Zebra Technologies Corporation (ZBRA), a manufacturer of thermal bar code label and receipt printers, reported a profit for the fourth quarter, reflecting mainly the absence of hefty asset impairment charges recorded last year. The company also provided an outlook for the first quarter.
For the fourth quarter, the Lincolnshire, Illinois-based company's net income was $17.63 million or $0.30 per share compared to a loss of $117.36 million or $1.88 per share last year.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share. Analysts' estimates typically exclude special items.
Net income includes charges of $2.74 million or $0.03 per share in exit, restructuring and integration and $2.61 million in amortization of intangible assets. The prior-year quarter had $7.79 million or $0.08 per share charge in exit, restructuring and integration expenses and $157.60 million or $2.20 per share of asset impairment charges.
Total sales for the quarter dropped 4.3% to $222.52 million from $232.57 million last year. Seven analysts had a consensus revenue estimate of $207.11 million. Sales improved 10.8% sequentially.
Net sales of tangible products were $197.10 million compared to $206.41 million last year. Revenue from services and software was $25.43 million compared to $26.16 million last year.
Total printers shipped was 244,100, down 2.3% compared to 249,900 last year. Average selling price dropped 1.3% to $531 from $538 last year.
Revenue from North America declined 12.5% to $97.97 million. Total International revenue improved 3.3% to $124.56 million year-over-year.
For the full year, net income was $47.10 million or $0.79 per share compared to a loss of $38.42 million or $0.60 per share last year. Total sales was $803.59 million compared to $976.70 million last year. Analysts estimated the company to report earnings of $0.85 per share and revenues of $788.29 million for the full year.
"Streamlined North American sales and marketing processes are improving customer intimacy in the region. In Asia-Pacific, Latin America and other high-growth territories, we are adding Zebra sales personnel to capture more available business," said chief executive officer, Anders Gustafsson.
Looking ahead, for the first quarter, the company expects net sales within a range of $217.00 million to $230.00 million and earnings per share in a range of $0.25 to $0.32, including expected exit and restructuring costs of $0.02 per share. Analysts currently expect the company to report first quarter earnings of $0.26 per share on revenues of $202.47 million.
ZBRA shares closed Monday's regular trading session at $27.34 per share on the Nasdaq.
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