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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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  "notes": "The slide highlights a discrepancy between disclosed inventory charges and margin performance.",
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      "text": "Curiously, ever since the inventory charges stopped, EVM's segment's gross margins have expanded by 540bps in YTD 2024.",
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      "text": "Consolidated, AIT, and EVM segment commentary on 2023 gross margin performance.",
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      "text": "Gross Margin %: 540bps",
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      "text": "Based on our analysis, Zebra disclosed, but did not quantify, the inventory charges that affected the EVM segment's gross margin. However, it is not clear if this is related to the supply contract renegotiation which went through operating expenses. Curiously, ever since the inventory charges stopped, EVM's segment's gross margins have expanded by 540bps in YTD 2024.",
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      "text": "Gross margin decreased to 45.6% in the current year compared to 46.4% for the prior year primarily due to product volume deleveraging, the negative impact of foreign currency changes and inventory-related charges, partially offset by pricing, higher service and software margins, and lower premium freight and component part costs. — Zebra Technologies 2023 10-K",
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      "text": "Source: Zebra financials",
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      "text": "EVM Segment Gross Margins table showing Q4 2022 to Q2 2024 data for Inventory Charges, Gross Margin %, and Sequential Change.",
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