)
0
Purchases of investments and marketable securities
(483,349)
(791,811)
Maturities of investments and marketable securities
324,139
493,649
Proceeds from sales of investments and marketable securities
133,863
253,377
Net cash provided by (used in) investing activities
(82,781)
98,392
Cash flows from financing activities:
Purchase of treasury stock
(39,697)
(146,373)
Proceeds from exercise of stock options and stock purchase plan purchases
1,909
9,197
Excess tax benefit from equity-based compensation
1,492
1,265
Net cash used in financing activities
(36,296)
(135,911)
Effect of exchange rate changes on cash
(71)
(899)
Net increase in cash and cash equivalents
15,835
(3,695)
Cash balance of discontinued operations at beginning of period
0
1,301
Less: Cash balance of discontinued operations at end of period
0
0
Cash and cash equivalents at beginning of period
36,418
46,175
Cash and cash equivalents at end of period
$ 52,253
$ 43,781
Supplemental disclosures of cash flow information:
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