<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended September 27, 1997
Commission File Number: O-19406
Zebra Technologies Corporation
(Exact name of registrant as specified in its charter)
Delaware 36-2675536
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
333 Corporate Woods Parkway, Vernon Hills, IL 60061
(Address of principal executive offices) (Zip Code)
(847) 634-6700
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant 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 has been subject to such filing
requirements for the past 90 days.
[ X ] Yes [ ] No
As of November 6, 1997, there were the following shares
outstanding:
Class A Common Stock, $.01 par value: 19,383,340
Class B Common Stock, $.01 par value: 4,890,609
</PAGE>
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
QUARTER ENDED SEPTEMBER 27, 1997
INDEX
<TABLE>
<CAPTION>
PAGE
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Independent Auditors' Review Report 2
Consolidated Balance Sheets
as of September 27, 1997 (unaudited) and
December 31, 1996 3
Consolidated Statements of Earnings (unaudited)
for the three and nine months ended
September 27, 1997 and September 28, 1996 4
Consolidated Statements of Cash Flows (unaudited)
for the nine months ended September 27, 1997
and September 28, 1996 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 14
</PAGE>
<PAGE>
Item 1. Consolidated Financial Statements
Independent Auditors' Review Report
The Board of Directors
Zebra Technologies Corporation:
We have reviewed the consolidated balance sheet of Zebra
Technologies Corporation and subsidiaries as of September 27,
1997, and the related consolidated statements of earnings for the
three-month and nine-month periods ended September 27, 1997 and
September 28, 1996 and consolidated statements of cash flows for
the nine month periods ended September 27, 1997 and September 28,
1996. These consolidated financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A
review of interim financial information consists principally of
applying analytical procedures to financial data and making
inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying
consolidated financial statements for them to be in conformity
with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the consolidated balance sheet of Zebra
Technologies Corporation and subsidiaries as of December 31,
1996, and the related consolidated statements of earnings,
stockholders' equity, and cash flows for the year then ended (not
presented herein); and in our report dated February 7, 1997, we
expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the
accompanying consolidated balance sheet as of December 31, 1996
is fairly stated, in all material respects, in relation to the
consolidated balance sheet from which it has been derived.
Chicago, Illinois
/s/KPMG Peat Marwick LLP
October 14, 1997
</PAGE>
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
</TABLE>
<TABLE>
<CAPTION>
September 27, December 31,
1997 1996
<S> <C> <C>
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $9,749 $5,168
Investments and marketable securities 106,818 89,372
Accounts receivable, net of allowance 31,843 31,631
of $1,329 in 1997 and $960 in 1996
Inventories:
Finished goods 8,919 10,428
Work-in-process 208 325
Raw materials 12,168 10,750
Total inventories 21,295 21,503
Prepaid expenses 2,245 690
Total current assets 171,950 148,364
Machinery and equipment at cost, less
accumulated depreciation and 12,140 11,328
amortization
Other assets 2,382 3,444
Deferred income taxes 2,318 147
Total assets $188,790 $163,283
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $10,002 $12,200
Accrued liabilities 7,593 4,180
Short-term note payable 137 1
Current portion of obligation under 64 62
capitalized lease with related party
Income taxes payable 3,642 3,750
Total current liabilities 21,438 20,193
Obligation under capitalized lease with 67 115
related party, less current portion
Long-term liability 212 2,211
Other 291 308
Total liabilities 22,008 22,827
Stockholders' equity:
Preferred stock, $.01 par value,
10,000,000 shares authorized, none outstanding - -
Class A Common Stock, $.01 par value;
35,000,000 shares authorized, 19,381,117
and 16,924,973 shares issued and
outstanding in 1997 and 1996, respectively 194 169
Class B Common Stock, $.01 par value;
35,000,000 shares authorized, 4,890,609 and
7,315,404 shares issued and outstanding in
1997 and 1996, respectively 49 73
Paid-in capital 29,272 30,386
Retained earnings 137,086 108,624
Unrealized holding gain/(loss) on - (6)
investments
Cumulative translation adjustment 181 1,210
Total stockholders' equity 166,782 140,456
Total liabilities and stockholders'
equity $188,790 $163,283
</TABLE>
See accompanying notes to consolidated financial statements and
Independent Auditors' Review Report.
