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Symbol Technologies
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Symbol Technologies
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Symbol Technologies, Inc., was an American manufacturer and supplier of mobile data capture and delivery equipment. The company specialized in barcode scanners, mobile computers, RFID systems and Wireless LAN infrastructure.

Key Information

Symbol was acquired by Motorola in 2007. In 2014, the enterprise hardware division of Motorola Solutions containing the Symbol line of products was acquired by Zebra Technologies.

History

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Before 2000

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The company was co-founded in 1973 by Jerome Swartz and physicist Shelley A. Harrison,[1] originally under the name Stony Brook Applied Research.[2] At that time, the company focused on handheld laser-based scanning of bar codes. Under Swartz, the company marketed handheld laser barcode scanning devices. The company focused heavily on the retail industry and began to get involved in inventory management. These activities typically required people to scan items where they are stored and as such needed to be mobile. Symbol began to make small computers that could store data scanned to take inventory counts remotely and then upload the information gathered to a host system. This was the rationale for the September 1988 purchase of MSI Data Corporation, a mobile computer company headquartered in southern California, for $120 million.[3]

The mobile computers being manufactured at the time relied on static memory (in this case SRAM) for execution space and general storage. SRAM was extremely expensive and the team determined that it would be an improvement to use a radio to allow the mobile computer to be untethered but connected to the host system. A thin client architecture was adopted in conjunction with a spread spectrum radio network.

The enterprise mobility management market was dominated by Symbol Technologies and Telxon, Inc. Most notably, these two companies serviced major retailers such as Wal-Mart, Kroger, Safeway, Federated and others.

A notable turning point occurred in 1994 with a competition for business at Kroger. Symbol Technologies and Telxon were operating radio networks in the 2.4 GHz ISM bands. IEEE 802.11 was not yet ratified, so Symbol and Telxon were free to define competing standards of communication at this frequency band. Symbol settled on frequency hopping as the most robust, agile and interference-tolerant approach to data communications while Telxon selected direct sequence technology which they felt afforded higher transfer speeds with adequate interference immunity. Kroger ordered a head-to-head comparison test. Ultimately and not decisively, Kroger chose Telxon. At about the same time, the IEEE decided to adopt the direct sequence approach in its IEEE 802.11b standard.

The ratification of IEEE 802.11b was a huge blow to the Symbol team which now had to reconfigure and engineer a direct sequence radio system. This was accomplished with great pains and IEEE 802.11b became a reality in the industrial and commercial markets far before the radios were available to the consumer market.

The addition of a radio to a mobile device was roughly estimated to have a real value of between $500 and $1000 per unit. This was paid by enterprise customers that desperately needed this feature to accomplish their operations.

Later on Symbol started to sell the radios as PC Cards as a stand-alone product to various original equipment manufacturers (OEMs) and private label customers. These included 3Com, Nokia and Intel.

The Symbol team had temporarily dominated the IEEE 802.11b market. Telxon was facing difficulties and, in the meantime, Intel, Apple Inc. and Cisco were looking at the technology to see how they would use this to their commercial advantage. Cisco investigated the acquisition of various manufacturers of wireless gear to augment their commanding position in the wired infrastructure field. Cisco performed due diligence with both Symbol and Telxon, deciding to purchase the Aironet component of Telxon that designed and manufactured the radios. The Cisco purchase of Telxon's Aironet division marked the inflection point of the market moving from a specialized, esoteric market to a mass consumer and enterprise market.

In June 1998, Telxon rejected a hostile takeover bid of $668 million made by Symbol.[4][5] The ensuing proxy battle lasted two years, and in December 2000 Symbol was able to complete the takeover at a much lower price of $465 million.[6][7][8]

In 2004 Symbol acquired Matrics, helping the company to push further into the RFID field.

