Exhibit 99.1 SYMBOL TECHNOLOGIES REPORTS UNAUDITED 2003 FIRST-QUARTER RESULTS, PROVIDES UPDATE ON FINANCIAL GUIDANCE AND STATUS OF RESTATEMENT HOLTSVILLE, N.Y., April 29, 2003 - Symbol Technologies, Inc. (NYSE: SBL), a global leader in enterprise mobility solutions, today announced its unaudited first-quarter results for the period ending March 31, 2003. These results do not include any related impact of the Company's planned restatement of its financial statements previously issued for the years 1998 through 2002. Revenue, before the impact of restatement, for the first quarter ended March 31, 2003, was $357.4 million, compared to $301.3 million previously reported in the corresponding year- earlier period, before the impact of restatement. Net earnings, before the impact of restatement, were $4.8 million, or $0.02 diluted earnings per share, compared to $1.8 million, or $0.01 diluted earnings per share, in the previously reported corresponding year-earlier period, before the impact of restatement. The announced first-quarter 2003 net earnings, before the impact of restatement, included a pre-tax charge of $4.1 million associated with a restructuring of the Global Services and Support organization and a pre-tax charge of $3.1 million associated with a writedown of the Company's investment in AirClic, Inc. Excluding the effects of these restructuring and impairment charges in order to show the Company's reported results from ongoing operations, non-GAAP net earnings, before the impact of restatement, were $9.7 million, or $0.04 diluted earnings per share, compared to non-GAAP net earnings, which exclude a special compensation charge, of $7.6 million, or $0.03 diluted earnings per share, in the previously reported first quarter of 2002, before the impact of restatement. As previously reported, the Company has not filed its Annual Report on Form 10-K for the year ended December 31, 2002, with the Securities and Exchange Commission and is in the process of restating its financial statements. While the Company believes it has made substantial progress in improving controls in its operations and financial reporting, the restatement is not yet complete. Therefore, these reported results are not in accordance with accounting principles generally accepted in the United States, have not been reviewed by the Company's auditors and will be impacted by the restatement in that the restatement will have the effect of rolling back, rolling forward or eliminating certain assets, liabilities, revenues and expenses that have been inappropriately reflected in the reported results of the Company. "Overall, we were pleased with Symbol's revenue of $357 million in 2003's first quarter even as we faced a continued very difficult economy with still-slow IT investment and the U.S. at war. Although we saw balance sheet improvement, we're not satisfied with earnings at four cents per share before special charges," Richard Bravman, vice chairman and chief executive officer, said. "We continue to see progress on the balance sheet and succeeded in significantly reducing inventories and accounts receivable. With ongoing positive cash flow in the quarter, we improved our liquidity position to nearly $100 million in cash on the balance sheet and $50 million in short-term bank debt," William Nuti, president and chief operating officer, said, adding, "Our ability to increase year-over-year revenue under difficult circumstances gives rise to a sense of cautious optimism regarding our growth potential under improved business conditions." Financial guidance The Company reiterated that in 2003 it anticipates annual revenue growth in a range of 15 to 20 percent with remaining quarters improving off the first-quarter base of $357 million, before the impact of restatement. Due to greater than anticipated expenses, the Company now expects 2003 earnings per share in a range of 20 to 26 cents, before the impact of restatement. Excluding the effects of