Zebra Technologies (ZBRA) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:
Investors: Douglas A. Fox, CFA Vice President, Investor Relations and Treasurer +1 847 793 6735 dfox@zebra.com	Media: Orlando De Bruce Director, Global Public Relations +1 510 267 5052 odebruce@zebra.com

Zebra Technologies Reports Record Results

for First Quarter of 2011

Record income from continuing operations driven by continued strong sales growth

and further improvements in profitability

Lincolnshire, IL, May 4, 2011—Zebra Technologies Corporation (NASDAQ: ZBRA) today announced 2011 first quarter net income of $61,634,000, or $1.10 per diluted share. Quarterly income from continuing operations totaled $30,128,000, or $0.54 per diluted share, for 2011 compared with $25,547,000, or $0.43 per diluted share, for the first quarter of 2010. Income from discontinued operations for the first quarter of 2011 of $31,506,000, or $0.56 per diluted share, includes a recognized gain on the sale of the company’s Navis operation. First quarter net sales were $237,301,000 for 2011, up 11.9% from $211,975,000 for 2010. Results for 2010 have been adjusted to account for the sale of Navis Holdings LLC, which was sold on March 18, 2011, and other immaterial operations which have been accounted for as discontinued operations.

Summary Financial Performance (Unaudited)
	1Q11		1Q10			Change
Net sales (in 000s)	$	237,301	$	211,975			11.9	%
Gross margin (%)		50.6		46.1			4.5	pts.
Operating margin (%)		18.7		15.5			3.2	pts.
Income from continuing operations (in 000s)	$	30,128	$	25,547			17.9	%
Income (loss) from discontinued operations, net of tax (in 000s)		31,506		(814	)		NM
Net income (in 000s)	$	61,634	$	24,733			149.2	%
Diluted earnings per share:
Income from continuing operations	$	0.54	$	0.43			25.6	%
Income (loss) from discontinued operations, net of tax		0.56		(0.01	)		NM
Net income	$	1.10	$	0.42			161.9	%

Note: Net sales and results for 2010 have been adjusted for the March 2011 sale of Navis, and other immaterial operations which have been reflected as discontinued operations.

“Excellent execution on a clear and focused business strategy helped Zebra deliver these record results,” stated Anders Gustafsson, Zebra’s chief executive officer. “Innovative new products introduced over the past year are helping us meet more of our customers’ asset tagging needs in a more complex supply chain environment. At the same time, we are reaching more customers worldwide by building a larger, more formidable sales and marketing organization. The result of disciplined investments in products, channels and infrastructure makes us optimistic about extending Zebra’s industry leadership in a fundamentally attractive industry, and for continued success in building shareholder value.”

As of April 2, 2011, Zebra had $375,378,000 in cash and investments, and no long-term debt. Net inventories were $120,508,000, and net accounts receivable were $141,218,000.

Discussion and Analysis

• Net sales for the first quarter of 2011 compared with the same quarter for 2010 benefited from improved business conditions in all geographic regions, with all major printer product categories and aftermarket parts contributing to the growth. The addition of Zebra sales representatives placed in high-growth countries and regions over the past twelve months, and other initiatives as part of the company’s growth strategy, also contributed to the sales results. Quarterly sales increased 12.1% on a constant-currency basis from a year ago.

• Gross margin of 50.6%, versus 46.1% a year ago, reflects lower costs for raw materials, higher volumes and lower freight charges.

• Operating expense growth of 16.7% reflect higher employee-related compensation, payroll and benefit costs, in part related to geographic expansion and other growth initiatives.

• Income from discontinued operations includes a gain on the sale of the company’s Navis operation, partially offset by losses in the discontinued businesses in 2011.

Stock Purchase Update

During the first quarter of 2011, Zebra repurchased 1,100,000 shares of Zebra Technologies Corporation Class A Common Stock. At April 2, 2011, 750,000 shares remained in the company’s stock buyback authorization, and 54,730,861 shares of common stock were outstanding.

