Just reposting something I posted on another board:
Went to the shareholders meeting today and thought I'd share some of the comments.
The CEO, Ed Kaplan did most of the talking. A major growth area they see in the near future will be in the portable and wireless printing devices. You know, those hand-held devices you see at Hertz and Avis when you return your rental car? With their purchase last year of Comtec, they are now the #1 producer of such devices. As we all should know they are also the #1 producer of bar code printing devices and plastic card printers.
They obviously have some near term concerns about the economy. The slowing economy has caused many of Zebra's customers to slow capital spending. In spite of this slow down, they still expect 12-14% growth in their largest segment, bar code printing devices and supplies. Also, their current cash position and balance sheet will allow them to sustain through any short term profit decline. Something that not all of their competitors will be able to do. With this in mind, in spite of a slowing economy, they plan to increase spending in the near term. This can be through more acquisitions, more R&D and increased sales efforts. Increased expenditures and possible slow downs in revenues might have a short term negative impact on profits, but will put Zebra in a much better position to benefit from a rebounding economy in 2002 and beyond than many of their competitors.
They also hope to diversify into new but industry related areas they are not in right now. They also hope to open new international sales offices, areas where they feel they have the greatest growth potential.
While at the meeting and simultaneously at a trade show in Vegas they announced the introduction of three new plastic card printers. Two low end printers priced at $1,695 and $2,195 and a high priced printer at $9,995. This should fortify their position as the #1 maker of such devices.
The only major product where they are not the #1 producer in the industry is print engines. They are currently #2 and Mr. Kaplan hopes to be able to announce that they are #1 at next year's meeting.
All in all a very upbeat meeting. Again, due to current weakness in the economy and increased spending to improve their position in the markets they serve there might be short term pressure on profits. But it should put them in better position to benefit form the improving economy expected later this year or into 2002.
If the Street doesn't see this and if the stock should drop near term, it sure would look like a great buying opportunity. Glad I added to my position a while ago at around $36. Shoulda bought more. |