restructuring and impairment charges, expected to be approximately $23 million in fiscal 2003, the Company now expects non-GAAP 2003 earnings per share from ongoing operations in a range of 27 to 33 cents, before the impact of restatement. The Company had previously expected non-GAAP earnings of 34 to 42 cents per share, before special items. Any forward-looking guidance is subject to updates based on, among other factors, material changes in the global economic outlook, geopolitical climate and levels of corporate information technology investment. The Company has limited visibility to these numbers and there can be no assurances they will be achieved. Status of investigations, restatement The previously reported SEC and Department of Justice investigations are continuing, and the Company's internal investigation, undertaken with the assistance of independent legal counsel and independent auditing firms, is ongoing. The Company has shared appropriate documentation and discussed relevant issues with its auditors, who are reviewing them in connection with the audit of fiscal 2002 results and the restatement of previously issued financial statements. "The Symbol board and management team are firmly committed to coming to proper closure on past financial issues, addressing them aggressively and thoroughly to ensure effective controls and processes are put in place to provide a fully transparent view into our Company's performance so we can capitalize on the value we are confident is inherent in our business," Bravman said. While there can be no guarantee, the Company's goal is to complete the restatement of its previously issued financial statements, issue audited results for the year ended December 31, 2002, and file the Company's Annual Report on Form 10-K with the SEC by June 30, 2003. Based upon work to date on the restatement, the Company believes that the reported quarterly results released today will be impacted; that impact will be disclosed in its quarterly Form 10-Q filing with the SEC, which it expects to file after the filing of the Form 10-K. The Company continues to expect that the restatement will likely result in a net reduction of previously reported net income and revenue in the two-year period of fiscal 1999 and fiscal 2000 and a net increase in previously reported revenue in the two-year period of fiscal 2001 and fiscal 2002, and that the net amount of revenue previously recorded for fiscal years 1999 and 2000 that will be reversed, or reversed and restated, in later fiscal years or otherwise adjusted as a result of a restatement will likely not exceed 10 percent of the total revenue originally reported for those two years, taken in aggregate. At this stage, the Company cannot estimate the impact of the restatement on net income for fiscal 2001 or fiscal 2002. In addition, the Company now believes that the restatement will also cover fiscal 1998, and the impact to fiscal 1998 will be disclosed in the Form 10-K filing. With regard to the 2002 year-end balance sheet, the Company now believes that the total impact on the Company's shareholder equity, or net assets, will most likely be a reduction of $50 million to $150 million. Even with this impact, the Company will have ended fiscal 2002 with shareholder equity in excess of $1.0 billion. Any actual restatement may vary from the estimates provided, may involve other issues and, as stated previously, likely would affect comparisons between currently reported amounts and amounts reported for previous periods. Teleconference information, instructions A conference call has been scheduled for today beginning at 4:45 pm ET and may be accessed through the Symbol website at www.symbol.com/investors or by using the telephone dial-in number, which is 719-457-2653. A telephonic replay will be available today beginning at 8:45 pm ET through May 6 on a 24- hours non-stop basis. The dial-in number to access this replay is: 719-457-0820 - Access Code: 644798. About Symbol Technologies Symbol Technologies, founded in 1975, is a global leader in secure mobile information systems that integrate application-specific hand-held computers with wireless networks for data and voice and bar code data capture. Symbol products and services increase productivity and reduce costs for the world's leading retailers, logistics and transportation companies, government agencies, manufacturers and providers of healthcare, hospitality and security. More information is available at www.symbol.com and 1-800-722-6234 or 631-738-2400. 