Second Quarter Outlook

Zebra announced its financial forecast for the second quarter of 2011. Net sales are expected within a range of $240,000,000 to $250,000,000. Diluted earnings per share from continuing operations are expected within a range of $0.54 to $0.61, including $0.01 per share in exit, restructuring and integration costs.

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Conference Call Notification

Investors are invited to listen to a live webcast of Zebra’s conference call discussing the company’s financial results for the first quarter of 2011. The conference call will be held at 11:00 AM Eastern Time today. To listen to the call, visit the company’s website at http://www.zebra.com.

Forward-looking Statement

This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s financial forecast for the second quarter of 2011 stated in the paragraph above captioned “Second Quarter Outlook.” Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.

These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra’s hardware and software products and competitors’ product offerings, and the potential effects of technological changes. The continued uncertainty over future global economic conditions, the availability of credit, capital markets volatility, may have adverse effects on Zebra, its suppliers and its customers. In addition, a disruption in our ability to obtain products from vendors as a result of supply chain constraints, natural disasters or other circumstances could restrict sales and negatively affect customer relationships. Profits and profitability will be affected by Zebra’s ability to control manufacturing and operating costs. Because of a large investment portfolio, interest rates and financial market conditions will also have an impact on results. Foreign exchange rates will have an effect on financial results because of the large percentage of our international sales. The outcome of litigation in which Zebra may be involved is another factor. These and other factors could have an adverse effect on Zebra’s sales, gross profit margins and results of operations and increase the volatility of our financial results. When used in this release 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, but are not the exclusive means of identifying these statements. Descriptions of the risks, uncertainties and other factors that could affect the company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission. In particular, readers are referred to Zebra’s Form 10-K for the year ended December 31, 2010.

About Zebra Technologies

Zebra Technologies Corporation offers the broadest range of enabling solutions to identify, track, and manage critical assets, people and transactions for improved business efficiencies. Serving more than 90 percent of Global Fortune 500

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companies in more than 100 countries around the world, our specialty on-demand printing, RFID and enterprise location solutions help customers create smarter and more connected infrastructures, resulting in significant improvements in visibility and business performance. For more information about Zebra’s solutions, visithttp://www.zebra.com.

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ZEBRA TECHNOLOGIES CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

	April 2, 2011			December 31, 2010
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	79,685		$	46,175
Restricted cash		65			1,378
Investments and marketable securities		164,812			125,567
Accounts receivable, net		141,218			130,143
Receivable from buyer		12,290			—
Inventories, net		120,508			112,970
Deferred income taxes		18,592			15,670
Prepaid expenses and other current assets		10,252			11,505
Discontinued operations		1,111			148,169
Total current assets		548,533			591,577
Property and equipment at cost, less accumulated depreciation and amortization		90,745			87,093
Long-term deferred income taxes		19,286			21,254
Goodwill		79,703			79,703
Other intangibles, net		8,920			9,755
Long-term investments and marketable securities		130,816			85,478
Receivable from buyer		12,290			—
Other assets		3,913			4,004
Total assets	$	894,207		$	878,864
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	32,413		$	34,578
Accrued liabilities		50,845			65,163
Deferred revenue		11,019			8,966
Income taxes payable		33,256			5,900
Discontinued operations		476			21,827
Total current liabilities		128,009			136,434
Deferred rent		1,799			2,207
Other long-term liabilities		9,993			10,191
Total liabilities		139,801			148,832
Stockholders’ equity:
Preferred Stock		—			—
Class A Common Stock		722			722
Additional paid-in capital		133,232			129,715
Treasury stock		(499,483	)		(462,029	)
Retained earnings		1,132,607			1,070,973
Accumulated other comprehensive loss		(12,672	)		(9,349	)
Total stockholders’ equity		754,406			730,032
Total liabilities and stockholders’ equity	$	894,207		$	878,864

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ZEBRA TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(Amounts in thousands, except per share data)

(Unaudited)

