Exhibit 99.1 SYMBOL TECHNOLOGIES REPORTS STRONG FIRST-QUARTER 2004 REVENUE OF $419.7 MILLION ----- NET EARNINGS OF $6.8 MILLION, OR $0.03 EPS, AFTER GIVING EFFECT TO WRITE-OFF OF PREVIOUSLY RECORDED DEFERRED TAX ASSET OF $13.5 MILLION OR $0.05 EPS HOLTSVILLE, N.Y., May 10, 2004 - Symbol Technologies, Inc. (NYSE:SBL) today reported results for first quarter 2004. Revenue for the first quarter ended March 31, 2004, was $419.7 million, an increase of 9 percent over first-quarter 2003 revenue of $386.3 million and an increase of 7 percent over fourth-quarter 2003 revenue of $393.0 million. First-quarter net earnings were $6.8 million, or $0.03 per share, which includes a $13.5 million, or $0.05 per share, charge to income taxes for a portion of a previously recorded deferred tax asset, related to ongoing negotiations to settle the previously disclosed government investigation, that may not be realized. Excluding this charge, net earnings were $20.3 million, or $0.08 per share. This compares with a first-quarter 2003 net loss of ($31.0) million, or $(0.13) per share, and fourth-quarter 2003 net earnings of $16.2 million, or $0.07 per share. Product revenue of $348.2 million reflected continuing and balanced growth in sales for all Symbol product groups - mobile computing, wireless infrastructure and advanced data capture. The increased product revenue - up 11 percent sequentially from fourth quarter 2003's $314.1 million and up 12 percent year over year - was supported by sales of new products such as the MC9000-G, an innovative mobile computer; the LS2200 handheld scanner; and Symbol's industry-leading wireless switching product line. Service revenue of $71.4 million showed a quarter-to-quarter decline of 10 percent from $78.9 million and a year-over-year decline of 6 percent from $75.6 million. Contributing to the decline is the Company's deliberate strategy to have its channel partners deliver professional services, as well as the impact that the timing of cash receipts has on revenue recognized on a billed-and-collected basis. First-quarter 2004 gross profit increased 6 percent to $194.9 million compared with fourth-quarter 2003 gross profit of $184.1 million and increased 13 percent from $171.9 million in first quarter 2003. Operating expenses in first quarter 2004 were $165.5 million, up $3.8 million from fourth-quarter 2003 operating expenses of $161.7 million. As a percentage of sales, operating expenses in first quarter 2004 decreased 1.8 percentage points to 39.4 percent from 41.2 percent in fourth quarter 2003. Earnings from operations for the first quarter ended March 31, 2004, were $29.5 million, an increase of 32 percent from the fourth quarter 2003 total of $22.4 million. Operating margin for the first quarter ended March 31, 2004, improved 1.3 percentage points to 7 percent from fourth quarter 2003. The Company's cash balance increased to $179 million at March 31, 2004, primarily resulting from cash provided from operations of approximately $41 million. William Nuti, Symbol president and chief executive officer, said, "I want to congratulate our associates and channel partners on a strong first-quarter revenue performance. At $419.7 million, first-quarter 2004 revenue came in above the top of our range and set a vigorous pace for 2004. Product revenue growth was a key driver of our success and reflected enthusiasm for some of our newer products as they gain traction in the marketplace. It also underscores our belief that we are gaining market share, and that our enterprise mobility systems strategy wins out over point product offerings from our competitors. While operational expenses exceeded our expectations, there were several one-time charges associated with cleaning up the past. We remain focused on improving the bottom line through better expense controls, increasing productivity and continuing to streamline operations." Mark T. Greenquist, senior vice president and chief financial officer, said, "The balance sheet improvement that we experienced in 2003 continued its encouraging trend in first quarter 2004. Ongoing positive cash flow, declining receivables, a quarter-to-quarter nine-day drop in DSOs to 26 days and an uptick in inventory turns all point to the continued solid financial performance we anticipate and feel confident that Symbol can deliver." In addition to including net earnings under accounting principles generally accepted in the U.S. ("GAAP"), Symbol disclosed adjusted net earnings and adjusted earnings per share for first quarter 2004, before giving effect to the write-off