SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1997
Commission file number 1-9802
SYMBOL TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 11-2308681
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Symbol Plaza, Holtsville, N.Y. 11742
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 516-738-2400
Former name, former address and former fiscal year, if changed
since last report.
Indicate by check mark whether the registrant (1) 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 (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the close of the period
covered by this report.
Class Outstanding at September 30, 1997
Common Stock, 39,483,870 shares
par value $0.01
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
INDEX TO FORM 10-Q
PAGE
PART I. FINANCIAL INFORMATION
ITEM I. Financial Statements
Condensed Consolidated Balance Sheets at
September 30, 1997 and December 31, 1996 2
Condensed Consolidated Statements of Earnings
Three and Nine Months Ended September 30, 1997 and 1996 3
Condensed Consolidated Statements of Cash Flows
Three and Nine Months Ended September 30, 1997 and 1996 4 - 5
Notes to Condensed Consolidated Financial
Statements 6 - 8
ITEM 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9 - 11
PART II. OTHER INFORMATION 12
SIGNATURES 13
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except stock par value)
September 30, December 31,
ASSETS 1997 1996 (1)
(Unaudited)
CURRENT ASSETS:
Cash and temporary investments $ 44,601 $ 34,290
Accounts receivable, less allowance for doubtful
accounts of $11,602 and $10,123, respectively 173,120 146,273
Inventories, net 135,415 133,637
Deferred income taxes 28,910 26,125
Other current assets 19,415 12,029
TOTAL CURRENT ASSETS 401,461 352,354
PROPERTY, PLANT AND EQUIPMENT, net of accumulated
depreciation and amortization of $78,764 and
$60,444, respectively 103,534 101,331
INTANGIBLE AND OTHER ASSETS, net of accumulated
amortization of $72,756 and $58,288,
respectively 156,808 160,553
$661,803 $614,238
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $106,577 $ 99,241
Current portion of long-term debt 10,459 10,384
Income taxes payable 19,020 9,141
Deferred revenue 11,556 11,910
TOTAL CURRENT LIABILITIES 147,612 130,676
LONG-TERM DEBT, less current maturities 43,198 50,541
OTHER LIABILITIES AND DEFERRED REVENUE 22,370 22,304
COMMON EQUITY PUT OPTIONS 4,674 11,041
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $1.00; authorized
10,000 shares, none issued or outstanding - -
Common stock, par value $0.01; authorized
100,000 shares; issued 43,501 shares and
28,195 shares, respectively 435 282
Retained earnings 254,859 206,331
Other stockholders' equity 188,655 193,063
443,949 399,676
$661,803 $614,238
See notes to condensed consolidated financial statements
(1) The consolidated balance sheet as of December 31, 1996 has been taken
from the audited financial statements at that date and condensed.
