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Intermec Reports Record First Quarter Revenues


-- Q1'08 Revenues of $217M up 21% over Q1'07

-- Q1'08 Gross Margins of 40.3% up 430 bps over Q1'07

-- Q1'08 Diluted EPS of $0.13

-- $100M Debentures Repaid

EVERETT, Wash.--(BUSINESS WIRE)--May 01, 2008 Intermec, Inc. (NYSE:IN) today announced financial results for its first quarter, which ended March 30, 2008.

Intermec reported 2008 first quarter revenues of $217 million and net earnings of $7.7 million, or $0.13 per diluted share, compared to 2007 first quarter revenues of $179 million and a net loss of ($4.4) million, or ($0.07) per diluted share.

"Intermec delivered a solid first quarter with continued progress in our objectives of accelerating growth and improving gross margins towards our target business model," said Patrick J. Byrne, President and CEO. "The record first quarter revenue delivered and strong operating leverage are a result of the powerful combination of market focus, product excellence, deep application expertise, and operating discipline."

First quarter 2008 revenues increased 21 percent compared to the first quarter of 2007. Geographically during the first quarter, North American revenues increased 25 percent over the comparable prior-year period. Revenues in Europe, Mid-East and Africa (EMEA) increased 24 percent over the prior year period; while Asia Pacific (APAC) and Latin America increased 28 percent and decreased 14 percent, respectively.

During the first quarter, Systems and Solutions revenue increased 35 percent and Printer and Media revenue increased 12 percent over the comparable prior-year period. Service revenue decreased 2 percent compared to the prior-year period.

The Company's first quarter 2008 effective tax rate was 36.3 percent. The first quarter of 2007 tax benefit was reduced primarily from the recording of a valuation allowance for certain foreign deferred tax assets and the impact of changes in tax rates.

During the quarter, the Company paid off at maturity its $100 million debentures, which eliminated the Company's long-term debt. The Company's cash equivalents and short-term investments decreased $77.8 million in the quarter, primarily as a result of the debt repayment. Cash flows from operations were approximately $17.5 million during the quarter. The cash equivalents and short-term investments position at the end of the first quarter totaled $187.7 million.

Product Related Highlights:

-- The new PW50 four-inch mobile workboard printer uses Bluetooth

connectivity and an integrated dock to complement Intermec's

mobile computers, scanners and media. The PW50 combines a

convenient form factor with application-specific features to

increase productivity for DSD, field service, and route

accounting applications.

-- The IP30 was selected as a finalist for the coveted "Best in

Show" award presented by RFID Journal, the world's leading

media and events Company covering radio frequency

identification (RFID) technology. The IP30 RFID reader is a

cost-effective, compact, FCC and ETSI certified solution for

adding mobile RFID read/write capability to the latest

generation of Intermec mobile computers, including the CN3 and

the CK61.

-- The IF61 Smart Reader has been validated as a remote platform

to host IBM data capture applications with IBM's newly

released WebSphere Premises Server 6.1. The Intermec IF61 is

the first RFID reader to provide implementers of IBM-based

RFID solutions the ability to develop, deploy and maintain

RFID business logic on an intelligent RFID reader platform.

RFID Patent License Activity:

-- Honeywell, Inc., a diversified technology and manufacturing

leader has become a Rapid Start licensee under Intermec's RFID

patents following its acquisition of Hand Held Products, Inc.

-- Toppan Printing Co., the world's leading and largest printing

and communications company has expanded its existing Rapid

Start RFID License Agreement. The additional running royalty

license will allow Toppan and its customers to use RFID

technology for supply chain management, identifying, tracking

and tracing of printed circuit boards.

-- Intelleflex Corporation, a leader in RFID products and

solutions with extended range, reliability, memory, and

security has taken a running royalty license under Intermec's

RFID patents.

-- Applied Wireless Identifications Group, Inc. (AWID) is a

world-wide leading provider of RFID products and solutions for

embedded markets, security industries, and fast-growth

value-added RFID solutions has expanded its license under

Intermec's RFID patents to include portable as well as fixed

RFID readers.

