Symbol Technologies

Symbol Technologies was an American enterprise-technology manufacturer whose products connected physical goods, workers, and information systems. Its principal businesses included handheld laser barcode scanners, rugged mobile computers, radio-frequency identification systems, wireless local-area-network infrastructure, and related mobile data-capture equipment. The company helped establish the model of enterprise mobility in which retail, distribution, manufacturing, transportation, and other organizations could capture information at the point of work and transmit it wirelessly to host systems. The company was founded in 1973 by Jerome Swartz and physicist Shelley A. Harrison under the name Stony Brook Applied Research. Its early work centered on handheld laser scanning of barcodes. Symbol initially concentrated heavily on retail, where barcode scanning was becoming important for checkout, inventory control, and supply-chain operations. As customers needed to count and identify products away from fixed terminals, the company expanded from scanners into compact mobile computers capable of storing scanned data and later uploading it to a central system. A major step in this development was Symbol's September 1988 acquisition of MSI Data Corporation, a Southern California mobile-computing company. The transaction strengthened Symbol's ability to provide integrated mobile terminals rather than stand-alone scanning hardware. Symbol subsequently added radio communication to its mobile systems, using a thin-client model and spread-spectrum wireless networks so that mobile devices could remain connected to enterprise hosts. This approach made real-time or near-real-time inventory, warehouse, and retail workflows commercially practical. During the 1990s, Symbol competed especially closely with Telxon in enterprise mobility and wireless data networks. A significant technical and commercial dispute concerned the emerging 2.4 GHz wireless market. Symbol favored frequency-hopping radio technology, while Telxon supported direct-sequence transmission. The later adoption of direct-sequence technology for the IEEE 802.11b standard forced Symbol to rework its wireless systems, but the company ultimately became an important supplier of 802.11b-related enterprise equipment. It also sold wireless radio products as PC Cards to original-equipment manufacturers and private-label customers, including 3Com, Nokia, and Intel. Symbol's attempted expansion through Telxon became one of the most important corporate events in its pre-Motorola history. Telxon rejected Symbol's hostile takeover proposal in 1998, leading to a prolonged proxy contest. Symbol completed the acquisition in December 2000 for substantially less than the original offer. In 2004, Symbol acquired Matrics, extending its portfolio into RFID technology and strengthening its position in automated identification and data capture. The company was severely damaged by an accounting-fraud scandal covering transactions from 1998 through early 2002. Chief executive Tomo Razmilovic retired in 2002 while regulators were examining Symbol's accounting. A subsequent internal investigation found practices including channel stuffing, sales transactions lacking genuine end-customer demand, repurchase arrangements, manipulation of reserves, and internal worksheets used to reconcile reported revenue with quarterly targets. Symbol restated several years of results, paid regulatory and shareholder-settlement costs, and faced criminal and civil proceedings involving former executives. Symbol never fully recovered its independent position. Motorola acquired the company in 2007 for approximately $3.9 billion, incorporating its operations and products into Motorola's enterprise business. After Motorola separated its mobile-phone activities into Motorola Mobility, the enterprise assets remained with Motorola Solutions. In October 2014, Zebra Technologies acquired Motorola Solutions' enterprise business for $3.45 billion in cash. That transaction included the Symbol product line and effectively transferred the brand's enterprise hardware heritage to Zebra. Symbol therefore exists primarily as a historical and product-line identity rather than as an independent operating company.

