VERNON HILLS, Ill., Feb. 6 /PRNewswire-FirstCall/ -- Zebra Technologies
Corporation (Nasdaq: ZBRA) today announced its plan to establish regional
distribution and configuration centers, consolidate its supplier base, and
transfer final assembly of thermal printers to Jabil Circuit (NYSE: JBL), a
global third-party electronics manufacturer. These actions are intended to
optimize Zebra's global printer product supply chain to improve responsiveness
to customer needs and increase Zebra's flexibility to meet emerging business
opportunities. This plan supports Zebra's efforts to serve high-growth
territories more effectively and extend global industry leadership in
specialty printing solutions.
The transfer of final printer assembly operations from Zebra's plants in
California and Illinois to Jabil's facility in HuangPu, China, will occur
during approximately the next 18 to 24 months. During this period, the company
estimates 650 production-related positions will be eliminated. Zebra will
continue to maintain operations in California and Illinois, including
engineering design centers, product management, sales, marketing and
administration.
The supply chain optimization plan will result in estimated total costs
and charges of $24-$26 million for severance, professional services and other
associated non-recurring costs. Of these charges, the company expects to incur
approximately $18 million in 2008, with the remaining amount occurring in
2009. The recovery of these costs and expected financial benefits are expected
to begin to accrue in 2009.
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 expected costs and savings mentioned
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. Zebra may elect to update forward-looking
statements but expressly disclaims any obligation to do so, even if the
company's estimates change.
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
market conditions in North America and other geographic regions and customer
acceptance of Zebra's printer and software products and competitors' product
offerings and the potential effects of technological changes. Other factors
include U.S. and foreign regulations that pertain to electrical and electronic
equipment, including European Union and other country directives relating to
the collection, recycling, treatment and disposal of products and the
reduction or elimination of certain specified materials in such products.
Zebra's failure to comply with these regulations may subject Zebra to
penalties, prevent Zebra from selling its products in a certain country, or
increase the cost of supplying the products. Profits and profitability will be
affected by success of the outsourcing program described in this press
release, as well as the company's ability to control other 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 is involved, and particularly litigation or claims related to alleged
infringement of third-party intellectual property rights, is another factor.
In addition, the acquisitions of WhereNet, proveo and Navis Holdings, which
were completed in 2007, have risks relating to integrating these companies'
businesses and operations with Zebra's. These and other factors could have an
adverse effect on Zebra's revenues, 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, 2006.
About Zebra Technologies
Zebra Technologies improves its customers' business performance with
products and solutions that identify, track and manage assets, transactions
and people. In more than 100 countries around the world, more than 90% of
Fortune 500 companies use innovative and reliable Zebra printers, supplies,
RFID products and software to increase productivity, improve quality, lower
costs, and deliver better customer service. Information about Zebra and Zebra-
brand products can be found at http://www.zebra.com.
CONTACT: Investors: Media:
Douglas A. Fox, CFA Michelle Meek
Director, Investor Relations Outlook Marketing Services
+1 847 793 6735 +1 312 873 3424
dfox@zebra.com michelle@outlookmarketingsrv.com
SOURCE Zebra Technologies Corporation