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  "documentTitle": "Zebra Technologies Corp. (ZBRA)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-08-08 00:00:00",
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      "text": "Considering these circumstances, we question why Zebra chose such a short useful life and did it reflect concerns with the allegations made in the litigation?",
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      "text": "Reflexis was founded in 2001 with over 275 customers and $66 million of revenue in 2019. Zebra described it as a fast growing “recurring” revenue business that it knew for a long time, and with a low level of concentration towards a few customers. However, when allocating the intangible asset value to customers and other relationships, Zebra ascribed only a 2-year useful life. Reflexis was also embroiled in a lawsuit with O’Reilly Automotive filed in May 2020 (and before Zebra acquired Reflexis in September 2020) which alleged it was defrauded and that Reflexis failed to make good on its product implementation over three years. The lawsuit was eventually dismissed in May 2021. Considering these circumstances, we question why Zebra chose such a short useful life and did it reflect concerns with the allegations made in the litigation?",
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      "text": "Reflexis is a high-growth, recurring-revenue business with sales of $66 million in 2019, which doubled over a 3-year period. We've known each other for quite a long time. Reflexis has been a premier ISV partner of Zebra's. And we've been in dialogue with them about this transaction for some time. And in terms of customer concentration, Jim, the asset has a low level of concentration of sales towards a few customers. — Former CEO and CFO Q2'20 July 28, 2020",
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      "text": "Source: 2021 10-K, Q2’20 Conference Call, Lawsuit: O’Reilly Auto. Stores v. Reflexis",
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      "text": "Reflexis Purchase Price Allocation: Technology and patents ($160M, 8 yrs), Customer and other relationships ($43M, 2 yrs), Trade names ($10M, 8 yrs), Total ($213M)",
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      "kind": "title",
      "text": "Reflexis Accounting Assumption At Odds With Its Statements About The Business",
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