Symbol Technologies posts higher Q2 profit; warns on Q3

The Company also announced that its Board of Directors has authorized a $200 million share repurchase program.

Revenue for second-quarter 2006 was $453.1 million. This compares with second-quarter 2005 revenue of $427.8 million and first-quarter 2006 revenue of $444.9 million, which included a $9.9 million payment of past due royalties.

Second-quarter as reported net income was $27.2 million or $0.11 per share, including a net charge of $2.7 million resulting from restructuring and asset impairment charges, stock option expenses and a legal judgment, partially offset by the release of a legal contingency. This compares with a second-quarter 2005 as reported net loss of $30.5 million or $0.12 per share, which included a $35.1 million net charge resulting from restructuring and asset impairment charges, partially offset by a benefit related to a class action lawsuit. First-quarter 2006 as reported net income was $29.5 million or $0.12 per share, including a $5.2 million net benefit resulting from the past due royalty payment plus interest, along with a favorable legal settlement, partially offset by restructuring and asset impairment charges and stock option expenses.

On a normalized basis, second-quarter 2006 net income was $29.9 million or $0.12 per share. This compares with second-quarter 2005 normalized net income of $4.6 million or $0.02 per share. First-quarter 2006 normalized net income was $24.3 million or $0.10 per share.

"I'm pleased with our second-quarter results and achievement of our key financial goals. We plan to stay sharply focused on creating innovative next- generation products and business solutions for our customers, enhancing our sales efforts in targeted areas and increasing shareholder value," said Sal Iannuzzi, Symbol president and chief executive officer. "Also, our strong financial foundation affords us the flexibility and resources to repurchase our shares without limiting our ability to pursue other opportunities. We have great confidence in Symbol's growth potential for the second half of the year and over the long term."