<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 April 3, 1999
Commission File Number: 000-19406
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 May 13, 1999, there were the following shares outstanding:
<TABLE>
<CAPTION>
<S> <C>
Class A Common Stock, $.01 par value 23,716,825
Class B Common Stock, $.01 par value 7,322,474
</TABLE>
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
QUARTER ENDED APRIL 3, 1999
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Independent Auditors' Review Report 3
Consolidated Balance Sheets
as of April 3, 1999 (unaudited) and December 31, 1998 4
Consolidated Statements of Earnings (unaudited)
for the three months ended April 3, 1999 and April 4, 1998 5
Consolidated Statements of Comprehensive Income (unaudited)
for the three months ended April 3, 1999 and April 4, 1998 6
Consolidated Statements of Cash Flows (unaudited)
for the three months ended April 3, 1999 and April 4, 1998 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Item 3. Quantitative and Qualitative Disclosures
About Market Risk 12
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITORS' REVIEW REPORT
The Board of Directors and Shareholders
Zebra Technologies Corporation:
We have reviewed the consolidated balance sheet of Zebra Technologies
Corporation and subsidiaries as of April 3, 1999, and the related
consolidated statements of earnings, comprehensive income, and cash flows for
the three-month periods ended April 3, 1999 and April 4, 1998. These
consolidated financial statements are the responsibility of the Company's
management.
We conducted our reviews 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 reviews, 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, 1998, and the related consolidated
statements of earnings, comprehensive income, shareholders' equity, and cash
flows for the year then ended (not presented herein); and in our report dated
February 24, 1999, 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, 1998 is fairly
stated, in all material respects, in relation to the consolidated balance
sheet from which it has been derived.
/s/KPMG LLP
Chicago, Illinois
May 10, 1999
3
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
<TABLE>
<CAPTION>
APRIL 3, DECEMBER 31,
1999 1998
-------------- -----------------
ASSETS (Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 21,286 $ 11,391
Investments and marketable securities 158,470 151,277
Accounts receivable, net 58,859 57,654
Inventories 34,826 39,684
Deferred income taxes 5,200 5,137
Prepaid expenses 1,389 1,328
-------------- -----------------
Total current assets 280,030 266,471
-------------- -----------------
Property and equipment at cost, less
accumulated depreciation and amortization 38,757 38,850
Other assets 4,052 4,681
-------------- -----------------
TOTAL ASSETS $ 322,839 $ 310,002
-------------- -----------------
-------------- -----------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 17,723 $ 20,565
Accrued liabilities 11,421 11,498
Short-term note payable 185 183
Current portion of obligation under capital lease with related party 34 51
Income taxes payable 8,662 4,486
-------------- -----------------
Total current liabilities 38,025 36,783
-------------- -----------------
Long-term liability 16 36
Deferred income taxes 2,001 1,932
Other 172 367
-------------- -----------------
TOTAL LIABILITIES 40,214 39,118
-------------- -----------------
Shareholders' equity:
Preferred stock, $.01 par value; 10,000,000 shares authorized,
none outstanding - -
Class A Common Stock, $.01 par value; 50,000,000 shares
authorized, 23,600,612 and 22,323,094 shares issued
and outstanding in 1999 and 1998, respectively 236 223
Class B Common Stock, $.01 par value; 28,358,189 shares
authorized, 7,375,896 and 8,619,919 shares issued
and outstanding in 1999 and 1998, respectively 74 86
Additional paid-in capital 50,272 49,854
Retained earnings 232,422 219,772
Accumulated other comprehensive income (379) 949
-------------- -----------------
TOTAL SHAREHOLDERS' EQUITY 282,625 270,884
-------------- -----------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 322,839 $ 310,002
-------------- -----------------
-------------- -----------------
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------------
APRIL 3, APRIL 4,
1999 1998
------------- -------------
<S> <C> <C>
Net sales $ 89,822 $ 80,798
Cost of sales 47,342 41,937
------------- -------------
Gross profit 42,480 38,861
Operating expenses:
Selling and marketing 9,959 8,449
Research and development 5,627 5,768
General and administrative 7,071 6,535
Merger costs 1,869 --