	Three Months Ended
	April 2, 2011			April 3, 2010
Net sales:
Net sales of tangible products	$	226,120		$	201,463
Revenue from services and software		11,181			10,512
Total net sales		237,301			211,975
Cost of sales:
Cost of sales of tangible products		110,781			109,075
Cost of services and software		6,522			5,137
Total cost of sales		117,303			114,212
Gross profit		119,998			97,763
Operating expenses:
Selling and marketing		28,528			24,673
Research and development		21,681			18,324
General and administrative		22,706			19,318
Amortization of intangible assets		835			741
Exit and restructuring costs		1,886			1,766
Total operating expenses		75,636			64,822
Operating income		44,362			32,941
Other income (expense):
Investment income		560			842
Foreign exchange gain (loss)		(294	)		168
Other, net		(254	)		(270	)
Total other income (expense)		12			740
Income before income taxes		44,374			33,681
Income taxes		14,246			8,134
Income from continuing operations		30,128			25,547
Income (loss) from discontinued operations, net of tax		31,506			(814	)
Net income	$	61,634		$	24,733
Basic earnings per share:
Income from continuing operations	$	0.54		$	0.44
Income (loss) from discontinued operations		0.57			(0.01	)
Net income	$	1.11		$	0.43
Diluted earnings per share:
Income from continuing operations	$	0.54		$	0.43
Income (loss) from discontinued operations		0.56			(0.01	)
Net income	$	1.10		$	0.42
Basic weighted average shares outstanding		55,353			58,016
Diluted weighted average and equivalent shares outstanding		55,774			58,265

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ZEBRA TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

	Three Months Ended
	April 2, 2011			April 3, 2010
Cash flows from operating activities:
Net income	$	61,634		$	24,733
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		5,932			7,814
Equity-based compensation		4,488			2,231
Excess tax benefit from equity-based compensation		(645	)		(3	)
Gain on divestiture		(67,213	)		—
Loss (gain) on sale of assets		9			(82	)
Deferred income taxes		2,540			3,535
Changes in assets and liabilities:
Accounts receivable, net		12,563			3,990
Inventories, net		(7,136	)		(1,780	)
Other assets		(1,690	)		224
Accounts payable		(7,150	)		870
Accrued liabilities		(17,120	)		(9,118	)
Deferred revenue		(15,749	)		(1,618	)
Income taxes		27,732			4,295
Other operating activities		(3,364	)		(4,917	)
Net cash (used in) provided by operating activities		(5,169	)		30,174
Cash flows from investing activities:
Purchases of property and equipment		(3,922	)		(5,818	)
Proceeds from the sale of business		188,588			—
Receivable from buyer		(24,580	)		—
Purchases of investments and marketable securities		(382,410	)		(89,586	)
Maturities of investments and marketable securities		209,509			61,144
Sales of investments and marketable securities		88,304			17,736
Net cash provided by (used in) investing activities		75,489			(16,524	)
Cash flows from financing activities:
Purchase of treasury stock		(41,567	)		(20,823	)
Proceeds from exercise of stock options and stock purchase plan purchases		2,757			4,191
Excess tax benefit from equity-based compensation		645			3
Net cash used in financing activities		(38,165	)		(16,629	)
Effect of exchange rate changes on cash		336			24
Net increase (decrease) in cash and cash equivalents		32,491			(2,955	)
Cash balance of discontinued operations at beginning of period		1,301			1,693
Cash balance of discontinued operations at end of period		(282	)		(729	)
Cash and cash equivalents at beginning of period		46,175			37,250
Cash and cash equivalents at end of period	$	79,685		$	35,259
Supplemental disclosures of cash flow information:
Income taxes paid (refunded)	$	8,958		$	(454	)

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ZEBRA TECHNOLOGIES CORPORATION

SUPPLEMENTAL SALES INFORMATION

(Amounts in thousands)

(Unaudited)

