877212--2/27/2009--ZEBRA_TECHNOLOGIES

related topics

{customer, product, revenue}

{cost, contract, operation}

{acquisition, growth, future}

{product, market, service}

{property, intellectual, protect}

{condition, economic, financial}

{operation, natural, condition}

{personnel, key, retain}

{regulation, change, law}

Current economic conditions and market disruptions may adversely affect Zebra s business and results of operations Zebra could encounter difficulties in any acquisition it undertakes, including unanticipated integration problems and business disruption. Acquisitions could also dilute stockholder value and adversely affect operating results. Zebra Enterprise Solutions Group is a new business. Zebra may be a party to fixed price contracts particularly for its ESG Unit that could become unfavorable contracts. Zebra is transferring final assembly of its thermal printers to Jabil Circuit and will be totally dependent on Jabil for the manufacturing of such printers. A failure by Jabil to provide manufacturing services to Zebra as Zebra requires, or any disruption in such manufacturing services, may adversely affect Zebra s business results. Zebra has significant operations outside the United States and sells a significant portion of its products internationally and purchases important components from foreign suppliers. In addition, the transfer of final assembly of its thermal printers to a Chinese facility began in 2008 and is expected to conclude in 2009. These circumstances create a number of risks. Zebra may not be able to continue to develop products to address user needs effectively in an industry characterized by rapid technological change. Zebra competes in a highly competitive market, which is likely to become more competitive. Competitors may be able to respond more quickly to new or emerging technology and changes in customer requirements. Zebra is vulnerable to the potential difficulties associated with the rapid increase in the complexity of its business Zebra sources some of its component parts from sole source suppliers. Infringement by Zebra or Zebra suppliers on the proprietary rights of others could put Zebra at a competitive disadvantage, and any related litigation could be time consuming and costly. The inability to protect intellectual property could harm Zebra s reputation, and its competitive position may be materially damaged. Zebra may incur liabilities as a result of product failures due to actual or apparent design or manufacturing defects Larger orders may take longer to close and may not be completely fulfilled during a particular quarter. Zebra s equipment is subject to U.S. and foreign regulations that pertain to electrical and electronic equipment, which may materially adversely affect Zebra s business. Zebra is implementing a new company-wide enterprise resource planning (ERP) system. The implementation process is complex and involves a number of risks that may adversely affect Zebra s business and results of operations. Economic factors that are outside Zebra s control could lead to deterioration in the quality of Zebra s accounts receivables. Zebra depends on the ongoing service of its senior management and ability to attract and retain other key personnel. Terrorist attacks or war could lead to further economic instability and adversely affect Zebra s stock price, operations, and profitability. Taxing authority challenges may lead to tax payments exceeding current reserves.

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877212--2/27/2009--ZEBRA_TECHNOLOGIES_CORP/DE