Accounting fraud and acquisition by Motorola

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Swartz retired in 2000, and was succeeded by Tomo Razmilovic, who had been president and COO since 1995. Razmilovic abruptly retired in 2002 during a Securities and Exchange Commission inquiry into Symbol's accounting practices.[9] A few months later, an internal inquiry revealed a wide-ranging accounting fraud that had begun in 1998 and only ended in early 2002. Following this revelation, Symbol cooperated fully with the SEC investigation, as well as with a separate federal criminal probe by the United States Attorney for the Eastern District of New York.[10]

On June 3, 2004, Razmilovic and seven other former Symbol executives were indicted on charges that they orchestrated a wide-ranging scheme to inflate the company's sales and profits. It included several types of fraud, such as channel stuffing (booking sales to wholesalers and distributors as final sales to customers), candy deals (selling products to distributors with no matching customer orders and then buying the products back), use of tango sheets (records of how much revenues had to be inflated to match quarterly targets) and use of cookie jar reserves (declaring nonrecurring expenses that far exceeded likely expenses). On the same day, Razmilovic and 10 other former executives were sued by the SEC for the fraud.[11]

In late 2002, Symbol restated almost four years of earnings from 1998 to 2001, in the process erasing $234 million in revenue and $325 million in net income. It also paid $37 million to settle the SEC charges and $138 million to settle numerous shareholder suits.[10][12][13] Eventually, four former executives pleaded guilty, and seven former executives settled SEC charges against them. Several of those who pleaded guilty stated under oath that Razmilovic was the mastermind of the fraud.[14] Razmilovic fled to Sweden, where he has citizenship, shortly before his indictment. He remains a fugitive as of 2025; he claims he will not voluntarily return to face the charges against him because he does not believe he can get a fair trial in the United States. Sweden will not give him up for extradition because it does not extradite suspected white-collar criminals outside the European Union.[14][15]

Logo used from 2004 to 2007
Logo used from 2004 to 2007

Symbol never recovered from the fraud, and in 2007 was acquired by Motorola for $3.9 billion.[16] The company essentially took over Motorola's enterprise division; it was far larger than the pre-merger division.[17] Symbol remained part of Motorola Solutions, the legal successor to the old Motorola, after the company spun off its mobile phone division as Motorola Mobility.

Acquisition by Zebra Technologies

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In October 2014 Zebra Technologies acquired Motorola Solutions' enterprise business which included Symbol Technologies for $3.45 billion in cash.[18]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Symbol Technologies

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from Grokipedia
Symbol Technologies, Inc. was an American technology company specializing in the design, manufacture, and servicing of mobile data capture and delivery equipment, including barcode scanners, mobile computers, radio frequency identification (RFID) readers, and wireless networking systems. Founded in 1973 by Dr. Jerome Swartz and Shelley A. Harrison in New York, the company pioneered handheld laser-based barcode scanning technology, which transformed inventory management, retail operations, and supply chain logistics worldwide. In 1999, the company was awarded the National Medal of Technology for creating the global market for laser barcode scanning and innovations in mobile computing. By the late 1990s, Symbol had become a dominant player, capturing approximately 75% of the global barcode scanner market and installing millions of units across industries. The company went public in 1979 and experienced rapid growth, with revenues reaching $1.73 billion by 2004. In 2007, Motorola acquired Symbol for $3.9 billion, integrating its enterprise mobility solutions into Motorola's portfolio. In 2014, Zebra Technologies acquired Motorola Solutions' enterprise business, which encompassed the Symbol product line, for $3.45 billion, solidifying Symbol's legacy within Zebra's broader offerings in asset tracking and workflow optimization. From its inception, Symbol focused on innovating data capture technologies, starting with the development of laser print scanning methods that enabled faster and more reliable reading compared to earlier mechanical systems. Key milestones included the 1988 acquisition of MSI Data Corp., which expanded its capabilities and secured it as the primary U.S. Department of Defense contractor for handheld scanners. In 1991, Symbol introduced , a high-capacity two-dimensional symbology capable of encoding thousands of characters, further advancing secure and machine-readable documentation. The company also ventured into and RFID, acquiring Matrics Inc. in 2004 for $230 million to bolster its RFID portfolio for applications. Symbol's growth was marked by strategic expansions, including international joint ventures such as a 1991 partnership with Olympus Optical Co. for the Asian market, which helped drive sales to $317 million by that year. By 1995, its workforce had swelled to 2,600 employees, and it shifted manufacturing to lower-cost facilities outside the U.S. to maintain competitiveness. However, the company faced challenges, including accounting irregularities in the early 2000s that led to financial restatements and SEC investigations, resolved by 2004. Post-acquisition by Motorola, Symbol's technologies contributed to enterprise mobility solutions until the 2014 transfer to Zebra, where the brand's innovations continue to support rugged mobile devices and data capture tools for sectors like retail, healthcare, and manufacturing.