SALES BY PRODUCT CATEGORY

	Three Months Ended
Product Category	April 2, 2011		April 3, 2010		Percent Change			Percent of Net Sales - 2011		Percent of Net Sales - 2010
Hardware	$	180,136	$	159,409		13.0			75.9		75.2
Supplies		44,635		40,697		9.7			18.8		19.2
Service and software		11,181		10,512		6.4			4.7		5.0
Subtotal products		235,952		210,618		12.0			99.4		99.4
Shipping and handling		1,349		1,357		(0.6	)		0.6		0.6
Total net sales	$	237,301	$	211,975		11.9			100.0		100.0

SALES BY GEOGRAPHIC REGION

	Three Months Ended
Geographic Region	April 2, 2011		April 3, 2010		Percent Change		Percent of Net Sales - 2011		Percent of Net Sales - 2010
Europe, Middle East and Africa	$	84,230	$	76,316		10.4		35.5		36.0
Latin America		20,104		19,482		3.2		8.5		9.2
Asia-Pacific		32,495		23,120		40.5		13.7		10.9
Total International		136,829		118,918		15.1		57.7		56.1
North America		100,472		93,057		8.0		42.3		43.9
Total net sales	$	237,301	$	211,975		11.9		100.0		100.0

ZEBRA TECHNOLOGIES CORPORATION

PRINTER UNITS and AVERAGE UNIT PRICES

(Unaudited)

	Three Months Ended
	April 2, 2011		April 3, 2010		Percent Change
Total printers shipped		284,177		244,386		16.3
Average selling price of printers shipped	$	524	$	547		(4.2	)

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ZEBRA TECHNOLOGIES CORPORATION

PRO FORMA CONSOLIDATED STATEMENTS

OF EARNINGS BY QUARTER FOR 2010

(Amounts in thousands, except per share data)

(Unaudited)

	Quarter Ended
	April 3, 2010			July 3, 2010			Oct. 2, 2010			Dec. 31, 2010
Net sales:
Net sales of tangible products	$	201,463		$	207,748		$	218,271		$	222,048
Revenue from services and software		10,512			10,810			11,536			11,971
Total net sales		211,975			218,558			229,807			234,019
Cost of sales:
Cost of sales of tangible products		109,075			114,081			114,924			112,490
Cost of services and software		5,137			5,068			5,636			7,083
Total cost of sales		114,212			119,149			120,560			119,573
Gross profit		97,763			99,409			109,247			114,446
Operating expenses:
Selling and marketing		24,673			27,682			28,068			31,942
Research and development		18,324			20,653			21,862			21,736
General and administrative		19,318			17,955			18,147			17,809
Amortization of intangible assets		741			740			839			891
Litigation settlement		—			—			—			(1,082	)
Exit and restructuring costs		1,766			466			—			30
Total operating expenses		64,822			67,496			68,916			71,326
Operating income		32,941			31,913			40,331			43,120
Other income (expense):
Investment income		842			634			635			567
Foreign exchange gain(loss)		168			424			(148	)		(613	)
Other, net		(270	)		(455	)		(160	)		(232	)
Total other income(expense)		740			603			327			(278	)
Income before income taxes		33,681			32,516			40,658			42,842
Income taxes		8,134			10,331			13,411			13,117
Income from continuing operations		25,547			22,185			27,247			29,725
Income (loss) from discontinued operations, net of tax		(814	)		492			(1,096	)		(1,508	)
Net income	$	24,733		$	22,677		$	26,151		$	28,217
Basic earnings per share:
Income from continuing operations	$	0.44		$	0.38		$	0.48		$	0.53
Income (loss) from discontinued operations		(0.01	)		0.01			(0.02	)		(0.03	)
Net income	$	0.43		$	0.39		$	0.46		$	0.50
Diluted earnings per share:
Income from continuing operations	$	0.43		$	0.38		$	0.48		$	0.53
Income (loss) from discontinued operations		(0.01	)		0.01			(0.02	)		(0.03	)
Net income	$	0.42		$	0.39		$	0.46		$	0.50
Basic weighted average shares outstanding		58,016			57,489			56,739			56,332
Diluted weighted average and equivalent shares outstanding		58,265			57,737			56,998			56,692

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