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 products and services, 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. # # # # For financial information: For press information: Nancy Tully Doug Picker Symbol Technologies, Inc. Symbol Technologies, Inc. 631-738-5050	 631-738-4699 SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (1) (All amounts in millions, except stock par value) March 31, 2003 December 31, 2002 ASSETS (Unaudited) (Unaudited) CURRENT ASSETS: Cash, including temporary investments $ 98.6 $ 76.1 Accounts receivable, less allowance for doubtful accounts of $33.1 and $32.0, respectively 227.8 267.7 Inventories 310.4 334.6 Deferred income taxes 171.1 172.7 Other current assets 74.5 52.5 TOTAL CURRENT ASSETS 882.4 903.6 PROPERTY, PLANT AND EQUIPMENT, net 220.0 222.2 DEFERRED INCOME TAXES 38.8 38.7 INVESTMENT IN MARKETABLE SECURITIES 54.7 54.9 INTANGIBLE AND OTHER ASSETS, net 514.3 513.2 $1,710.2	 $1,732.6 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 270.4 $ 279.9 Current portion of long-term debt 50.3 6.7 Income taxes payable 1.9 0.3 Deferred revenue 38.1 29.2 Accrued restructuring expenses 8.6 5.5 TOTAL CURRENT LIABILITIES 369.3 321.6 LONG-TERM DEBT, less current maturities 54.5 135.6 OTHER LIABILITIES AND DEFERRED REVENUE 64.9 63.9 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, par value $1.00; authorized 10.0 shares, none issued or outstanding ? ? Series A Junior Participating preferred stock, par value $1.00, authorized .5 shares, none issued or outstanding ? ? Common stock, par value $0.01; authorized 600.0 shares; issued 256.9 shares and 256.6 shares, respectively 2.6 2.6 Additional paid-in capital 1,104.1 1,101.9 Accumulated other comprehensive income (11.5) (14.5) Retained earnings 361.1 356.3 1,456.3 1,446.3 Less: Treasury stock at cost, 25.7 shares and 25.7 shares, Respectively (234.8) (234.8) 1,221.5 1,211.5 $1,710.2	 $1,732.6 (1) Before the impact of restatement. SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1) FOR THE THREE MONTHS ENDED MARCH 31, 2003 (All amounts in millions, except per share data) Three Months Ended March 31, ____2003____ __2002 ____ (Unaudited) (Unaudited) NET REVENUE $ 357.4 $ 301.3 COST OF REVENUE 213.2 191.8 AMORTIZATION OF SOFTWARE DEV. COSTS _____5.0 _____4.2 GROSS PROFIT 139.2 105.3 OPERATING EXPENSES: Engineering 35.3 26.7 Selling, general & administrative 90.5 63.3 Restructuring and impairment charge 5.3 --- Compensation charge ____--____ ___8.6__ TOTAL OPERATING EXPENSES 131.1 98.6 EARNINGS FROM OPERATIONS 8.1 6.7 OTHER INCOME 1.2 -- INTEREST EXPENSE, NET _____(2.2)_ __(4.1)__ EARNINGS BEFORE INCOME TAXES 7.1 2.6 PROVISION FOR INCOME TAXES ______2.3__ ___0.8___ NET EARNINGS _$____4.8__ _$_1.8____ NET EARNINGS PER SHARE: Basic _$____0.02_ _$_0.01___ Diluted __$____0.02_ _$_0.01___ WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic ____ 231.1__ __229.2___ Diluted _____234.4__ __234.6___ (1) Results presented are before the impact of restatement. SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1) (2) FOR THE THREE MONTHS ENDED MARCH 31, 2003 (All amounts in millions, except per share data) Three Months Ended March 31, ____2003____ __2002 ____ (Unaudited) (Unaudited) NET REVENUE $ 357.4 $ 301.3 COST OF REVENUE 211.3 191.8 AMORTIZATION OF SOFTWARE DEV. COSTS _____5.0 _____4.2 GROSS PROFIT 141.1 105.3 OPERATING EXPENSES: Engineering 35.3 26.7 Selling, general & administrative ____90.5 ____63.3 TOTAL OPERATING EXPENSES 125.8 90.0 EARNINGS FROM OPERATIONS 15.3 15.3 OTHER INCOME 1.2 -- INTEREST EXPENSE, NET _____(2.2)_ __(4.1)__ EARNINGS BEFORE INCOME TAXES 14.3 11.2 PROVISION FOR INCOME TAXES ______4.6__ ___3.6___ NET EARNINGS _$____9.7__ _$_7.6____ NET EARNINGS PER SHARE: Basic _$____0.04_ _$_0.03___ Diluted __$____0.04_ _$_0.03___ WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic ____ 231.1__ __229.2___ Diluted _____234.4__ __234.6___ (1) Results presented are before the impact of restatement. (2) The non-GAAP statements exclude the impact of a restructuring charge, certain compensation charges, and the impairment write-down of our investment in the applicable periods. See reconciliation to reported results on the next page. SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP TO REPORTED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1) FOR THE THREE MONTHS ENDED MARCH 31, 2003 (All amounts in millions, except per share data) Three Months Ended March 31, __2003_____ __2002____ (Unaudited) (Unaudited) Non-GAAP net earnings $ 9.7 $ 7.6 Restructuring charge (4.1) --- Write-down of investment (3.1) --- Compensation charge --- (8.6) Income tax effect ______2.3__ ____2.8_ Reported net earnings _$____4.8__ _$_1.8__ (1) Results presented are before the impact of restatement. Please note additional Q1 2003 schedules follow: Page Operating Results 1 Analysis of Revenue 2 Statement of Operations 3 Balance Sheet 4 Cash Flow Trend 5 Unaudited Supplemental Detail Symbol Technologies, Inc. Q1 2003 Sequential Quarterly Results - Unaudited Financial Information ($ in Millions except EPS) Note: All financial data and financial ratios will be impacted by the financial statement restatement Note: P&L data excludes special charges Read schedule left to right - ---------------------------------------------------------------------- Q1 02 Higher/ Q2 02 Higher/ Q3 02 Actual (Lower) Actual (Lower) Actual ----------------------------------------------- Profit & Loss: - -------------- Revenue $301.3 $14.5 $315.8 $23.7 $339.5 Gross Margin % 35.0% 2.0 pts. 37.0% 0.7 pts. 37.7% Operating Margin % 5.1% 0.4 pts. 5.5% 2.1 pts. 7.6% EPS $0.03 $0.01 $0.04 $0.03 $0.07 Balance Sheet - ------------- DSO 84 (3) 81 (5) 76 Inventory Turns 2.6 - 2.6 0.1 2.7 Working Capital % to rev. 52.9% (2.3)pts. 50.6% (4.9)pts. 45.7% Debt/Equity 24.5% (3.5)pts. 21.0% (3.6)pts. 17.4% Return on Assets 1.6% 0.5 pts. 2.1% 1.4 pts. 3.5% Return on Equity 2.6% 0.6 pts. 3.2% 2.1 pts. 5.3% Cash Flow - --------- CFFO $43.3 $3.5 $46.8 $4.6 $51.4 NFF (CFFO + Investing activities) $24.9 $3.2 $28.1 $(0.9) $27.2 Capital Spending $9.4 $(0.6) $8.8 $(1.5) $7.3 Higher/ Q4 02 Higher/ Q1 03 (Lower) Actual (Lower) Actual ------------------------------------------- Profit & Loss: - -------------- Revenue $23.9 $363.4 $(6.0) $357.4 Gross Margin % 1.2 pts. 38.9% 0.6 pts. 39.5% Operating Margin % 0.4 pts. 8.0% (3.7)pts. 4.3% EPS $0.01 $0.08 $(0.04) $0.04 Balance Sheet - ------------- DSO (9) 67 (9) 58 Inventory Turns (0.0) 2.7 0.1 2.8 Working Capital % to rev. (5.7)pts. 40.0% (4.1)pts. 35.9% Debt/Equity (5.7)pts. 11.7% (3.1)pts. 8.6% Return on Assets 0.7 pts. 4.2% (1.9)pts. 2.3% Return on Equity 0.9 pts. 6.2% (3.0)pts. 3.2% Cash Flow - --------- CFFO $15.8 $67.2 $8.9 $76.1 NFF (CFFO + Investing activities) $25.6 $52.8 $3.1 $55.9 Capital Spending $1.0 $8.3 $2.2 $10.5 - ---------------------------------------------------------------------- Unaudited Supplemental Detail Symbol Technologies, Inc. Analysis of Revenue ($ in Millions) Note: All financial data and financial ratios will be impacted by the financial statement restatement Read schedule left to right Higher/(Lower) Higher/(Lower) - ---------------------------------------------------------------------- (1)Product Q1 02 $ % Q2 02 $ % - ---------------------------------------------------------------------- Scanners $71.5 $4.6 6.5% $76.1 $(3.4) (4.5%) Mobile 134.1 14.5 10.8% 148.7 17.8 12.0% @POS - - - - 0.5 - Wireless 22.9 (1.0) (4.2%) 22.0 5.0 22.8% ---------------------------------------------------- Total Products 228.6 18.2 8.0% 246.7 19.9 8.1% Services 72.8 (3.7) (5.1%) 69.1 3.8 5.5% ---------------------------------------------------- Total Revenue $301.3 $14.5 4.8% $315.8 $23.7 7.5% ===================================================== Higher/(Lower) - ---------------------------------------------------------------------- (1)Product Q3 02 $ % Q4 02 $ % Q1 03 - ---------------------------------------------------------------------- Scanners $72.7 $7.4 10.1% $80.1 $(1.9) (2.3%) $78.2 Mobile 166.4 8.5 5.1% 174.9 1.4 0.8% 176.3 @POS 0.5 3.6 785.0% 4.0 1.3 33.2% 5.3 Wireless 27.0 (0.8) (3.0%) 26.2 (0.8) (3.1%) 25.4 ---------------------------------------------------- Total Products 266.6 18.6 7.0% 285.2 - - 285.2 Services 72.9 5.3 7.3% 78.2 (6.0) (7.7%) 72.2 ---------------------------------------------------- Total Revenue $339.5 $23.9 7.0% $363.4 $(6.0) (1.7%)$357.4 ==================================================== Note: Scanners does not include the scanning component of Mobile & Wireless Computers Higher/(Lower) Higher/(Lower) - ---------------------------------------------------------------------- (1) Geographic Q1 02 $ % Q2 02 $ % - ---------------------------------------------------------------------- TASS $209.6 $6.9 3.3% $216.5 $11.0 5.1% EMEA 76.4 4.0 5.2% 80.4 7.1 8.8% APAC 15.3 3.6 23.5% 18.9 5.6 29.5% --------------------------------------------------- Total Revenue $301.3 $14.5 4.8% $315.8 $23.7 7.5% =================================================== Higher/(Lower) Higher/(Lower) - ---------------------------------------------------------------------- (1) Geographic Q3 02 $ % Q4 02 $ % Q1 03 - ---------------------------------------------------------------------- TASS $227.5 $1.9 0.8% $229.4 $(4.9) (2.1)% $224.5 EMEA 87.5 21.2 24.2% 108.7 0.3 0.3% 109.0 APAC 24.5 0.8 3.3% 25.3 (1.4) (5.6)% 23.9 ----------------------------------------------------- Total Revenue $339.5 $23.9 7.0% $363.4 $(6.0) (1.7)% $357.4 ===================================================== (1) Unaudited Financial Information Higher/(Lower) Higher/(Lower) - ---------------------------------------------------------------------- (2) Industry Q1 02 $ % Q2 02 $ % - ---------------------------------------------------------------------- Retailers $98.9 $5.2 5.3% $104.1 $22.0 21.2% Transportation & Logistics 38.9 6.9 17.7% 45.8 (4.2) (9.2)% Manufacturers 37.6 1.6 4.3% 39.2 29.2 74.4% Other 53.2 4.4 8.3% 57.6 (27.1) (47.1)% ------------------------------------------------------- Total Product $228.6 $18.1 7.9% $246.7 $19.9 8.1% ======================================================= Higher/(Lower) Higher/(Lower) - ---------------------------------------------------------------------- (2) Industry Q3 02 $ % Q4 02 $ % Q1 03 - ---------------------------------------------------------------------- Retailers $126.1 $(15.3) (12.2)% $110.8 $8.8 7.9 % $119.6 Transportation & Logistics 41.6 16.1 38.8% 57.7 (2.2) (3.9)% 55.5 Manufacturers 68.4 (3.3) (4.8)% 65.1 (2.5) (3.9)% 62.6 Other 30.5 21.1 69.2% 51.6 (4.1) (7.9)% 47.5 ------------------------------------------------------- Total Product $266.6 $18.6 7.0% $285.2 $- - $285.2 ======================================================= Note: Industry is based on the Dun & Bradstreet classification of a customer's primary business Higher/(Lower) Higher/(Lower) - ---------------------------------------------------------------------- (2) Application Q1 02 $ % Q2 02 $ % - ---------------------------------------------------------------------- Retail Store Management $73.8 $1.3 1.8% $75.1 $15.3 20.4% Warehouse/DC/Yard Mgt 70.0 15.6 22.3% 85.6 7.5 8.8% Truck/Private Fleet/Parcel 10.2 11.6 113.7% 21.8 (3.0) (13.9)% ID/Tracking/Security 12.0 10.8 90.0% 22.8 (0.8) (3.6)% Other 62.6 (21.2) (33.9)% 41.4 0.9 2.2% -------------------------------------------------- Total Product $228.6 $18.1 7.9% $246.7 $19.9 8.1% ================================================== Higher/(Lower) Higher/(Lower) - ---------------------------------------------------------------------- (2) Application Q3 02 $ % Q4 02 $ % Q1 03 - ---------------------------------------------------------------------- Retail Store Management $90.4 $4.1 4.6% $94.5 $10.7 11.3% $105.2 Warehouse/DC/Yard Mgt 93.1 28.9 31.0% 122.0 (1.3) (1.1)% 120.7 Truck/Private Fleet/Parcel 18.8 (3.5) (18.6)% 15.3 (1.0) (6.5)% 14.3 ID/Tracking/ Security 22.0 (13.0) (59.2)% 9.0 (3.1) (34.5)% 5.9 Other 42.3 2.1 5.0% 44.4 (5.3) (11.9)% 39.1 ------------------------------------------------------ Total Product $266.6 $18.6 7.0% $285.2 $- - $285.2 ====================================================== Note: Application is based on the software & use of a product; one industry group may have multiple applications. (2) Not for Financial reporting. Analytical information subject to periodic adjustment Unaudited Supplemental Detail Symbol Technologies, Inc. Statement of Operations - As Reported, before impact of restatement (Dollars in millions) Note: All financial data and financial ratios will be impacted by the financial statement restatement 2002 - As Reported ---------------------------------------------- Q1 Q2 Q3 Q4 Total ---------------------------------------------- Revenue 301.3 315.9 339.5 363.4 1,320.1 Cost of revenue 191.8 193.9 206.7 217.0 809.4 Amortization of Software 4.2 4.9 5.0 5.0 19.1 ---------------------------------------------- Gross profit 105.3 117.1 127.8 141.4 491.6 Operating expenses Engineering 26.7 29.5 34.3 33.4 123.9 Selling , G&A 63.3 70.2 71.3 78.8 283.6 Restructuring and Impairment 0.0 47.2 0.0 0.0 47.2 Compensation Charge 8.6 0.0 0.0 0.0 8.6 ---------------------------------------------- Total operating expenses 98.6 146.9 105.6 112.2 463.3 ---------------------------------------------- Operating income / (loss) 6.7 (29.8) 22.2 29.2 28.3 Other Income 0.0 0.0 0.0 1.2 1.2 Interest expense, net (4.1) (3.6) (3.0) (3.3) (14.0) ---------------------------------------------- Pre-tax earnings / (loss) 2.6 (33.4) 19.2 27.1 15.5 Provision for / (benefit from) income taxes 0.8 (10.6) 6.1 8.7 5.0 ---------------------------------------------- Net earnings / (loss) 1.8 (22.8) 13.1 18.4 10.5 Weighted avg shares outstanding 234.6 229.4 233.4 233.2 233.1 Earnings / (loss) per share $0.01 ($0.10) $0.06 $0.08 $0.05 ---------------------------------------------- PERCENTAGE OF REVENUE -------------------- Revenue 100.0% 100.0% 100.0% 100.0% 100.0% Cost of revenue 63.7% 61.4% 60.9% 59.7% 61.3% Amortization of Software 1.4% 1.6% 1.5% 1.4% 1.4% ---------------------------------------------- Gross profit 35.0% 37.1% 37.6% 38.9% 37.2% Operating expenses Engineering 8.9% 9.3% 10.1% 9.2% 9.4% Selling , G&A 21.0% 22.2% 21.0% 21.7% 21.5% Restructuring and Impairment 0.0% 14.9% 0.0% 0.0% 3.6% Compensation Charge 2.9% 0.0% 0.0% 0.0% 0.7% ---------------------------------------------- Total operating expenses 32.7% 46.5% 31.1% 30.9% 35.1% ---------------------------------------------- Operating income / (loss) 2.2% -9.4% 6.5% 8.0% 2.1% Other Income 0.0% 0.0% 0.0% 0.3% 0.1% Interest expense, net -1.4% -1.1% -0.9% -0.9% -1.1% ---------------------------------------------- Pre-tax earnings / (loss) 0.9% -10.6% 5.7% 7.5% 1.2% Provision for / (benefit from) income taxes 0.3% -3.4% 1.8% 2.4% 0.4% ---------------------------------------------- Net earnings / (loss) 0.6% -7.2% 3.9% 5.1% 0.8% ---------------------------------------------- Q1 2002 Q2 2002 Q3 2002 YTD 2002 ---------------------------- ---------- Excludes Excludes Excludes Excludes Special Special Special Special charges charges charges charges ----------------------------------------- Revenue 301.3 315.9 339.5 1,320.1 Cost of revenue 191.8 193.9 206.7 809.4 Amortization of Software 4.2 4.9 5.0 19.1 ---------------------------- ---------- Gross profit 105.3 117.1 127.8 491.6 Operating expenses Engineering 26.7 29.5 34.3 123.9 