of the deferred tax asset mentioned above, that the Securities and Exchange Commission defines as "non-GAAP financial measures." These non-GAAP financial measures should not be considered in isolation or as an alternative to net earnings and earnings per share or any other measure of performance derived in accordance with GAAP. However, these non-GAAP financial measures are presented because Symbol believes these non-GAAP measures provide useful supplemental information for management and investors and allow them to perform meaningful comparisons for the Company's past and present results. For a reconciliation of these non-GAAP measures see the table below with the heading "Non-GAAP Financial Measures." The previously reported investigations by the SEC and the U.S. Attorney's Office are ongoing. TELECONFERENCE AND WEB PRESENTATION DETAILS Those interested in participating in the call, scheduled to begin at 4:30 pm ET May 10, 2004, should dial 719-457-2679 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 May 11 through May 25, 2004, on a 24-hour non-stop basis. The dial-in number to access this replay is: 719-457-0820 - Access Code: 488122. 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 joining the WebEx event should visit http://symbol.webex.com at least 10 minutes prior to the start of the teleconference. Clicking on the "WebEx icon" link will take you directly to the event homepage. 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 an access code is not required. A synchronized WebEx and audio replay will be available on the Symbol investor homepage beginning at noon ET May 11 through July 30, 2004, on a 24-hour non-stop basis. The presentation will be posted in PDF format on the Company's investor homepage (www.symbol.com/investors) prior to the call. ABOUT SYMBOL TECHNOLOGIES Symbol Technologies, Inc., The Enterprise Mobility Company(TM), is a 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 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 and government agencies, as well as healthcare, hospitality and security providers. More information is available at www.symbol.com. FORWARD-LOOKING STATEMENTS 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 - ----------------- SYMBOL TECHNOLOGIES, INC. & SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) FOR THE THREE MONTHS ENDED --------------------------------------------------- ($ MILLIONS, EXCEPT EPS) MARCH 31, 2004 DEC 31, 2003 MARCH 31, 2003 -------------- ------------ -------------- Net Revenue $ 419.7 $ 393.0 $ 386.3 Cost of Revenue 224.8 208.9 214.4 -------------- ------------ -------------- Gross Profit 194.9 184.1 171.9 Operating Expenses: Net Engineering 41.6 38.9 37.1 S, G&A 123.9 123.2 171.8 Other - (0.4) 0.1 -------------- ------------ -------------- Total Operating Expenses 165.5 161.7 209.0 -------------- ------------ -------------- Earnings/(Loss) from Operations 29.4 22.4 (37.1) (Other Income) / Expense, net (1.0) 1.4 4.0 -------------- ------------ -------------- Earnings/(Loss) before taxes 30.4 21.0 (41.1) Provision for/(Benefit from) income taxes 23.6 4.8 (10.1) -------------- ------------ -------------- Net Earnings/(Loss) $ 6.8 $ 16.2 $ (31.0) ============== ============ ============== Diluted EPS $ 0.03 $ 0.07 $ (0.13) - ------------------------------------------------------------------------------------------------ PERCENTAGE OF REVENUE - ------------------------------------------------------------------------------------------------ Net Revenue 100.0% 100.0% 100.0% Cost of Revenue 53.5% 53.2% 55.5% -------------- ------------ -------------- Gross Profit 46.5% 46.8% 44.5% Operating Expenses: Net Engineering 9.9% 9.9% 9.6% S, G&A 29.5% 31.2% 44.5% -------------- ------------ -------------- Total Operating Expenses 39.4% 41.1% 54.1% -------------- ------------ -------------- Operating Income 7.1% 5.7% (9.6)% (Other Income) / Expense, net (0.2)% 0.4% 1.0% -------------- ------------ -------------- Net Earnings/(Loss) before taxes 7.3% 5.3% (10.6)% Provision for/(Benefit from) income taxes 5.6% 1.2% (2.6)% -------------- ------------ -------------- Net Earnings 1.7% 4.1% (8.0)% - ------------------------------------------------------------------------------------------------ Symbol. The Enterprise Mobility Company. SYMBOL TECHNOLOGIES, INC. & SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) ($ MILLIONS) MARCH 31, 2004 DEC 31, 2003 MARCH 31, 2003 -------------- ------------ -------------- Assets Cash and temporary investments $ 179.0 $ 150.0 $ 98.6 Accounts receivable, net 119.6 152.4 140.0 Inventories 