Earnings as below!
Symbol Technologies Reports Third-Quarter Net Income of $0.33 Per Share On Revenue of $293.0 Million
HOLTSVILLE, N.Y.--(BUSINESS WIRE)--Oct. 21, 1999--Symbol Technologies, Inc. (NYSE:SBL - news), a global leader in mobile data management systems, today announced revenue and net income for the third quarter ended September 30, 1999.
Revenue for the third quarter ended September 30, 1999, was $293.0 million, 14.1 percent higher than the $256.8 million in the corresponding year-earlier period. Net income for the quarter was $30.8 million, or $0.33 diluted earnings per share, 22.7 percent higher than the $25.1 million, or $0.27 diluted earnings per share in the quarter ended September 30, 1998. All information has been adjusted to reflect a three for two split of the Company's common stock on June 14, 1999.
''Symbol continued to perform strongly in the third quarter, delivering record revenues and net income. Bookings increased over 35% and new products accounted for over 30% of our third quarter revenues. Symbol's outlook is very positive and we expect our current momentum to carry into next year,'' said Dr. Jerome Swartz, Symbol's chairman and chief executive officer.
''Symbol's sales and service organizations delivered excellent results in all geographies. We continue to execute effectively against our numerous market opportunities, leveraging our product positioning, market presence, service and support capabilities, and current and emerging partnerships,'' said Tomo Razmilovic, Symbol's president and chief operating officer.
Symbol Technologies Inc. is a global leader in mobile data management systems with innovative customer solutions based on wireless local area networking for voice and data, application-specific mobile computing and bar-code data capture. Symbol's wireless LAN solutions are installed at more than 45,000 customer locations worldwide and support more than seven million Symbol scanners and application-specific mobile scanner-integrated computer systems. Symbol provides point-of-activity computing solutions for retailing, transportation and distribution logistics, parcel and postal delivery, healthcare, manufacturing and other industries. Information is available from Symbol at 1-800-722-6234 or at www.symbol.com.
This news release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include price and product competition, dependence on new product development, reliance on major customers, customer demand for our product and services, readiness for Year 2000, control of costs and expenses, international growth, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the reports filed by Symbol with the Securities and Exchange Commission. Symbol disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Consolidated balance sheets and consolidated statements of earnings follows.
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in millions, except stock par value)
September 30, December 31,
1999 1998
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ASSETS (Unaudited)
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CURRENT ASSETS:
Cash and temporary
investments $ 25.5 $ 16.3
Accounts receivable,
less allowance for doubtful
accounts of $11.3 and $10.0,
respectively 232.7 205.4
Inventories 184.0 197.0
Deferred income taxes 30.3 34.4
Other current assets 39.1 26.5
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TOTAL CURRENT ASSETS 511.6 479.6
PROPERTY, PLANT AND EQUIPMENT, net 201.9 174.9
INTANGIBLE AND OTHER ASSETS, net 222.1 183.9
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$ 935.6 $ 838.4
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LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
and accrued expenses $ 154.8 $ 149.9
Current portion
of long-term debt 10.6 10.6
Income taxes payable 15.6 9.9
Deferred revenue 18.3 13.9
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TOTAL CURRENT LIABILITIES 199.3 184.3
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LONG-TERM DEBT,
less current maturities 69.3 64.6
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OTHER LIABILITIES
AND DEFERRED REVENUE 66.1 58.6
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $1.00;
authorized 10.0 shares,
none issued or outstanding - -
Common stock, par value $0.01;
authorized 300.0 shares;
issued 100.9 shares and
66.4 shares, respectively 1.0 0.7
Retained earnings 446.3 366.0
Other stockholders' equity 153.6 164.2
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600.9 530.9
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$ 935.6 $ 838.4
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SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(All amounts in millions, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1999 1998 1999 1998
---- ---- ---- ----
NET REVENUE $ 293.0 $ 256.8 $ 826.8 $ 709.1
COST OF REVENUE 163.3 144.8 460.9 397.3
AMORTIZATION OF SOFTWARE
DEVELOPMENT COSTS 4.6 3.4 13.2 10.1
----- ----- ----- -----
GROSS PROFIT 125.1 108.6 352.7 301.7
----- ----- ----- -----
OPERATING EXPENSES:
Engineering 21.1 18.5 60.2 51.7
Selling, general
and administrative 55.5 49.8 161.1 141.2
Amortization of excess
of cost over fair value
of net assets acquired 1.3 1.2 3.7 3.6
----- ----- ----- -----
77.9 69.5 225.0 196.5
----- ----- ----- -----
EARNINGS FROM OPERATIONS 47.2 39.1 127.7 105.2
GAIN ON SALE OF BUSINESS - - - 0.5
INTEREST EXPENSE, net (1.3) (1.1) (4.0) (2.3)
----- ----- ----- -----
EARNINGS BEFORE
PROVISION FOR
INCOME TAXES 45.9 38.0 123.7 103.4
PROVISION FOR
INCOME TAXES 15.1 12.9 40.8 35.2
----- ----- ----- -----
NET EARNINGS $ 30.8 $ 25.1 $ 82.9 $ 68.2
----- ----- ----- -----
EARNINGS PER SHARE:
Basic $ 0.35 $ 0.28 $ 0.94 $ 0.77
----- ----- ----- -----
Diluted $ 0.33 $ 0.27 $ 0.88 $ 0.73
----- ----- ----- -----
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING:
Basic 88.4 88.2 88.3 88.2
----- ----- ----- -----
Diluted 94.3 93.9 94.1 93.4
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Contact:
Symbol Technologies, Inc.
For financial information:
Kenneth Jaeggi, 516/738-3909
or
For press information:
Doug Picker, 516/738-4699
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