------------- -------------
Total operating expenses 24,526 20,752
------------- -------------
Operating income 17,954 18,109
------------- -------------
Other income (expense):
Investment income 2,284 1,730
Interest expense (3) (2)
Other, net 15 901
------------- -------------
Total other income 2,296 2,629
------------- -------------
Income before income taxes 20,250 20,738
Income taxes 7,600 7,575
------------- -------------
Net income $ 12,650 $ 13,163
------------- -------------
------------- -------------
Basic earnings per share $ 0.41 $ 0.43
Diluted earnings per share $ 0.41 $ 0.42
Basic weighted average shares outstanding 30,972 30,994
Diluted weighted average and equivalent shares outstanding 31,135 31,321
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------
APRIL 3, APRIL 4,
1999 1998
------------ ------------
<S> <C> <C>
Net income $ 12,650 $ 13,163
Other comprehensive income (loss):
Foreign currency translation adjustment (1,328) 462
------------ ------------
Comprehensive income $ 11,322 $ 13,625
------------ ------------
------------ ------------
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE>
ZEBRA TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------------------
APRIL 3, APRIL 4,
1999 1998
--------------- ----------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 12,650 $ 13,163
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,374 1,823
Appreciation in market value
of investments and marketable securities (823) (394)
Deferred income taxes 6 2,086
Gain on sale of subsidiary's assets - (404)
Changes in assets and liabilities:
Accounts receivable, net (1,205) (3,460)
Inventories 4,858 1,560
Other assets 552 (609)
Accounts payable (2,842) 2,941
Accrued liabilities (77) (3,476)
Income taxes payable 4,176 2,601
Other operating activities (256) (279)
Net sales (purchases) of investments
and marketable securities (6,370) 453
--------------- ----------------
Net cash provided by operating activities 13,043 16,005
--------------- ----------------
--------------- ----------------
Cash flows from investing activities:
Purchases of property and equipment (2,204) (12,292)
Proceeds from sale of subsidiary - 2,660
Purchase of investments and marketable securities - (791)
Sales of investments and marketable securities - 720
--------------- ----------------
Net cash used in investing activities (2,204) (9,703)
--------------- ----------------
Cash flows from financing activities:
Proceeds from exercise of stock options 419 259
Common stock retired in Eltron merger - (8,092)
Repayment of notes payable (18) (230)
Payments for obligation under capital lease (17) (16)
--------------- ----------------
Net cash provided by (used in) financing activities 384 (8,079)
--------------- ----------------
Effect of exchange rate changes on cash (1,328) 462
--------------- ----------------
Net increase (decrease) in cash and cash equivalents 9,895 (1,315)
Cash and cash equivalents at beginning of period 11,391 10,925
--------------- ----------------
Cash and cash equivalents at end of period $ 21,286 $ 9,610
--------------- ----------------
--------------- ----------------
Supplemental disclosures of cash flow information:
Interest paid $ 3 $ 2
Income taxes paid 4,833 1,373
Supplemental disclosures of noncash transactions:
Book value of net assets sold and obligations recorded in
connection with sale of RJS verification business - 2,256
</TABLE>
See accompanying notes to consolidated financial statements.
7
<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, 1998, 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 interim
consolidated financial statements reflect all adjustments necessary to present
fairly the consolidated financial position of the Company as of April 3, 1999,
and the consolidated results of operations and cash flows for the three months
ended April 3, 1999, and April 4, 1998. The results of operations for such
interim periods are not necessarily indicative of the results for the full year.
On October 28, 1998, the Company merged with Eltron International, Inc.
(Eltron). Eltron manufactures and markets high-quality, low-cost direct thermal
and thermal transfer bar code printers, plastic card printers, secure card
printing systems, ribbons, self-adhesive labels, and related accessories
throughout the world. Financial results for the Company have been restated to
reflect the merger as a pooling-of-interests.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS: FIRST QUARTER OF 1999 VERSUS FIRST QUARTER OF 1998
Net sales for the first quarter increased 11.2% to $89,822,000 from $80,798,000.