Symbol Technologies began in 1973 as Stony Brook Applied Research, founded by Jerome Swartz and Shelley A. Harrison. The company initially concentrated on handheld laser-based barcode scanning. Its early commercial emphasis was retail, where scanning technology supported checkout operations, inventory management, and the identification of goods moving through stores and distribution systems. The practical requirements of inventory work led Symbol beyond fixed scanners. Workers needed to scan products where they were stored, so the company developed compact computers that could retain scanned information and later transmit it to a host system. Symbol accelerated this direction through the September 1988 acquisition of MSI Data Corporation, a Southern California mobile-computer manufacturer. The acquisition gave Symbol a stronger platform for combining barcode capture with portable computing. Symbol then pursued wireless connectivity. Its mobile computers used a thin-client architecture and spread-spectrum radio networks, allowing devices to operate without a physical tether while remaining connected to enterprise systems. This helped establish a category later known as enterprise mobility. Symbol's customers included major retailers and other organizations with large inventories, distributed workforces, and a need for immediate operational data. In the 1990s, Symbol and Telxon were leading competitors in enterprise mobile computing and wireless data. Their products operated in the 2.4 GHz industrial, scientific, and medical band before the IEEE 802.11 standard had been finalized. Symbol favored frequency hopping, while Telxon used direct sequence. A 1994 comparison associated with a Kroger business opportunity ended with Kroger selecting Telxon, and the later direction of the IEEE 802.11b standard toward direct-sequence technology created a serious engineering challenge for Symbol. Symbol nevertheless reworked its products and became a significant supplier of enterprise wireless equipment. It also sold wireless radio PC Cards to OEM and private-label customers such as 3Com, Nokia, and Intel. Symbol's competition with Telxon moved from technology to corporate control. Telxon rejected Symbol's $668 million hostile takeover offer in June 1998. The resulting proxy contest continued for approximately two years, and Symbol finally completed the acquisition in December 2000 for $465 million. This expanded Symbol's mobile-computing capabilities but also added integration and financial complexity. The company's leadership and accounting practices then became central to its history. Swartz retired in 2000, and Tomo Razmilovic, who had served as president and chief operating officer since 1995, became chief executive. Razmilovic retired abruptly in 2002 during a Securities and Exchange Commission inquiry. An internal review subsequently identified a broad accounting-fraud scheme that had operated from 1998 until early 2002. The alleged methods included recording distributor shipments as completed customer sales, arranging transactions without corresponding customer orders, repurchasing products, using internal target-reconciliation records, and creating reserves that exceeded expected costs. Symbol restated results for 1998 through 2001, eliminating $234 million in revenue and $325 million in net income. It paid $37 million to resolve SEC charges and $138 million in shareholder litigation settlements. Former executives faced both civil and criminal proceedings; some pleaded guilty and others settled SEC cases. Razmilovic was indicted but left for Sweden, where he held citizenship. Symbol attempted to broaden its technology portfolio despite the damage. In 2004 it acquired Matrics, extending its activities into RFID. The company was ultimately acquired by Motorola in 2007 for approximately $3.9 billion. Symbol's operations became part of Motorola's enterprise business, which remained with Motorola Solutions after the separation of Motorola's mobile-phone operations into Motorola Mobility. In October 2014, Zebra Technologies purchased Motorola Solutions' enterprise business for $3.45 billion in cash. The transaction included Symbol's products and transferred the brand's enterprise hardware legacy to Zebra Technologies.

• 2014

  Symbol line transferred to Zebra Technologies

  [1]Symbol Technologiesen.wikipedia.org

  Zebra Technologies acquired Motorola Solutions' enterprise business, including Symbol, for $3.45 billion in cash.

• 2007

  Acquired by Motorola

  [1]Symbol Technologiesen.wikipedia.org

  Motorola acquired Symbol for approximately $3.9 billion and incorporated its business into Motorola's enterprise operations.

• 2004

  Matrics acquisition expands RFID activities

  [1]Symbol Technologiesen.wikipedia.org

  Symbol acquired Matrics, strengthening its position in radio-frequency identification systems.

• 2002

  Accounting investigation and executive departure

  [1]Symbol Technologiesen.wikipedia.org

  Tomo Razmilovic retired during an SEC inquiry, and an internal investigation uncovered accounting misconduct covering the preceding several years.

• 2000

  Symbol completes Telxon takeover

  [1]Symbol Technologiesen.wikipedia.org

  Symbol completed its acquisition of Telxon in December for $465 million after the extended proxy battle.

• 1998

  Hostile bid for Telxon rejected

  [1]Symbol Technologiesen.wikipedia.org

  Telxon rejected Symbol's $668 million hostile takeover offer, beginning a prolonged proxy contest.

• 1994

  Wireless technology competition with Telxon

  [1]Symbol Technologiesen.wikipedia.org

  A Kroger evaluation highlighted the competing frequency-hopping and direct-sequence approaches being developed for enterprise wireless networks.

• 1988

  Acquisition of MSI Data Corporation

  [1]Symbol Technologiesen.wikipedia.org

  Symbol acquired the Southern California mobile-computer company for $120 million, reinforcing its move from scanning hardware into mobile data terminals.

• 1973

  Company founded as Stony Brook Applied Research

  [1]Symbol Technologiesen.wikipedia.org

  Jerome Swartz and Shelley A. Harrison co-founded the business, which initially focused on handheld laser barcode scanning.

Enterprise mobility and automatic identification technology provider

• Barcode scanning

  Handheld laser barcode scanners

  Symbol's original and best-known product category consisted of handheld laser scanners for reading retail and industrial barcodes. These devices supported checkout, inventory counting, receiving, and product identification. The company's focus on portable scanning helped move barcode capture from fixed points into stores, warehouses, and other operational environments.

