Symbol Technologies, Inc. -...
Transcript of Symbol Technologies, Inc. -...
Symbol Technologies, Inc.Gillian Munson, VP Corporate Development
March 6, 2006
Private Securities Litigation Reform Act of 1995 Safe Harbor Provision
During the course of this presentation, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. Such statements are just estimates, and actual events or resultsmay differ materially. We refer you to the documents that Symbol files from time to time with the SEC. These documents contain and identify forward factors, risks and uncertainties that could cause actual results to differ materially from those contained in our projections or forward-looking statements.This presentation includes certain non-GAAP financial measures as defined under SEC rules. As required in this slide presentation, we have provided a reconciliation of those measures to the most directly comparable GAAP measures.Copies of our SEC filings are available upon request or by accessing our company website at www.symbol.com.
Agenda
• Symbol at a Glance
• Company Vision & Competitive Advantage
• Management Team
• Q4 ’05 Highlights/Revenue Breakdown
• Recent Product Launches/RFID Update
• 2006 Outlook/Top Priorities
Symbol at a Glance
Founded: 1975Normalized Revenue & EPS:
2005 Revenue: $1.77B2005 EPS: $0.22
Employees: ~5,200Partners: 10,000+Patents: 900+
Retail GovernmentTravel &Transportation
HealthcareManufacturingWholesale Distribution
Advanced Data Capture
Mobile Computing
Wireless Infrastructure
Mobility SoftwareRFID Global
Services
VisionVision “Symbol = Enterprise Mobility”Connecting people and objects to information resources
Company Vision andCompetitive Advantage
• Unique end-to-end enterprise mobility solutions
• Technology and intellectual property leadership
• A global presence
• Long-term customer relationships and knowledge of vertical markets
• A channel-centric and alliance-centric sales model
• Customer service and support• An experienced management team
Our Competitive Advantage
Management Team
Sal IannuzziPresident & CEO
Todd AbbottSVP WorldwideSales
Boris MetlitskySVP GlobalProducts Group
Tim YatesSVP & Chief Financial Officer
Mary McLeodSVP GlobalHuman Resources & Corporate Affairs
Tom CollinsSVP WW SupplyChain Operations
TBDSVP GeneralCounsel & Secretary
Arthur O’DonnellSVP & GM Global Services Division & CQO
* Excludes cash-basis accounting conversion in Q3 ’05; restructuring charges; and, other one-time items
Q4 ’05 Highlights
Exceeded revenue & EPS expectations
Margin expansion
Further penetration into new verticals • T&T, Manufacturing, Field Mobility,
Healthcare, Govt.
New product introductions• MC70: Symbol’s first data-capture
device with LAN,PAN & WAN capabilities
PartnerSelect passes $1B mark in annual bookings $0.10
$24.8M
8.9%
$177.4M
48.3%
$217.7M
$450.5M
Q4’04
$0.07
$17.1M
6.0%
$170.2M
45.4%
$196.4M
$432.2M
Q3’05
$0.09
$22.6M
7.6%
$166.5M
45.6%
$200.0M
$438.9M
Q4’05
OPEX
GrossMargin %
EPS
Net Income
Operating Margin
Gross Profit
Revenue
Q4 ’05 Revenue Breakdown
AP9%AP9%
EMEA28%
EMEA28%
Americas63%
Americas63%
Revenue by Region
MobileComputing
59%
MobileComputing
59%
ADC20%ADC20%
7%7%Wireless
Revenue by Product
Service17%
Service17%
ServicesServices
ProductsProducts
Other -3%
Recent Product Launches
XR400 Gen 2
SE950and SE955 LS4278AP5131 a/b/g
W-IPSWirelessIntrusion
Protection System
MC9090-GCE 5.0
MC9090-SMC9090-KMC9097
MC3000BT, Audio & CE 5.0
MC70WAN/
PAN/LAN
RFID Update
• #1 and #2 in deployment ofEPC readers and tags
• Complete EPC solutionprovider (tags, readers, platforms, services/support)
• Unmatched real application experience
• Broadest IP patent portfoliowith ~50 patents of our own;Rapid Start Program;and RFID IP Consortium
Pacific Cycle/Purdue Pharma – Implemented RFID Solution for Manufacturing and Item Level Tagging
McCarran Int’l Airport/Asiana Airlines –Deployed radio frequency identification (RFID) readers and tags for baggage tracking and monitoring systems
Department of Homeland Security – U.S. Visit Pilot Program
Recent Wins Pilots
XR400 Gen 2 Reader
Multi-protocol RuggedHandheld Reader
Gen 2 Early Adopter Program with Philips
Product Innovation
2006 Financial Outlook
Q1 Guidance:• Revenue: approximately flat to slightly down vs. Q4 ‘05• Gross Margin: slight improvement vs. Q4 ‘05• Opex: $163 - $167 million• EPS: $0.08 - $0.09, excludes $0.01 in stock-based compensation
(including $0.01 - $0.02 per share associated with defense of prior mgt.)
2006 Targets:• Drive revenue growth • Opex by Q2 ’06: targeting $160 million• Operating margin: double-digit by
second-half 2006
2006 Top Priorities
• Target key vertical markets and geographic regions to enhance leadership position
• Expand into new markets with new products (i.e., MC70)
• Continue to improve and streamline operations
• Focus on technology innovation and build upon our strong foundation of intellectual property
THANK YOUFor Your Time & Attention