Hardware sales (printers and replacement parts) increased 12.3%, as unit volume
increases were partially offset by lower average unit prices on lower-priced
printers. For the first quarter, hardware sales accounted for 79.0% of net
sales. Supplies sales increased 9.7% to comprise 18.4% of net sales. The
remaining 2.6% of net sales consisted of service and software revenue.
International sales of $36,471,000 accounted for 40.6% of 1999 first quarter
sales, compared with 40.2% of net sales for the first quarter of 1998. The
increase in the percentage of international sales is due to higher sales growth
in international markets compared with sales growth in domestic markets.
Gross profit for the first quarter of 1999 was $42,480,000, up 9.3% from the
gross profit of $38,861,000 for the first quarter of 1998. As a percentage of
net sales, gross profit decreased to 47.3% from 48.1%. The decrease in gross
profit margin was due to a decrease in average selling price, notably in lower
priced printers, partially offset by favorable changes in sales volume, product
mix, and unit costs.
Selling and marketing expenses increased 17.9% to $9,959,000 for the first
quarter of 1999 from $8,449,000 for the first quarter of 1998. Increases in
expenses for bad debt, advertising, and payroll and benefits were partially
offset by decreases in outside services and depreciation. As a percentage of net
sales, first quarter selling and marketing expenses increased to 11.1% from
10.5%.
Research and development expenses for the first quarter decreased 2.4% to
$5,627,000 from $5,768,000. Higher personnel-related expenses partially offset a
decline in product development expenses, which varies with the level of product
development activity from quarter to quarter. As a percentage of net sales,
quarterly research and development expenses decreased to 6.3% from 7.1%.
General and administrative expenses for the first quarter increased by 8.2% to
$7,071,000 from $6,535,000. The increase in general and administrative expenses
was principally due to higher payroll and personnel training expenses resulting
from higher staffing levels, increased recruiting expenses, and higher
depreciation, which were partially offset by declines in expenditures for
outside services. As a percentage of net sales, quarterly general and
administrative expenses decreased to 7.9% from 8.0%.
During the first quarter of 1999, Zebra recorded $1,869,000 in merger costs,
which are related to the integration of Eltron operations. These costs, which
could not be provided for at the time of the merger, include expenditures on
consulting fees, as well as personnel-related expenses for relocation,
severance, and recruitment. The Company expects to incur additional merger costs
in future quarters of 1999, the amounts of which are not currently estimable.
Operating income for the first quarter decreased 0.9% to $17,954,000, or 20.0%
of net sales, from $18,109,000, or 22.4% of net sales. Excluding the $1,869,000
in merger costs, operating income increased 9.5% to $19,823,000, or 22.1% of net
sales.
Investment income increased 32.0% to $2,284,000 from $1,730,000 for the same
period in 1998. The increase was due to higher average balances invested in
marketable securities, as well as a higher rate of return on investments. The
annualized rate of investment return increased to 5.9% for the first quarter of
1999 from 5.4% for the first quarter of 1998.
Income before income taxes for the first quarter of 1999 was $20,250,000,
compared with $20,738,000 for the same period in 1998, a decrease of 2.4%.
The effective income tax rate for the first quarter of 1999 was 37.5%, compared
with 36.5% for the same period in 1998. Net income was $12,650,000, or $0.41 per
share (basic and diluted), compared with $13,163,000, or $0.42 per diluted
share. Excluding the $1,869,000 in merger costs, net income for the first
quarter of 1999 was $13,818,000, or $0.44 per diluted share.
9
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company's principal source of liquidity continues to be cash generated from
operations. Cash and cash equivalents and investments and marketable securities
totaled $179,756,000 at April 3, 1999, compared with $162,668,000 at December
31, 1998.
