Zebra Takes a Fall

The stock slides 10%.
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Zebra Technologies

(ZBRA) - Get Report

, a manufacturer of bar code printers, dropped 10% after posting a flat first quarter.

The company earned $26.1 million, or 37 cents a share, in the quarter, compared with $25.8 million, or 36 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 39 cents a share in the most recent quarter.

First-quarter revenue rose 3% to $175.8 million as against analysts' expectation of $180.2 million.

The Venon Hills, Ill.-based company expects to earn 34 cents a share to 39 cents a share in the second quarter on revenue of $180 million to $190 million while analysts' estimate earnings of 42 cents a share on revenue of $188.8 million.

Operating profit fell 9.3% to $33.2 million and operating profit margin declined 250 basis points to 18.9% due to higher employee-related costs.

Sales from hardware products, which formed 76% of sales, remained flat at $133.5 million. Revenue from supplies increased 14.6% to $34.3 million.

"Robust growth in international territories is the direct result of more Zebra representatives working with a greater number of channel partners," the company said. "Our expansion activities in China, Eastern Europe and Latin America are extending Zebra's global reach and enabling us to pursue more business opportunities in these developing market economies."

Shares fell $4.45 to $38.90.

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