Supply chain issues cut into Zebra's profits
LINCOLNSHIRE -- Zebra Technologies Corp. Tuesday reported financial results of its fiscal year first quarter, including net sales of $1.4 billion, as compared to $1.3 billion in the first quarter of 2021.
Net income for the quarter ended April 2 was $205 million, or $3.83 per diluted share, compared to net income of $228 million, or $4.22 per diluted share, for the first quarter last year, the company said.
First quarter 2022 gross profit was $637 million compared to $655 million in the prior year period. The decrease was primarily due to increased premium freight and component part costs, as well as unfavorable business mix, Zebra said. These decreases were partially offset by higher service and software margin.
Zebra, doing business with more than 10,000 partners across more than 100 countries, serves customers of all sizes -- including 94% of the Fortune 100 -- with a portfolio of hardware, software, technology services and solutions that digitize and automate workflows.
"Despite global macro headwinds, we are reiterating our full-year 2022 sales outlook given our strong order backlog and robust pipeline," said Anders Gustafsson, chief executive officer of Zebra Technologies. "We continue to invest in our vibrant business and are excited about our proposed acquisition of Matrox Imaging, which will create a comprehensive portfolio of machine vision solutions to address the increased needs of manufacturers."