Management believes that existing capital resources and funds generated from
operations are sufficient to finance anticipated capital requirements.
YEAR 2000 CONSIDERATIONS
INTERNAL SYSTEMS. Management believes that substantially all of the Company's
critical internal computer systems and technical infrastructure is presently
Year 2000 (Y2K) compliant and that those systems not presently compliant will be
brought into compliance in sufficient time to avoid adverse business
consequences as the result of the Year 2000. During the first quarter of 1999,
the Company's new Y2K-compliant internal payroll system used at its Vernon Hills
headquarters became operational. Among the systems not compliant as of April 3,
1999, is the Company's manufacturing control software used in its label
conversion and warehouse facility in Preston, UK. This system is scheduled for
upgrade to bring it into compliance by the end of the third quarter of 1999. A
variety of sub-systems were also non-compliant as of April 3, 1999. These
typically require the installation of a software upgrade or patch and do not, in
management's opinion, present a serious obstacle to achieving Y2K compliance by
year-end.
PRODUCTS. The Company has reviewed its entire product line for Y2K compliance
issues and has identified those products that will be affected. In general, Y2K
issues do not affect the Company's printer products because they contain no
internal clock or timing mechanism. The Company's current software products are
all Y2K compliant, although in some cases previous versions were not. In
addition, the Company's PC-470 printer controller contains a real-time clock
that must be reset to function properly after January 1, 2000. In all cases
where products are not Y2K compliant, customers have been notified via letter or
postings on the Company's web site about any corrective action that is needed,
including, where appropriate, a requirement to upgrade certain software
products.
SUPPLIERS. The Company surveyed each of its significant suppliers to determine
their ability to provide necessary products and services that are critical to
business continuation through Y2K. To date, 123 suppliers deemed critical to the
business have been surveyed and 117 have affirmed positively that they would be
Y2K compliant, and that there would be no impact on their ability to supply the
Company due to Y2K problems. The Company is pursuing responses from the
remaining six suppliers.
Despite these assurances of compliance, the Company does not warrant the
performance of its suppliers. The failure by one or more significant suppliers
to achieve compliance could have a material adverse effect on the Company. The
Company has not undertaken to quantify the effect of such possible
non-compliance or to determine the likely worst-case scenario or to develop
contingency plans to deal with such a scenario.
Management estimates that it will have incurred approximately $400,000 of costs
to ensure Y2K compliance by December 31, 1999. This includes $200,000 of direct
expenditures to upgrade its systems and products and $200,000 of management and
internal technical support to upgrade systems and ensure the status of
compliance within the Company's supplier base. This estimate does not include
the cost of new systems or system upgrades that were made for reasons other than
Y2K compliance but included Y2K compliance as part of the upgrade package.
Specifically excluded from the cost of Y2K compliance is the cost of the
Company's recent conversion to the Baan ERP system and the cost of its new
payroll/human resources system, both of which were made for reasons other than
Y2K compliance.
SIGNIFICANT CUSTOMER
Sales to United Parcel Service (UPS), one of the Company's designated key
accounts, accounted for 10.0% of the Company's net sales for the first quarter
of 1999. For the first quarter of 1998, sales to UPS accounted for 12.5% of
total sales.
10
<PAGE>
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 market acceptance of the Company's printer and
software products and competitors' product offerings. They also include the
success and speed of the Company's integration with Eltron, as well as the
effect of market conditions in the Asia-Pacific region on the Company's
financial results. 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 and financial market conditions will also have an
impact on results. Foreign exchange rates will have an effect on financial
results due to the large percentage of the Company's international sales. 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 document are referred to prior filings with the
Securities and Exchange Commission, including Zebra's Form 10-K dated December
31, 1998, and the joint proxy statement/prospectus dated September 21, 1998,
particularly the "Risk Factors" section, for further discussions of issues that
could affect Zebra's future results.