Outlook - Second Quarter 2008

-- Intermec also reported today its revenue outlook for the

Second quarter 2008. Revenues for the period are expected to

be within a range of $227 million to $232 million.

-- For the second quarter of 2008, EPS are expected to be within

a range of $0.18 to $0.21, per diluted share.

Conference Call Information

Intermec will hold its conference call on May 1, 2008 at 5 p.m. ET (2 p.m. PT). The call will be hosted by Intermec President and Chief Executive Officer Patrick J. Byrne, SVP and Chief Financial Officer Lanny H. Michael, SVP Global Sales and Services Michael A. Wills, VP RFID Ray Cronin and Director of Investor Relations Kevin P. McCarty.

The dial-in numbers for participants are 1-800-779-9977 (US); 1-210-839-8500 (International); Passcode: ("Intermec"). The call will be broadcast on the Internet via a link from the investor's Web page at the Intermec website at www.intermec.com/InvestorRelations.

About Intermec, Inc.

Intermec, Inc. (NYSE:IN) develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. The Company's products and services are used by customers in many industries worldwide to improve the productivity, quality and responsiveness of business operations. For more information about Intermec, visit www.intermec.com or call 800-347-2636. Contact Intermec Investor Relations Director Kevin McCarty at kevin.mccarty@intermec.com, 425-265-2472.

(Forward-looking Statements)

Statements made in this release and related statements that express Intermec's or our management's intentions, hopes, indications, beliefs, expectations, forecasts or predictions of the future constitute forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, and relate to matters that are not historical facts. They include, without limitation, statements regarding: potential increases in revenue or product volumes; our objectives for sales channel mix and target customer markets; our ability to develop, market and launch new or enhanced products and platforms as planned; customer acceptance of our products and technologies; our ability to improve business processes; our ability to improve gross margins or profits; our cost reduction plans; and our revenue, expense, earnings or financial outlook for the second quarter of 2008 or any future period. They also include statements about our ability to compete effectively with our current products and newly launched products, reduce expenses, improve efficiency, realign resources, increase product development capacity, leverage our research and development investment to drive significant future revenue, and continue operational improvement and year-over-year growth, and about the applicability of accounting policies used in our financial reporting. Actual results may differ from those expressed or implied in our forward-looking statements. These statements represent beliefs and expectations only as of the date they were made. We may elect to update forward-looking statements but we expressly disclaim any obligation to do so, even if our beliefs and expectations change. Such forward-looking statements involve and are subject to certain risks and uncertainties. These include, but are not limited to, risks and uncertainties described more fully in our reports filed or to be filed with the Securities and Exchange Commission including, but not limited to, our annual reports on Form 10-K and quarterly reports on Form 10-Q.


                            INTERMEC, INC.
                CONSOLIDATED STATEMENTS OF OPERATIONS
           (Thousands of dollars, except per share amounts)
                             (Unaudited)


                                                      Quarter Ended
                                                   -------------------
                                                   March 30, April 1,
                                                      2008      2007
                                                   --------- ---------
Revenues:
 Product                                           $179,574  $141,512
 Service                                             37,205    37,806
                                                   --------- ---------
  Total revenues                                    216,779   179,318

Costs and expenses:
 Cost of product revenues                           107,705    92,194
 Cost of service revenues                            21,706    22,583
 Research and development                            16,522    16,506
 Selling, general and administrative                 58,636    53,055
                                                   --------- ---------
  Total costs and expenses                          204,569   184,338
                                                   --------- ---------

Operating profit (loss)                              12,210    (5,020)
Interest income                                       1,675     2,553
Interest expense                                     (1,790)   (2,295)
                                                   --------- ---------
Earnings (loss) before income taxes                  12,095    (4,762)
Provision (benefit) for income taxes                  4,389      (330)
                                                   --------- ---------
Net earnings (loss)                                $  7,706  $ (4,432)
                                                   ========= =========

Basic earnings (loss) per share                    $   0.13  $  (0.07)
                                                   ========= =========

Diluted earnings (loss) per share                  $   0.13  $  (0.07)
                                                   ========= =========