- -2-
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(All amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
NET REVENUE $201,876 $170,963 $567,810 $479,373
COST OF REVENUE 110,466 91,399 309,101 254,332
AMORTIZATION OF SOFTWARE
DEVELOPMENT COSTS 2,938 2,802 8,700 7,798
GROSS PROFIT 88,472 76,762 250,009 217,243
OPERATING EXPENSES:
Engineering 14,846 12,062 41,903 34,335
Selling, general and
administrative 42,148 38,264 122,393 109,548
Purchased research and
development and merger
integration costs - 12,341 - 12,341
Amortization of excess
of cost over fair value
of net assets acquired 1,251 1,048 3,598 2,582
58,245 63,715 167,894 158,806
EARNINGS FROM OPERATIONS 30,227 13,047 82,115 58,437
INTEREST EXPENSE, net (869) (945) (2,568) (2,175)
EARNINGS BEFORE PROVISION
FOR INCOME TAXES 29,358 12,102 79,547 56,262
PROVISION FOR INCOME TAXES 10,862 4,599 29,432 21,380
NET EARNINGS $ 18,496 $ 7,503 $ 50,115 $ 34,882
EARNINGS PER SHARE:
Primary $0.45 $0.18 $1.23 $0.86
Fully-diluted $0.45 $0.18 $1.21 $0.86
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING:
Primary 40,859 40,701 40,833 40,514
Fully-diluted 41,376 40,781 41,388 40,719
See notes to condensed consolidated financial statements
- -3-
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands)
(Unaudited)
Three Months Ended September 30,
1997 1996
Cash flows from operating activities:
Net earnings $18,496 $ 7,503
Adjustments to reconcile net earnings
to net cash from operating activities:
Depreciation and amortization of property,
plant and equipment 6,548 6,046
Other amortization 4,765 4,294
Provision for losses on accounts receivable 771 467
Charge for purchased research and development - 10,741
Changes in assets and liabilities
net of effect of acquisitions:
Accounts receivable (15,921) (13,693)
Sale of lease receivables - 4,813
Inventories 2,468 (1,313)
Other current assets (3,397) 4,834
Intangible and other assets (3,779) (11,277)
Accounts payable and accrued expenses 10,051 (6,101)
Other liabilities and deferred revenue 2,237 (4,417)
Net cash provided by operating activities 22,239 1,897
Cash flows from investing activities:
Note receivable - 500
Expenditures for property, plant and
equipment (7,844) (7,350)
Acquisition of subsidiaries, net of
cash acquired (4,266) (19,818)
Net cash used in investing activities (12,110) (26,668)
Cash flows from financing activities:
Proceeds from issuance of notes payable 43,331 29,405
Principal repayment of notes payable
and long term debt (43,431) (29,502)
Exercise of stock options and warrants 7,231 3,240
Proceeds from common equity put options - 946
Dividends paid (789) -
Purchase of treasury shares (5,866) (4,338)
Net cash provided by/(used in)
financing activities 476 (249)
Effects of exchange rate changes on cash (728) 395
Net increase(decrease) in cash and
temporary investments 9,877 (24,625)
Cash and temporary investments, beginning
of period 34,724 52,579
Cash and temporary investments, end of
period $44,601 $27,954
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 898 $1,080
Income taxes 908 5,019
See notes to condensed consolidated financial statements
- -4-
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands)
(Unaudited)
Nine Months Ended September 30,
1997 1996
Cash flows from operating activities:
Net earnings $50,115 $34,882
Adjustments to reconcile net earnings to
net cash from operating activities:
Depreciation and amortization of property,
plant and equipment 19,329 17,173
Other amortization 14,468 10,987
Provision for losses on accounts receivable 2,034 1,339
Charge for purchased research and
development - 10,741
Changes in assets and liabilities
net of effect of acquisitions:
Accounts receivable (24,285) (32,978)
Sale of lease receivables - 17,308
Inventories 1,894 (30,196)
Other current assets (9,653) (2,839)
Intangible and other assets (7,321) (20,784)
Accounts payable and accrued expenses (699) 8,472
Other liabilities and deferred revenue 9,172 1,854
Net cash provided by operating
activities 55,054 15,959
Cash flows from investing activities:
Note receivable 2,500 500
Expenditures for property, plant and
equipment (21,279) (25,479)
Acquisition of subsidiaries, net of
cash acquired (8,026) (26,898)
Net cash used in investing activities (26,805) (51,877)
Cash flows from financing activities:
Proceeds from issuance of notes payable and
long term debt 133,311 29,405
Principal repayments of notes payable and
long term debt (140,579) (33,055)
Exercise of stock options and warrants 23,676 15,425
Proceeds from common equity put options 285 946
Dividends paid (1,587) -
Purchase of treasury shares (29,934) (12,490)
Net cash(used in)/provided by
financing activities (14,828) 231
Effects of exchange rate changes on cash (3,110) (9)
Net increase(decrease) in cash and temporary
investments 10,311 (35,696)
Cash and temporary investments, beginning
of period 34,290 63,650
Cash and temporary investments, end of
period $44,601 $27,954
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest $ 3,478 $ 3,509
Income taxes 6,161 9,101
See notes to condensed consolidated financial statements
-5-
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(All amounts in thousands, except per share data)
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements include all necessary adjustments
(consisting of normal recurring accruals) and present fairly the
Company's financial position as of September 30, 1997, and the results
of its operations and its cash flows for the three and nine months
ended September 30, 1997 and 1996, in conformity with generally
accepted accounting principles for interim financial information
applied on a consistent basis. The results of operations for the three
and nine months ended September 30, 1997, are not necessarily
indicative of the results to be expected for the full year. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K
for the year ended December 31, 1996.
