Intermec Reports Positive Q1 Results
Share:
EVERETT, Wash. - May 1, 2008 - Intermec, Inc. today announced financial results for its first quarter, which ended March 30, 2008.
o Q1'08 Revenues of $217M up 21% over Q1'07
o Q1'08 Gross Margins of 40.3% up 430 bps over Q1'07
o Q1'08 Diluted EPS of $0.13
o $100M Debentures Repaid
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.
Jennette Seward
Mulberry Marketing Communications
206.931.3441