• Enterprise mobile computing

  Mobile data terminals

  Symbol developed compact computers that combined barcode capture, local data storage, and communications. They enabled workers to collect inventory and operational information away from desktop systems and later synchronize or transmit it to host applications. These terminals formed the basis of the company's enterprise-mobility proposition.

• Enterprise networking

  Wireless LAN infrastructure

  The company supplied spread-spectrum and later IEEE 802.11-related wireless networking equipment for enterprise environments. Its systems connected mobile scanners and computers to host networks, with particular relevance to retail, distribution, and warehouse operations. Symbol also sold radio modules and PC Cards to OEM and private-label partners.

• Automatic identification · 2004

  RFID systems

  Symbol expanded into radio-frequency identification through its acquisition of Matrics in 2004. RFID complemented barcode scanning by enabling identification and tracking applications that could use radio-readable tags. The acquisition broadened Symbol's automatic-identification portfolio beyond optical scanning.

• 2004

  Criminal and civil cases against former executives

  Tomo Razmilovic and other former executives were indicted by federal prosecutors, while the SEC brought civil proceedings. Some former executives pleaded guilty and others settled SEC charges. Symbol also paid settlements connected with shareholder litigation.

  Source

• 2002

  Symbol accounting-fraud investigation

  An internal investigation following an SEC inquiry found a broad scheme that allegedly inflated sales and profits from 1998 through early 2002. Reported practices included channel stuffing, transactions without genuine end-customer orders, product repurchases, target-reconciliation worksheets, and excessive reserves. Symbol restated its historical results and cooperated with regulatory and criminal investigations.

  Source

Read more

• 2014

  Transfer the enterprise business to Zebra TechnologiesM&A

  Background

  Motorola Solutions decided to sell its enterprise business, which included the former Symbol product portfolio.

  Action taken

  Zebra Technologies acquired the business for $3.45 billion in cash.

  Aftermath

  The Symbol product line and associated enterprise hardware heritage moved into Zebra Technologies.

  Acquisition price. $3.45 billion in cash (October 2014)

  Source

• 2007

  Accept Motorola acquisitionM&A

  Background

  Symbol's independent business had been weakened by the accounting scandal and subsequent financial and legal consequences.

  Action taken

  Motorola acquired Symbol Technologies for approximately $3.9 billion.

  Aftermath

  Symbol became part of Motorola's enterprise business and no longer operated as an independent company.

  Acquisition price. $3.9 billion (2007)

  Source

• 2004

  Acquire MatricsM&A

  Background

  Symbol wanted to extend its automatic-identification business beyond barcode scanning into RFID.

  Action taken

  The company acquired Matrics and integrated its RFID capabilities into Symbol's portfolio.

  Aftermath

  Symbol gained a stronger position in RFID systems and related identification applications.

  Source

• 2000

  Complete the Telxon acquisitionM&A

  Background

  Symbol sought to consolidate its position in enterprise mobile computing after Telxon rejected a hostile takeover bid in 1998.

  Action taken

  Symbol completed the takeover of Telxon in December 2000 for $465 million.

  Aftermath

  The transaction expanded Symbol's mobile-computing presence after a two-year proxy contest.

  Acquisition price. $465 million (December 2000)

  Source

• 1988

  Acquire MSI Data CorporationM&A

  Background

  Barcode customers increasingly needed to capture inventory information away from fixed checkout or office terminals.

  Action taken

  Symbol purchased MSI Data Corporation for $120 million, adding mobile-computing capabilities.

  Aftermath

  The acquisition helped Symbol develop integrated mobile computers that combined scanning, data storage, and enterprise connectivity.

  Acquisition price. $120 million (September 1988)

  Source

• 2014

  Zebra Technologies acquires Motorola Solutions enterprise business[1]Symbol Technologiesen.wikipedia.org

  M&A

  Zebra Technologies acquired Motorola Solutions' enterprise business, including the Symbol product line, in a $3.45 billion cash transaction.

• 2007

  Motorola agrees to acquire Symbol Technologies[1]Symbol Technologiesen.wikipedia.org

  M&A

  Motorola acquired Symbol Technologies for approximately $3.9 billion, bringing Symbol's enterprise mobility and automatic-identification products into Motorola's enterprise business.

• 2004

  Symbol Technologies acquires Matrics[1]Symbol Technologiesen.wikipedia.org

  M&A · Product generation

  Symbol acquired Matrics to expand its automatic-identification portfolio and advance its RFID business.

• 2000

  Symbol Technologies completes acquisition of Telxon[1]Symbol Technologiesen.wikipedia.org

  M&A

  After a lengthy proxy battle that followed Telxon's rejection of Symbol's hostile bid, Symbol completed the acquisition of Telxon in December 2000.

1. 1Symbol Technologiesen.wikipedia.org