2. Primary and fully-diluted earnings per share are based on the weighted
average number of shares of common stock and common stock equivalents
(options and warrants) outstanding during the period, computed in
accordance with the treasury stock method.
On February 10, 1997 the Board of Directors approved a three for two
split of the Company's common stock to be effected as a 50 percent
stock dividend which was payable on April 1, 1997 to shareholders of
record on March 10, 1997. In this report, all earnings per share
amounts and the weighted average number of common shares outstanding
have been retroactively restated to reflect the stock split. In
addition the number of common shares issued have been adjusted to
reflect the stock split, an amount equal to the par value of the
additional shares issued has been transferred from additional paid in
capital to common stock.
3. On April 1, 1997 the Company paid a $0.03 per share cash dividend
($0.02 per share post stock split) that was approved by the Board of
Directors on February 10, 1997 to shareholders of record on March 10,
1997. In addition, on August 14, 1997 the Board of Directors approved
a $0.02 per share cash dividend which was payable on October 6, 1997 to
shareholders of record on September 12, 1997. The cash dividends
described above have been recorded as an adjustment to retained
earnings as of September 30, 1997.
4. Classification of inventories is:
September 30, 1997 December 31, 1996
(Unaudited)
Raw materials $ 57,508 $ 54,534
Work-in-process 15,472 18,425
Finished goods 62,435 60,878
$135,415 $133,637
- -6-
5. The Company is currently involved in matters of litigation arising
from the normal course of business. Management is of the opinion that
such litigation will have no material adverse effect on the Company's
consolidated financial position or results of operations.
On April 1, 1996, PSC Inc. ("PSC") commenced suit against the Company
purporting to assert claims against the Company for alleged
violations of the federal antitrust laws, unfair competition and also
seeking a declaratory judgment of non-infringement and invalidity as
to certain of the Company's patents. PSC has served a Third Amended
Complaint, which purports to assert essentially the same antitrust
and unfair competition claims against the Company, and also seeks a
declaratory judgment of alleged non-infringement and validity of nine
of the Company's patents, and a declaratory judgment that PSC has not
breached its two license agreements with the Company and that those
agreements have been terminated. The Company has amended its suit
against PSC to assert infringement of four Symbol patents, breach of
contract, and fraud. The Company is also seeking damages which are
now in excess of $9 million plus interest on unpaid royalties for
each quarter since the second quarter of 1996. The Company had also
sued Data General Corporation ("Data General"), a manufacturer of
portable integrated scanning terminals incorporating a component
manufactured by PSC, for infringement of the same four patents and
five additional patents. The nine patents asserted against Data
General are the same nine Symbol patents as to which PSC is seeking
declaratory relief.
On October 9, 1996, the Court granted the Company's motion to sever
and stay PSC's antitrust, unfair competition and related claims. On
the same day, the Court denied Data General's motion to stay the
Company's claims against it.
The Company believes that all claims purportedly asserted against it
by PSC are factually and legally baseless, and wholly without merit.
The Company intends to vigorously defend the litigation.
6. During April 1997, the Company issued common equity put options on
150,000 shares of its common stock which are exercisable for a period
of one year from the date of issuance and give independent parties
the right to sell such shares to the Company at a strike price of
$31.163 per share. Proceeds of $285,000 from the issuance of the
April 1997 put options have been credited to additional paid in
capital.