Shares used in computing basic earnings (loss) per
 share                                               60,956    59,990

Shares used in computing diluted earnings (loss)
 per share                                           61,475    59,990

-0-


                            INTERMEC, INC.
                     CONSOLIDATED BALANCE SHEETS
             (Unaudited, amounts in thousands of dollars)


                                                 March 30,  December
                                                    2008     31, 2007
                                                 ---------- ----------
                     ASSETS
Current assets:
 Cash and cash equivalents                       $ 186,528  $ 237,247
 Short-term investments                              1,137     28,230
 Accounts receivable, net of allowance for
  doubtful accounts and sales returns of $11,700
  and $12,854                                      166,033    191,487
 Inventories                                       130,172    113,145
 Net current deferred tax assets                    61,532     61,532
 Other current assets                               13,752     14,690
                                                 ---------- ----------
  Total current assets                             559,154    646,331

Property, plant and equipment, net                  48,490     47,732
Intangibles, net                                     3,906      4,138
Net deferred tax assets                            146,873    150,154
Other assets                                        58,397     52,280
                                                 ---------- ----------
Total assets                                     $ 816,820  $ 900,635
                                                 ========== ==========

    LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current liabilities:
 Accounts payable and accrued expenses           $ 141,416  $ 141,667
 Payroll and related expenses                       24,900     32,170
 Deferred revenue                                   54,948     49,020
 Current debt                                            -    100,000
                                                 ---------- ----------
  Total current liabilities                        221,264    322,857

Long-term deferred revenue                          19,114     20,109
Other long-term liabilities                         74,946     73,558

Shareholders' investment:
 Common stock                                          615        612
 Additional paid-in-capital                        685,099    679,241
 Accumulated deficit                              (189,917)  (196,795)
 Accumulated other comprehensive income              5,699      1,053
                                                 ---------- ----------
  Total shareholders' investment                   501,496    484,111
                                                 ---------- ----------
Total liabilities and shareholders' investment   $ 816,820  $ 900,635
                                                 ========== ==========

-0-


                            INTERMEC, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
             (Unaudited, amounts in thousands of dollars)

                                                     Quarter Ended
                                                  --------------------
                                                  March 30,  April 1,
                                                     2008       2007
                                                  ---------- ---------

Cash and cash equivalents at beginning of year    $ 237,247  $155,027
                                                  ---------- ---------

Cash flows from operating activities:
 Net earnings (loss) from operations                  7,706    (4,432)
 Adjustments to reconcile net earnings (loss) to
  net cash provided by (used in) operating
  activities:
   Depreciation and amortization                      3,742     3,093
   Deferred taxes                                     3,804       166
   Excess tax benefits from stock-based payment
    arrangements                                       (581)     (649)
   Changes in working capital and other
    operating activities                              2,845   (10,057)
                                                  ---------- ---------
  Net cash provided by (used in) operating
   activities                                        17,516   (11,879)

Cash flows from investing activities:
 Capital expenditures                                (3,803)   (2,160)
 Purchases of investments                              (760)     (595)
 Sale of investments                                 27,755       837
 Other investing activities                            (778)     (577)
                                                  ---------- ---------
  Net cash provided by (used in) investing
   activities                                        22,414    (2,495)

Cash flows from financing activities:
 Repayment of debt                                 (100,000)        -
 Excess tax benefits from stock-based payment
  arrangements                                          581       649
 Stock options exercised                              2,345     1,389
 Other financing activities                             879       521
                                                  ---------- ---------
  Net cash (used in) provided by financing
   activities                                       (96,195)    2,559

Effect of exchange rate changes on cash and cash
 equivalents                                          5,546       749
                                                  ---------- ---------
Resulting decrease in cash and cash equivalents     (50,719)  (11,066)
                                                  ---------- ---------

Cash and cash equivalents at end of period        $ 186,528  $143,961
                                                  ========== =========

CONTACT: Intermec, Inc. Kevin P. McCarty, 425-265-2472 Director of Investor Relations kevin.mccarty@intermec.com

-0- May/01/2008 20:00 GMT

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