</PAGE>
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September September September September
27, 28, 27, 28,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Net sales $49,889 $41,858 $138,742 $117,301
Cost of sales 24,878 21,763 69,027 61,192
Gross profit 25,011 20,095 69,715 56,109
Operating Expenses:
Sales and marketing 4,863 3,538 13,807 11,388
Research and development 2,767 2,156 7,935 7,541
General and administrative 3,730 2,648 10,620 8,331
Acquired in-process
technology - 3 - 1,117
Total operating expenses 11,360 8,345 32,362 28,377
Income from operations 13,651 11,750 37,353 27,732
Other income (expense):
Investment income 1,278 786 3,715 2,477
Gain on securities 583 565 7,276 1,633
Other, net 27 48 364 102
Total other income 1,888 1,399 11,355 4,212
Income from continuing
operations before income
taxes 15,539 13,149 48,708 31,944
Provision for income taxes 5,594 4,526 17,591 10,869
Income from continuing
operations 9,945 8,623 31,117 21,075
Discontinued operations:
Income (loss) from
discontinued operation
(less applicable
income tax benefit) - 92 (1,692) (851)
Loss on disposal of
discontinued operation
including provision for
operating losses during
the phase-out period (less
applicable income tax
benefit) - - (963) -
Net income $9,945 $8,715 $28,462 $20,224
Net income per share from
continuing operations $0.41 $0.36 $1.28 $0.87
Net income per share $0.41 $0.36 $1.17 $0.84
Average shares outstanding 24,257 24,203 24,247 24,197
</TABLE>
See accompanying notes to consolidated financial statements and
Independent Auditors' Review Report.
</PAGE>
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September September
27, 28,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net income $28,462 $20,224
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 2,694 2,193
Appreciation in market value of
investments and marketable
securities (468) 1,252
Acquired in-process technology - 1,117
Discontinued operations (3,371) -
Increase in accounts receivable (212) (4,147)
Decrease in inventories 208 351
Decrease in other assets 1,062 850
Decrease in accounts payable (2,198) (3,126)
Increase in accrued liabilities
and other 3,396 1,459
(Decrease) in income taxes payable (108) (108)
Increase in deferred income taxes (2,171) (485)
Net increase (decrease) in other
operating activities (2,583) 427
Net purchases of investments and
marketable securities (23,017) (19,426)
Net cash provided by
operating activities 1,694 581
Cash flows from investing activities:
Purchases of machinery and equipment (3,506) (4,803)
Net (purchases) sales of investments
and marketable securities 6,044 (78)
Net cash provided by (used in)
investing activities 2,538 (4,881)
Cash flows from financing activities:
Proceeds from sale of stock 259 129
Issuance of (payment for) short-term
notes payable 136 (35)
Payments for obligation under capital
lease (46) (44)
Payment for acquisition - (962)
Net cash provided (used in)
by financing activities 349 (912)
Net increase (decrease) in cash and
cash equivalents 4,581 (5,212)
Cash and cash equivalents at beginning
of period 5,168 10,017
Cash and cash equivalents at end of
period $9,749 $4,805
Supplemental disclosures of cash flow
information:
Interest paid 9 16
Income taxes paid $15,936 $10,145
</TABLE>
See accompanying notes to consolidated financial statements and
Independent Auditors' Review Report.
</PAGE>
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of Presentation
The consolidated financial statements included herein have been
prepared by Zebra Technologies Corporation and subsidiaries (the
"Company"), without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to
such rules and regulations. These consolidated financial
statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's
latest Annual Report on Form 10-K filed with the Securities and
Exchange Commission. The consolidated balance sheet as of
December 31, 1996 presented herein has been derived from the
audited consolidated balance sheet contained in the Annual Report
on Form 10-K. In the opinion of the Company, the consolidated
financial statements reflect all adjustments necessary to present
fairly the consolidated financial position of Zebra Technologies
Corporation and subsidiaries as of September 27, 1997 and
December 31, 1996, and the consolidated results of their
operations for the three and nine months ended September 27, 1997
and September 28, 1996 and their cash flows for the nine months
ended September 27, 1997 and September 28, 1996. The results of
operations for such interim periods are not necessarily
indicative of the results for the full year.