Selling, G&A 63.3 70.2 67.6 279.9 Restructuring and Impairment 0.0 0.0 0.0 0.0 Compensation Charge 0.0 0.0 0.0 0.0 ---------------------------- ---------- Total operating expenses 90.0 99.7 101.9 403.8 ---------------------------- ---------- Operating income / (loss) 15.3 17.4 25.9 87.8 Other Income 0.0 0.0 0.0 1.2 Interest expense, net (4.1) (3.6) (3.0) (14.0) ---------------------------- ---------- Pre-tax earnings / (loss) 11.2 13.8 22.9 75.0 Provision for / (benefit from) income taxes 3.6 4.5 7.3 24.1 ---------------------------- ---------- Net earnings / (loss) 7.6 9.3 15.6 50.9 Weighted avg shares outstanding 234.6 229.4 233.4 233.1 Earnings / (loss) per share $0.03 $0.04 $0.07 $0.22 ---------------------------- ---------- PERCENTAGE OF REVENUE ----------------------- Revenue 100.0% 100.0% 100.0% 100.0% Cost of revenue 63.7% 61.4% 60.9% 61.3% Amortization of Software 1.4% 1.6% 1.5% 1.4% ---------------------------- ---------- Gross profit 35.0% 37.1% 37.6% 37.2% Operating expenses Engineering 8.9% 9.3% 10.1% 9.4% Selling, G&A 21.0% 22.2% 19.9% 21.2% Restructuring and Impairment 0.0% 0.0% 0.0% 0.0% Compensation Charge 0.0% 0.0% 0.0% 0.0% ---------------------------- ---------- Total operating expenses 29.9% 31.6% 30.0% 30.6% ---------------------------- ---------- Operating income / (loss) 5.1% 5.5% 7.6% 6.7% Other Income 0.0% 0.0% 0.0% 0.1% Interest expense, net -1.4% -1.1% -0.9% -1.1% ---------------------------- ---------- Pre-tax earnings / (loss) 3.7% 4.4% 6.7% 5.7% Provision for / (benefit from) income taxes 1.2% 1.4% 2.2% 1.8% ---------------------------- ---------- Net earnings / (loss) 2.5% 2.9% 4.6% 3.9% ---------------------------- ---------- 2003 Q1 2003 ------- -------- Excludes Q1 Special charges ------- -------- Revenue 357.4 357.4 Cost of revenue 213.2 211.3 Amortization of Software 5.0 5.0 ------- -------- Gross profit 139.2 141.1 Operating expenses Engineering 35.3 35.3 Selling , G&A 90.5 90.5 Restructuring and Impairment 5.3 0.0 Compensation Charge 0.0 0.0 ------- -------- Total operating expenses 131.1 125.8 ------- -------- Operating income / (loss) 8.1 15.3 Other Income 1.2 1.2 Interest expense, net (2.2) (2.2) ------- -------- Pre-tax earnings / (loss) 7.1 14.3 Provision for / (benefit from) income taxes 2.3 4.6 ------- -------- Net earnings / (loss) 4.8 9.7 Weighted avg shares outstanding 234.4 234.4 Earnings / (loss) per share $0.02 $0.04 ------- -------- PERCENTAGE OF REVENUE -------------------------------------------- Revenue 100.0% 100.0% Cost of revenue 59.7% 59.1% Amortization of Software 1.4% 1.4% ------- -------- Gross profit 38.9% 39.5% Operating expenses Engineering 9.9% 9.9% Selling , G&A 25.3% 25.3% Restructuring and Impairment 1.5% 0.0% Compensation Charge 0.0% 0.0% ------- -------- Total operating expenses 36.7% 35.2% ------- -------- Operating income / (loss) 2.3% 4.3% Other Income 0.0% 0.0% Interest expense, net -0.6% -0.6% ------- -------- Pre-tax earnings / (loss) 2.0% 4.0% Provision for / (benefit from) income taxes 0.6% 1.3% ------- -------- Net earnings / (loss) 1.4% 2.7% ------- -------- Unaudited Supplemental Detail Symbol Technologies, Inc. Balance Sheet - As Reported, before impact of restatement (Dollars in millions) Note: All financial data and financial ratios will be impacted by the financial statement restatement -------------------------------- -------- 2002 2003 -------------------------------- ------- Q1 Q2 Q3 Q4 Q1 -------------------------------- -------- Assets Cash and temporary investments 72.1 69.3 69.6 76.1 98.6 Accounts receivable 279.5 282.7 283.6 267.7 227.8 Inventories 306.8 302.6 316.9 334.6 310.4 Deferred income taxes 183.8 180.9 183.6 172.7 171.1 Prepaid and refundable income taxes 17.1 31.4 26.7 0.0 0.0 Other current assets 90.4 81.2 75.1 52.5 74.5 -------------------------------- -------- Total current assets 949.7 948.1 955.5 903.6 882.4 Property, plant and equipment - net 239.2 232.4 226.4 222.2 220.0 Deferred income taxes 18.5 18.5 