Zebra to pursue overseas markets

Zebra Technologies Corp. said Wednesday it plans to expand its product line and reach out to more international markets to keep profits up after a good first quarter.

The Vernon Hills maker of radio frequency identification tag systems and other products already gets 55 percent of its revenue from outside the United States, Chief Executive Officer Anders Gustafsson said during an interview.

"If we diversify our growth, we'll be less dependent on any one segment or customer," Gustafsson said.

Zebra posted first-quarter net income of $27.6 million, or 42 cents per share, compared with $26.7 million, or 39 cents, a year ago. Net sales grew 18 percent -- a record $246.3 million for the first quarter -- compared to $208.6 million for the first quarter of 2007.

Gustafsson, a former Tellabs Inc. executive, said he wants Zebra to further expand to Brazil, Russia, India, China and Turkey, among other places.

New bar code machines, including one that makes smear-proof wristbands for hospitalized patients, are the likely products to help Zebra keep up its profit momentum. But the company also needs to work on sales in North America, said Jeff Rosenberg, technology analyst with William Blair Co. in Chicago.

"To a certain extent, it's important for Zebra to improve its sales in North America," said Rosenberg. "Even though that could be hard to achieve now with a weakened economy."

In addition, Zebra may buy out other companies to help expand its portfolio. On April 16, the company acquired Mutlispectral Solutions Inc. in Germantown, Md.

"We are always interested in finding attractive opportunities," Gustafsson said. "But we don't want to bite off more than we can realistically digest."