EXHIBIT 99.1
For Immediate Release
SYMBOL TECHNOLOGIES REPORTS UNAUDITED 2003
FOURTH QUARTER AND FULL YEAR RESULTS
HOLTSVILLE, N.Y. - March 4, 2004 - Symbol Technologies, Inc. (NYSE:SBL), The
Enterprise Mobility Company(TM), today announced unaudited financial results for
the fourth quarter and full year ended December 31, 2003.
Revenue for the fourth quarter ended December 31, 2003, was $393 million,
somewhat lower than the guidance of approximately $400 million due to the
recording of an additional deferral of $5 million of revenue to a European
distributor, resulting in a diluted EPS reduction of $0.01. This fourth quarter
revenue is 5 percent higher than the $373 million reported in the corresponding
year earlier period. Fourth quarter net earnings were $16.2 million, or $0.07
diluted earnings per share, compared to a loss of $68.7 million, or a loss of
$0.30 diluted earnings per share, in the corresponding year earlier period.
Revenue for the year ended December 31, 2003, was $1.53 billion, compare to
$1.4 billion for the year ended December 31, 2002. Net earnings for the year
ended December 31, 2003, were $3.3 million, or $0.01 diluted earnings per share,
compared to a net loss of $45 million, or a loss of $0.20 diluted earnings per
share, in the prior year.
For 2004, the Company anticipates revenue growth in a range of 10 to 15
percent year over year and fiscal year 2004 diluted earnings per share in a
range of 40 to 50 cents. For the first quarter of 2004, the Company expects an
increase of 3 to 5 percent over fourth quarter 2003 revenue of $393 million. The
Company anticipates subsequent 2004 quarters to improve from this first quarter
2004 base.
Included in net earnings in 2003 were additional costs associated with the
restatement of the Company's prior years financial statements and ongoing
investigations by the Securities and Exchange Commission and the United States
Department of Justice. Such costs negatively affected pretax earnings by $35.9
million ($22.1 million after tax, at the applicable statutory tax rate), or
$0.09 per diluted share. In
addition, during 2003 the Company recorded additional provisions related to
legal settlements in connection with certain class action lawsuits, negatively
affecting pretax earnings of $72 million ($46.2 million after tax, at the
applicable statutory tax rate), or $0.20 per diluted share. Due to Symbol's
untimely filings with the SEC, the Company incurred certain non cash
compensation charges associated with its stock option and employee stock
purchase plans. Such costs negatively impacted 2003 pre tax earnings by $17
million ($10.5 million after tax, at the applicable statutory tax rate), or
$0.04 per diluted share.
The Company intends to file its Annual Report on Form 10K for the year
ended December 31, 2003, on or before March 15, 2004.
"We were pleased with fourth quarter results, a 4 percent increase in
revenue from 2003's third quarter and a 5 percent increase in revenue over the
restated fourth quarter 2002. Although full year 2003 revenue at $1.53 billion
came in slightly under 10 percent growth, it was a year in which we made great
organizational, cultural and financial progress. Having put many of the issues
of the past behind us as well as much of the extraordinary expense associated
with the restatement period, 2004 operating expense should be favorably
impacted. That said, in 2004 the Company plans to make investments in systems to
drive workforce productivity and improved business controls, sales coverage to
drive top line growth and customer satisfaction, finance to improve process
execution and financial controls, and new products to increase the market share
position of all of our business divisions - all necessary to achieve our
business plan goals beyond 2004," William Nuti, chief executive officer and
president, said. "Symbol is in a very special position to lead in the new era of
information technology - the age of mobility - and our future market leadership
position is what we are planning for, investing in and executing today."
Mark Greenquist, senior vice president and chief financial officer, said,
"During 2003 we made significant balance sheet improvement with ongoing positive
cash flow driven by working capital improvements, an increase in cash balances
of approximately $74 million and shrinking our bank debt to zero. With the
restatement of previous financial statements completed, the Company is poised
for the revenue and earnings growth we feel that Symbol can deliver."
The previously reported SEC and Department of Justice investigations are
continuing.
QUARTERLY TELECONFERENCE SCHEDULED FOR 5 P.M. TODAY, MARCH 4, 2004
Symbol has scheduled a conference call and Web cast for 5 p.m. Thursday, March
4, 2004, at which time it will discuss results for the fourth quarter and full
year ended December 31, 2003. Those interested in participating in the
conference call should dial 719-457-2657 at least 10 minutes prior to
commencement of the call, which also will be available as an audio Web cast via
the Symbol Web site, www.symbol.com/investors. A telephonic replay will be
available beginning at noon ET March 5 through March 17, 2004, on a 24 hour
non-stop basis. The dial-in number to access this replay is: 719-457-0820 -
Access Code: 240345.
In addition to the teleconference, the Company will host a simultaneous Web cast
presentation via WebEx, an online PowerPoint document sharing Web site. Those
interested in viewing the WebEx presentation should go to
http://symbol.webex.com at least 10 minutes prior to the start of the
teleconference. At the site, log in to the "Symbol Technologies- 2003 Financial
Results" by clicking the "join" button; you are required to provide your name
and e-mail address. Please be advised that WebEx permits you to enroll prior to
the conference, but this is not mandatory for participation. This is an
unrestricted Web site and a password is not required. A synchronized WebEx and
audio replay will be available on the Company's investor homepage beginning at
noon ET March 5 through March 17 on a 24-hour non-stop basis.
A copy of the presentation will be posted in PDF format on the Company's
investor homepage, www.symbol.com/investors.
ABOUT SYMBOL TECHNOLOGIES
Symbol Technologies, Inc., The Enterprise Mobility Company(TM), is the
recognized worldwide leader in delivering products and solutions that capture,
move and manage information in real time to and from the point of business
activity. Symbol enterprise mobility solutions integrate advanced data capture
technology, mobile computing platforms, wireless infrastructure, mobility
software and the world-class Symbol Enterprise Mobility Services. Symbol's
end-to-end, real-time enterprise mobility solutions are proven to increase
workforce productivity, reduce operating costs, drive operational efficiencies
and uncover competitive advantages. Symbol is a trusted advisor to the world's
leading retailers, transportation and logistics companies, manufacturers, public
sector/government agencies, as well as healthcare, hospitality and security
providers. More information is available 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
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 MEDIA INFORMATION:
Patricia Hall
Symbol Technologies, Inc.
631-738-5636
hallp@symbol.com
FOR FINANCIAL INFORMATION:
Nancy Tully
Symbol Technologies, Inc.
631-738-5050
tullyn@symbol.com