The company entered into a definitive agreement to acquire Photoneo, a leading developer and manufacturer of 3D machine vision solutions, for approximately €60 million. This strategic acquisition will enhance Zebra's EVM segment and strengthen its position in the machine vision market.

Consolidated organic net sales grew by 8.1%, excluding the effects of foreign currency changes and acquisitions. This demonstrates the company's ability to generate growth from its existing product lines and market presence.

The demand trend recovery broadened across offerings within both segments beginning in the second half of the year contributing to improved revenue and profitability. This signals a positive outlook for future growth and market opportunities.

The company completed actions under the 2022 Productivity Plan, generating approximately $120 million of annualized net cost savings, primarily within operating expenses. This demonstrates effective cost management and operational efficiency.

The company completed a private offering of $500 million senior unsecured notes with a 6.5% fixed interest rate, using the proceeds to repay outstanding debt. This proactive debt management reduces overall financial risk and improves the company's capital structure.

As we entered 2024, we saw the stabilization of distributor inventory levels in both of our segments. This suggests improved supply chain management and better alignment of inventory with market demand.

The company acknowledges that geopolitical turmoil, including the war between Russia and Ukraine, conflicts in the Middle East region, and the risk of increased tensions between China and Taiwan, could limit its ability to sell its offerings, and could have an adverse impact on our business and results of operations.

The company acknowledges that cybersecurity incidents could disrupt business operations. The company relies on information technology systems throughout the Company to keep financial records, process orders, manage inventory, coordinate shipments to distributors and customers, maintain confidential and proprietary information, and other technical activities.

The company acknowledges that international trade disputes and increased tariffs between the U.S. and other countries in which the Company does business, including China, could negatively impact the Company's financial performance.

The company believes it differentiates itself through its focus on improving enterprise workflows on the frontline, high barriers to entry, commitment to innovation and deep industry-specific expertise, highly diversified business mix, global reach and brand, and scale advantages.

The markets that the company serves are rapidly evolving and highly competitive. Competitors may be able to respond more quickly to new or emerging technology and changes in customer requirements.

The company faces competition in mobile computing, data capture, fixed industrial scanning, machine vision, RFID, RTLS, supplies, and workflow optimization solutions. Competitors range from large, diversified companies to smaller, niche players.

The company completed actions under the 2022 Productivity Plan, generating approximately $120 million of annualized net cost savings, primarily within operating expenses. This indicates successful cost management and improved efficiency.

Gross margin increased to 48.4%, primarily due to volume leverage, higher service and software margins, lower freight rates, and lower inventory-related charges. This reflects improved operational efficiency and cost control measures.

Operating expenses increased slightly, primarily due to higher incentive compensation. While this reflects increased performance, it also indicates a potential area for future cost optimization.

The company remains committed to leveraging its technology portfolio and expertise in the industries that it services to continue to develop innovative offerings that meet the key needs of its customers.

Research and development expenditures for the year were $563 million, or 11.3% of net sales. This demonstrates a commitment to innovation and developing new technologies and offerings.

The company must adapt to rapidly changing technological and application needs by continually improving its offerings, as well as introducing new offerings to address user demands. This highlights the importance of ongoing innovation and adaptation.

The Board of Directors authorized a share repurchase program for up to $1 billion of its outstanding shares of common stock. This indicates management's confidence in the company's financial position and future prospects.

The company expects to spend approximately $60 million to $70 million on capital expenditures in 2025. This indicates continued investment in infrastructure and operations.

In addition to the expected cash requirements described above, the Company may use cash to fund strategic acquisitions, investments, or repurchase common stock under its share repurchase program. This indicates a focus on both organic and inorganic growth.

Zebra's sustainability priorities of human capital management, resource conservation, and climate align with our strategic focus and corporate values. Initiatives within these priorities are advanced by our cross-functional Sustainability Council, with executive sponsorship and board oversight.

The company's operations and the products we manufacture and/or sell are subject to a wide range of product regulatory and safety, consumer, worker safety, and environmental laws and regulations. Compliance with such existing or future laws and regulations could subject us to future costs or liabilities, impact our production capabilities, constrict our ability to sell, expand or acquire facilities, restrict what offerings we can provide, and generally impact our financial performance.

The company is dependent on the availability and use of certain bands within the radio frequency spectrum; our offerings may be subject to harmful interference from new or modified spectrum uses.

As we look ahead to 2025, we expect increased uncertainty and volatility in global trade policy and foreign currency exchange rates. This highlights the potential impact of external factors on the company's performance.

The company is vulnerable to the potential difficulties associated with the increase in the complexity of our business. We have expanded operations and customer offerings over the last several years both organically and through acquisitions. This has caused increased complexities in the business.

Adverse economic conditions or reduced and/or changes in the timing and amount of information technology spending may negatively impact our business. General disruption of financial markets and a related general economic downturn or uncertainty could adversely affect our business and financial condition through a reduction in demand for our offerings by our customers.