Overview

Founding and Key Leaders

Symbol Technologies was founded in 1973 in New York by physicist Dr. Jerome Swartz and venture capitalist Shelley A. Harrison, initially operating as a research-focused entity dedicated to advancing technology. Swartz, who had been developing concepts to overcome the shortcomings of prior optical reading techniques, brought scientific expertise as a co-inventor of -based scanning methods, while Harrison provided essential funding and business acumen to launch the venture. The company's early mission centered on creating reliable scanners capable of reading at higher speeds and with greater accuracy than the cumbersome contact-based or systems then in use, which often required manual swiping and suffered from low reliability in varied conditions. Under Swartz's leadership, Symbol quickly assembled a core team of engineers and researchers whose collaborative efforts led to the prototyping of the first handheld scanner, marking a pivotal step toward portable data capture solutions. Swartz served as the company's president initially and later as chairman and chief scientist, guiding its strategic direction until his retirement in June 2004. Harrison, as co-founder and first chairman and CEO, shaped the organization's early operational structure from 1973 to 1982, emphasizing innovation in and applications. These leaders fostered a culture of technical prototyping and rapid iteration, enabling Symbol to transition from a modest startup to a publicly traded entity through its on June 4, 1979, on the exchange under the SMBL. The founding team's emphasis on laser technology not only addressed immediate market needs in retail and inventory management but also laid the groundwork for Symbol's expansion into broader capture innovations, though detailed product developments occurred in subsequent years. By prioritizing verifiable breakthroughs, Swartz and Harrison positioned the company as a pioneer in automating through optical means.

Headquarters and Global Operations

Symbol Technologies was founded in 1973 in , where co-founders Jerome Swartz and Shelley A. Harrison initially operated from a garage, developing early laser-based scanning technologies. As the company grew, it relocated its headquarters to Holtsville, New York, in the mid-1990s to support expanded facilities and accommodate increasing operations; the new corporate headquarters building in Holtsville was officially opened in 1996. This move reflected the firm's evolution from a startup focused on innovation to a larger enterprise requiring dedicated space for engineering and administrative functions. By the mid-2000s, Symbol employed approximately 5,400 full-time workers globally, with about 2,800 based in the United States, organized across key divisions dedicated to research and development, , and to drive and market expansion. The R&D division concentrated on advancing capture technologies, while handled production scaling, and supported customer deployment in diverse industries. Symbol's global footprint extended through principal manufacturing at its , facility for high-volume assembly, supplemented by contract manufacturing partners in for cost efficiency and flexibility, alongside a , New York site for prototyping new products. Sales and support offices operated in more than 60 countries by 2004, enabling direct engagement with international clients in core sectors including retail for point-of-sale efficiency, transportation and for inventory tracking, and healthcare for and applications. This international presence contributed significantly to the company's scale, with pre-acquisition revenue reaching about $1.77 billion in 2005, of which approximately 41% derived from markets outside the , based on 2004 data.

