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  "documentTitle": "Zebra Technologies Corp. (ZBRA)",
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  "authorName": "Spruce Point Capital Management",
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  "notes": "Uses a combination of executive quote analysis and financial reconciliation to highlight a discrepancy in performance claims.",
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      "text": "The gross margin and operating profits are accretive overall to Zebra but not quite to where some of the other public companies in the space are at.",
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      "text": "Adj. EBITDA margin: 29.3%",
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      "text": "Zebra said that Matrox's gross and operating profits where not quite near where some of the other public companies are in the space. One notable company is Cognex (Nasdaq: CGNX) an $800m+ revenue player that once sued Matrox.",
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      "text": "Yes. So on Matrox, again you mentioned it, about $100 million portfolio today. The gross margin and operating profits are accretive overall to Zebra but not quite to where some of the other public companies in the space are at.",
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      "text": "“Yes. So on Matrox, again you mentioned it, about $100 million portfolio today. The gross margin and operating profits are accretive overall to Zebra but not quite to where some of the other public companies in the space are at. So again, we think that's, again, a great opportunity for us to grow and expand margins with -- across our machine vision portfolio over time as the business scales.” — CFO Winters, JPMorgan Conf. May 2022",
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      "text": "Source: 2022 Zebra results and Proxy statement, Cognex 2023 results, Cognex drops lawsuit against Matrox.",
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      "text": "2022 Implied Matrox Contribution table showing Net Sales, Adj. EBITDA, and % Margin calculations.",
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      "text": "Zebra Likely Overpaid For Matrox, Which Is Smaller w/Lower Margins Than Cognex",
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