Note 2 - Discontinued Business Operations
As of June 28, 1997, the Company made the decision to discontinue
the operations of its subsidiary, Zebra Technologies VTI
("VTI"). The discontinuance of VTI and the related PC retail
channel was completed during the third quarter of 1997. A one-
time charge of $2,363,000, before income tax benefits, was
recorded in the second quarter and was related to the
discontinuance of VTI and the Company's presence in the PC retail
channel. The one-time charge includes a provision for expected
product returns from present retail channel partners, provision
for slow moving/obsolete product, and provisions for estimated
contingent liabilities.
Note 3 - Legal Proceedings
As of June 28, 1997, the Company has settled the pending
litigation between Zebra and Messrs. Carter and Flury, the former
officers of VTI. The legal actions which were initiated in March
of 1996 have been settled out of court. Terms are confidential
and all payments have been completed. The settlement did not
unfavorably impact the Company's net income. In connection with
the settlement of the litigation, the Company reduced long-term
liabilities by $1,999,000 and paid-in capital by $1,372,000.
</PAGE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations Third Quarter of 1997 versus Third Quarter
of 1996 and Year-to-date 1997 versus Year-to-date 1996
Net sales for the third quarter of 1997 increased 19.2% to
$49,889,000 versus sales of $41,858,000 for the third quarter of
1996. On a year-to-date basis, 1997 sales increased 18.3% to
$138,742,000 versus sales of $117,301,000 in the comparable
period of 1996. This sales increase for the quarter and year-to-
date is attributed to unit growth in all product categories
rather than price increases, as the average unit price of printer
products has decreased due to product mix changes. Printer sales
increased by 25.0% while supplies sales decreased by 1.6% over
the third quarter of 1996, bringing printer sales to 77.0% and
supplies sales to 20.2% of consolidated net sales, respectively,
for the third quarter of 1997 as compared to 73.4% and 24.5% for
the third quarter of 1996. On a year-to-date basis, printer
sales increased by 21.9% and supplies sales by 6.3% over 1996,
bringing printer sales to 75.3% and supplies sales to 22.2% of
consolidated net sales, respectively, for the first nine months
of 1997 as compared to 73.1% to 24.7% for the comparable period
of 1996. Approximately 45.8% of third quarter net sales were
derived from international sources as compared to 42.9% during
the third quarter of 1996. Similarly, 46.7% of year-to-date net
sales were derived from international sources as compared to
44.6% in the comparable period of 1996.
Gross profit increased to $25,011,000 for the third quarter of
1997, a 24.5% gain over the gross profit of $20,095,000 for the
third quarter of 1996. As a percentage of net sales, gross
profit increased 2.1% from 48.0% in the third quarter of last
year to 50.1% in the third quarter of 1997. Year-to-date gross
profit of $69,715,000 also increased as a percentage of net
sales, from 47.8% last year to 50.2% this year. This increase
for the quarter and year-to-date is principally due to decreased
material costs of high volume printer parts plus a favorable
product mix within the Company's printer products and a lower
percentage of supplies sales.
Sales and marketing expenses of $4,863,000 were up 37.5% in the
third quarter of 1997 compared to $3,538,000 in the third quarter
of 1996. As a percentage of net sales, third quarter sales and
marketing expenses increased to 9.7% from 8.5% for the same
period last year. Year-to-date sales and marketing expenses of
$13,807,000 were up 21.2% over the comparable period last year,
increasing as a percentage of net sales from 9.7% last year to
10.0%. Increased spending on a quarterly and year-to-date basis
is principally due to increased staffing (sales staff was
increased in Singapore, Germany, and France), advertising, bad
debt expense, customer accommodation, public relations, outside
consulting services, and trade show expenses. These expense
increases were offset in part by reductions in warranty costs in
comparison to last year on both a quarterly and year-to-date
basis.
Research and development expenses for the third quarter of 1997
increased by 28.3% to $2,767,000 (5.5% of net sales) versus
$2,156,000 (5.2% of net sales) in the third quarter of 1996.