Products and Technologies

Barcode Scanners and Laser Innovations

Symbol Technologies pioneered the development of handheld barcode scanners in the late 1970s, with Jerome Swartz leading the effort to miniaturize helium-neon (HeNe) technology for practical use. This innovation enabled the creation of the first commercially successful handheld scanner, the LS7000 model introduced in 1982, which utilized a compact HeNe tube measuring 5-6 inches long and operating at 632.8 nm with 1 milliwatt power. The device revolutionized data capture by allowing portable, non-contact reading of , significantly improving efficiency in inventory management and point-of-sale operations compared to earlier fixed-position scanners. Key models from the and further advanced this technology. The SPT1500, launched in the late as a pocket-sized terminal with an integrated scanner, exemplified early mobile integration for on-the-go in retail and warehousing environments. The LS series, starting with the LS7000 and expanding in the , incorporated built-in decode capabilities to process data directly within the scanner, supporting multiple symbologies like UPC and without external processing. These models featured ergonomic designs with trigger mechanisms for one-handed operation, enhancing user productivity in high-volume settings. At the core of these innovations were technical principles involving laser beam generation and scanning patterns. A HeNe produced a coherent red light beam, which was directed onto a rotating or oscillating mirror to generate a moving scan line or pattern across the barcode; reflected light variations from bars and spaces were captured by a to decode the information. This enabled omnidirectional scanning in later iterations, where multiple laser lines intersected to read barcodes from any angle at speeds up to 200 scans per second, far surpassing contact-based wands used previously. Swartz and his team filed foundational in the early , such as U.S. Patent 4,387,297 (filed November 16, 1981), covering the portable head and mirror assembly essential for handheld functionality. The market impact of these laser innovations was profound, establishing as a leader in the global scanning industry. By the mid-1980s, adoption in and supply chains accelerated, with handheld scanners significantly reducing checkout times and minimizing errors through automated . This shift transformed retail operations, enabling real-time tracking and just-in-time practices that became standard worldwide, while briefly integrating with emerging mobile devices for hybrid data solutions.

Mobile Computing Devices

Symbol Technologies pioneered mobile computing devices by integrating scanning with portable computing hardware, enabling efficient data capture in demanding environments. Following its 1988 acquisition of MSI Data Corporation for $142 million, the company leveraged MSI's expertise in hand-held computer terminals to develop the first rugged handheld computer with integration in 1989. This innovation built on Symbol's roots, creating devices that combined durability with data processing for real-world applications. The PDT series exemplified early advancements in this area, with models like the PDT 3100—introduced in the early —serving as lightweight, battery-powered portable data terminals running 16-bit DOS. Weighing under a pound and featuring integrated scanners, the PDT 3100 supported 4- or 8-line displays for and was designed for scan-intensive tasks, achieving widespread adoption due to its proven reliability in data capture. These devices emphasized rugged construction to withstand drops and environmental hazards, facilitating batch in sectors like and retail inventory management. In the 2000s, Symbol expanded its portfolio with more sophisticated models, including the MC3000 series launched in 2005. Powered by an Intel XScale PXA270 processor with up to 128MB RAM and running Windows CE, the MC3000 offered touchscreen interfaces, wireless connectivity via 802.11b, and an IP54 rating for dust and water resistance. Optimized for warehouse operations, it enabled real-time data synchronization and integration with enterprise systems such as SAP, enhancing efficiency in high-volume scanning environments. Complementing this, the SPT series—such as the SPT 1500 and SPT 1800—targeted field service and mobile retail use, incorporating Palm OS for intuitive navigation, integrated imagers or lasers for barcode reading, and batch processing capabilities in a compact, ergonomic form factor weighing around 6 ounces. These units supported asset tracking and physical data collection, moving seamlessly between indoor and outdoor settings. Symbol's mobile computing devices found broad applications in logistics for order fulfillment, healthcare for patient and asset tracking, and retail for inventory control, driving operational improvements through rugged, versatile hardware. By 2004, the mobile computing division accounted for 61.8% of total product revenue, underscoring its pivotal role in the company's growth.

RFID and Wireless Solutions

Symbol Technologies pioneered enterprise wireless networking with its Spectrum24 wireless LAN, introduced in 1990 as the first commercially available spread-spectrum network and later aligned with IEEE 802.11 standards for frequency-hopping operations in the 2.4-2.5 GHz band. This solution enabled seamless voice and data transmission across enterprises, supporting high-throughput connectivity up to 10 Mbps and roaming for mobile workers in warehouses and retail environments, with over 20,000 installations worldwide by 1997. By integrating with Ethernet backbones, Spectrum24 facilitated access, laying the groundwork for Symbol's expansion into advanced wireless ecosystems. Symbol entered the RFID market in the early 2000s through the 2004 acquisition of Matrics Inc. for $230 million in cash, gaining expertise in ultra-high frequency (UHF) RFID chip technology compliant with EPCglobal standards. This move accelerated the development of RFID readers, including fixed-mount models for portal deployments and handheld units like the MC9090-G series, launched in 2006 as a rugged mobile computer with integrated UHF RFID capabilities for on-the-go inventory scanning. The MC9090-G supported EPC-compliant tag reading, combining RFID with wireless LAN for versatile asset tracking in dynamic settings. These advancements enabled real-time visibility in supply chains, reducing errors and improving efficiency in sectors like retail and through automated tag interrogation without line-of-sight requirements. Symbol's partnerships with EPCglobal, including signing the Policy in 2004 and sponsoring the MIT Auto-ID Center, promoted interoperable RFID standards, fostering adoption for global tracking from to point-of-sale. Subsequent device evolutions under Symbol's legacy incorporated modern wireless enhancements, such as compatibility in RFID-enabled handhelds for denser, higher-speed enterprise networks.

