Symbol Technologies
| Company type | Public |
|---|---|
| Industry | Mobile data capture and transmission devices |
| Founded | 1973 |
| Founder | Jerome Swartz, Shelley A. Harrison |
| Defunct | 2007 |
| Fate | Acquired by Motorola; later part of Zebra Technologies |
| Headquarters | Suffolk County, New York , United States |
| Products | Barcode scanners, mobile computing devices, RFID solutions, Wireless LAN systems |
| Parent | Motorola (2007–2014), Zebra Technologies (2014–present) |
Symbol Technologies, Inc. was a U.S.-based producer and distributor specializing in mobile data capture and transmission devices, with a focus on barcode scanners, mobile computing devices, RFID solutions, and Wireless LAN systems.
In 2007, Symbol became part of Motorola through acquisition. Later, in 2014, Zebra Technologies acquired the enterprise hardware division from Motorola Solutions that included Symbol’s product portfolio.
Prior to 2000
Founded in 1973 by Jerome Swartz alongside physicist Shelley A. Harrison, Symbol initially concentrated on handheld laser barcode scanning technology. The company targeted the retail sector and expanded its offerings to include mobile computers designed for inventory management by storing scanned data for offsite processing. This growth strategy culminated in the 1988 purchase of MSI Data Corporation, a mobile computing enterprise, for $120 million.
Early mobile computing devices relied on costly static RAM (SRAM). Symbol pioneered integrating radio technology to enable wireless connections to host systems, implementing a thin client model supported by spread spectrum radio networks.
Together with Telxon, Symbol led the enterprise mobility management sector, serving prominent retailers such as Wal-Mart, Kroger, and Safeway. In 1994, a contest between Symbol and Telxon at Kroger highlighted contrasting radio methods: Symbol employed frequency hopping while Telxon used direct sequence spread spectrum. Kroger preferred Telxon’s solution, which later aligned with the IEEE 802.11b standard adopting direct sequence technology.
The ratification of IEEE 802.11b compelled Symbol to redesign its radios for direct sequence operation, facilitating early adoption in industrial and commercial markets ahead of consumer availability. These radios added considerable value—estimated between $500 and $1000 per unit—for enterprise clients.
Symbol also offered standalone radio PC Cards to original equipment manufacturers such as 3Com, Nokia, and Intel. Although Symbol briefly held a leading position in the IEEE 802.11b market, competitors including Intel, Apple Inc., and Cisco explored wireless technologies for commercial deployment. Cisco’s acquisition of Telxon’s Aironet division marked a transition from niche markets toward broader enterprise and consumer wireless infrastructure.
In June 1998, Telxon declined a hostile takeover offer valued at $668 million from Symbol. Following a two-year proxy contest, Symbol successfully acquired Telxon in December 2000 for $465 million.
Symbol broadened its RFID capabilities in 2004 by acquiring Matrics, reinforcing its standing in automated identification technologies.
Accounting irregularities and Motorola acquisition
In 2002, Tomo Razmilovic, who had assumed the CEO role in 2000, suddenly resigned amid an investigation by the Securities and Exchange Commission into Symbol’s accounting practices. An internal audit revealed widespread accounting misconduct spanning from 1998 through early 2002. Symbol fully cooperated with both the SEC and an independent federal criminal investigation.
On June 3, 2004, Razmilovic along with seven former executives faced indictments for orchestrating schemes that artificially inflated sales and profits. These included practices such as channel stuffing, "candy deals" (selling products to distributors without customer demand), use of "tango sheets" (manipulating revenue figures to meet targets), and "cookie jar reserves" (overstating expenses). The SEC filed fraud charges against Razmilovic and ten additional individuals.
By late 2002, Symbol restated nearly four years of financial results from 1998 to 2001, eliminating $234 million in revenue and $325 million in net income. The company settled SEC claims with a payment of $37 million and resolved shareholder lawsuits for $138 million. Four executives pled guilty; seven settled SEC allegations; several identified Razmilovic as the principal architect of the fraud. Razmilovic fled to Sweden before indictment and remains at large due to Sweden’s refusal to extradite suspected white-collar offenders outside the European Union.
Unable to recover from the scandal’s impact, Symbol was purchased by Motorola in 2007 for $3.9 billion. This acquisition integrated Symbol into Motorola’s enterprise division, significantly enhancing that segment. Today, Symbol operates under Motorola Solutions, which succeeded Motorola after divesting its mobile phone business as Motorola Mobility.
Acquisition by Zebra Technologies
In October 2014, Zebra Technologies completed the purchase of Motorola Solutions' enterprise division, which included Symbol Technologies, for a cash amount of $3.45 billion.
External links
- Archived official website
- Articles with short description
- Motorola
- Defunct computer companies of the United States
- Radio-frequency identification companies
- Companies based in Suffolk County, New York
- Manufacturing companies based in New York (state)
- Computer companies established in 1975
- 2007 mergers and acquisitions
- 2014 mergers and acquisitions
- Accounting scandals
- Defunct computer hardware companies
- Companies formerly listed on the New York Stock Exchange