18.5 38.7 38.8 Investment in marketable securities 71.2 58.5 43.9 54.9 54.7 Intangible and other assets - net 553.0 511.1 522.7 513.2 514.3 -------------------------------- -------- Total assets 1,831.6 1,768.6 1,767.0 1,732.6 1,710.2 ================================ ======== Liabilities & Stockholders' Equity Accounts payable and accrued expenses 259.5 261.9 288.5 279.9 270.4 Current portion of long-term debt 6.6 6.4 6.7 6.7 50.3 Income taxes payable 0.0 0.0 0.0 0.3 1.9 Deferred revenue 31.1 29.7 32.2 29.2 38.1 Accrued restructuring expenses 15.1 11.3 7.9 5.5 8.6 -------------------------------- -------- Total current liabilities 312.3 309.3 335.3 321.6 369.3 Convertible subordinated notes and debentures 45.1 0.0 0.0 0.0 0.0 Long-term debt, less current maturities 237.0 237.5 197.5 135.6 54.5 Other liabilities and deferred revenue 59.7 62.6 62.8 63.9 64.9 Stockholders' Equity Common stock 2.6 2.6 2.6 2.6 2.6 Other stockholders' equity 1,174.9 1,156.6 1,168.8 1,208.9 1,218.9 -------------------------------- -------- Total stockholders' equity 1,177.5 1,159.2 1,171.4 1,211.5 1,221.5 -------------------------------- -------- Total liabilities and equity 1,831.6 1,768.6 1,767.0 1,732.6 1,710.2 ================================ ======== Financial ratios: -------------------------------- -------- Days sales outstanding 84 81 76 67 58 -------------------------------- -------- Inventory turnover 2.6 2.6 2.7 2.7 2.8 -------------------------------- -------- Inventory turnover (excluding special charges) 2.8 -------------------------------- -------- Return on assets 0.4% -5.1% 3.0% 4.2% 1.1% -------------------------------- -------- Return on assets (excluding special charges) 1.6% 2.1% 3.5% 2.3% -------------------------------- -------- Current ratio 3.0 3.1 2.8 2.8 2.4 -------------------------------- -------- Current ratio (excluding special charges) 3.1 3.0 2.4 -------------------------------- -------- Unaudited Supplemental Detail Symbol Technologies, Inc. Cash Flow Trend - As Reported, before impact of restatement (Dollars in millions) Note: All financial data and financial ratios will be impacted by the financial statement restatement ------------------------------- ------ 2002 2003 ------------------------------- ------ Modified Cash Flow Q1 Q2 Q3 Q4 Total Q1 ------------------------------- ------ Cash Flow from Operating Activities Net Income/(Loss) 1.8 (22.8) 13.1 18.4 10.5 4.8 Depreciation and Amort. of PP&E 10.2 11.9 13.1 12.5 47.7 12.2 Other Amortization 7.2 8.7 8.4 8.7 33.0 8.7 Provision for Losses on A/R 1.6 1.1 1.5 2.1 6.3 1.7 Non Cash Restructuring & Impairment 0.0 47.2 0.0 0.0 47.2 7.2 Non Cash Compensation 0.0 0.0 3.0 0.0 3.0 0.0 Deferred Income Taxes 0.0 0.0 0.0 (1.2) (1.2) 1.6 Tax Benefits from Stock Options 6.8 0.2 0.9 0.3 8.2 0.3 Changes in Assets and Liabilities Accounts Receivable 26.0 (1.6) (5.0) 15.6 35.0 39.6 Inventories 4.0 5.3 (15.3)(16.9) (22.9) 24.1 Other Assets 9.0 10.3 6.8 2.9 29.0 (22.0) Accounts Payable and Accrued Expenses (19.1) 3.2 21.9 (0.2) 5.8 (9.5) Accrued Restructuring Expenses (3.8) (3.8) (3.3) (0.1) (11.0) (4.1) Other Liabilities and Deferred Revenue (0.4)(12.9) 6.3 25.1 18.1 11.5 ------------------------------- ------ Cash Flow from Operations 43.3 46.8 51.4 67.2 208.7 76.1 ------------------------------- ------ Proceeds from sale of property, plant and equip. 0.0 4.2 0.0 0.0 4.2 0.5 Capital Expenditures (9.4) (8.8) (7.3) (8.3) (33.8) (10.5) Investment in Intangibles & Other (9.0)(14.1)(16.9) (6.1) (46.1) (10.2) ------------------------------- ------ Net Funds Flow 24.9 28.1 27.2 52.8 133.0 (55.9) Cash Flow from Financing Activities (33.4)(34.2)(27.8)(48.1)(143.5) (35.8) Other (0.4) 3.3 0.9 1.8 5.6 2.4 ------------------------------- ------ Increase/(Decrease) in Cash (8.9) (2.8) 0.3 6.5 (4.9) 22.5 ------------------------------- ------ Beginning Cash Balance 81.0 72.1 69.3 69.6 81.0 76.1 ------------------------------- ------ Ending Cash Balance 72.1 69.3 69.6 76.1 76.1 98.6