The balance of the common equity put option account as of September
30, 1997 and December 31, 1996, represents the amount the Company
would be obligated to pay if all unexpired put options were exercised
relating to unexpired transactions outstanding as of the respective
balance sheet dates. The decrease in the balance as of September 30,
1997 from December 31, 1996 is due to the expiration of obligations
associated with 70,500 shares and 375,000 shares, respectively of the
Company's common stock at strike prices of $26.703 and $24.421,
respectively, and corresponding reclassification to additional paid
in capital, partially offset by the April 1997 issuance previously
described.
7. In July 1997, the Company established wholly owned subsidiaries in
Holland and Japan through the acquisition of Score Datacom Nederland
B.V. and Olympus Symbol Inc., respectively. The initial cost related
to these acquisitions amounted to approximately $3,000,000 and
$4,700,000, respectively. These acquisitions have been accounted for
- -7-
as purchases and, accordingly, the related acquisition cost will be
allocated to net assets acquired based upon fair values. The excess
cost over net assets acquired of approximately $2,100,000 and
$220,000, respectively, will be amortized over twenty years.
Additional acquisition payments will be contingent upon the attainment
of certain annual net revenue levels as defined in the respective
agreements during the next three years.
Result of operations of these subsidiaries have been included in
consolidated operations as of their respective effective acquisition
dates. Pro forma results of operations, assuming these acquisitions
had been completed at the beginning of 1997 and 1996, would not differ
materially from the reported results.
- -8-
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
Net revenue of $201,876,000 and $567,810,000 for the three and nine
months ended September 30, 1997 increased 18.1 percent and 18.4 percent,
respectively, over the comparable prior year periods. The increase for the
three and nine months ended September 30, 1997 is due to increased
worldwide sales of both scanner and hand held computer systems. Foreign
exchange rate fluctuations unfavorably impacted net revenue by
approximately 2.4 percent and 1.5 percent, respectively for the three and
nine months ended September 30, 1997 and unfavorably impacted net revenue
by approximately 0.7 percent and 0.6 percent for the three and nine months
ended September 30, 1996.
Geographically, North America revenue increased 22.0 percent and 15.5
percent, respectively, for the three and nine months ended September 30,
1997 over the comparable prior year periods. International revenue
increased 12.8 percent and 22.7 percent, respectively, for the three and
nine months ended September 30, 1997 over the comparable prior year periods
notwithstanding the unfavorable impact of foreign exchange rate
fluctuations on net revenue previously described. North America and
International revenue continue to represent approximately three-fifths and
two-fifths of net revenue, respectively.
Cost of revenue (as a percentage of net revenue) of 54.7 percent and
54.4 percent for the three and nine months ended September 30, 1997,
increased from 53.5 percent and 53.1 percent, respectively, for the
comparable prior year periods. The increase for the three months ended
September 30, 1997 is principally due to the unfavorable impact of foreign
exchange rate fluctuations on net revenue previously described. The
increase for the nine months ended September 30, 1997 is due to the
preceding coupled with a change in the mix of the Company's products sold
to a higher percentage of lower margin products and an increase in revenue
derived from the Company's indirect sales channel.
Amortization of software development costs of $2,938,000 and
$8,700,000 for the three and nine months ended September 30, 1997 increased
from $2,802,000 and $7,798,000 in the comparable prior year periods due to
new product releases.
Engineering expenses for the three and nine months ended September 30,
1997 increased to $14,846,000 and $41,903,000 from $12,062,000 and
$34,335,000, respectively, for the comparable prior year periods. In
absolute dollars engineering expenses increased 23.1 percent and 22.0
percent, respectively, from the prior year periods. As a percentage of
revenue such expenses increased to 7.4 percent for the three and nine
months ended September 30, 1997 from 7.1 percent and 7.2 percent from the
comparable prior year periods. These increases are due to additional
expenses incurred in connection with the continuing research and
development of new products and the improvement of existing products
partially offset by increased capitalized costs incurred for internally
developed product software where economic and technological feasibility has
been established.