11
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in the Company's market risk during the
first quarter ended April 3, 1999. For additional information on market risk,
refer to the "Quantitative and Qualitative Disclosures About Market Risk"
section of the Company's Annual Report on Form 10-K dated December 31, 1998.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
15.1 Acknowledgment of Independent Certified Public
Accountants Regarding Independent Auditors' Review
Report
27.1 Financial Data Schedule
27.2 Restated 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.
13
<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.
ZEBRA TECHNOLOGIES CORPORATION
Date: May 12, 1999 By: /s/ Edward L. Kaplan
---------------------------
Edward L. Kaplan
Chief Executive Officer
Date: May 12, 1999 By: /s/ Charles R. Whitchurch
------------------------
Charles R. Whitchurch
Chief Financial Officer
14
<PAGE>
Exhibit 15.1
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, No. 33-72774, No.
333-59733, and No. 333-63009) on Form S-8 of Zebra Technologies Corporation,
we acknowledge our awareness of the incorporation by reference therein of our
report dated May 10, 1999, related to our review of interim financial
information as of April 3, 1999.
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 LLP
Chicago, Illinois
May 14, 1999
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ZEBRA
TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET AS OF
APRIL 3, 1999, AND CONSOLIDATED STATEMENT OF EARNINGS FOR THE THREE MONTHS ENDED
APRIL 3, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS. DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-24-1998
<PERIOD-START> DEC-25-1998
<PERIOD-END> APR-03-1999
<CASH> 21,286
<SECURITIES> 158,470
<RECEIVABLES> 62,613
<ALLOWANCES> (3,754)
<INVENTORY> 34,826
<CURRENT-ASSETS> 280,030
<PP&E> 66,712
<DEPRECIATION> (27,955)
<TOTAL-ASSETS> 322,839
<CURRENT-LIABILITIES> 38,025
<BONDS> 0
0
0
<COMMON> 310
<OTHER-SE> 282,315
<TOTAL-LIABILITY-AND-EQUITY> 322,839
<SALES> 88,459
<TOTAL-REVENUES> 89,822
<CGS> 46,881
<TOTAL-COSTS> 47,342
<OTHER-EXPENSES> 23,623
<LOSS-PROVISION> 903
<INTEREST-EXPENSE> 3
<INCOME-PRETAX> 20,250
<INCOME-TAX> 7,600
<INCOME-CONTINUING> 12,650
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,650
<EPS-PRIMARY> 0.41
<EPS-DILUTED> 0.41
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS IS FINANCIAL INFORMATION EXTRACTED FROM ZEBRA TECHNOLOGIES CORP AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEET AS OF 4/4/98, AND CONSOLIDATED STATEMENT
OF EARNINGS FOR THE 3 MOS. ENDED 4/4/98, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE. THE RESTATED FIGURES HEREIN REFLECT THE COMPANY'S MERGER WITH ELTRON
INT'L, INC., WHICH WAS ACCOUNTED FOR ON A POOLING OF INTERESTS BASIS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-26-1998
<PERIOD-START> DEC-27-1998
<PERIOD-END> APR-04-1998
<CASH> 9,610
<SECURITIES> 128,407
<RECEIVABLES> 56,418
<ALLOWANCES> (1,893)
<INVENTORY> 41,641
<CURRENT-ASSETS> 239,709
<PP&E> 54,576
<DEPRECIATION> (21,207)
<TOTAL-ASSETS> 278,171
<CURRENT-LIABILITIES> 35,510
<BONDS> 0
0
0
<COMMON> 318
<OTHER-SE> 241,413
<TOTAL-LIABILITY-AND-EQUITY> 278,171
<SALES> 79,728
<TOTAL-REVENUES> 80,798
<CGS> 41,564
<TOTAL-COSTS> 41,937
<OTHER-EXPENSES> 20,939
<LOSS-PROVISION> (187)
<INTEREST-EXPENSE> 2
<INCOME-PRETAX> 20,738
<INCOME-TAX> 7,575
<INCOME-CONTINUING> 13,163
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,163
<EPS-PRIMARY> 0.43
<EPS-DILUTED> 0.42
</TABLE>