Year-to-date research and development expenses increased by 5.2%
to $7,935,000 (5.7% of net sales) versus $7,541,000 (6.4% of net
sales) last year. Increases on a quarterly and year-to-date
basis were primarily due to increased staffing in both of the
Vernon Hills and European facilities.
</PAGE>
<PAGE>
General and administrative expenses for the third quarter of 1997
increased by 40.9% to $3,730,000 (7.5% of net sales) as compared
to $2,648,000 (6.3% of net sales) for the third quarter of 1996.
On a year-to-date basis, general and administrative expenses
increased by 27.5% to $10,620,000 (7.7% of net sales) compared to
$8,331,000 (7.1% of net sales) last year. The increase in
general and administrative expenses for the quarter and year-to-
date on both a dollar and percentage basis was primarily the
result of increases in staffing, depreciation, outside consulting
services, and building expenses. Both the 1997 and 1996 periods
include the amortization of intangible assets and goodwill for
the acquisition of the assets of Fenestra Computer Services, as
described in the Liquidity and Capital Resources section below.
Income from operations for the third quarter of 1997 increased by
$1,901,000 or 16.2% to $13,651,000 (27.4% of net sales) compared
to $11,750,000 (28.1% of net sales) for the third quarter of
1996. Year-to-date income from operations increased by
$9,621,000 or 34.7% to $37,353,000 (26.9% of net sales) compared
to $27,732,000 (23.6% of net sales) in the previous year. This
increase on a quarterly and year-to-date basis was due to higher
gross profits, as previously indicated, offset in part by the
non-recurring write-off of acquired in-process technology of
$1,117,000 in the first quarter of 1996 as a result of the
Company's acquisition of Fenestra Computer Services.
Investment income for the third quarter of 1997 increased by
$510,000 or 37.7% to $1,861,000 versus $1,351,000 for the third
quarter of 1996. On a year-to-date basis, investment income
increased by $6,881,000 or 167.4% to $10,991,000 versus
$4,110,000 in 1996. On both a quarterly and year-to-date basis,
the Company had larger cash balances invested and was able to
earn a higher rate of return than in the comparable period from
1996. Cash and marketable securities increased to $116,567,000
as of September 27, 1997 from $94,540,000 as of December 31,
1996.
Gain on securities includes a one-time gain of $5,458,000 during
the first quarter of 1997 from the sale of 350,000 shares of
Norand Corporation common stock which was purchased in October of
1995 when management briefly considered Norand a possible
acquisition candidate.
Income before income taxes was $15,539,000 in the third quarter
of 1997 compared to $13,149,000 in the same quarter of last year,
an increase of $2,390,000 or 18.2%. The provision for income
taxes was 36.0% in the third quarter of 1997, resulting in net
income from continuing operations of $9,945,000 or 19.9% of net
sales and net income per share from continuing operations of
$0.41 on 24,257,000 weighted average shares outstanding. In the
third quarter of 1996, the provision for income taxes was 34.4%
resulting in net income from continuing operations of $8,623,000
or 20.6% of net sales and net income per share from continuing
operations of $0.36 on 24,203,000 weighted average shares
outstanding. Year-to-date income from continuing operations
before income taxes of $48,708,000 was $16,764,000 or 52.5% above
the prior year amount of $31,944,000 for the same period. The
provision for income taxes on a year-to-date basis was 36.1% in
1997, resulting in net income from continuing operations of
$31,117,000 or 22.4% of net sales and net income per share from
continuing operations of $1.28 on 24,247,000 weighted average
shares outstanding. On a year-to-date basis, the provision for
income taxes in 1996 was 34.0% resulting in net income from
continuing operations of $21,075,000 or 18.0% of net sales and
net income per share from continuing operations of $0.87 on
24,197,000 weighted average shares outstanding. The increase in
the effective tax rate in 1997, on a quarterly and year-to-date
basis, was due to a decrease in tax-exempt income in the 1997
period compared with the 1996 period.