Selling, general and administrative expenses of $42,148,000 and
$122,393,000 for the three and nine months ended September 30, 1997
- -9-
increased from $38,264,000 and $109,548,000, respectively, for the
comparable prior year periods. While in absolute dollars, selling, general
and administrative expenses increased 10.2 percent and 11.7 percent,
respectively, from the prior year periods, as a percentage of revenue such
expenses decreased to 20.9 percent and 21.6 percent for the three and nine
months ended September 30, 1997 from 22.4 percent and 22.9 percent,
respectively, in the comparable prior year periods. The increase in
absolute dollars reflects expenses incurred to support a higher revenue
base and expenses incurred by acquired subsidiaries during the relevant
periods affected.
During the three and nine months ended September 30, 1996, the Company
recognized a one-time pre-tax charge of $12,341,000 related to write off of
purchased research and development and accrued merger integration costs.
Such acquisition related charges are reported as a separate line item in
the statement of earnings and had an effect of $0.19 per share for the
quarter ended September 30, 1996.
Amortization of excess of cost over fair value of net assets acquired
of $1,251,000 and $3,598,000 for the three and nine months ended September
30, 1997, increased from $1,048,000 and $2,582,000 in 1996 due primarily to
the acquisition of subsidiaries in the relevant periods affected.
Net interest expense of $869,000 for the three months September 30,
1997, decreased from $945,000 in the prior year period due to increased
interest income as a result of increased availability of cash and temporary
investments and reduction of interest expense due to repayments of
indebtedness. Net interest expense increased to $2,568,000 for the nine
months ended September 30, 1997 from $2,175,000 for the comparable prior
year periods due to decreased interest income as a result of the decrease
in cash and temporary investments, increase in interest expense related to
short term borrowings under existing credit lines, and a reduction of
interest capitalized in connection with the renovation of the Company's
worldwide headquarters in the prior year partially offset, in part, by a
reduction in interest expense due to repayments of indebtedness.
The Company's effective tax rate of 37.0 percent for the three and
nine months ended September 30, 1997, decreased from 38.0 percent in the
prior year periods due to an increase in exempt earnings of the Company's
foreign sales operation.
Liquidity and Capital Resources
The Company utilizes a number of measures of liquidity including the
following:
September 30, December 31,
1997 1996
Working Capital (in thousands) $253,849 $221,678
Current Ratio (Current Assets
to Current Liabilities) 2.7:1 2.7:1
Long-Term Debt to Capital 8.9% 11.2%
(Long-term debt to long-term
debt plus equity)
- -10-
Current assets increased by $49,107,000 from December 31, 1996
principally due to an increase in cash and temporary investments and in
accounts receivable as a result of the increase in net revenue.
Current liabilities increased $16,936,000 from December 31, 1996
primarily due to increases in accounts payable and accrued expenses and
income taxes payable.
The aforementioned activities resulted in a working capital increase of
$32,171,000 for the nine months ended September 30, 1997. The Company's
current ratio as of September 30, 1997 remained constant at 2.7:1.
Property, plant and equipment expenditures for the nine months ended
September 30, 1997 totalled $21,279,000 compared to $25,479,000 for the nine
months ended September 30, 1996. Such expenditures for the period were
financed by existing cash and temporary investments. The Company does not
have any material commitments for capital expenditures.
The Company's long-term debt to capital ratio decreased to 8.9 percent
at September 30, 1997 from 11.2 percent at December 31, 1996 primarily due
to increased equity from the results of operations, the exercise of stock
options, the net decrease in the balance of the common equity put option
account as a result of the expiration of such options as well as payment of
the annual installments of the Company's Senior Notes.
The Company has credit agreements with three banks pursuant to which
the banks have agreed to provide lines of credit totalling $75,000,000. As
of September 30, 1997, the Company had no outstanding borrowings under these
lines. These agreements expire between December 31, 1997 and June 30, 1998.
