Zebra Swings to Loss

It gets hit by a big charge.
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Zebra Technologies

(ZBRA) - Get Report

, a manufacturer of bar code printers, said it swung to a loss in the third quarter after it was hit by charges.

The Vernon Hills, Ill.-based company lost $4.26 million, or 6 cents a share, in the quarter, compared with earnings of $28.1 million, or 39 cents a share, a year ago. The results include a pretax charge of $53.4 million related to the previously announced settlement of a dispute and a licensing agreement with Paxar Americas. This charge reduced 2006 third-quarter earnings by 51 cents a share. Analysts polled by Thomson First Call were expecting earnings of 34 cents a share.

Third-quarter revenue rose 6.1% from a year ago to $186.4 million. Analysts were expecting revenue of $187.7 million in the most recent quarter.

The company expects to earn 39 cents to 43 cents a share in the fourth quarter on revenue of $190 million to $200 million. Analysts were expecting earnings of 41 cents a share on revenue of $195.3 million in the fourth quarter.

"Greater traction in delivering high-value solutions to targeted vertical markets and further penetration of international regions delivered a solid result for Zebra's third quarter," said the company. "During the quarter, we had increased shipments into government, health care, route accounting and retail venues. We enter the fourth quarter with a robust deal pipeline and high backlog."

By segment, third-quarter revenue from hardware products rose 5.5% from a year ago to $140.9 million, revenue from supplies jumped 17.9% to $38.4 million, revenue from shipping and handling declined 18% to $1.5 million, and revenue from service and software segment fell 0.5% to $6.3 million.

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