(Reuters) – Barcode scanner maker Zebra Technologies forecast third-quarter adjusted profit widely below market estimates on Tuesday as economic uncertainty hit corporate tech spending, sending the company’s shares down 12%.
The company, whose customers include the U.S. Postal Service and Walgreens Boots Alliance, expects quarterly adjusted profit between 60 cents and $1 per share, compared with estimates of $3.77 per share, according to Refnitiv.
Businesses have cut back on orders for products such as printers and barcode scanners in the past year due to slowing demand from customers in the retail and consumer electronics industries.
Zebra has responded by kicking off a voluntary retirement plan as well as other cost-cutting measures such as slowing hiring and downsizing its offices.
Its operating expenses decreased to $344 million in the second quarter ended June 30, from $370 million a year earlier.
Adjusted profit for the reported quarter came in at $3.29 per share, compared with estimates of $3.28. Revenue stood at $1.21 billion, missing estimates of $1.31 billion.
(Reporting by Tanya Jain in Bengaluru; Editing by Shailesh Kuber)
