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Intermec has poor first quarter, loses more than US$4 million

EVERETT, Wash.– Intermec, Inc. said it lost US$4.4 million in the first quarter ended April 1 on poor North American sales after posting a US$15.1 million profit for the same period a year earlier.

The company, which develops and integrates supply chain asset management solutions including wireless bar code readers, data collection systems and printers, said it totaled $179 million in first quarter revenues.

But it noted that the first quarter of 2006 included a gain on an intellectual property settlement, which positively impacted operating profit from continuing operations by $16.5 million.

Geographically during the first quarter of 2007, North American revenues decreased 29 per cent over the first quarter of 2006. Revenues in Europe, Mid-East and Africa (EMEA) increased 16 percent over the same prior-year period; and the rest of the world, consisting of Asia Pacific and Latin America, increased 19 percent.

Systems and solutions revenue decreased 20 per cent and printer and media revenues decreased four per cent over the first quarter of 2006. Service revenue increased one percent over the comparable prior-year period.

Restructuring and other cost reduction activities initiated in 2006 have been substantially completed. Lower operating expenses for the first quarter of 2007 was in-line with earlier guidance, reflecting a decrease of approximately $8.2 million or 11 percent over the prior-year period.

“During the first quarter of this year, we saw a marked difference in the performance by region,” said chairman and CEO Larry Brady. “This difference was driven in part by the earlier availability of our next generation mobile computer, the CN3, in international markets. Worldwide bookings for the CN3 continue to provide an indication of increasing traction in enterprise bookings.”

For the second quarter it anticipates revenues of between US$195 million to US$205 million.

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