211.7 212.9 240.5 Deferred income taxes 141.0 182.6 155.2 Other current assets 25.9 36.1 41.9 -------------- ------------ -------------- Total current assets 677.2 734.0 676.2 Property, plant & equipment, net 207.5 210.9 205.2 Intangible and other assets, net 705.3 701.6 680.4 -------------- ------------ -------------- Total assets $ 1,590.0 $ 1,646.5 $ 1,561.8 ============== ============ ============== Liabilities & stockholders' equity Accounts payable and accrued expenses $ 442.2 $ 490.6 $ 482.5 Current portion of Long Term Debt 3.6 0.2 50.3 Income taxes payable 0.5 5.5 - Deferred revenue and other current liabilities 42.7 39.9 45.2 -------------- ------------ -------------- Total current liabilities 489.0 536.2 578.0 Long Term Debt less current maturities 104.4 99.0 54.5 Deferred revenue and other liabilities 62.2 90.7 71.8 Stockholders' equity Common stock issued 2.6 2.6 2.6 Other stockholders' equity 931.8 918.0 854.9 -------------- ------------ -------------- Total stockholders' equity 934.4 920.6 857.5 -------------- ------------ -------------- Total liabilities and stockholders equity $ 1,590.0 $ 1,646.5 $ 1,561.8 ============== ============ ============== Financial ratios: Days sales outstanding 26 35 33 Inventory turnover 4.2 3.9 3.6 Working capital % of revenue 11.9% 12.6% 6.4% Return on assets 4.4% 4.0% (7.9)% Return on equity 7.8% 7.1% (14.2)% Debt to Cash 60.4% 66.2% 106.3% Debt to Working Capital 52.3% 50.1% 55.5% Symbol. The Enterprise Mobility Company. SYMBOL TECHNOLOGIES, INC. & SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) THREE MONTHS ENDED ----------------------------------------------------- ($ MILLIONS) MARCH 31, 2004 DEC 31, 2003 MARCH 31, 2003 -------------- ------------ -------------- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings $ 6.8 $ 16.2 $ (31.0) Depreciation & amortization of PP&E 14.4 13.2 13.2 Other amortization (Cap Eng & Purch Tech.) 3.6 3.8 3.4 Provisions for losses on A/R 0.5 0.2 4.8 Non-Cash impairment and compensation charge 2.2 7.2 0.8 Deferred Income Tax & Other 25.2 (1.4) 1.6 CHANGES IN ASSETS & LIABILITIES Accounts receivable 27.6 (22.5) 18.9 Inventories 0.1 (13.1) 9.3 Other assets 7.9 9.6 (4.5) Accounts payable & accrued expenses (47.9) 19.4 52.4 Other liabilities & deferred revenues 0.3 14.6 2.4 -------------- ------------ -------------- NET CASH PROVIDED BY OPERATING ACTIVITIES 40.7 47.2 71.3 -------------- ------------ -------------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant & equipment - - 0.5 Expenditures for PP&E (11.2) (24.2) (10.6) Investment (4.0) (0.3) (3.0) -------------- ------------ -------------- NET CASH USED IN INVESTING ACTIVITIES (15.2) (24.5) (13.1) -------------- ------------ -------------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from/(repayments) of STD / LTD 13.7 (0.1) (36.6) Stock options & warrants 10.3 (0.4) 4.6 Treasury share repurchases (19.9) - (5.1) -------------- ------------ -------------- NET CASH USED IN FINANCING ACTIVITIES 4.1 (0.5) (37.1) ============== ============ ============== Exchange rate impact (0.6) 6.9 1.4 -------------- ------------ -------------- NET CHANGE IN CASH 29.0 29.1 22.5 ============== ============ ============== Beginning Cash Balance 150.0 120.9 76.1 ============== ============ ============== Ending Cash Balance $ 179.0 $ 150.0 $ 98.6 ============== ============ ============== Symbol. The Enterprise Mobility Company. SYMBOL TECHNOLOGIES, INC. & SUBSIDIARIES Non - GAAP Financial Measures $ IN MILLIONS, EXCEPT EPS ADJUSTED NET EARNINGS AND EARNINGS PER SHARE: Symbol believes that net earnings, and earnings per share, are the financial measures calculated and presented in accordance with GAAP that are most directly comparable to adjusted net earnings, and adjusted earnings per share. The following table reconciles net earnings, and earnings per share, to adjusted net earnings, and earnings per share, for the periods presented. THREE MONTHS ENDED MARCH 31, 2004 DEC 31, 2003 MARCH 31, 2003 -------------- ------------ -------------- Ner earnings/(loss) $ 6.8 $ 16.2 $ (31.0) Write-off of previously recorded deferred tax asset 13.5 - - -------------- ------------ -------------- Adjusted net earnings/(loss) Non-GAAP $ 20.3 $ 16.2 $ (31.0) ============== ============ ============== Diluted EPS-GAAP $ 0.03 $ 0.02 $ (0.13) EPS effect of write-off of previously recorded deferred tax asset 0.05 - - -------------- ------------ -------------- Adjusted Diluted EPS - Non-GAAP $ 0.08 $ 0.02 $ (0.13) ============== ============ ============== Symbol. The Enterprise Mobility Company.