History

Inception and Early Innovations (1973–1990)

Symbol Technologies was incorporated in in New York by physicist Dr. Jerome Swartz and venture partner Sheldon Harrison, with initial research and development centered on technology for scanning applications in retail environments. Swartz, leveraging his expertise from Brooklyn Polytechnic Institute, began prototyping optical scanning systems in his Stony Brook garage, supported by grants and internships through a reciprocal arrangement with the at Stony Brook, as well as early venture funding. This foundational work addressed the limitations of existing fixed-mount scanners by exploring compact laser-based solutions for faster and more accurate data capture. A key milestone came in the late when the company developed an early prototype for a handheld laser barcode scanner, building on laser diode innovations to enable portable reading of symbols in dynamic settings like grocery stores. By 1979, this effort culminated in the refinement of verification and scanning technologies, setting the stage for commercial handheld units. The prototype's testing highlighted the potential for mobility in and point-of-sale operations, distinguishing Symbol from competitors reliant on bulky, stationary equipment. Throughout the , Symbol experienced significant growth, introducing portable data terminals and radio frequency-linked scanners that integrated reading with . The company went public in June 1979 with an initial offering of 456,500 shares on the exchange, providing capital for expansion, and transitioned to the in 1988 to access broader markets. This period also saw the 1988 acquisition of MSI Data Corp., which bolstered Symbol's portable terminal offerings for and defense applications. Revenues surged from approximately $5 million in the early to $222.3 million by fiscal 1989, capturing about 40% of the scanner market despite economic headwinds. Early challenges included intense competition from established fixed scanners by companies like NCR and , which dominated grocery and retail installations with their reliability but lacked portability. Symbol responded by prioritizing miniaturization, reducing scanner weights to as low as 20 ounces through innovative laser tube designs and optical engineering, resulting in dozens of U.S. patents by 1990—many held by Swartz—for handheld and technologies. This strategic focus on compact, rugged devices enabled Symbol to pioneer the shift toward mobile data capture, establishing its leadership in innovation.

Expansion and Acquisitions (1990–2006)

During the , Symbol Technologies underwent rapid expansion, with annual revenues surging from approximately $232 million in 1990 to nearly $1 billion by 1999, fueled by the increasing adoption of its laser scanners and portable data terminals in retail and sectors. This growth was driven by strategic partnerships with major retailers such as Home Depot, , and Target, which integrated Symbol's technologies for inventory management and point-of-sale applications, enabling more efficient operations. By the late , these innovations had transformed scanning from a niche tool into a standard for global commerce, contributing to Symbol's market leadership in data capture solutions. To further strengthen its portfolio, Symbol pursued key acquisitions that diversified its offerings in and emerging technologies. In December 2000, the company acquired Telxon Corporation, a rival in data systems, for about $465 million in a stock-for-stock transaction, which integrated Telxon's expertise in rugged mobile devices and enhanced Symbol's capabilities in enterprise mobility. In July 2004, Symbol purchased Matrics Inc., a developer of (RFID) solutions, for $230 million in cash, accelerating its entry into EPC-compliant RFID tags and readers for . These moves allowed Symbol to expand beyond traditional barcode systems into integrated and identification platforms. Symbol also broadened its product lines during this period, venturing into wireless local area networks (WLANs) with the launch of its Spectrum24 system in 1990 and subsequent enhancements in the 1990s that supported high-speed data transmission for mobile workers. Additionally, the company introduced voice-directed picking systems, such as those integrated into its MC9000 series mobile computers by 2005, which used to guide warehouse operators hands-free, improving accuracy and productivity in distribution centers. The Matrics acquisition briefly provided Symbol with advanced RFID technology for applications, complementing its existing scanning portfolio. On the global front, Symbol established subsidiaries and offices throughout and to support international sales and operations, including facilities in the , , , , and by 1995, which facilitated in diverse regions. This international footprint was recognized in 1999 when Symbol received the National Medal of Technology from the U.S. President, honoring its pioneering contributions to laser barcode scanning and innovations that revolutionized data capture worldwide.