</PAGE>
<PAGE>
As of June 28, 1997, the Company made the decision to discontinue
the operations of its VTI subsidiary. The discontinuance of VTI
and the related PC retail channel was completed during the third
quarter of 1997. A one-time charge of $2,363,000, before income
tax benefits, was recorded in the second quarter and was related
to the discontinuance of VTI and the Company's presence in the PC
retail channel. The one-time charge includes a provision for
expected product returns from present retail channel partners,
provision for slow moving/obsolete product, and provisions for
estimated contingent liabilities. As part of recording the
provisions and charges, the related remaining goodwill and
intangible assets were written off as part of the discontinued
operation charge. The transition of remaining salable products
and the business records and duties was made during the third
quarter of 1997 to appropriate personnel at the Company's Vernon
Hills facility.
Liquidity and Capital Resources
The Company's principal source of liquidity continues to be cash
generated from operations and its cash and marketable securities
balances. At September 1997, the Company had $116,567,000 in
cash and marketable securities versus $94,540,000 at the end of
1996.
Effective February 16, 1996, the Company purchased the assets of
Fenestra Computer Services, a UK partnership, in exchange for
$1,314,000 in cash and Zebra Class A common stock. The
transaction has been accounted for under the purchase method of
accounting. Assets and liabilities, including software and
hardware technology, and trade names have been recorded at their
respective fair market values with $1,117,000 assigned to
acquired in-process technology based on an independent third-
party appraisal. The entire amount of the acquired in-process
technology was expensed in the first quarter of 1996.
Management believes that existing capital resources and funds
generated from operations are sufficient to finance anticipated
capital requirements. The Company has no commitments or
agreements with respect to acquisitions or other significant
capital expenditures.
Recently Issued Accounting Pronouncement
In February 1997, the Financial Accounting Standards Board issued
SFAS No. 128, "Earnings per Share" ("EPS"). Implementation of
SFAS No. 128 is required for the periods ending after December
15, 1997. The standard establishes new methods for computing and
presenting EPS and replaces the presentation of primary and
fully-diluted EPS with basic and diluted EPS. The new methods
under this standard are not expected to have a significant impact
on the Company's EPS amounts.
</PAGE>
<PAGE>
Significant Customer
Sales to The Peak Technologies Group, Inc. ("Peak") accounted
for more than 20% of the Company's total net sales in the fiscal
year ended December 31, 1996 and 17% in the nine months ended
September 27, 1997. Peak was recently acquired by Moore
Corporation. The Company believes it has an excellent long-term
relationship with Peak. However, the effect which the
acquisition will have on the Company's relationship with this
customer-positive or negative-is currently unknown.
Safe Harbor
Forward looking statements contained in this filing are subject
to the safe harbor created by the Private Securities Litigation
Reform Act of 1995 and are highly dependent upon a variety of
important factors which could cause actual results to differ
materially from those reflected in such forward looking
statements. These factors include the acceptance of the
Company's printer and software products by the market, and
product offerings made by its competitors. Profits will be
affected by the Company's ability to control manufacturing and
operating costs. Due to the Company's large investment
portfolio, interest rate conditions will also have an impact on
results, as will foreign exchange rates due to the large
percentage of the Company's sales in international markets. When
used in this document 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. Readers of
this release are referred to prior filings with the Securities
and Exchange Commission, including Zebra's prospectus of September
4, 1997, for further discussions of factors that could affect
Zebra's future results.
</PAGE>
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
15. Acknowledgment of Independent Certified
Public Accountants Regarding Independent
Auditors' Review Report
27. Financial Data Schedule
(b) Reports.
No reports on Form 8-K have been filed by the
Registrant for the quarterly period covered
by this report.
</PAGE>
<PAGE>
Exhibit 15
Acknowledgment of Independent Certified Public
Accountants Regarding Independent Auditors'
Review Report
Zebra Technologies Corporation
333 Corporate Woods Parkway
Vernon Hills, Illinois 60061-3109
Ladies and Gentlemen:
With respect to the registration statements (No. 33-44706 and No.
33-72774) on Form S-8, we acknowledge our awareness of the
incorporation by reference therein of our report dated October
14, 1997 related to our review of interim financial information.