The Company generated over $22,200,000 positive cash flow from
operations for the three months ended September 30, 1997, and experienced
an overall increase in cash of $9,877,000 for the period. The positive
cash flow provided by operations was offset in part, by cash used in
investing activities and various financing activities, principally the
purchase of 159,000 shares of the Company's common stock, acquisition
related payments and expenditures for property, plant and equipment. The
purchases of common stock represents shares purchased from officers related
to the exercise of stock options. These purchases were partially offset by
cash flow generated from and tax benefits associated with the exercise of
stock options.
The Company believes that it has adequate liquidity to meet its current
and anticipated needs from working capital, results of its operations, and
existing credit facilities.
- -11-
Part II - Other Information
Item 1. Legal Proceedings:
On April 1, 1996, PSC Inc. ("PSC") commenced suit against the Company in
Federal District Court for the Western District of New York, purporting to
assert claims against the Company for alleged violations of the federal
antitrust laws, unfair competition and also seeking a declaratory judgement
of non-infringement and invalidity as to certain of the Company's patents.
PSC has served a Third Amended Complaint, which purports to assert
essentially the same antitrust and unfair competition claims against the
Company, and also seeks a declaratory judgment of alleged non-infringement
and validity of nine of the Company's patents, and a declaratory judgement
that PSC has not breached its two license agreements with the Company and
that those agreements have been terminated. The Company has amended its
suit against PSC to assert infringement of four Symbol patents, breach of
contract, and fraud. The Company is also seeking damages which now exceed
$9,000,000 plus interest on unpaid royalties since the second quarter of
1996. The Company had also sued Data General Corporation ("Data General"),
a manufacturer of portable integrated scanning terminals which incorporates
scan engines from PSC, for infringement of the same four patents and five
additional patents. The nine patents asserted against Data General are the
same nine Symbol patents as to which PSC is seeking declaratory relief.
On October 9, 1996, the Court granted the Company's motion to sever and stay
PSC's antitrust, unfair competition and related claims. On the same day,
the Court denied Data General's motion to stay the Company's claims against
it. The Court also set a one week trial (a "Markman" hearing) for July 14,
1997, to construe the claims in all nine patents asserted by Symbol against
Data General and PSC.
On May 8, 1997, the Court ruled, on its own motion, to postpone the
"Markman" hearing which had been scheduled to commence on July 14, 1997. In
the interest of judicial economy, the Court also stayed discovery in the
patent claims until a non-judicial arbitration which PSC had initiated on
March 10, 1997 is completed. The arbitration involves an interpretation of
certain provisions of a 1995 license agreement between the Company and
Spectra-Physics Scanning Systems, Inc. concerning the extent to which
customers of the QS6000 scan engine can obtain immunity from the Company's
patents if such customers integrate this scan engine into their integrated
scanning terminals. The arbitration was heard on July 22-24, 1997. A
decision by the Arbitrator is expected within the next 30 days. The Company
believes that PSC's position in the arbitration is factually and legally
baseless and, in addition, ignores the fact that the parties' relationship
is governed by other license agreements between the Company and PSC. Upon
conclusion of the arbitration, the Company intends to seek a ruling from the
Court that Company's license agreements with PSC, which PSC argues have been
terminated and under which it has ceased paying royalties for more than two
years, remain in full force and effect and require royalty payments to be
made to the Company pursuant to those agreements.
- -12-
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.
SYMBOL TECHNOLOGIES, INC.
Dated: October 16, 1997 By: /s/ Jerome Swartz
Jerome Swartz, Chairman and
Chief Executive Officer
Dated: October 16, 1997 By: /s/ Kenneth V. Jaeggi
Kenneth V. Jaeggi
Senior Vice President -
Chief Financial Officer
- -13-
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<PERIOD-END> SEP-30-1997
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<ALLOWANCES> (11,602,000)
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