Accounting Scandal and Motorola Acquisition (2006–2007)

In 2005, Symbol Technologies revealed additional accounting irregularities stemming from ongoing investigations into its financial reporting practices, which had begun earlier but continued to uncover issues in recent periods. The company disclosed that it had overstated revenues by approximately $230 million between 1998 and early 2003 through improper practices such as channel stuffing—where excess products were shipped to distributors to inflate sales figures—and the creation of "" reserves via fabricated restructuring charges to smooth earnings. These manipulations, detailed in SEC complaints, also involved the use of internal " sheets" for unauthorized entries and interference with audits, leading to restatements of earnings for the years 2000 through 2004 to correct overstated revenues and by hundreds of millions. The U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) launched formal investigations into Symbol's executive conduct, resulting in criminal charges against several former leaders, including CEO Tomo Razmilovic, who fled the country and became a . In response, Symbol's then-CEO Bill Nuti and CFO Mark Greenquist resigned in 2005 amid the scrutiny and poor financial performance, following earlier departures of co-founder and former Chairman Jerome Swartz in 2003 and other executives tied to the . The company issued multiple restatements, including one in late 2004 for third-quarter inventory discrepancies that overstated revenues by tens of millions, and entered into a DOJ non-prosecution agreement in January 2005, acknowledging responsibility for the violations while avoiding through enhanced compliance measures. In June 2004, Symbol settled SEC charges without admitting guilt, agreeing to pay a $37 million , which was distributed to harmed investors. Facing mounting legal and financial pressures from the , Symbol Technologies pursued a sale to stabilize operations. In September 2006, Motorola announced its intent to acquire Symbol for $3.9 billion in cash, a deal completed in January 2007 after regulatory approvals, positioning Symbol as the foundation for 's enterprise mobility division to enhance its offerings in and capture technologies. The acquisition provided Symbol with resources to address lingering compliance issues while allowing to expand beyond consumer mobile devices into rugged enterprise solutions.

Integration and Brand Evolution (2007–Present)

Following its acquisition by in January 2007, Symbol Technologies was integrated as the core of Motorola's newly formed Enterprise Mobility division, with the brand retained for its established product lines in mobile data capture and scanning. This integration facilitated continued in RFID systems and scanners, enabling enterprise customers to achieve cost reductions and improved worker productivity through combined rugged devices and solutions. Over the subsequent years until , the division expanded Symbol's technologies into broader enterprise ecosystems, maintaining focus on seamless mobility for industries like retail and . In October 2014, Zebra Technologies completed its $3.45 billion all-cash acquisition of Motorola Solutions' Enterprise business, incorporating Symbol's product portfolio into Zebra's operations. The deal positioned Symbol's scanning and RFID capabilities within Zebra's asset intelligence framework, shifting emphasis toward IoT-enabled connectivity and advanced analytics to support real-time data visibility across supply chains. Zebra continues to market many data capture products under the established Symbol brand. This merger expanded Zebra's global channel network to over 20,000 partners in more than 100 countries, enhancing distribution of integrated Symbol-derived solutions. Post-2014, Zebra advanced Symbol's legacy technologies by incorporating AI enhancements into its scanners, such as neural processing units in fixed industrial models like the FS42 series to enable faster deep learning-based applications for workflow automation. As of 2025, Symbol's technologies remain deeply integrated into Zebra Technologies' offerings, contributing to the company's trailing twelve-month revenue of approximately $5.26 billion as of September 27, 2025, with sustained support for legacy Symbol products through Zebra's comprehensive driver, software, and repair services.

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