Pursuant to Rule 436(c) under the Securities Act of 1933, such
report is not considered part of a registration statement
prepared or certified by an accountant or a report prepared or
certified by an accountant within the meaning of Sections 7 and
11 of the Act.
Very truly yours,
/s/KPMG Peat Marwick LLP
Chicago, Illinois
November 5, 1997
</PAGE>
<PAGE>
Exhibit 27
The schedule contains summary financial information extracted
from Zebra Technologies Corporation and subsidiaries consolidated
balance sheet as of September 27, 1997 and consolidated
statements of earnings for the nine months ended September 27,
1997 and is qualified in its entirety by reference to such
financial statements.
ZEBRA TECHNOLOGIES CORPORATION
Appendix A to Item 601(c) of Regulation S-K
Commercial and Industrial Companies
Article 5 of Regulation S-X
<TABLE>
<CAPTION>
Item Item Description Amount
Number
<S> <C> <C>
5-02(1) cash and cash items 9,749
5-02(2) marketable securities 106,818
5-02(3)(a)(1) notes and accounts receivable-trade 33,172
5-02(4) allowances for doubtful accounts (1,329)
5-02(6) inventory 21,295
5-02(9) total current assets 171,950
5-02(13) property, plant and equipment 25,630
5-02(14) accumulated depreciation (13,490)
5-02(18) total assets 188,790
5-02(21) total current liabilities 21,438
5-02(22) bonds, mortgages and similar debt 0
5-02(28) preferred stock-mandatory redemption 0
5-02(29) preferred stock-no mandatory redemption 0
5-02(30) common stock 243
5-02(31) other stockholder's equity 166,539
5-02(32) total liabilities and stockholder's equity 188,790
5-03(b)1(a) net sales of tangible products 136,437
5-03(b)1 total revenues 138,742
5-03(b)2(a) cost of tangible goods sold 68,171
5-03(b)2 total costs and expenses applicable to sales
and revenues 69,027
5-03(b)3 other costs and expenses 31,917
5-03(b)5 provision for doubtful accounts and notes 445
5-03(b)(8) interest and amortization of debt discount 9
5-03(b)(10) income before income taxes 48,708
5-03(b)11 income tax expense 17,591
5-03(b)(14) income/loss 31,117
5-03(b)(15) discontinued operations (2,655)
5-03(b)(17) extraordinary items 0
5-03(b)(18) cumulative effect-changes in accounting
principles 0
5-03(b)(19) net income or loss 28,462
5-03(b)(20) earnings per share-primary 1.17
5-03(b)(20) earnings per share-fully diluted 1.17
</TABLE>
</PAGE>
<PAGE>
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.
<TABLE>
<S> <C>
ZEBRA TECHNOLOGIES CORPORATION
Date: November 6, 1997 By: /s/Edward L. Kaplan
Edward L. Kaplan
Chief Executive Officer
Date: November 6, 1997 By: /s/Charles R. Whitchurch
Charles R. Whitchurch
Chief Financial Officer
</TABLE>
</PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF OPERATIONS FOUND IN
THE COMPANY'S FORM 10-Q FOR THE YEAR-TO-DATE, AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-27-1997
<CASH> 9,749
<SECURITIES> 106,818
<RECEIVABLES> 33,172
<ALLOWANCES> (1,329)
<INVENTORY> 21,295
<CURRENT-ASSETS> 171,950
<PP&E> 25,630
<DEPRECIATION> (13,490)
<TOTAL-ASSETS> 188,790
<CURRENT-LIABILITIES> 21,438
<BONDS> 0
0
0
<COMMON> 243
<OTHER-SE> 166,539
<TOTAL-LIABILITY-AND-EQUITY> 188,790
<SALES> 136,437
<TOTAL-REVENUES> 138,742
<CGS> 68,171
<TOTAL-COSTS> 69,027
<OTHER-EXPENSES> 31,917
<LOSS-PROVISION> 445
<INTEREST-EXPENSE> 9
<INCOME-PRETAX> 48,708
<INCOME-TAX> 17,591
<INCOME-CONTINUING> 31,117
<DISCONTINUED> (2,655)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 28,462
<EPS-PRIMARY> 1.17
<EPS-DILUTED> 1.17
</TABLE>
