ZEBRA TECHNOLOGIES CORP
For the period ended Jun 29, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2024 · Filed Jul 30, 2024
ZBRA$322.02+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 15 previous paragraphs and 16 current paragraphs.
8 unchanged; 5 reworded; 3 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
•Net sales were $1,217 million in the current quarter compared to $1,214 million in the prior year.
Current report
•Operating income was $167 million in the current quarter compared to $194 million in the prior year.
Current report
During the current quarter, the Company completed a private offering of $500 million senior unsecured notes (the “Senior Notes”) with a 6.5% fixed interest rate; the proceeds of which, were partially used to repay the outstanding debt under its Revolving Credit Facility, the Receivables Financing Facility that matured on May 13, 2024, and Term Loan A principal repayments. Additionally, with the issuance of the fixed rate Senior Notes, the Company terminated its interest rate swap agreements which were intended to result in a fixed interest rate on a portion of our variable rate debt.
Removed paragraphs (2)
Previous report
•Net sales were $1,175 million in the current quarter compared to $1,405 million in the prior year.
Previous report
•Operating income was $159 million in the current quarter compared to $225 million in the prior year.
Reworded paragraphs (5)
Previous wording
First Quarter 2024 Financial Summary and Other Recent Developments
Current wording
Second Quarter 2024 Financial Summary and Other Recent Developments
Previous wording
•Net income was $115 million, or $2.23 per diluted share in the current quarter, compared to net income of $150 million, or $2.90 per diluted share in the prior year.
Current wording
•Net income was $113 million, or $2.17 per diluted share in the current quarter, compared to net income of $144 million, or $2.78 per diluted share in the prior year.
Previous wording
•Net cash provided by operating activities was $125 million in the current quarter compared to net cash used in operating activities of $76 million in the prior year.
Current wording
•Net cash provided by operating activities was $413 million in the current year compared to net cash used in operating activities of $110 million in the prior year.
Previous wording
Our first quarter of 2024 results continued to be impacted by broad-based softness across our end markets in all regions. While our current quarter results are below the first quarter of 2023, they have improved from the fourth quarter of 2023. As we entered the year, we saw a stabilization of distributor inventory levels and a modest recovery in the demand trends for our products resulting in a 16.5% increase in revenues from the fourth quarter of 2023. As discussed below, our first quarter results benefited from the actions taken under our 2022 Productivity Plan and the U.S. voluntary retirement plan. We expect revenues and profitability to improve sequentially from the first half to the second half of the current year, and on a year-over-year basis in the second half of the year.
Current wording
In the current quarter distributor inventory levels remained relatively stable and, as expected, we saw a modest recovery in the demand trends particularly in our EVM segment’s mobile computing business; however, our results continued to be impacted by weakness in certain of our end markets, most pronounced in our AIT segment. As discussed below, our second quarter results benefited from the actions taken under our 2022 Productivity Plan and the U.S. voluntary retirement plan. We expect revenues and profitability to improve both sequentially from the first half to the second half of the current year, and on a year-over-year basis in the second half of the year.
Previous wording
Total charges associated with the 2022 Productivity Plan and the U.S. voluntary retirement plan, which was completed in 2023, are expected to be approximately $130 million, with $120 million incurred to date, including $10 million recorded in the current quarter. The remaining actions under the 2022 Productivity Plan are expected to be substantially completed in the second quarter of this year. The costs of these actions are classified within Exit and restructuring on the Consolidated Statements of Operations. The programs are expected to impact over 9% of our global employee base and are estimated to result in annualized net cost savings of approximately $120 million, primarily within Operating expenses. The Company has realized approximately $75 million of net savings to date, including $25 million in the current quarter.
Current wording
The Company substantially completed the actions under the 2022 Productivity Plan in the current quarter. Total charges associated with the 2022 Productivity Plan and the U.S. voluntary retirement plan, which was completed in 2023, were $123 million to date, including $3 million recorded in the current quarter. The costs of these actions are classified within Exit and restructuring on the Consolidated Statements of Operations. Together, these programs have impacted over 9% of our global employee base and are expected to result in annualized net cost savings of approximately $120 million, primarily within Operating expenses. The Company has realized a total of $100 million in annualized net savings to date, with $50 million in 2023 and $50 million in the first half of 2024, and estimates full calendar year 2024 total net savings to approximate $60 million with the remainder expected to be realized in 2025.